Parthus Technologies Plc Announces Strong Second Quarter and First Half Results

July 17, 2002

Dublin, Ireland - July 17, 2002 - Parthus Technologies plc (LSE:
PRH; Nasdaq: PRTH) today announced its financial results for the second
quarter and the six months ended June 30, 2002. Results are prepared and
reported under U.S. GAAP.

Licensing and royalty revenue grew 37% year-on-year to $9.8
million, up 10% sequentially from $8.9 million
Royalty revenue grew 193% sequentially from $263,000 to
$770,000, with five customers now shipping products mainly in the
consumer electronics area
US GAAP net loss down 31% to $2.3 million
Pro forma¹ earnings of $66,000
Seven new licensing and royalty agreements were signed,
including five new customers
A new wireless LAN "W-LAN" platform was launched targeting the
802.11 market
Parthus announced the proposed merger with Ceva, the DSP cores
licensing subsidiary of DSP Group

The reported net loss for the second quarter 2002 was $2.3 million,
representing a net loss of $0.004 per ordinary share or $0.039 per ADS.
The pro forma¹ net earnings for the second quarter 2002 were
$66,000.

Total revenue increased 8% year-on-year to $21.5 million, up
from $19.9 million in the first half of 2001
Licensing and royalty revenue grew 44% year-on-year to $18.8
million
13 new licensing and royalty agreements were signed
To date Parthus has signed a total of 87 license deals, 59
with royalty agreements, with 56 customers
Strategic alliances expanded the Parthus portfolio with
2.5G/3G W-CDMA and W-LAN technologies

The reported net loss for the first half 2002 was $5.6 million,
representing a loss of $0.010 per ordinary share or $0.095 per ADS.The pro
forma¹ net loss for the first half 2002 amounted to $2.4
million, representing a loss of $0.0041 per ordinary share or $0.041 per
ADS.

¹ Pro forma results exclude amortization
of intangibles, merger and non-stock cash compensation costs

Commenting today, Elaine Coughlan, chief financial officer,
said:
"While the semiconductor operating environment remains
challenging, the combination of continued licensing growth, up 29%, a
strong increase in royalties and prudent cost management with operating
costs down 23% year-on-year has enabled us to achieve pro forma
profitability one quarter ahead of stated objectives."

Commenting today, Kevin Fielding, president, said:
"We are
pleased to have delivered another quarter of solid performance and met our
target of achieving pro forma profitability. We maintained strong
licensing momentum with nine new customers and 13 new license agreements
signed in the year to date. We have licensed all of our platforms during
this period, reflecting the strength of our portfolio. In addition, there
was strong growth in royalties as our customers began volume shipments.
Finally key new wireless communications technologies, introduced during
the first half, have grown the sales pipeline."

Commenting today on the proposed merger of Parthus and Ceva, Brian
Long, chief executive officer, said:
"On July 15 we announced IRS
approval of the tax-free spin-off of Ceva from DSP Group, which satisfied
the last remaining pre-condition for our merger with Ceva. We remain on
schedule for completion of this transaction in the third quarter. Parthus
enters the merger with sustained licensing growth and one of the most
comprehensive product portfolios in the industry. We believe ParthusCeva
will be well positioned to become a leading supplier of open-standard DSP
solutions to the industry, with exciting opportunities for growth in an
industry upturn."

Total revenue for the second quarter amounted to $10.8 million, a 6%
increase year-on-year, and a 1% increase over the first quarter 2002
revenue of $10.7 million.

IP licensing and royalty revenue was $9.8 million, up 37% year-on-year
from $7.2 million in the second quarter 2001 and up 10% from $8.9 million
in the first quarter of this year. Licensing and royalty revenue now
accounts for 91% of total revenue, up from 70% in the second quarter 2001
and from 84% in the first quarter 2002. Royalty revenue was $770,000, up
193% quarter-on-quarter from $263,000, and represented 7% of total
revenue. IP creation revenue amounted to $596,000 in the second quarter,
down 69% year-on-year and down 28% from the first quarter of 2002. This
reflects the challenge of maintaining jointly funded R&D activity in
the current environment. Hard IP revenue amounted to $381,000, down 66%
year-on-year and down 56% from the first quarter 2002, which included a
large one-time order.

Gross margins were 80% in the second quarter, up from 76% in the first
quarter 2002, and from 70% in the second quarter 2001. The sequential
increase is a result of the growth in royalty revenue in the quarter,
which carries an effective gross margin of 100%.

The company has continued its commitment to cost management as part of
its plan to achieve pro forma profitability within the context of the
external operating environment. Total operating costs, excluding non-cash
stock compensation expense, declined $2.3 million or 20% sequentially from
$11.3 million to $9.0 million. This is ahead of the plan at the start of
the year to deliver substantial annualized cost savings. Research and
development investment decreased $1.8 million or 24% sequentially from
$7.3 million to $5.5 million. This decrease is principally as a result of
reduced investment in 2.5G/3G development through the agreement with
UbiNetics, which involved the divestiture of the associated engineering
and facility cost in March 2002. Direct investment by the company in other
key new technologies such as W-LAN 802.11 continued. Sales and marketing
expenses decreased $170,000 or 7% sequentially, from $2.3 million to $2.1
million. General and administration expenses declined by $193,000 or 12%
sequentially from $1.6 million to $1.4 million.

Amortization of intangibles amounted to $340,000 and non-cash stock
compensation amounted to $525,000 in the second quarter 2002, the same as
in the first quarter 2002. Also included are merger expenses relating to
the transaction with Ceva which amounted to $1.5 million in the second
quarter. As previously disclosed, the company anticipates that total
expenses relating to this transaction will be approximately $4 million.

Interest and similar income declined $23,000 sequentially from $680,000
in the first quarter of 2002 to $657,000 in the second quarter 2002.

The reported net loss for the second quarter 2002 was $2.3 million,
representing a net loss per ordinary share of $0.004 or $0.039 per ADS.
This compares with a reported net loss for the first quarter 2002 of $3.3
million, representing a loss of $0.006 per ordinary share or $0.057 per
ADS. The pro forma net earnings for the second quarter were $66,000. This
compared with a pro forma net loss for the first quarter 2002 of $2.4
million, representing a pro forma net loss per ordinary share of $0.004 or
$0.042 per ADS. Pro forma results for the second quarter exclude
amortization of intangibles, merger costs and non-cash stock compensation
expense.

Total revenue for the six months ended June 30, 2002 amounted to $21.5
million, up 8% over the first half 2001 total revenue of $19.9 million.

IP licensing and royalty revenue grew to $18.8 million, up 44%
year-on-year from $13.0 million in the first half 2001. Royalty revenue
increased to $1.0 million, up 266% year-on-year from $282,000 in the first
half 2001. IP creation revenue declined to $1.4 million, down 67%
year-on-year from $4.3 million in the first half of 2001. Hard IP revenue
declined to $1.3 million, down 51% year-on-year from $2.6 million in the
first half of 2001.

Total gross margins increased to 78% for the first half of 2002, from
67% in the first six months of 2001. This reflects the continuing change
in business mix to higher margin IP licensing and royalty revenue, which
represents 87% of total revenue in the first half 2002.

Operating costs, excluding non-cash stock compensation expense,
decreased $2.1 million or 9% year-on-year in the first half 2002 to $20.3
million from $22.4 million in the first half of 2001.This reflects the
full benefits of the cost management program. Research and development
investment declined $449,000 or 3% year-on-year to $12.7 million from
$13.2 million in the first half of 2001. Sales and marketing expenses
decreased by $1.1 million or 20% year-on-year to $4.4 million from $5.5
million in the first half of 2001. General and administration expenses
declined by $728,000 or 20% year-on-year to $3.0 million from $3.7 million
in the first half 2001. Amortization of intangibles decreased $994,000 to
$680,000 in the first half 2002 from $1.7 in the first half 2001,
reflecting changes in the accounting for goodwill from an amortization
method to an impairment-only approach following the adoption of SFAS 142
on 1 January 2002. Non-cash stock compensation increased $294,000 to $1.1
million from $756,000 in the first half 2001. In addition in the second
quarter costs associated with the proposed merger of Parthus and Ceva
amounted to $1.5 million.

Interest income and similar income amounted to $1.3 million for the
first half of 2002, compared with $3.8 million for the first half of 2001.
This decrease in interest income reflects the lower cash balances and the
lower interest rate environment in the first half of this year. The most
significant changes in cash in the period relates primarily to
acquisitions of $25 million during the first half of 2001.

The reported net loss for the first half 2002 was $5.6 million,
representing a loss of $0.010 per ordinary share or $0.095 per ADS. This
represents a 32% decline in the overall reported net loss for the company
from the same period last year. The pro forma net loss for the first half
2002 amounted to $2.4 million, representing a loss of $0.0041 per ordinary
share or $0.041 per ADS.

At June 30, 2002 total assets amounted to $202.5 million, compared with
total assets of $201.3 million at March 31, 2002 and $205.8 million at
December 31, 2000.

Cash and cash equivalents amounted to $114.1 million at June 30, 2002,
compared with $115.8 million at March 31, 2002 and $121.5 million at
December 31, 2001. The cash outflow at the operating level amounted to
$1.9 million for the second quarter 2002, compared with $2.1 million in
the first quarter 2001. Deferred revenue grew $338,000 or 9% to $3.9
million during the second quarter 2002 from $3.6 million in the first
quarter 2002. Accounts receivable grew to $5.4 million in the second
quarter from $4.2 million in the first quarter and $3.5 million at
December 31, 2001.

Debtors' days rose to 46 days in the second quarter from 36 days in the
first quarter 2002, and from 31 days in the fourth quarter 2001 due to the
timing of invoicing and collection.

Parthus continued to broaden its customer base with eight new customers
signed in the first half of the year. The company's strategy of targeting
the leading semiconductor companies continues to produce results. Parthus
has now signed licensing agreements with seven of the world's top-10
semiconductor companies. With 13 new licenses in the first half 2002,
Parthus has signed a total of 87 licensing agreements, 59 with royalty
components and its customer base has grown to 56.

In the first half 2002, license agreements were completed on each of
our platforms, reflecting the strength of the company's technology
offering. MediaStream (digital audio) and BlueStream (Bluetooth) are well
positioned to drive royalty revenues as licensees begin to ship products
powered by Parthus' platforms. The company continued to see strong demand
for the InfoStream (mobile computing) and NavStream (GPS location)
technologies. Parthus has delivered the latest upgrade of InfoStream
(2000) to two licensees during the first half of this year. InfoStream
2000 incorporates multiple upgrades to the architecture and licensees are
targeting Smartphone, PDA and home multimedia market segments with the
platform.

NavStream continues to enjoy strong licensing momentum, driven by the
advanced "in-building" tracking capabilities of this GPS location
platform. Licensees are targeting the cellular handset markets with the
technology driven in part by the US e911 regulatory requirements. In
addition, NavStream has secured some key design wins in the defense and
security sectors, where high accuracy and rapid loctation capabilities are
required.

In the first half 2002, Parthus continued to strengthen its portfolio
of technologies and consequently its pipeline of new products for
licensing. These new technologies are targeting W-LAN "802.11" and
Cellular "W-CDMA" markets. Finally the company has secured a number of
strategic licensing wins with 'teacher' customers in the Wireline market
segment and expects to formally launch the technology in the second half
of 2002.

In the second quarter, Parthus announced the launch of In8Stream™
targeting the high growth W-LAN marketplace. In8Stream is a multi-mode
W-LAN platform targeting the entire range of IEEE 802.11 W-LAN standards
(a, b, g, e, i) through one flexible architecture. The architecture
incorporates a number of differentiating features that substantially
reduce memory and processor costs, delivering an ultra-low cost 802.11
solution. In addition, a programmable communications architecture enables
all versions of the 802.11 standard to be supported with the same
architecture through software upgrades only.

In March, Parthus announced a broad ranging strategic agreement with
UbiNetics, an established expert and market leader in 3G wireless device
technology. Under a license agreement, UbiNetics will integrate Parthus'
GPRS/GSM technology into its 3G W-CDMA product to create a fully
integrated multi-mode 2.5G/3G (W-CDMA/GPRS/GSM) solution. Parthus will
market and sell this multi-mode 2.5G/3G solution through the company's
global sales channel and semiconductor relationships. In connection with
the alliance, Parthus subscribed for a minority shareholding interest in
UbiNetics.

In April, the company announced the proposed combination with Ceva, the
DSP cores licensing subsidiary of DSP Group Inc., in a merger of equals.
The merger, which has been unanimously approved by the boards of directors
of both companies, creates a combined company which the parties believe
will have clear leadership in the market for Digital Signal Processing
(DSP) cores and platform-level IP - the core technologies for all digital
communication and multimedia devices. The newly combined company will be
called ParthusCeva, Inc.

DSP technology is fundamental to Parthus' customers as they target
their products at high growth markets such as wireless communications,
mobile computing, automotive, consumer entertainment and computer
networking. The merger of Parthus and Ceva will create what Parthus
believes will be the leading independent provider of DSP-based IP
solutions, with strong customer penetration of many of the world's largest
semiconductor companies (nine of the top-10) and OEMs (such as Samsung,
Sony, Ericsson, Siemens).

On July 15, the company announced that DSPG has now received a ruling
from the United States' Internal Revenue Service, that the contribution of
the DSP cores licensing business of DSPG to Ceva and the distribution of
the shares of Ceva to the stockholders of DSPG, will be treated as a
tax-free transaction for United States federal income tax purposes.

This ruling satisfies the final pre-condition of the proposed
combination of Parthus with Ceva, announced on 5 April 2002. Accordingly,
it is expected that formal documentation in relation to the combination
will be dispatched to Parthus shareholders in early August 2002, with
completion of the combination expected during the third quarter 2002.

The combination is to be effected by a scheme of arrangement ("Scheme")
and is subject to, inter alia, the approval of the Scheme by shareholders
of Parthus and the sanction of the Scheme by the High Court in Dublin.

While semiconductor industry visibility remains challenging, there
appears to have been a stabilization in market conditions in the first
half of 2002. Recently the Semiconductor Industry Association revised
forecasts downwards for 2002 overall, with semiconductor industry revenue
now forecast to be flat for the second half of this year. The company's
short-term outlook reflects this forecast. However, Parthus believes that
its second quarter performance of continued licensing and royalty growth,
improved gross margins and good cost control positions the company
strongly for the medium term.

###

This document may contain "forward-looking statements".
Any "forward-looking statements" in this document are subject to certain
risks and uncertainties that could cause actual results to differ
materially from those stated. Any statements that are not statements of
historical fact (including, without limitation, statements to the effect
that the company or its management "believes," "expects," "anticipates,"
"plans" and similar expressions) should be considered forward-looking
statements. Important factors that could cause actual results to differ
from those indicated by such forward-looking statements include
uncertainties relating to the ability of management to complete the
planned merger with Ceva, Inc. and to successfully integrate the
operations of the two companies, uncertainties relating to the acceptance
of semiconductor intellectual property offerings, expansion of our
business, quarterly variations in results, and other uncertainties that
are discussed in Amendment No. 1 to the company's 2001 Annual Report on
Form 20-F filed with the SEC on July 9, 2002.

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