ROLLING MEADOWS, Ill. and SANTA CLARA, Calif.—October 2,
2001—PrairieComm, Inc., a leading provider of chipsets for wireless
handsets from the world's leading consumer electronics manufacturers, and
DSP Group Inc., (NASDAQ: DSPG), the leader in the development and
licensing of high-performance, cost-effective digital signal processing
(DSP) cores, today announced they have entered into a strategic DSP
technology licensing agreement. Under the terms of the agreement,
PrairieComm has licensed DSP Group's TeakLite technology as a platform for
developing its next-generation solutions for wireless communications.

The licensing of TeakLite technology augments PrairieComm's extensive
portfolio of wireless solutions, which includes chipsets, embedded
software and licensed intellectual property for CDMA, TDMA, GSM and 3G
UMTS.

"DSP Group's TeakLite technology gives PrairieComm a solid foundation
for building the highly integrated chipsets for today's and tomorrow's 3G
baseband architecture," said Ed Roney, PrairieComm's Vice President of
Products and Systems. "The power efficiency and performance of TeakLite
technology will significantly enhance our product designs for
third-generation wireless chipsets."

The PrairieComm PCI5110, an advanced multi-mode integrated baseband
processor that supports the UMTS standard for 3G cellular communications,
uses TeakLite technology. Incorporating both WCDMA and GSM technologies,
the PrairieComm PCI5110 also enables GPRS for high-bandwidth mobile
communications. PrairieComm is currently providing samples of this chip to
its customers.

"As the newest member of DSP Group's SmartCores™ adopters, PrairieComm
will apply our enabling technology to a new generation of baseband
solutions which are optimized for high-performance UMTS products," said
Bat-Sheva Ovadia, DSP Group's Vice President of Marketing and Business
Development. "Since our broad, licensable DSP core product line is
compatible with PrairieComm's advanced low- power 2G/ 2.5G/3G offerings,
PrairieComm will be able to use our cores together with its engineering
talent, systems knowledge, and understanding of the market to make
groundbreaking contributions to the drive to bring UMTS products to
market."

TeakLite, the third generation of the SmartCores family, is a 16-bit
fixed-point, general-purpose DSP core designed for low power, low voltage
and high-speed digital processing applications. The core is designed as an
ideal solution for speech and audio processing, wireless communication
(GSM, CDMA, TDMA, EDGE, GPRS, 3G, etc.), modems, advanced
telecommunication systems, disk-drive controllers and embedded control
applications. Because the TeakLite DSP core is binary code compatible with
the DSP Group's OakDSPCore®, it effectively eliminates the need to
recompile or rewrite existing software modules during migration to the
TeakDSPCore® family. The fully synthesizable, process-independent TeakLite
is easily portable to any Application Specific Integrated Circuits (ASIC)
library. The core can be used as an engine for DSP-based-ASICs, and is
available as a DSP core in a standard-cell library applicable for custom
chip design. As a result, the design of the core provides several levels
of modularity in RAM, ROM and I/O, which allows efficient DSP-based ASIC
development. Further, the core is designed in a single-edge clocking
system, which allows the use of full or partial scan testing
methodologies. The core also supports emulation, debugging and testing via
JTAG.

About PrairieComm, Inc.

PrairieComm, Inc., based in Rolling Meadows, Illinois, develops and
markets chipsets, embedded software and licensed intellectual property for
CDMA, TDMA, GSM and 3G UMTS wireless technologies that give its
customer-partners "The Power To Compete" in the worldwide digital cellular
marketplace. PrairieComm is at the heart of wireless personal
communications providing chipsets for mobile wireless products from the
world's leading consumer electronics manufacturers. For more information
about PrairieComm and its solutions, please visit the company's Web site
at www.prairiecomm.com or call (847) 871-1800.

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 integrated circuits (ICs) for full-featured
integrated-telephony products and applications, including spread spectrum
wireless technologies. DSP Group maintains an international presence with
offices located around the globe. Additional information about DSP Group
is available on its Web site at www.dspg.com.

DSPG Safe-Harbor Statement

This press release contains statements that may qualify as
"forward-looking statements" under the Private Securities Litigation
Reform Act of 1995, including statements made by Mr. Roney about future
design of PrairieComm third-generation chipsets, as well as, statements
made by Ms. Ovadia about the Company's high-performance DSP cores and
TeakLite technology, the advantages that TeakLite technology provide to
the Company's existing and potential customers, and the success of the
licensing arrangement with PrairieComm. These forward-looking statements
are based on current expectations and the Company assumes no obligation to
update this information. In addition, the events described in these
forward-looking statements may not actually arise. The Company's
expectations and perceptions about the new TeakLite core, the advantages
that the TeakLite technology provide and the licensing arrangement with
PrairieComm could differ materially from those described in this press
release as a result of various factors, including, the ultimate
compatibility of TeakLite technology and TeakLite core with the
technologies and needs of PrairieComm, market acceptance by the Company's
existing and potential customers, the timing of product deliveries, the
Company's ability to further develop and enhance the TeakLite core to
differentiate it from the Company's competitors at cost-effective prices
and in a timely manner, the introduction of competing products and
technology and the general market demand for products that incorporate the
Company's DSP technology. For a further discussion of such factors, see
the information provided under the heading "Factors Affecting Future
Operating Results" in the Company's quarterly report on Form 10-Q for the
quarter ended June 30, 2001, which was filed with the Securities and
Exchange Commission on August 14, 2001 and is also available on the
Company's Web site (www.dspg.com) under Investor Relations.

PrairieComm and PCI5110 are trademarks of PrairieComm,
Inc.

TeakLite, OakDSPCore, TeakDSPCore are registered trademarks of DSP
Group, Inc. SmartCores is a trademark of DSP Group.
All other brand and
product names are used for identification only and may be trademarks of
their respective companies.