SANTA CLARA, California, June 11, 2001 –– DSP Group, Inc.
(NASDAQ: DSPG), a leading company in the development of high-performance,
cost-effective, licensable Digital Signal Processor (DSP) cores, today
announced that it has been named the worldwide leader with the largest
market share of DSP Core Intellectual Property (IP), in a recent market
statistics report published by Gartner Dataquest.

According to the Gartner Dataquest's Worldwide Semiconductor
Intellectual Property (SIP) Share Rankings published May 29, 2001, DSP
Group Inc. ranked 1st in both 1999 and 2000 in DSP Core IP revenues
worldwide, with a market share of 55% of the licensed DSP core market. The
SIP market is one of the newest and most talked about sectors of the
overall semiconductors market, and is driven by the trend toward highly
integrated System-on-a-Chip (SoC) designs. According to Gartner, the SIP
market reached $690 million in 2000, up from $492 million in 1999.

"Years of development invested in our SmartCores™ family of DSP cores,
combined with extensive support to our licensees have proven successful,
as reflected in our position as the number one worldwide DSP core
licensor," said Bat-Sheva Ovadia, VP Marketing and Business Development of
the DSP Group's Technology Licensing Division. "We are encouraged to see
more and more semiconductor companies as well as System OEMs that are
adopting our DSP cores for emerging and high-volume applications, such as
cellular handsets, xDSL modems, VoIP and consumer audio and video."

"Our analysis shows that licensable DSP cores is one of the fastest
growing sectors of the IP market, having grown by 72% in 2000 vs. 1999"
said Jim Tully, Chief Analyst at Gartner Dataquest. "DSP Group clearly
dominates the market, holding 55% market share of worldwide DSP cores
licenses, double that of the next company, and significantly ahead of
other companies in the field."

About SmartCores

DSP Group's SmartCores family of low-power, fixed-point licensable DSP
cores offer a range of performance, price and power consumption balances,
addressing a wide range of applications, from low-end, high-volume
applications, such as digital answering machines, hard disk controllers,
low speed modems and Voice over IP terminals, to high performance
applications such as third generation (3G) cellular communications,
broadband modems, consumer multimedia and Voice over IP gateways.

SmartCores licensees can benefit from the technology in the following
manners

• Fully synthesizable soft core which allow
  porting to any process or foundry

• Code compatible – allowing re-use of legacy code
  and significantly shorter time to market

• Low power consumption
• High code density - to reduce chip cost
• Cores offered at various performance levels -
  starting with single-MAC (OakDSPCore® and TeakLite®) architecture to
  Dual-MAC (Teak®) and Dual-MAC with Instruction Level Parallelism
  (PalmDSPCore®).

About DSP Group, Inc.

DSP Group, Inc., is a global leader in the development and marketing of
high-performance, cost-effective, licensable digital signal processing
cores. The Company's family of DSP cores provides ideal solutions for
low-power cost-driven applications such as cellular, broadband
communication, VoIP, multimedia, advanced telecommunication systems, disk
drive controllers and many other types of embedded control applications.
By combining its DSP core technologies with its proprietary advanced
speech-processing algorithms, DSP Group also delivers a wide range of
enabling, application-specific ICs for full-featured integrated telephony
products and digital cordless applications. DSP Group, Inc., maintains an
international presence with offices located around the globe. Additional
information is available on the World Wide Web at:
http://www.dspg.com

Statements contained in this release may constitute forward-looking
statements. These statements involve certain risks and uncertainties such
as acceptance of the company's new products by existing OEM customers,
potential customers and the company's ability continue to add licensees
and to develop and produce its new products at competitive costs. These
factors and other factors which may effect future operating results or our
stock price are discussed under "FACTORS AFFECTING FUTURE OPERATING
RESULTS' in our report on Form 10-Q for the quarter ended March 31, 2001,
which has been filed with the Securities and Exchange Commission and is
also available on our website (www.dspg.com) under Investor Relations.

SmartCores, PalmDSPCore, Teak, TeakLite and OakDSPCore are registered
or non-registered trademarks of DSP Group, Inc.