Parthus/DSP - Progress in merger

Parthus and DSP Group have announced progress in relation to the proposed merger of Parthus with DSP cores licensing business of DSPG ("Ceva Business") announced in April of this year.

It's expected formal documentation in relation to the merger will be dispatched to Parthus shareholders during the third quarter of 2002.

Parthus and DSPG also believe they remain on schedule for the completion of the merger in the same time period.