ParthusCeva Announces Results For The First Quarter Ended March 31 2003

San Jose, CA - April 28, 2003 - ParthusCeva, Inc. (NASDAQ: PCVA;
LSE: PCV), the industry's leading provider of licensable Digital Signal
Processor (DSP) cores and platform-level IP solutions, today announced
results for the first quarter ended March 31, 2003.

In accordance with US GAAP, total revenues for the first quarter 2003
were $8.8 million, an increase of 56% over $5.7 million in the fourth
quarter 2002. Royalty revenues in the first quarter 2003 were $606,000
with licensing and royalty revenues representing 79% of total revenues.
Gross margins in the first quarter 2003 were 81%, an increase of three
basis points from 78% in the fourth quarter 2002. In first quarter 2003,
ParthusCeva signed six license agreements across a range of DSP cores, GPS
and Wireless-LAN platforms. These included significant deals with two
companies that are recognized leaders in the cellular market, one in Asia
and one in the US.

Operating expenses, in accordance with US GAAP, for the first quarter
2003 were $8.6 million, compared to $28.5 million in fourth quarter 2002.
Operating expenses, on a pro forma basis (see note
'a'
), for the first quarter 2003 were $6.9 million compared to $8.4
million in the fourth quarter 2002, a decrease of 18%. Cash and cash
equivalents at the end of the first quarter 2003 amounted to $68.5
million.

Net loss, in accordance with US GAAP, for the first quarter 2003
amounted to $1.3 million compared to a net loss of $24.4 million for the
fourth quarter 2002. Net loss per share for the first quarter 2003
amounted to $0.073. On a pro forma basis, (see note
'b'
), net income for the first quarter 2003 amounted to $346,000 with
net earnings per share of $0.02.

Brian Long, Chief Executive Officer of ParthusCeva, commented:

"Against the backdrop of a continued weak semiconductor industry, I am
pleased that ParthusCeva has achieved pro forma profitability following
strong licensing performance in the quarter and good cost control
resulting from the restructuring program implemented in November 2002. In
the quarter we achieved some notable design wins, with strong licensing
performance across the breadth of our technologies. We also announced some
new and exciting products which will be available for license in the
second quarter. This strong performance in quarter one combined with the
knowledge that we have already completed several significant deals in the
first month of quarter two, gives us confidence that we can sustain the
licensing momentum generated in the first quarter of 2003."

Eli Ayalon, Executive Chairman of ParthusCeva, commented:

"I am encouraged by our quarter one performance and believe that our
recently announced initiative to strengthen our US operations will assist
us in meeting our corporate goals of market leadership in DSP technologies
and profitable growth."

Pro Forma Results

Management believes that the presentation of pro forma information is
useful to investors because such information excludes accounting charges
(whether one-time or amortized over time) associated with the Company's
past acquisitions and restructuring, and gives investors insight into the
profitability of the Company's operating business. Management also
believes that the presentation of pro forma results is consistent with its
past practice, as well as industry practice in general, and will enable
investors and analysts to compare the current pro forma results with pro
forma results from prior periods and with pro forma results from others in
the industry.

Note (a)
Pro forma operating expenses for the
fourth quarter 2002 of $8.4 million excludes a reorganization charge of
$6.5 million, a one-time, non-cash charge for in-process research and
development of $15.8 million and non-cash amortization of intangibles of
$189,000 from the US GAAP operating costs of US$28.5 million and includes
$2.3 million of Parthus pre-merger operating costs for the month of
October to enable comparable quarterly trends. Pro forma operating
expenses for the first quarter 2003 excludes non-cash amortization of
intangibles of $284,000 and a non recurring reorganization charge of $1.4
million.

Note (b)
Pro forma net income excludes a
non-recurring reorganization charge of $1.4 million and non-cash
amortization of intangible assets charge of $284,000.

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Consolidated Statement Of Operations - US GAAP
& Consolidated Balance Sheet - US GAAP

Consolidated Statement Of Operations - US GAAP &
Consolidated Balance Sheet - US GAAP are available for download here
(pdf 20KB)

About ParthusCeva

Further information about
ParthusCeva

A PDF copy of this press release is also available here

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Safe Harbour Statement

Various statements in this release concerning
ParthusCeva's future expectations, plans and prospects are
"forward-looking statements", which 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.
These statements are subject to a number of risks and uncertainties that
could cause actual results to differ materially from those described
including that the industries in which we license our technology are
experiencing a challenging period of slow growth that has negatively
impacted and could continue to negatively impact our business and
operating results; that the markets in which we operate are highly
competitive, and as a result we could experience a loss of sales, lower
prices and lower revenue; that our operating results fluctuate from
quarter to quarter due to a variety of factors including our lengthy sales
cycle, and are not a meaningful indicator for future performance and that
we rely significantly on revenue derived from a limited number of
licensees and other risks discussed in "Management's Discussion and
Analysis of Financial Condition and Results of Operations--Factors that
Could Affect Our Operating Results," in our annual report on Form 10-K for
the year 2002, which is on file with the U.S. Securities and Exchange
Commission.