Kawasaki Microelectronics Strengthens ARM Relationship With ARM9 Technology

TOKYO, JAPAN AND CAMBRIDGE, UK-July 27, 2004 - Kawasaki Microelectronics, Inc. (KME), a leader in advanced, affordable ASICs, and ARM ([LSE: ARM; Nasdaq: ARMHY]), today announced KME has licensed two ARM9™ family microprocessors and the ETM9™ embedded trace macrocell. This new licensing agreement will significantly expand KME's portfolio of ARM® technology-based solutions.

KME will use the ARM946E™ processor, the ARM922T™ processor and the ETM9 macrocell to develop system-on-chip (SoC) solutions for a range of imaging and networking products-such as still/movie image processing, printers and VoIP-as well as the company's industry-leading microcontrollers. By upgrading from the ARM7TDMI® processor, which it licensed in 2001, KME will leverage its investment in the ARM architecture while satisfying its customers' needs for increased performance at low unit cost.

"Through our relationship with ARM, we have built a solid business foundation in the digital consumer market," said Kyoichi Kissei, executive VP, Sales, Marketing & Logistics, Kawasaki Microelectronics, Inc. "By licensing the ARM9 family and taking full advantage of design resources from the past, we will be able to address high-end products within a shorter time-to-market, for our customers. Moving forward, we will seek opportunities in markets which demand large scale, high speed processing, such as network products."

"KME has anticipated its networking and imaging customers' needs for a high-performance, cost-effective and flexible microprocessor solution and has made an investment in the ARM9 processor family," said Bruce Beckloff, director of segment marketing, ARM. "We will continue to support Kawasaki Microelectronics as an industry leader in ASIC solutions."

Kawasaki Microelectronics expects that semiconductors containing ARM9 family cores will be available in the second quarter of 2005.

About Kawasaki Microelectronics

K-Micro is the leader in advanced yet affordable ASIC semiconductor technology solutions. The company's innovative core technologies and world-class design support are used in the consumer electronics, computer, office-automation, networking, wireless, and electronic-storage markets. The company is an active participant in industry standards organizations, including the Wi-Fi Alliance, Network Processing Forum (NPF), Optical Internetworking Forum (OIF), PCI Special Interest Group (PCI-SIG), USB Implementers Forum, MPEG-4 Industry Forum (MPEG4IF), Mobile Computing Promotion Consortium (MCPC), the Digital Display Working Group (DDWG), SD Card Association (SDA) and OCP International Partnership (OCP-IP). K-Micro has design centers in Boston, San Jose, Taipei, and Tokyo. For more information, contact the company at 408-570-0555, or visit its English-language web site at http://www.k-micro.us/, its Japanese-language web site at http://www.k-micro.com/, or e-mail to info@k-micro.com.

About ARM

ARM designs the technology that lies at the heart of advanced digital products, from wireless, networking and consumer entertainment solutions to imaging, automotive, security and storage devices. ARM's 16/32-bit RISC microprocessors, data engines, peripherals, software and tools, combined with the company's broad Partner community, provide a total system solution that offers a fast, reliable path to market for leading electronics companies. More information on ARM is available at http://www.arm.com.

ENDS

ARM, ARM Powered and ARM7TDMI are registered trademarks of ARM Limited. ARM9, ARM946E, ARM922T, and ETM9 are trademarks of ARM Limited. All other product and company names, trademarks and registered trademarks are the property of their respective companies. "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; ARM Consulting (Shanghai) Co.Ltd.; and ARM Belgium N.V.