DSP Communications Delivers First CDMA Chip Sets; DSPC IS-95 Baseband Processor Samples Now Being Supplied to Customers.

CUPERTINO, Calif.--(BUSINESS WIRE)--Oct. 13, 1997--DSP Communications, Inc. (NASDAQ:DSPC) today announced delivery of Code Division Multiple Access (CDMA) baseband processor samples to OEM customers for use in subscriber handsets.

The IS-95 based D5411 chip set provides complete baseband processing for dual mode, dual band handsets. With both 800 and 1900 MHz support, the CDMA chip set offers a flexible solution for both cellular and Personal Communication Services (PCS) subscriber units. Additionally, the chip set supports wireless local loop (WLL) applications. Versatility is extended by the provision for CDMA digital mode and any one of several analog modes, including AMPS, JTACS, or NTACS. With Enhanced Variable Rate Codec (EVRC) support, DSPC's chip set is the first from an OEM chip set provider to offer EVRC and QCELP vocoders for subscriber units.

DSPC's flexible software (SW) oriented architecture enables easy updates and customization to meet evolving market requirements. "Our greatest challenge of all was to ensure that our customers' requirements would be met, even as the CDMA standard continued to evolve during our development," said Dr. Joseph Perl, Executive Vice President and Chief Technical Officer of DSPC. "As we complete our initial efforts, we believe that DSPC's adaptable chip set architecture has been fundamental in achieving a technically superior baseband solution."

DSPC has already announced several key partners, including Siemens, Fujitsu, and Kenwood who are now integrating DSPC's IS-95 CDMA chip set into their handsets.

DSPC's OEM customers plan to attract consumers with low cost, small size, high quality handsets. "Based on advanced digital signal processing (DSP) techniques, the D5411 optimizes performance while offering the low cost that our customers expect," said Dr. Perl. With 3V operation, the highly integrated, two chip solution renders low power consumption, thereby supporting long talk and standby times as required by handsets.

DSP Communications, Inc. is a leading developer of chip sets and products for cellular, personal communication services (PCS), and wireless local loop (WLL) markets. Headquartered in Cupertino, CA, the company develops, markets, licenses, and supports application specific integrated circuits (ASICs) and software based on digital signal processing (DSP) technology for a variety of wireless applications. DSPC products comply with leading standards for Personal Digital Cellular (PDC), Time Division Multiple Access (TDMA), and Code Division Multiple Access (CDMA). DSPC's leading customers include Fujitsu, Kenwood, Kyocera, Kokusai, NEC, Pioneer, Sanyo, Sharp, and Siemens. For more information, please visit DSPC's Web site at http://www.dspc.com .

This press release contains forward-looking statements that are based on current management expectations. Certain key factors could cause future results to differ materially from those anticipated by management. Such factors include, but are not limited to, risks associated with the development and manufacturing of DSPC's CDMA chip sets, adoption of the CDMA standard and market acceptance of CDMA chip sets, the success of DSPC's OEM customers in developing superior CDMA handsets and in competing in the CDMA handset market, general economic conditions, and other risks detailed from time to time in DSPC's filings with the Securities and Exchange Commission. -0-

Note to Editors: All products and company names used herein are trademarks or registered trademarks of their respective companies.

CONTACT: DSP Communications, Inc.

Arnon Kohavi, 408/777-2700 (VP Business Development)