Thomson Multimedia And ARM Announce Agreement in IC Design Technology

PARIS, FRANCE, and CAMBRIDGE, UK -- July 16, 2002 – Thomson multimedia (NYSE: TMS; Euronext: 18453), a leading provider of video (and enabling) technologies, systems finished products and services to consumers and professionals in the entertainment and media industries, and ARM [(LSE: ARM; Nasdaq: ARMHY)], the industry's leading provider of 16/32-bit embedded RISC microprocessor solutions, today announced that they have formed a strategic partnership under which Thomson have licensed a range of ARM7™ and ARM9™ family microprocessor cores, including the ARM926EJ-S™ core with Jazelle™ acceleration technology for Java™ applications. Under this agreement, Thomson will expand its activities in IC design and use these cores in high-volume, next-generation, consumer electronics ICs developed for use in applications such as broadband modems, digital TV, DVD recorders and mobile video devices.

Today's agreement also opens the way for the two companies to collaborate on future multimedia and multi-processor systems which require very high performance, yet still have the low costs necessary to remain compatible with consumer electronics price constraints. Thomson will manufacture its ARM® core-based integrated circuits (ICs) through ARM silicon Partners or ARM approved foundries.

"ARM is a leader in microprocessor technology and Thomson considers this agreement a significant step forward in the implementation of our next-generation IC strategy," said Jean Charles Hourcade, senior vice president and Chief Technology Officer at Thomson multimedia. "Increased integration of digital products is driving a shift toward added value in key components such as ICs and displays. IC designs expertise, assisted through licensing these ARM cores, with our ability to implement ICs through a fabless process model or through our existing strategic agreements, allows us to protect and increase our value."

"Consumers are demanding increasingly advanced digital products for the home, such as DVD players and digital set top boxes, which are key drivers in today's semiconductor market," said Tudor Brown, Chief Operating Officer, ARM. "Thomson is a leader in this industry, and its commitment to integrating the market-leading ARM architecture into its technology roadmap further strengthens ARM's presence in this market, and will help drive a next-generation of ARM Powered® products, through Thomson's technological edge."

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

About Thomson

With sales of 10.5 billion Euros (U.S. $ 9.3 billion) in 2001 and 73,000 employees in more than 30 countries, Thomson multimedia (Euronext: 18453) (NYSE: TMS), provides a wide range of video (and enabling) technologies, systems, finished products and services to consumers and professionals in the entertainment and media industries. To advance and enable the digital media transition, Thomson multimedia has five principal activities: Digital Media Solutions, Displays and Components, Consumer Products, Patents and Licensing, and New Media Services. The company distributes its products under the THOMSON, RCA and TECHNICOLOR brand names. For more information: www.thomson-multimedia.com .

ARM and ARM Powered are registered trademarks of ARM Limited. ARM7, ARM9, ARM926EJ-S 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.