ARM Opens Shanghai Office

Shanghai-based HuaHong and Beijing-based Watertek join ARM's global network of distributors

CAMBRIDGE, UK – July 10, 2002 – ARM [(LSE:ARM); (Nasdaq:ARMHY)], the industry's leading provider of 16/32-bit embedded RISC microprocessor solutions, today officially opened its China headquarters in Shanghai, underscoring the company's continued commitment to developing the electronics industry in the Peoples' Republic of China.

ARM China, which is a wholly owned foreign enterprise, is part of the company's vision to support China's IT development by enabling a unique and comprehensive value chain for the Chinese electronics industry. The company will license its technologies to Chinese IC design centres, foundries, OEM manufacturers and other third parties, enabling them to generate income through high-value products and solutions based on ARM® architecture.

Today's official opening ceremony was attended by industry and community leaders including Sir Robin Saxby, chairman of ARM; Warren East, CEO of ARM; Paul Sizeland, British Consulate General; Xu Xiufa, Assistant Secretary General of the Shanghai IC Association; Min Hao, general manager of Shanghai HuaHong Integrated Circuit Co Ltd.; and Chen Weiqun, president of Watertek Shanghai.

"We are committed to bringing ARM's global culture of continuous innovation to China," said Warren East, CEO, ARM. "This commitment includes supporting existing and prospective Partners, identifying local Partners and participating in local development via initiatives such as technology transfer and university programs. Before the end of this decade, China is expected to be the second largest semiconductor market in the world and ARM will be well placed to help this happen with the availability of our industry-leading technology."

"Shanghai is widely acknowledged as one of the major semiconductor centers in China," said Dr Jun Tan, president of ARM China operations. "The concentration of semiconductor expertise, including wafer fabs, in the city and adjoining regions, is unequalled and gives us access to local engineering expertise."

"From our new Shanghai headquarters, we can provide our industry-leading technology to local engineers," continued Tan. "By helping them to realize their design ideas – from concepts to complete products – we believe that we can make a valuable contribution to China's growing economy."

ARM China also announced today that it has signed two new Partners, Shanghai HuaHong Integrated Circuit Co Ltd (SHHIC) and Beijing Watertek Information Technology Co Ltd (Watertek), to reinforce the value chain which includes everything from semiconductor manufacturing and design to system integration and distribution support. (See separate press releases: SHHIC Licenses ARM Core for Smart Card Applications; Watertek Becomes Second Chinese Distributor of ARM RealView™ Development Tools – July 10, 2002)

SHHIC is the second Chinese IC design Partner to license ARM cores. Watertek becomes the latest local tools distribution Partner. Watertek, like Impact, which is already a local Partner, will provide training and support services for ARM RealView development tools.

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

Contact details for the ARM China office are as follows:

ARM Consulting (Shanghai) Co. Ltd.

Room 1112-1113, Building B, Far East International Plaza

No 317 XianXia Road, Shanghai 200051, P R China

Tele: +86-21-62351296

Fax: +86-21-62351207

Email: info-china@arm.com

ARM is a registered trademark of ARM Limited. RealView is a trademark of ARM Limited. "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.