Phoenix Microelectronics Licenses ARM7TDMI Processor For Megaflash SIM Card SoC

Emerging fabless company in China brings advanced SoC into production via ARM DesignStart Program

CAMBRIDGE, UK - May 17, 2007 - ARM [(LSE: ARM); (Nasdaq: ARMHY)] today announced that Phoenix Microelectronics (China) Co., Ltd., an emerging local fabless design company in China, has licensed the ARM7TDMI® processor through the ARM® Foundry Program. Available immediately, the company’s new SoC is designed for megaflash SIM card applications, and has already been endorsed by local operators in China. Phoenix Microelectronics started its ARM technology-based design via the ARM DesignStart™ Program, and is now bringing its proven R&D success to market.

Since its launch in April 2005, the ARM DesignStart Program has enabled many Chinese startups, as well as small- and medium-sized fabless companies, to evaluate ARM processors for use in designs prior to obtaining a full ARM Processor Foundry Program license. By leveraging silicon-proven implementations of ARM processors on specific foundry processes, fabless companies can complete their designs with reduced risk and accelerated time-to-market. The ARM DesignStart Program also reduces financial barriers to entry, as qualifying customers can postpone paying the full commercial licensing fee until their designs are completed, tested and ready for production. The DesignStart program now includes the popular ARM926EJ™ processor, in addition to the ARM7TDMI processor.

“The ARM7TDMI processor is an ideal foundation for low-power, high-performance, small-footprint SoCs. Through the ARM DesignStart Program, we have had a head start in developing an SoC designed to support advanced SIM card applications, an area where we are seeing growing operator demand,” said Yan-Hui Yang, chief technical inspector, Phoenix Microelectronics. “The ARM DesignStart Program enabled us to significantly reduce our capital pressure and risk, and focus on developing an innovative product. Silicon-proven ARM technology and manufacturer support from local foundries have shortened the design cycle and helped us bring our new product to market quickly.”

The Phoenix Microelectronics SoC for mobile SIM card applications provides advanced functionality, high performance, and high storage capacity, and has been well received by local operators in China. As the only component in mobile handsets fully owned by operators, the SIM card is the optimal place to store tailored applications and content which can generate increased revenue by driving consumers to use data services more frequently.

“With the ARM DesignStart Program, we are dedicated to helping emerging Chinese fabless companies develop advanced digital applications and achieve commercial success through breakthrough innovations,” said Dr. Jun Tan, president, ARM China. “Now featuring both the ARM7TDMI and ARM926EJ processors, and aligned with the ARM Foundry Program, the ARM DesignStart Program enables Chinese fabless companies to reduce risk, accelerate time-to-market and protect their design investments – positioning them for success in an increasingly competitive marketplace.”

About ARM

ARM designs the technology that lies at the heart of advanced digital products, from mobile, home and enterprise solutions to embedded and emerging applications. ARM’s comprehensive product offering includes 16/32-bit RISC microprocessors, data engines, graphics processors, digital libraries, embedded memories, peripherals, software and development tools, as well as analog functions and high-speed connectivity products. Combined with the company’s broad Partner community, they 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.