ARM and picoTurbo Inc. Settle Patent Lawsuit

Validity and Enforceability of ARM Patents Lead to Joint Agreement

CAMBRIDGE, England and MILPITAS, Calif., Dec. 14 /PRNewswire/ -- ARM (Nasdaq: ARMHY - news; LSE: ARM), the industry's leading provider of 16/32-bit embedded RISC processor solutions, and picoTurbo, Inc ("picoTurbo"), a private company based in California, today announced they have settled their lawsuit. Under the terms of the settlement, picoTurbo acknowledges the validity and enforceability of ARM's patents and simultaneously has agreed to cease all sales and marketing activities forthwith and assigns the product designs and intellectual property assets of picoTurbo to ARM. ARM has dismissed all claims against picoTurbo. picoTurbo's current customers will be able to complete existing designs and manufacture their products based on such designs with support provided by picoTurbo. Both companies will work with picoTurbo customers to affect a safe and smooth migration to the ARM roadmap for future designs. Other details of the settlement remain confidential.

Warren East, CEO of ARM said, "I am delighted that we have reached this agreement with picoTurbo which represents a good outcome for both companies, their partners and customers. The money necessary to continue the case can now be put to more productive use."

"We have always respected the intellectual property rights of ARM. picoTurbo acknowledges the validity and enforceability of the ARM patents and we are pleased to have reached this agreement," added Chip Stearns, President and CEO of picoTurbo. "The combination of picoTurbo and ARM Intellectual Property will provide a compelling opportunity for our customers going forward."

About picoTurbo, Inc.

picoTurbo, Inc. is a leading provider of 16/32-bit RISC microprocessor cores in the mobile, wireless and embedded markets. With synthesizable high-performance and Turn-key IP(TM) solutions, picoTurbo offers design flexibility, lower development costs and maximum manufacturing freedom for semiconductor manufacturers, fabless companies, ASIC vendors and system OEMs. picoTurbo's innovations reduce time-to-market and increase performance by enhancing microprocessor capabilities and enabling new applications, while leveraging industry standard legacy software. For more information, please visit picoTurbo web site at www.picoturbo.com

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 .

"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; and ARM France SAS. All other brands or product names are the property of their respective holders.