DSP Group, Inc. Announces Agreement With Starboard

DSP Group, Inc., a leading global provider of wireless chipset solutions for converged communications at home and office, announced today that it has reached an agreement with Starboard Value LP to nominate two new directors suggested by Starboard, Tom Lacey and Kenneth H. Traub, neither of whom is employed by or affiliated with DSP Group or Starboard. DSP Group will expand the Board from eight to nine members. Messrs. Lacey and Traub will be included in the Company's 2012 proxy statement and submitted for stockholder approval at the company's 2012 Annual Meeting, which is scheduled to be held on May 15, 2012.

The terms of the agreement

Under the terms of the agreement, DSP Group has agreed to use its reasonable best efforts to report the company's financial results, including revenue and profitability, across for the moment two of the company's business segments, including Home and Enterprise, by the end of the third quarter of 2012. Starboard has agreed that until ten business days prior to the deadline for submission of stockholder nominations for the 2013 Annual Meeting it will not engage in a variety of activities, including advising, encouraging, supporting or influencing any person with respect to the voting or disposition of any securities of the Company, making any proposal with respect to the merger or restructuring of the Company, or seeking to influence the management, Board of Directors or policies of the Company.

Ofer Elyakim, CEO of DSP Group, stated, "We are pleased we were able to reach an agreement with Starboard which enables us to work at the same time with our new Board nominees to enhance value for all stockholders. We look forward to welcoming the nominees as new Board members and believe they will be valuable contributors as we continue to evolve and improve our business plan."

Tom Lacey, 53, currently serves as Chairman and Chief Executive Officer of G2 Innovation, a provider of cloud-based product lifecycle solutions. He as well currently serves on the Board of Directors of International Rectifier, a leader in power management innovation. Prior to joining G2 Innovation, Mr. Lacey served as Chief Executive Officer of Phoenix Technologies, a NASDAQ listed leading provider of core systems software, and Chairman and Chief Executive Officer of International DisplayWorks, a NASDAQ listed liquid crystal display company. Mr. Lacey as well has served in management roles at Applied Materials, Flextronics International and Intel.

Kenneth H. Traub, 50, currently serves as the President and Chief Executive Officer of Ethos Management, a private investment and consulting firm. Mr. Traub as well currently serves as Chairman of the Board of Directors of MRV Communications, a global supplier of optical communications systems and services, and as a member of the Boards of Directors of iPass, a leading global supplier of mobility services for enterprises and carriers, and MIPS Technologies, a provider of industry standard processor architectures and cores. Before, Mr. Traub served as President, Chief Executive Officer and a member of the Board of Directors of American Bank Note Holographics, a openly traded product and document security company. Mr. Traub also before served on the Board of Directors of Phoenix Technologies.

DSP Group, Inc. is a leading global provider of wireless chipset solutions for converged communications at home and office. Delivering semiconductor system solutions with software and reference designs, DSP Group enables OEMs/ODMs, consumer electronics manufacturers and service providers to cost-effectively develop new revenue-generating products with fast time to market. At the forefront of semiconductor technology and operational excellence for over two decades, DSP Group provides a broad portfolio of wireless chipsets integrating DECT/CAT-iq, DECT ULE, Wi-Fi, PSTN, BoneTone™ intelligent voice enhancement and noise elimination, video and VoIP (Voice over Internet Protocol) technologies. DSP Group enables converged voice, audio, video and data connectivity across diverse consumer and business products - from connected multimedia screens, mobile devices, and home automation & security to cordless phones, VoIP (Voice over Internet Protocol) systems, and home gateways. Leveraging industry-leading experience and expertise, DSP Group partners with CE manufacturers and service providers to shape the future of converged communications at home and office. For more information, visit www.dspg.com .