MELVIN R. GOLDMAN (BAR NO. 34097)
JORDAN ETH (BAR NO. 121617)
JILL F. TEITELBAUM (BAR NO. 184469)
MORRISON & FOERSTER LLP
425 Market Street
San Francisco, California 94105-2482
Telephone: (415) 268-7000

Attorneys for Defendants
DSP COMMUNICATIONS, INC., DAVIDI GILO,
LEWIS S. BROAD, GERALD DOGON, NATHAN
HOD, ARNON KOHAVI AND JOSEPH PERL

TO ALL PARTIES AND THEIR ATTORNEYS OF RECORD:

Pursuant to Local Rule 7-3(b), Defendants DSP Communications, Inc., Davidi Gilo, Lewis S. Broad, Gerald Dogon, Nathan Hod, Arnon Kohavi and Joseph Perl (collectively, "Defendants") inform this Court that Defendants do not oppose the Motion of Robert Mishelow, et al. To Be Appointed Lead Plaintiffs Pursuant to § 21D(a)(3)(B) of the Securities Exchange Act of 1934 and for Appointment of Lead Plaintiffs' Choice of Lead Counsel.

By making this statement of non-opposition, Defendants do not agree with the legal and factual contentions in the plaintiffs' Memoranda of Points and Authorities concerning the merits of their action. This complaint is not materially different from an earlier complaint filed in state court, to which a demurrer was sustained. The complaint contains numerous factual and legal inaccuracies, as well as vague and unsupported assertions. For instance, plaintiffs claim that DSP Communications was caught in a "product transition gap" between its B-series and D-Series chipsets. (Mem. of P. & A. in Sup. of Mot. at 5). Plaintiffs, however, fail to acknowledge that during this alleged "gap" the company was selling its C-series chipset.

Besides this fundamental factual inaccuracy, the complaint suffers from numerous legal deficits. It does not allege with particularity that defendants issued any projections; that defendants made any false statements; or that the defendants acted with scienter. For these reasons, defendants intend to move to dismiss the complaint for failure to state a claim upon which relief may be granted.

I am employed with the law firm of Morrison & Foerster LLP, whose address is 425 Market Street, San Francisco, California, 94105; I am not a party to the within cause; I am over the age of eighteen years and I am readily familiar with Morrison & Foerster's practice for collection and processing of correspondence for mailing with the United States Postal Service and know that in the ordinary course of Morrison & Foerster's business practice the document described below will be deposited with the United States Postal Service on the same date that it is placed at Morrison & Foerster with postage thereon fully prepaid for collection and mailing. I further declare that on the date hereof I served a copy of:

DEFENDANTS' STATEMENT OF NON-OPPOSITION TO MISHELOW AND YARIV'S MOTION TO BE APPOINTED LEAD PLAINTIFFS AND FOR APPOINTMENT OF LEAD PLAINTIFFS' COUNSEL

on the following by placing a true copy thereof enclosed in a sealed envelope addressed as follows for collection and mailing at Morrison & Foerster LLP, 425 Market Street, San Francisco, California, 94105, in accordance with Morrison & Foerster's ordinary business practices: and by hand delivery on the same date that it was placed in Morrison & Foerster's mailroom on:

I further declare that on the date hereof I served a copy of the above-listed documents on the Securities Class Action Clearinghouse by Electronic Mail through the following electronic mail address provided by the Securities Class Action Clearinghouse:

I declare under penalty of perjury under the laws of the State of California that the above is true and correct.

Executed at San Francisco, California, this 15th day of May, 1998.

Source: File to epost from Morrison & Foerster LLP