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Shipment Volumes of CEVA DSP-powered Cellular Baseband Processors Surpass Qualcomm, Texas Instruments and Mediatek

MOUNTAIN VIEW, Calif. Jan. 31, 2011 f

http://photos.prnewswire.com/prnh/20051010/CEVALOGO

Table 1: Strategy Analytics – Global Baseband Shipments in Unit terms*

Baseband Shipments (Millions of Units)

Second quarter 2010

Third quarter 2010 (P)

Qualcomm

95.1

107.8

Texas Instruments**

92.0

99.7

Mediatek

95.1

88.6

CEVA-powered basebands***

106

178

(P) – Provisional Data

* Strategy Analytics – Baseband Market Share Tracker, December 2010

** Texas Instruments (TI) data includes foundry production for Nokia

*** Source: CEVA, Inc.

With seven of the world’s top eight handset OEMs shipping CEVA-powered baseband processors today, CEVA’s DSP technology now powers one out of every three handsets worldwide. CEVA’s market presence is set to continue to grow as the wireless industry shifts more designs to CEVA-powered wireless semiconductor customers, including Broadcom, Infineon, Intel, Samsung, Spreadtrum, ST-Ericsson and VIA Telecom.

In addition to wireless handsets, the deployment of cellular basebands in non-handset devices such as tablets, notebooks, eReaders and machine-to-machine applications has increased significantly in the past twelve months. Strategy Analytics believes 4.6+ billion connections (excluding handsets and smartphones) will likely be in place by 2020^^. By 2015 alone, Strategy Analytics predicts that there will be 7.7 billion active cellphone subscriptions^^^.

Gideon Wertheizer, CEO of CEVA said: "We are delighted with the continued expansion of our DSP technology in the cellular baseband processor space and our rise to become the number one DSP architecture deployed in this lucrative market. The addressable market for baseband processors is undergoing substantial growth with the emergence of a new wave of cellular connected devices such as tablets, eReaders and machine-to-machine solutions. We are already leveraging our core technologies and leadership in the handset space to expand into these new DSP markets and address this multi-billion unit opportunity."

CEVA’s industry-leading DSP cores power many of the world’s leading semiconductors today for a broad range of applications including cellular baseband, HD video, audio, voice-over-IP and more. Addressing next-generation 4G terminal and infrastructure markets, CEVA’s latest generation DSPs have been specifically architected to overcome the stringent power consumption, time-to-market and cost constraints associated with developing high-performance multimode 2G/3G/4G solutions.

About CEVA, Inc.

f www.ceva-dsp.com

December 2010

December 2010

January 2011

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that if they materialize or prove incorrect, could cause the results of CEVA to differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including statements about CEVA’s anticipated continued growth in the handsets space as the wireless industry shifts more designs to CEVA-powered wireless semiconductor customers and the growth of the addressable market for a new wave of cellular-connected devices and CEVA’s ability to leverage this growth. The risks, uncertainties and assumptions include: the ability of the CEVA DSP cores and other technologies to continue to be strong growth drivers; the ability of products incorporating CEVA’s technologies to achieve market acceptance; CEVA’s success in penetrating new markets and maintaining its market position in existing markets; the effect of intense industry competition and consolidation; the possibility that the markets for CEVA’s technologies may not develop as expected; CEVA’s ability to timely and successfully develop and introduce new technologies; and general market conditions and other risks relating to CEVA’s business, including, but not limited to, those that are described from time to time in its SEC filings. CEVA assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

SOURCE CEVA, Inc.

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