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Parthus Technologies plc Announces Strong Second Quarter and Interim Results for the six months ended June 30, 2001

Dublin, Ireland - July 24, 2001 - Parthus Technologies plc (LSE:
PRH; Nasdaq: PRTH) today announced its financial results for the second
quarter and the six months ended June 30, 2001. Results are prepared and
reported under U.S. GAAP.

Highlights for the second quarter ended June 30, 2001:

Total revenue increased 30% year-on-year to $10.2 million, up 4%
sequentially from $7.8 million

Licensing and royalty revenue grew 95% year-on-year to $7.2
million, up 23% sequentially from $5.9 million

Licensing and royalty revenue grew to 70% of total revenue, from
60% of total revenue in the first quarter

10 new licensing and royalty agreements were signed with one
portfolio deal and three new customers

Total gross margins grew six basis points to 70%, well ahead of
the targeted timetable

Basic and diluted losses per share before exceptionals¹ amounted
to $0.0061 per ordinary share or $0.061 per ADS

Highlights for the six months ended June 30, 2001:

Total revenue increased 43% year-on-year to $19.9 million, up
from $14 million in the first half of 2000

Licensing and royalty revenue grew 103% year-on-year to $13
million

15 new licensing and royalty agreements were signed

Parthus' single largest licensing and royalty portfolio agreement
signed with STMicroelectronics

Two acquisitions completed: Chicory Systems and the 20% minority
interest in Silicon Systems Design Ltd

Two new platforms: MobiStream (GPRS/2.5G) and MachStream
(application acceleration platform)

Basic and diluted losses per share before exceptionals amounted
to $0.0107 per share or $0.107 per ADS; a decrease of 12% from the first
half of 2000

¹ exceptionals include amortization and
non-stock cash compensation costs

Commenting today, Brian Long, chief executive officer,
said:

"We are pleased with our first half results with licensing
and royalty revenues growing at 103% year-on-year against the backdrop of
a very sharp decline in the semiconductor industry. This growth
demonstrates the strength of our business model, our technology portfolio
and our customer partnerships. The second quarter of 2001 was our fifth
successive quarter as a public company during which we exceeded our
targets. We are confident of the underlying strength of our business model
and our target of a return to profitability in 2002".

Commenting today, Kevin Fielding, president, said:
"We
continue to execute well on the fundamentals of the business with the
signing of 15 new licensing and royalty agreements in the first half of
the year. We executed our largest licensing and royalty agreement with our
long-term customer and partner, STMicroelectronics, for the complete
portfolio of our platforms. In addition, we completed two acquisitions and
launched and licensed two new platforms, MobiStream and MachStream, adding
greater depth and strength to our technology offering."

Commenting today, Elaine Coughlan, chief financial officer,
said:

"We achieved our strongest ever sequential licensing revenue
growth up 23% quarter-on-quarter which helped drive our gross margins to
70%, a six basis point increase from the first quarter 2001. Our
underlying operating costs remained in line with expectations due to our
focus on cost management and efficiency as we continue to leverage our
business model. Despite the fact that we completed two acquisitions in the
second quarter our cash outflow decreased sequentially by 61% to less than
$200,000 and our cash reserves remain strong at $129 million."

OPERATIONS REVIEW

Licensing Growth

During the first six months of 2001, Parthus signed 15 licensing and
royalty agreements, five in the first quarter and 10 in the second
quarter. The caliber of licensees reinforces Parthus' position as one of
the leading suppliers of platform-level IP to some of the world's largest
semiconductor companies. Significant license agreements announced included
the following:

In June, STMicroelectronics signed the single largest deal by
value, executed by Parthus with a portfolio licensing and royalty
agreement for the complete portfolio of mobile Internet platforms and
technologies. This multi-year agreement represents a strategic shift in
the long-standing relationship between the two companies, moving from
predominantly IP creation to IP licensing, royalty and joint marketing. ST
is the world's sixth-largest semiconductor company and a market leader in
the communications, digital consumer and automotive sectors

In April, Sharp licensed the Parthus InfoStream platform to power
its PDA (personal digital assistant) and Smartphone initiatives. Sharp is
a leading PDA manufacturer, while its semiconductor division supplies
chipsets to leading mobile computing companies, including Compaq and
Palm

In March, Hitachi, a leading wireless semiconductor company,
licensed Parthus' BlueStream platform for BluetoothTM chipsets

In January, 3Com, a leading networking company, signed a
portfolio licensing and royalty agreement with Parthus for a range of
platforms

Acquisitions

In June, Parthus acquired the remaining minority 20% stake in Silicon
Systems Design Limited (SSD) from STMicroelectronics for a total of $12.9
million in cash and 18.4 million ordinary shares in Parthus Technologies
plc. SSD is the original Parthus/ST entity that was responsible for IP
Creation activities. Prior to the acquisition, Parthus held an 80% stake
in SSD. The acquisition of the remaining 20% of SSD enables Parthus to
combine the significant engineering resources of SSD with Parthus' own
resources to support the accelerated level of licensing activity.

In May, Parthus announced the acquisition of privately-owned Chicory
Systems of Austin, Texas which has developed one of the most advanced
technologies for accelerating a suite of key mobile Internet applications.
In addition to acquiring intellectual property, Parthus acquired a team of
26, mostly comprised of highly-qualified microprocessor architects and
algorithm development experts. The initial consideration amounted to $46.5
million, comprising 22.2 million Parthus ordinary shares and $11.7 million
in cash. In addition, up to 23.7 million Parthus ordinary shares may be
issued as deferred contingent consideration upon the achievement of
certain performance targets.

Technology Development

During the first half of 2001 Parthus launched and licensed two further
platforms, adding to the company's portfolio of mobile Internet IP:

MachStream's patented technology accelerates a suite of
applications including wireless browsers/scripting languages (cHTML,
XHTML, XML or WML based), complex open software applications (Java) and
data/media environments (JAR, GIF, ZIP, PNG file formats) and streaming
media (MPEG-4) by moving cycle-intensive software tasks within the
wireless application infrastructure into high performance, low-power
silicon architecture.

MobiStream is a hardware-centric GPRS/2.5G platform that delivers
both exceptionally low power consumption and very low deployment costs.
MobiStream is architected for deployment in either standalone 2.5G or dual
mode 3G environments.

In June, Parthus announced that the BlueStream platform achieved
BluetoothTM v1.1 qualification from the
Bluetooth Special Interest Group (SiG) through an independent third-party
certification authority. Parthus' leadership in Bluetooth was reinforced
in April with the launch of an advanced Bluetooth radio chip with
STMicroelectronics. The radio chip delivers ultra low power consumption
and low bit error rates (BERs).

Organizational Development

The acquisition of Chicory Systems increased headcount by 26 people
during the quarter to 429, compared with 403 at the end of the first
quarter and 340 people at June 30, 2000. Parthus opened an R&D center
in Caen, France which is focused on developing highly advanced multi-mode
radio (RF) technology. A new upgraded R&D center was opened in
Limerick, Ireland, that focuses on the development of wireless software
protocols and chip design layouts for next-generation Smartphones. The
management team was strengthened with the recruitment of a new chief
operating officer, Eoin Gilley. Kevin Fielding, a board Director and
formerly chief operating officer was appointed company president. Peter
McManamon, previously chief financial officer, moved to an expanded role
in corporate development, and Elaine Coughlan, formerly vice president
finance, was appointed chief financial officer.

Strategic partnerships

During the first six months of the year Parthus continued to forge
strong strategic partnerships with leading wireless companies and
organizations including Condat, the German supplier of GPRS technology;
SyncML, which has developed a common protocol designed to allow all mobile
devices and applications synchronize data across any network; the Java
Community Process, which help ensure that Java technology-based devices
support the latest protocols for wireless environments and Bluetooth SiG,
a group that focuses on important technical and interoperability
issues.

FINANCIAL REVIEW

Income Statement

Second Quarter ended June 30, 2001

Total revenue for the second quarter ended June 30, 2001 amounted to
$10.2 million, a 30% increase year-on-year, and a 4% increase over the
first quarter 2001 revenue of $9.8 million.

IP licensing and royalty revenue grew strongly to $7.2 million, up 95%
from $3.7 million in the second quarter 2000 and up 23% from $5.9 million
in the first quarter of this year. This represents the strongest
quarter-to-quarter growth in licensing revenue to date. Licensing and
royalty revenue now accounts for 70% of total revenue, up from 47% in the
second quarter 2000 and from 60% of total revenue in the first quarter
2001. Royalty revenue of $140,000 was flat quarter-on-quarter. Royalty
revenue was first recorded in the third quarter of 2000 and represented 1%
of total revenue in the second quarter of this year.

The decline in IP creation revenue is a result of the positive shift to
higher margin licensing revenue over the last year. IP creation amounted
to $1.9 million in the second quarter, down 43% year-on-year and 21% from
the first quarter of 2001. Hard IP declined 27% to $1.1 million, from $1.5
million in the first quarter 2001. This reflects the reduction in volume
shipments of modules for use in current products and the general slowdown
in the semiconductor industry.

Gross margins were 70% in the second quarter, a six basis point
improvement over the first quarter 2001, and an 11 basis point increase
year-on-year. This is well ahead of the company's stated 2002 timetable
for generating gross margins of 70%. It demonstrates the strategic
commitment to developing the higher margin licensing business and laying
strong foundations for a return to profitability.

The company's continued emphasis on improved productivity from the
existing organization and ongoing vigiliance on cost management overall
has resulted in only a modest increase in operating costs, excluding the
impact of acquisitions. Research and development investment grew $1.2
million from $6 million to $7.2 million, up 20% sequentially. The two
acquisitions announced during the second quarter accounted for the
majority of this increase. Sales and marketing expenses increased by
$183,000 in the quarter to $2.9 million, up 7% sequentially. General and
administration expenses declined by 5% to $1.8 million for the second
quarter. Both amortization of intangibles and non-cash stock compensation
were impacted by the second quarter acquisitions.

Amortization increased to $1.3 million from $366,000 and non-cash stock
compensation expenses amounted to $420,000 for the second quarter, an
increase of $84,000. Both items are included in operating expenses.

Interest income declined sequentially to $1.7 million, down from $2.1
million in the first quarter 2001. This reflects the impact of lower cash
balances mainly arising from acquisitions in the second quarter and the
lower interest rate environment.

The net loss for the second quarter ended June 30, 2001, excluding
amortization and non-cash stock compensation expense amounted to $3.3
million, representing a loss of $0.0061 per ordinary share or $0.061 per
ADS. Including amortization and non-cash compensation expense the net loss
in the second quarter was $5.1 million, representing a loss of $0.0093 per
ordinary share or $0.093 per ADS.

Six months ended June 30, 2001

Total revenue for the six months ended June 30, 2001 amounted to $19.9
million, up $5.9 million or 43% over the first half 2000 total revenue of
$14.0 million.

Licensing and royalty revenue grew 103% to $13 million for the first
half of 2001, up from $6.4 million in the first half of 2000. Licensing
revenue represented 64% of total revenue, compared with 46% for the same
period last year. Royalty revenue recognized was $283,000 in the first six
months of 2001. There was no royalty revenue for the corresponding period
last year. The planned strategic shift away from lower margin IP creation
activity continued with a decrease of 36% from $6.8 million to $4.3
million in the first half of this year compared with the first half of
2000. Hard IP revenue grew from $800,000 in the first half of 2000 to $2.6
million in the first half of 2001.

Total gross margins increased from 56% in the first six months of 2000
to 67% for the first half of 2001.

Research and development investment grew from $7.7 million to $13.2
million in the first six months of this year, up 71% year-on-year as the
company continued its strong investment to grow the IP licensing business.
Sales and marketing and general and adminisation grew in line with the
growth in the organization and the commercialization of key technologies.
Sales and marketing increased from $3.9 million in the first half of 2000
to $5.5 million in the first half of 2001. General and administration grew
to $3.7 million, from $2.1 million in the first six months of last year.
Amortization of intangibles grew to $1.7 million from $349,000 in the
first half of 2000, reflecting the increased acquisition activity during
the first half of 2001. Non-cash stock compensation amounted to $756,000,
an increase of $317,000 from the comparable period in 2000, excluding a
one time non-cash stock compensation expense of $4.4 million relating to
options granted prior to the IPO. Both items are included in operating
expenses.

Interest income amounted to $3.8 million for the first half of this
year. This shows a substantial increase of $3.1 million on the first half
of 2000 and is a function of the cash raised in the successful IPO in May
2000 and the follow on offering in November 2000.

The net loss for the six months ended June 30, 2001, excluding
amortization and non-cash stock compensation expense amounted to $5.8
million, representing a loss of $0.0107 per ordinary share or $0.107 per
ADS. Including amortization and non-cash compensation expense the net loss
of the first half 2001 was $8.2 million, representing a loss of $0.0152
per ordinary share or $0.152 per ADS. This represents a 20% decline in the
overall net loss for the company from the same period last year.

Balance Sheet and Cash Flow

As at June 30, 2001 total assets amounted to $233.4 million, compared
with total assets of $178.3 million as at March 31, 2001 and $179.2
million as at December 31, 2000.

Cash and cash equivalents amounted to $129 million as at June 30, 2001,
compared with $157 million as at March 31, 2001 and $159.8 million as at
December 31, 2000. The decrease in cash during the second quarter of $28
million is principally a result of the $25.7 million cash consideration
invested in second quarter acquisitions and capital expenditure of $1.8
million.

Despite an increase in operating costs associated with acquisitions,
cash outflow at the operating level in the second quarter decreased
$309,000 from $502,000 in the first quarter 2001 to $193,000 in the second
quarter 2001. The decrease in the operating cash outflow reflects the 20%
sequential increase in deferred revenue. Deferred revenue grew to $8.2
million this quarter from $6.8 million in the first quarter 2001 and $5.6
million at December 31, 2000, reflecting the strong cash inflows from the
company's licensing activities. Parthus was cash positive for the fiscal
year 2000 generating $2.8 million cash from operations.

Intangible assets amounted to $85.7 million as at June 30, 2001
compared with $5.9 million as at March 31, 2001 and $6.2 million as at
December 31, 2000. The increase of $79.8 million in the second quarter is
principally attributable to goodwill of $42.8 million arising on the
initial allocation of the purchase price from the acquisition of Chicory
Systems, Inc. and $37.6 million arising from the acquisition of the
minority interest in SSD Limited. Goodwill on these acquisitions is being
amortized over five years and reflects the period over which the company
expects to benefit from the intellectual property and expertise
acquired.

Parthus is currently reviewing the initial allocation of the purchase
price associated with the acquisition of Chicory Systems, Inc. As part of
this process Parthus expects to record a non-cash charge for in process
R&D in the third quarter when the purchase price allocation is
completed.

Accounts receivable grew to $5.6 million in the second quarter from $5
million in the first quarter and $3.2 million at December 31, 2000.
Debtors' days rose to 49 days in the second quarter from 41 days in the
first quarter 2001, and from 33 days in the fourth quarter 2000. This
change reflects the timing of invoicing within the second quarter and the
majority of the balance outstanding is less than 30 days old.

OUTLOOK

The current trading difficulties in the semiconductor industry have
impacted Parthus customers this year. This has clouded visibility over the
next 12 months. However, the strength of Parthus' performance over the
past two quarters gives confidence that the company should meet its target
of profitability in 2002 and the long-term prospects remain strong,
particularly as market conditions improve.

For further information About
ParthusCeva, Inc.
.

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Safe Harbour Statement

This document may contain "forward looking
statements" within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. 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 acceptance of semiconductor
intellectual property offerings, expansion of our business, quarterly
variations in results, and other uncertainties that are discussed in our
2000 Annual Report on Form 20-F which is on file with the SEC since June
26, 2001.