Celestial Semiconductor Licenses ARM Processor To Meet Strong Demand For Next-Generation TV Standards

ARM technologies will enable designers to speed development of AVS-based chipsets for next-generation HDTV, DTV and STB offerings

BEIJING, CHINA AND CAMBRIDGE, UK - Apr. 25, 2005 - Celestial Semiconductor (Celestial), a fast growing company focusing on delivering solutions for the Chinese AVS standard, and ARM [(LSE: ARM); (Nasdaq: ARMHY)] today announced that Celestial has licensed a full range of ARM® technologies for its system-on-chip (SoC) solutions for televisions: the ARM926EJ-STM processor, the Embedded Trace Macrocell™ (ETM9™) on-chip debug peripheral and the ARM® PrimeCell® Smart Card Interface (PL131). Combined, these technologies will enable Celestial to easily and cost-efficiently develop next-generation ARM Powered® codec chipsets and media processors for the high growth home applications such as HDTV, DTV and STB, including the support of the Audio Video Coding Standard Working Group of China (AVS) standard.

 "As ARM is the most widely-used architecture, the ARM926EJ-S processor - with its strong Java performance and multimedia signal processing - is ideal for our codec chipset and media processor design," said Mr. Daniel Fu, founder and CTO of Celestial. "This agreement will help us significantly reduce our time-to-market in delivery of standard-compliant SoCs for applications such as HDTV, DTV and STB, enabling us to meet the strong consumer demand for these applications."

"Meeting the strong demand for SoC standards to serve the HDTV, DTV and STB markets is a tremendous challenge for consumer electronics designers," said Dr. Jun Tan, president of ARM China. "Through the ARM Foundry Program, we are able to provide Celestial with industry-leading technology and an unmatched level of resources through our ARM Connected Community, enabling the rapid development of AV codec chipsets to deliver a much richer television experience for consumers."

About Celestial

Celestial Semiconductor Inc. (Celestial) was founded by a group of leading pioneers in the world-wide semiconductor industry, which combines top technical and business expertise in all major parts of the industry. Leveraging on its top level in-house expertise in digital video/audio signal processing, network/communication, analog/mixed signal, RF and other design fields, the company offers advantageous design solutions to its customers. Celestial has established R&D centers in both Beijing, China and Silicon Valley, USA. More information on Celestial is available at http://www.celestialsemi.com.cn.

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 comprehensive product offering includes 16/32-bit RISC microprocessors, data engines, 3D 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.

About AVS

Audio Video Coding Standard Working Group of China (AVS) was approved and established by the Science and Technology Department of Ministry of Information Industry in June 2002. More information on AVS is available at http://www.avs.org.cn.

Safe Harbor Statement

This press release contains forward-looking statements, including statements regarding Celestial's plans to use ARM's technologies to help develop next-generation codec chipsets and media processors for HDTV, DTV and STB applications. These statements are subject to various risk factors including, without limitation, technical or other difficulties in the introduction, release and use of the Celestial products incorporating ARM technology, market acceptance of such Celestial products, and risks and uncertainties attendant to any new product offering.  More information about potential factors that could affect ARM's business and financial results is included in ARM's Annual Report on Form 20-F for the fiscal year ended December 31, 2003 including (without limitation) under the captions, "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," which is on file with the Securities and Exchange Commission (the "SEC") and available at the SEC's website atwww.sec.gov."

ARM, ARM Powered, PrimeCell and Jazelle are registered trademarks of ARM Limited. ARM926EJ-S, Embedded Trace Macrocell and ETM9 are trademark of ARM Limited. All other brands or product names are the property of their respective holders. "ARM" is used to represent ARM Holdings plc; 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.; AXYS Design Automation Inc.; AXYS GmbH; ARM Embedded Solutions Pvt. Ltd.; and ARM Physical IP, Inc.

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