Dspfactory's Toccata Plus selected by Starkey, one of the world-leading hearing aid manufacturers

From: Dspfactory (news release) - Jun 10, 2003

For Immediate Release

Dspfactory's Toccata Plus selected by Starkey, one of the world-leading
hearing aid manufacturers
--Advanced low-power DSP technology provides superior listening clarity to
hearing aid users

WATERLOO, ON, June 10, 2003 -- Dspfactory Ltd., a leading provider of open
programmable digital signal processing (DSP) technology for hearing aids,
headsets, PDAs, and other portable audio devices, announced today that its
Toccata Plus chip has been selected by Starkey Laboratories, North
America's largest hearing aid manufacturer and one of the industry's
leading manufacturers worldwide. Starkey will use Toccata Plus throughout
its advanced line of digital hearing instruments.

Toccata Plus provides hearing aid manufacturers with advanced DSP
capabilities while drawing very little power within an ultra-miniature
footprint. Its computational power enables hearing aid manufacturers to
apply sophisticated software to filter out environmental noise and deliver
clearer voice signals, making listening communication easier for device
wearers.

This agreement extends the existing relationship between the companies.
"We've been using Dspfactory technology in our digital hearing instruments
for the last year and have been very pleased with the results," said
Starkey president Jerry Ruzicka. "Our instruments incorporating the Toccata
platform have greatly surpassed our sales forecasts by delivering to
wearers the superior listening clarity and advanced processing that
Dspfactory's DSP technology enables."

Toccata Plus is the second generation of Dspfactory's industry-leading
Toccata chipset. Through its tightly integrated system-on-a-chip (SoC)
architecture, Toccata Plus delivers twice the processing power in half the
space of its predecessor. It combines digital/analog signal conversions and
advanced signal processing onto a single sub-quarter-micron chip.

With its open platform design, Toccata Plus can accommodate a wide range of
advanced algorithms that deliver enhanced speech and sound intelligibility.
At the same time, its low power requirements provide users with longer
battery life and reduced battery replacement costs.

"Having a market leader like Starkey endorse our second-generation
technology is very gratifying," said Dspfactory president and CEO Robert
Tong. "We will continue to work together to provide the wearers of Starkey
instruments with unsurpassed sound clarity and ease of listening
communication."

About Starkey Laboratories
Starkey Laboratories Inc. is the world's leading manufacturer of custom
hearing instruments with 33 facilities in 18 countries throughout North
America, Central America, Europe, Asia and Australia, and a workforce of
over 4,000. For more information, visit http://www.starkey.com.

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: +1 519 497 7807
E-mail: geoff.bellew@dspfactory.com