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Atmel Extends IP Core Offering by Licensing DSP Group's PalmDSPCore(R)

SAN JOSE, Calif., and SANTA CLARA, Calif., Oct. 23
- Atmel Corporation (Nasdaq: ATML) and DSP Group, Inc. (Nasdaq: DSPG - ), today
announced that Atmel has licensed DSP Group's PalmDSPCore® for use in the
design of leading-edge DSP Systems-on-a-Chip (SoCs) for next-generation mobile
communications applications.

This represents a significant extension to Atmel's already rich library of embedded DSP cores. Atmel currently licenses DSP Group's OakDSPCore® and Teak® DSP Core.

The ultra high-speed PalmDSPCore is designed for applications that require extremely high data throughput. These include complex high-end telecommunications, wireless communications, multimedia, hi-fi audio implementations and consumer electronics.

The PalmDSPCore, a dual-MAC parallel architecture, includes seven arithmetic units working in parallel. It is able to execute up to 18 operations per clock cycle, giving a potential peak performance of 3800 MOPS (3.8 GOPS) at 210 MHz on 0.18 micron CMOS technology. PalmDSPCore has three categories of instruction-sets: single, parallel and multi-parallel instruction-sets. It executes an FFT butterfly in only 2 cycles and a Viterbi-decode in only 2 cycles per two Add-Compare-Selects (ACSs). It supports both SIMD (Single Instruction Multiple Data) and MIMD (Multiple Instruction Multiple Data) style instructions, with variable instruction widths (16/32 bit) in a single cycle. This unique combination of instructions is intended to maximize performance with maximum code efficiency. PalmDSPCore is designed as a soft core that enables easy porting into different processes and different libraries. PalmDSPCore is compatible with previous generations of DSP Group's SmartCores(TM) family, including the Teak DSP Core and the OakDSPCore. The existing codes from previous generations enable easy migration to a compatible DSP. The algorithms are enhanced and run faster, due to the many new features and the parallel architecture of PalmDSPCore.

Alfredo Vadillo, Atmel's Director for Application-specific and Custom Products, commented, ``The PalmDSPCore is our gateway to third-generation mobile communications, which will be the motor of our product development and corporate growth over the next few years. With the experience we have gained in integrating the OakDSPCore and the Teak from DSP Group, we are in a unique position to embed the PalmDSPCore rapidly into our new system-on-chip designs. It perfectly complements other advanced IP blocks that we have recently acquired, notably the ARM920T and ARM946E-S.''

``We are glad to co-operate with Atmel, which is renewing its trust in DSP Group's SmartCores for the third time by selecting our PalmDSPCore,'' commented Bat-Sheva Ovadia, DSP Group's Vice President of Marketing and Business development of the Technology Licensing Division. ``This agreement will once more place the PalmDSPCore at the forefront of products for third-generation mobile communications.''

Atmel's fast-growing portfolio of both hard and soft IP includes: the ARM946E-S(TM), ARM920T(TM), ARM7TDMI(TM), 8051 and AVR® microcontrollers, the Teak® DSP Core, OakDSPCore® and Lode(TM) DSP Cores, as well as connectivity IP such as USB, PCI (33 MHz and 66 Mhz) and 1394 (Firewire(TM)). IP for baseband processing of Bluetooth(TM) and Voice Over IP (VoIP) are also available.

About Atmel

Founded in 1984, Atmel Corporation is headquartered in San Jose, California, with manufacturing facilities in Colorado Springs, Colorado; Irving, Texas; Grenoble, Nantes and Rousset, France; Newcastle, UK; and Heilbronn, Germany. Atmel designs, manufactures and markets on a worldwide basis advanced logic, mixed-signal, non-volatile memory, and RF semiconductors. Atmel is also a leading provider of system level integration semiconductor solutions using advanced CMOS, BiCMOS, Bipolar and SiGe process technologies.

Atmel product and financial information are available from its Fax-on-Demand service. In North America, call 800-292-8635. Internationally, call 408-441-0732. Requests may be made via e-mail to literature@atmel.com or by visiting Atmel's web site at www.atmel.com.

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 applications, including digital spread spectrum wireless technologies. DSP Group, Inc. maintains an international presence with offices located around the globe. Additional information about DSP Group, Inc. is available on the World Wide Web at: http://www.dspg.com .

NOTE: PalmDSPCore®, OakDSPCore®, Teak® and SmartCores(TM) are registered trademarks and trademarks of DSP Group, Inc.

Atmel, the Atmel logo and combinations thereof and others contained herein, are trademarks of Atmel Corporation.

Other terms and product names in this document may be the trademarks of others.


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