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April 3, 2003

News Release: Sonovation selects Dspfactory platform for new software-expandable hearing aids

From: Dspfactory Ltd. - Apr 3, 2003

FOR IMMEDIATE RELEASE

Sonovation selects Dspfactory platform for new software-expandable hearing
aids

WATERLOO, ON, April 3, 2003 -- Dspfactory Ltd., a leading provider of open
programmable digital signal processing (DSP) technology for hearing aids,
headsets, PDAs, and other portable audio devices, today announced that its
Toccata Plus chip has been selected by Sonovation for an innovative line of
software-expandable digital hearing aids. Sonovation unveiled its new
ImpaCt Xp instruments today at the 2003 American Academy of Audiology (AAA)
Exposition in San Antonio, Texas.

ImpaCt Xp is the first software-expandable digital hearing instrument with
adaptive dynamic speech recoding. Its sophisticated algorithms perform
real-time phoneme analysis and frequency compression to move selected high
frequency sounds to ranges where they can be perceived by users. The device
also offers feedback reduction, noise reduction, and other advanced
features.

"Dspfactory's Toccata Plus delivers the processing power needed for our
advanced algorithms. With this platform, our ImpaCt Xp hearing aids offer
significantly enhanced audio performance and the flexibility to adapt to a
user's changing needs through simple and inexpensive software upgrades,"
said Sonovation president Barak Dar. "This enables dispensers to maintain
frequent contact with their clients by providing ongoing upgrades as new
algorithms become available and the user's needs change."

Toccata Plus is Dspfactory's software-configurable digital audio system
that is specifically designed for use in hearing instruments. It
dramatically improves a hearing aid user's listening experience by
combining exceptional sound clarity with ultra-low power consumption -- all
within the compact design demanded by today's ultra-miniature devices.

"Advanced hearing instruments like the ImpaCt Xp require significant
computational power in an ultra-compact space," said Geoff Bellew,
Dspfactory's vice president of sales and marketing. "Toccata Plus delivers
that capability on one tiny chip that draws very little power, providing
hearing aid manufacturers the ability to offer their customers superb audio
processing."

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

About Sonovation
Sonovation, Inc. is the USA subsidiary of AVR Communications Ltd., Israel.
The company develops and manufactures novel hearing technologies for the
hearing impaired. It was the first company to develop a frequency
compression hearing instrument, ImpaCt, and the first to introduce
behind-the-ear (BTE) FM wireless hearing systems. Sonovation is based in
Eden Prairie, Minnesota.

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 Contacts:

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

For Sonovation:
Barak Dar
President
Tel: +1 952 934 3111 Ext.101
E-mail: bdar@avrsono.com