Dspfactory's Toccata Plus chosen by Otologics for fully-implantable digital

From: Dspfactory Ltd. - Apr 4, 2003

FOR IMMEDIATE RELEASE

Dspfactory's Toccata Plus chosen by Otologics for fully-implantable digital
hearing device

WATERLOO, ON, April 04, 2003 -- Dspfactory Ltd., a leading provider of
programmable digital signal processing (DSP) technology for hearing aids,
headsets, PDAs, and other portable devices, today announced that its
Toccata Plus platform has been selected by Otologics LLC for use in its
next-generation MET Ossicular Stimulator, a fully-implantable middle ear
prosthesis. The device is scheduled for launch early next year.

The MET is for the treatment of severe hearing loss and consists of a tiny
transducer implanted directly into the middle ear space near the eardrum.
The processing power of Dspfactory's Toccata Plus chip will enable the MET
to be customized to each patient's hearing loss profile through the use of
sophisticated digital sound processing algorithms.

"Our device is fully implanted into the user's ear and it was essential for
us to select a customizable digital platform that is very small and
light-weight, and which delivers the computational capabilities we need
while enabling extended battery life," said Scott Miller, Otologics'
Implant Project Manager. "Toccata Plus was the clear choice. We've been
using Dspfactory technology through our development process and in our
semi-implantable MET device and we've been very pleased with the
performance of Toccata Plus."

Toccata Plus is Dspfactory's software-configurable digital audio chip that
is specifically designed for use in hearing aids. It combines exceptional
audio performance with ultra-low power consumption -- all within the
compact design demanded by today's ultra-miniature devices.

"The Otologics MET is an impressive showcase for the flexibility and power
of Toccata Plus," said Geoff Bellew, Dspfactory's vice president of sales
and marketing. "It's a leading-edge device which, because it is surgically
implanted, places significant restraints on the size and power use of its
components, and this is an environment where Toccata Plus truly excels.
We're delighted by Otologics' continued endorsement of our platform."

Toccata Plus is easily customized for a broad range of hearing devices and
lowers the cost of design, manufacturing and inventory for device
manufacturers while shortening development cycles and reducing
time-to-market for new devices. It combines digital/analog signal
conversions and advanced digital signal processing on a single 0.18-micron
chip and features a tightly-integrated system-on-a-chip (SoC) design that
delivers the processing power needed to implement advanced algorithms on
even the most compact hearing instruments.

About Otologics
Otologics LLC is a medical device company providing improved solutions for
the treatment of hearing loss. Otologics' semi-implantable hearing aid
incorporates an implantable middle ear transducer (MET), which attaches
directly to the bones of the middle ear. This product has been designed to
provide significant restoration of hearing to the severely impaired. The
implantation of the device is completely reversible. The second-generation
device is fully-implantable, incorporating technologies currently being
used in implantable cardiac pacemakers and other medical electronic device.

About Dspfactory
Dspfactory Ltd., a fabless semiconductor company, is a leading-edge
developer of ultra-miniaturized, ultra-low power, software-programmable,
digital signal processing (DSP) technology. Dspfactory's mission is to
embed its unique technology ubiquitously into a wide range of market
applications. Its target markets include hearing aids, headsets, personal
digital assistants, personal digital audio players, embedded sensors,
baseband wireless devices, cellular telephones, or any other portable,
battery-powered DSP-based product where size and power consumption are as
important as flexible, advanced software processing capabilities. To
support the development and implementation of signal processing software
solutions on its technology platforms, Dspfactory also provides a complete
set of easy-to-use support tools and services, ranging from software
development and testing tools to custom DSP software development and
engineering services. For more information, visit
http://www.dspfactory.com.

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Media Contact:
Geoff Bellew
VP Sales and Marketing
Dspfactory Ltd.
Tel: +1 519 884 9696 Ext. 2280
Mobile: +1 519 721 7807
E-mail: geoff.bellew@dspfactory.com