Chinese Mobile Developer CYIT Chooses Java Technology-Enabled ARM9E Family Processor For 3G Demand

ARM926EJ processor licensed for high performance capabilities in TD-SCDMA chips

CAMBRIDGE, UK - Dec. 9, 2004 - ARM [(LSE: ARM); (Nasdaq: ARMHY)] today announced that Chongqing Chongyou Information Technology Co., Ltd (CYIT), a major developer of 3G mobile handsets and chips in China, has licensed the ARM926EJ™ processor. Through the ARM® Foundry Program, CYIT will adopt the processor to develop chips designed specifically for the domestic 3G standard, TD-SCDMA, which is quickly gaining momentum in China.

CYIT was the first in the world company to demonstrate a TD-SCDMA-based mobile phone prototype, in June 2003. By licensing the ARM9E™ family processor, CYIT anticipates developing its commercial TD-SCDMA mobile phone chipset by Q3 2005.  The processor will provide the high performance, small size and low-power consumption features demanded by a 3G environment.  CYIT will also utilize the ARM926EJ processor's DSP extensions to enhance overall performance and support for ARM® Jazelle® technology - a Java acceleration technology that provides an efficient way to integrate and migrate Java applications on mobile devices quickly, easily and at a low cost.  Such applications will play a key role in providing multimedia-rich services to China's mobile users.

"CYIT is committed to progressing China's 3G mobile industry.  Working with ARM brings us a good opportunity to enhance our core competitive advantages by leveraging ARM's processor strengths. The high performance provided by the ARM926EJ processor now forms a key part of our future product roadmap," said Neng Nie, director, CYIT. "We also believe the comprehensive support ARM has from across the entire industry will enable us to reduce our development time-to-market."

"The ARM architecture is at the heart of the wireless market, connecting people and providing access to information and entertainment.   ARM has long been recognized as the ideal choice for mobile handset chips in both the GSM and CDMA markets," said Jun Tan, president, ARM China. "Previously, a slow development of TD-SCDMA-based products threatened to create a bottleneck in China's uptake of 3G, when the standard is expected to become commercialized mid-2005.  We welcome CYIT's initiative to develop chips designed specifically for the domestic 3G standard, TD-SCDMA which removes this barrier."

This new licensing announcement comes at a time when the Chinese mobile industry is preparing itself for the commercialization of the TD-SCDMA standard, expected to be launched mid-year, 2005.  TD-SCDMA was one of three CDMA-based 3G standards authorized by the International Telecommunication Union (ITU), along with CDMA2000 and WCDMA.  The 3rd Generation Partnership Project (3GPP) also adopted TD-SCDMA as a commercial standard for operators and mobile manufacturers in March 2001.  Of the available 3G standards, TD-SCDMA is the only one to have developed out of China and has received the strongest recognition from the Chinese government. This standard is receiving comprehensive support from many leading global and Chinese mobile device manufacturers and participants in the 3G value-chain.

About ARM

ARM designs the technology that lies at the heart of advanced digital products, from wireless, networking and consumer entertainment solutions to imaging, automotive, security and storage devices. ARM's 16/32-bit RISC microprocessors, data engines, peripherals, software and tools, combined with the company's broad Partner community, provide a total system solution that offers a fast, reliable path to market for leading electronics companies. More information on ARM is available at http://www.arm.com

ENDS

ARM and Jazelle are registered trademarks of ARM Limited. ARM926EJ and ARM9E are trademarks of ARM Limited. All other brands or product names are the property of their respective holders.  "ARM" is used to represent ARM Holdings plc (LSE: ARM and Nasdaq: ARMHY); its operating company ARM Limited; and the regional subsidiaries ARM INC.; ARM KK; ARM Korea Ltd.; ARM Taiwan; ARM France SAS; ARM Consulting (Shanghai) Co. Ltd.; ARM Belgium N.V.; and ARM Embedded Solutions Pvt. Ltd.