Starboard Value Delivers Letter to DSP Group; Says Significant Opportunities Exist to Improve Shareholder Value

Starboard Value LP, one of the largest shareholders of DSP Group, Inc. DSPG, today announced that it delivered a letter to Ofer Elyakim, DSP Group's Chief Executive Officer, and to the members of the Board of Directors. In the letter, Starboard expressed its belief that DSP Group's shares are deeply undervalued and that significant opportunities exist to improve shareholder value based on management and the Board of Directors taking certain actions in accordance with the recommendations Starboard sets forth in the letter. Starboard also expressed its belief that the core issue facing DSP Group is excessive spending in pursuit of non-core growth initiatives that have failed to produce expected revenue growth and that have, in turn, severely impacted DSP Group's profitability. Starboard urges DSP Group to immediately reduce spending on non-core growth initiatives in order to significantly improve profitability as well as hire a reputable investment bank to explore strategic alternatives to maximize value for shareholders. Finally, Starboard stated its discontent with the Board of Directors' decision to implement a "Poison Pill" Rights Plan with an unreasonably low 10% threshold and called on the Board of Directors to redeem the Poison Pill as a matter of good corporate governance.