ARM Releases Details Of Infringement Lawsuit

Position Strengthened by Court's Claim Construction Decision

CAMBRIDGE, UK - June 21, 2001 - ARM [(LSE:ARM); (Nasdaq:ARMHY)], the industry's leading provider of 16/32-bit embedded RISC microprocessor solutions, today released details on the status of its patent infringement litigation against picoTurbo, Inc., for seven of ARM's U.S. patents.

On June 15, 2001, U.S. District Court Judge Claudia Wilken issued her ruling on claim construction in ARM's patent infringement litigation. The Court adopted ARM's construction on the vast majority of the claims in the seven patents in suit. The constructions adopted by the Court established that ARM's patents protect its valuable RISC microprocessor architecture, and to the extent that if any potential cloner implements the ARM architecture, its products will fall within the claims of ARM's patents.

This litigation completed the first critical step in any patent infringement litigation: claim construction, also referred to as a Markman hearing. Patent litigants often disagree about the correct meaning of certain terms found in patent claims. Under U.S. law, the Court establishes through claim construction a meaning for the claim terms under dispute.

Claim construction does not resolve whether an accused product infringes a particular patent. A jury trial typically determines this second step of the infringement analysis. To obtain an injunction against an accused infringer, a patent owner need only prove that the accused party infringes a single claim of a single patent. ARM only has to prove picoTurbo infringes a single claim.

The Court's Claim Construction ruling reinforces ARM's expectation that it will prevail in its claims for patent infringement. The case is expected to go to trial in early 2002.

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-on-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 the 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.

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For more information, contact:

Michelle Spencer
ARM
Tel: +44 (0)1628 427780
Email: michelle.spencer@arm.com

Julie Seymour
Tel: (408) 579-2234
Email: Julie.Seymour@arm.com