ARM Optimizes Beatnik Technology For Digital Audio Applications

Beatnik Launches Enhanced Audio Platform for Digital Device Market

CAMBRIDGE, UK and SAN MATEO, CA, USA - Feb. 27, 2001- ARM [(LSE:ARM); (Nasdaq:ARMHY)], the industry's leading provider of 16/32-bit embedded RISC microprocessor solutions, and Beatnik, Inc., a leading provider of enhanced audio solutions and content for digital devices, games and the Web, today announced that ARM is optimizing the Beatnik® Audio Engine[tm] (BAE) for the ARM® architecture. The agreement will help accelerate enhanced audio and music applications for ARM Powered[tm] consumer products such as mobile phones, PDAs, digital cameras, set-top boxes and Internet appliances.

"This agreement with Beatnik further expands the wide range of software digital audio solutions available based on the ARM architecture on the market, and compliments our existing digital audio offerings," said Dave Walsh, director of IPSD Product Sales, ARM. "Applications such as mobile phone ring tones and games can benefit from Beatnik's low bandwidth and high-quality audio technology, thereby enhancing the user's experience of many consumer products. With more than 75 percent of all mobile phones shipped worldwide containing ARM core-based processors, developers will also benefit from this optimization."

The BAE enables users to experience CD-quality audio and music through a variety of digital devices including mobile phones, PDAs and set-top boxes using extremely small file sizes. It does not require special hardware and provides a low bandwidth audio solution for digital devices. The BAE can play back popular formats such as MP3, WAV, AIFF and enhances MIDI by adding custom samples to recreate the original sound of the music. This expanded capacity gives composers an unprecedented variety of sounds to use in their creative productions.

"Enhanced audio and music is a natural for digital devices. By working with industry-leading ARM technology, we are able to give digital device developers a powerful tool to implement compelling applications without bandwidth issues," said Shafath Syed, director of product marketing at Beatnik. "We partnered with ARM because of their expertise in optimizing software technologies for their premium architecture. This will ensure that customers receive the highest performance audio solution."

"The ARM-optimized Beatnik Audio Engine is the perfect compliment for Liquid Audio's digital rights management system," said Gerry Kearby CEO and co-founder of Liquid Audio, Inc. "As a leading service provider of end-to-end music distribution, Liquid Audio sees ARM's inclusion of the Beatnik technology as a positive development for device manufacturers in need of a total music solution."

The BAE's true strength is its ability to play Rich Music Format (RMF®) files. RMF files are very compact and play back instantly when started. This technology makes it possible to create truly interactive audio environments and games on the Web and in digital devices. RMF files are typically in the range of 10k to 400K while the equivalent MP3 file would be 1MB to 4MB.

Under the terms of this agreement, ARM will provide compatibility for the BAE across its ARM7[tm] and ARM9[tm] product lines and both companies will co-market this technology offering. While the BAE supports MP3 playback, ARM offers a higher performance MP3 technology available to its licensees. In addition, ARM will port the BAE to the Symbian Platform designed for advanced cellular phones.

For more information on the Beatnik technology for ARM core-based solutions, contact Beatnik, Inc. at info@beatnik.com. For more information on ARM Applications Software solutions, contact ARM at info@arm.com.

About Beatnik
Beatnik offers scalable, high-quality audio solutions for digital devices, games and the Web through a combination of technology, content and services. Beatnik's solution includes a line of platform applications, production music, sound content and the Mixman software product line, enabling the integration of enhanced audio. Beatnik develops, markets and sells its sonification technology to a community of creative professionals, technology licensees and consumers - enabling them to build and interact with music and sound. Incorporated in 1996, Beatnik was founded by musician and composer Thomas Dolby Robertson. Mixman Technologies, Inc. was acquired by Beatnik in December 1999.

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, handheld computing, multimedia and embedded solutions. More information on ARM is available at http://www.arm.com.

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Beatnik and RMF are registered trademarks of Beatnik, Inc.

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

For More Information:

Jason Taylor
Beatnik, Inc.
650.295.3441
jason@beatnik.com

Sheri Dupart
Beatnik, Inc.
650.295.3420
sheri@beatnik.com

Michelle Spencer
ARM Ltd
+1 44 1628 427780
michelle.spencer@arm.com