NXP Semiconductors and DSP Group will combine their Cordless & VoIP terminals businesses within DSP Group. The transaction can reach a total value of $345 million and will provide NXP with a shareholding of approximately 12% in DSP Group. DSP Group will pay $270 million, consisting of $200 million in cash and $70 million in the issuance of DSP Group’s common stock on the basis of the average closing price per share for DSP Group’s common stock on NASDAQ DSP Group has also agreed to a contingent cash payment of up to $75 million payable based on future revenue performance. The transaction is expected to close in the third quarter of 2007. NXP’s Cordless & VoIP terminals business generated approximately $220 million revenue in 2006 and comprises some 200 staff. NXP Cordless & IP Terminals business line supplies RF chipsets, basebands, software and system solutions for: DECT, DECT 6.0, WDCT 2.4, 5.8, Analog 900, 2.4, 5.8, VoIP/MTA, USB Softphones, and VoIP Gateways. In 2006, the group sold approx. 300 million products in digital cordless. DSP Group is a fabless semiconductor company and provide solutions for MP3 players, VoIP Phones, Gateways, Integrated Access Devices and Digital Voice Recorders.