DSPC Announces New RFIC for PDC Handsets; Single-Chip Silicon Germanium-based Solution to be Manufactured by IBM.

CUPERTINO, Calif.--(BUSINESS WIRE)--March 22, 1999--DSP Communications, Inc. (NYSE: DSP) today announced the development of a single-chip radio frequency (RF) solution for the Personal Digital Cellular (PDC) standard, the D5361. This new highly compact and low power RFIC component for PDC handsets will be manufactured by IBM for DSPC using IBM's advanced Silicon Germanium (SiGe) technology.

"DSPC's first single-chip RF solution introduces a new level of integration in the design of wireless subscriber equipment," said Joseph Perl, President and Chief Executive Officer for DSPC. "Our customers will have access, for the first time, to a fully integrated single RF chip. We intend to offer a similar degree of integration for other wireless standards in the future."

The new D5361 RF chip, combined with a PDC power amplifier chip and DSPC's PDC baseband, will offer the most advanced, highly compact PDC solution available in the market. The unique RF chip design eliminates the need for multiple components thereby reducing the printed circuit board area. DSPC's D5361 chip takes advantage of IBM's innovative SiGe technology to offer better than 60 percent reduction in power consumption, enhanced operating performance, integration and low cost.

"We are pleased to support DSPC's development of their D5361 single-chip RF solution for PDC with our innovative SiGe technology," said Mike Concannon, vice president, Wireless Communications Products for the IBM Microelectronics Division. "DSPC's expertise in baseband solutions and IBM's RF technology and design experience are being combined to enable a new generation of power efficient, feature-rich PDC handsets."

DSP Communications, Inc. is a leading developer of chipsets 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. The Company's products comply with leading standards for Personal Digital Cellular (PDC), Time Division Multiple Access (TDMA), and Code Division Multiple Access (CDMA). The Company's leading customers include Fujitsu, Kenwood, Kyocera, Kokusai, NEC, Pioneer, Sanyo, Sharp, and SK Teletech. For more information, please visit DSPC's Web site at 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 PDC chipsets, the success of DSPC and IBM in developing RF PDC chipsets, general economic conditions and in particular the potential effects of the current economic difficulties in Asia on the Japanese wireless handset market, and other risks detailed from time to time in DSPC's filings with the Securities and Exchange Commission.

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