SHHIC Licenses ARM Core for Smart Card Applications

Agreement reinforces ARM's commitment to growing Chinese security market

CAMBRIDGE, UK -- July 10, 2002 – ARM [(LSE: ARM); (Nasdaq: ARMHY)], the industry's leading provider of 16/32-bit embedded RISC microprocessor solutions today announced that the Shanghai HuaHong Integrated Circuit Co., Ltd. (SHHIC) has licensed the ARM® SC100™ SecurCore™ microprocessor. SHHIC will use the SC100 core for a wide range of secure applications, including the development of a 32-bit Java technology-based smart card integrated circuit (IC).

SHHIC is widely recognized as the leading developer of smart card technology in China, and the company's licensing of the ARM SC100™ core reflects the expected growth in the Chinese security market, through applications such as SIM, banking and identification. This agreement also marks ARM's entrance into the security market in China. The ARM SecurCore family provides 32-bit solutions for smart card and secure IC development and offers system designers privileged access to ARM processor cores to create fast, secure e-commerce, banking, networking, mobile multimedia, identification and mass transit solutions. The ARM SecurCore family is ideal for secure smart card and secure IC applications using Java Card™ technology.

"We expect that the market for smart cards will expand beyond banking applications to cover other areas such as secure e-commerce and multimedia applications, which themselves are growing markets in China," said Dr Hao Min, general manager, SHHIC. "ARM's SecurCore technology is ideally suited for smart card applications thanks to its superb security features coupled with its low power and high performance characteristics and we are looking forward to a collaborative and fruitful relationship with ARM."

"Our SecurCore technology is licensed to the broadest range of semiconductor Partners,

offering a variety of solutions to end customers, with Samsung and Atmel already shipping advanced 32-bit product. SHHIC's licensing of the SC100 microprocessor core is further endorsement of ARM's excellent credentials for the security market," said Dr Jun Tan, president, ARM China. "This technology is also supported by a growing network of tools and design support services which ultimately reduces design risk and speeds time-to-market. We are pleased to welcome SHHIC to the ARM community."

The ARM SC100 core was the first microprocessor in the SecurCore family, launched in October 2000 and further cores, the SC110™ core, the SC200™ core and SC210™ core, have been subsequently added. Each core represents an increase in functionality and feature enhancements with SC210 core at the high end, incorporating ARM Jazelle™ technology for Java Card acceleration and a cryptographic coprocessor to accelerate execution of standards-based cryptographic algorithms.

About SHHIC

Shanghai Huahong Integrated Circuit Co., Ltd. is one of the top five semiconductor design companies in China. The company aims to provide IT industry high-quality, low-cost solutions with the leading-edge semiconductor technology. It focuses on the technology development and production of smart card chips and is extending into consumer and automobile electronics. Led by a talented team with experience in both academia and industry, the company provides a complete product line in both contact and contactless smart card chips and is developing new products for high-security, large-capacity applications. The contactless smart card chip was successfully applied to the automatic fare collection system for Shanghai public transportation which is one of the most complicated public transportation systems in the world and covers buses, subways, ferries, light railways, parking, highway tolling, etc. The contact card chip was used in the Shanghai Social Security Card, which serves 13 million Shanghai residents. The products are expanding rapidly across China.

About ARM

ARM is the industry's leading provider of 16/32-bit embedded RISC microprocessor solutions. The company licenses its high-performance, low-cost, power-efficient RISC processors, peripherals, and system-chip designs to leading international electronics companies. ARM also provides comprehensive support required in developing a complete system. ARM's microprocessor cores are rapidly becoming a volume RISC standard in such markets as portable communications, hand-held computing, multimedia digital consumer and embedded solutions. More information on ARM is available at www.arm.com

ARM is a registered trademark of ARM Limited. SecurCore, SC100, SC110, SC200, SC210 and Jazelle 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; and ARM China.