Jan 14, 2020

2Private and Confidential. Copyright DSP Group, 2020. All rights reserved.

Forward Looking Statements

This presentation contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if proven incorrect, couldcause DSP Group's results and projections to differ materially from those expressed or implied by such forward-looking statements. All statementsother than statements of historical fact may be deemed forward-looking statements, including statements regarding market expansion ofproducts for new applications and our ability to capture a higher share of those markets, market expansion in VoIP, new shipments in SmartVoice,home gateway and ULE markets, and financial guidance for the fourth quarter of 2019. We do not endorse the financial forecasts of any analystsor comment on them if they differ from our own projections. Nothing in this presentation should be construed as a profit forecast. Pastperformance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, ismade regarding performance. Information, opinions, and estimates contained in this presentation reflect a judgment at its original date ofpublication by DSP Group and are subject to change without notice. We assume no obligation to update any forward-looking statements orfinancial guidance. Risks and uncertainties that could cause actual results to differ materially include: delays in the introduction of new products;slower than expected change in the nature of the residential communications domain; our ability to develop and produce new products atcompetitive costs and in a timely manner, including VoIP, SmartVoice, ULE and home gateway products; the possibility that such products may failto achieve broad market acceptance; the anticipated annual decline of the secular telephony market and our ability to offset the decline withrevenues from new products; our ability to manage costs; and assumptions pertaining to the level of demand for products that incorporate ourtechnologies. For more information regarding the risks and uncertainties that could cause actual results and projections to differ, as well as risksrelating to our business in general, see the discussion in the "Risk Factors" section of our Annual Report on Form 10-K for fiscal year 2018 andother reports that DSP Group has filed with the U.S. Securities and Exchange Commission. This investor presentation is updated as of January 14th,2020

Our Voice will be LOUDER this

Year!

Capitalizing on our leadership in voice AI and IoT technologies, well positioned to

disrupt bourgeoning markets with a larger TAM

DSP Group(est. 1986)

>1BProducts w/ DSP Group

Inside

#1position in VoIP for Office and

Enterprise

>200patents

filed/granted

10locations

350employees

1994Publiclytraded

Leading global providerof voice AI and IoT technologies

32% Revenues

Unified Communications

• Comprehensive UC SoC offering• Best in class voice engines and algorithm

suite• HQ audio codecs

16% Revenues

• VUI SoC offering with low power Edge AI• HDClear for best in class far field

performance• HQ codecs and ANC

SmartVoice

14% Revenues

• Wireless IoT infrastructure based on ULE

• Offering superior range, fidelity, RT voice and audio support

SmartHome (IoT)

38% Revenues

• SoCs for Cordless phones

Cordless Phones

GROWTH MATURE

UC SmartVoice SmartHome

2020 SAM (Units) 2025 SAM (Units)

150m

200m

1.5b

2.1b

400m

600m

Our SAM is expected to grow

45% to 2.9B units ($6.5B) by 2025

Growth Initiatives Comprise Majority of Revenues andDrive Higher Gross Margins

15% 21% 28% 43% 46% 55% 62%

40% 40% 42% 44% 47% 49%

51%

0%

20%

40%

60%

80%

100%

2013 2014 2015 2016 2017 2018 2019E

Growth Initiatives (% of Rev.) Gross Margins

Growth Initiatives Drive Future Growth and Leadership in Voice AI and IoT Technologies

2017 2018 2019E

Cordless

$5 $11

$19 $17

$14

$16

$35 $39

$38

2017 2018 2019E

SmartVoice SmartHome UC

Revenues in millions

$57

$64

$73

12%

14%$67

$53

$44

-21%

-17%

The Market Leader for Unified Communications SoCs

• Decline 1-3%• High quality desktop phone is still demanded in

the UC era. High-end Android phones emerge for voice, chat, and collaboration apps

Voice & Video over IP phones

~40%

• +10% YoY growth• Strong push of hosted SIP & cloud UCaaS by the

operators and ITSP’s

IP phones in the SMB/SIP phones

~40%

• +5-10% growth• lower-end segment emerging for SMB and

huddle rooms for open workspaces

Room conferencing phones

~5%

• 25% growth• DECT based phones growing due demand for

mobility and ease of deployment

Cordless IP systems

~10%

• Flat• demand in SMB for analog phone/fax; New

opportunities of cloud-to-phone-line voice bridging

1~8-port ATA (Analog Telephone Adapter)

~5%

• 5-10% growth• Demand for higher quality voice in IP door phone and

intercom markets• Growing categories of IoT hubs and smart assistants

New and vertical markets

Emerging

Our Market Differentiation and Value Proposition

Market focus

Complete ASSP’s portfolio

Superb voice algorithms

System cost optimization

Voice mobility with DECT

Mature & complete software

Dedicated R&D and customer support

Eco-system of partners for complete product solution

Serving All Major UC OEMs

Tablets & PCsVUI (Voice User Interface)

becomes interface of choice in tablets. Used to control

smart home and entertainment applications.

CamerasVoice is undergoing an

change in terms of enhancing voice and audio

user experience from Standard Definition to High

Definition, from limited interface to VUI and a need for a natural, robust far field

& two-way voice covering both indoor and outdoor

conditions.

TV/entertainment Voice activated TVs, RCUs,

OTT streamers and STB are gradually evolving from

basic push to talk VUI, to a rich far field, always on and

handsfree experience, supporting mid to far field

voice activation. Low power VUI is becoming increasingly

important for stand by devices like set top boxes and TVs to comply with

Energy Star requirements

HearablesThe bourgeoning market of

smart wearables such as wireless earbuds with active noise canceling augmented

hearing, and increased control over ambient sounds is propelling the demand for

edge AI and active noise cancelling headphones

SmartphoneVUI is integral part of smartphones, what

started mainly in high end models has now

become mainstream in mid-low end devices

SmartVoice Key Verticals and Market trends

Products integrating SmartVoiceSolutions

> 30 Vendors

> 70 products

> 80Mu shipped

SmartSpeaker Wearable Tablet Smartphone IoT

DSPG 3-mics Ref Kit

ZOE

Alexa Adapter

PS10

P3

F4

MAVID LS5BV

Microdot XS

Gear S2

Gear Sport

B550

issex

Aston Two

idreamX

Cervical Massager

Echo Frames

Nortek Libris 2.0

Office Smart

YouXuePai

优学派

Bonito

Umix6 U36

S5 S3 Pro

Tab-S5e

Tab-A10.5 Tab-S4

Tab ActivePro

Tab-View2

Smart Tab P10/M10 TB-X605F

Yoga Smart-Tab M8 Smart-Tab

Sugar

S11

T9

GM9Pro

A9 StarLiteA9 Star

A9sS LightLuxury

A8 Star A8s

RenoReno Z Reno2

Realme X2 K5

S7 EdgeS7 S7 A8 A8+

A9 A9 Pro

SeroOneRemoteBN59-01312A

Portal TV

Portable projector

HOMIX Smart thermostat

Light Smart Voice

Hero6 Hero7 Hero8 Max

Ultra 4K Pro 3 Doorbell

Smart Home

• The millions of homes where voice control has gained a foothold for smart home adoption will be a fertile ground for the wider adoption of a growing range of additional smart home devices

• Security SPs need a reliable solution for 2-Way Voice to turn the home security system into a communications control center, covering the entire home with intercom and a direct audio channel

• Interference free spectrum

• Superior range

• Natural two-way voice, minimal latency and guaranteed QOS

• Enhanced security

Market Trends Winning Factors for ULE

SmartHome & Consumer Industrial Security

More Leading Companies Adopting ULE as Their Primary IoT Solution

Press and Awards

DECT Ultra Low Energy (DECT ULE) integration will pair with Blue by ADT sensors and keypad, coming this spring, enabling the camera to function as a security hub.

Focused on Cash Flows

Cash flows from operations minus Capex

Free Cash Flows *Last Five Years (US $)

Total: $48.5M

Total Cash Position as of September 30th’, 2019

(US $): $120.9M

No Debt

2014 $9.0M

2015 $9.9M

2016 $14.4M

2017 $7.7M

2018 $7.5M

Shareholder Friendly Approach

Share BuybackLast Five Years (US $)

Total: $53.2M

2014 $12.5M

2015 $13.2M

2016 $10.7M

2017 $4.5M

2018 $12.3M

Q4 2019 Quarterly Guidance (Non GAAP)

Revenues

$28M-$30M

OpEx

$13.5M-$15.5M

EPS

$0.01-$0.05

Gross Margins

49.0%-51.0%

Short & Long-Term Target Model

2018 Actual Short Term Long Term

Revenues $117.4M 5%-10% 10%-15%

Non-GAAP Gross Margin 49.3% 50%-53% 53%-56%

Non-GAAP R&D 28% 24%-28% 15%-20%

Non-GAAP Operating Expenses 47% 40%-45% 30%-35%

Non-GAAP Operating Margin 2% 7%-13% 15%-20%

Key Takeaways

Reached an inflection point,

growth initiatives expected to

account for > 60% of revenues in 2019

Exciting position and momentum

in three dynamic markets

Established franchise

businesses in three highly valuable and

thriving verticals

Financially disciplined,

strong balance sheet and

shareholder friendly

Well positioned for significant long term revenue growth and

continued margin expansion in 2019

and beyond