DSP Group, Inc. Announces Agreement With Starboard

DSP Group, Inc.

announced today that it has reached an agreement with Starboard Value LP to nominate two new directors recommended 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. In connection with the nominations, Starboard, which beneficially owns approximately 9.8% of DSP Group's outstanding shares, has agreed to vote all of its shares in favor of each of the company's nominees at the 2012 Annual Meeting. The two Starboard recommended candidates will be nominated as Class III directors with a term to expire at the company's 2015 Annual Meeting.