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ESPICO To Offer Audio Codecs That Run On ARM OptimoDE Embedded Signal-Processing Data Engines

12 April 2005

Companies to collaborate on complete solutions for portable audio players

MONMOUTHSHIRE, UK AND CAMBRIDGE, UK- Apr. 12, 2005 - ESPICO Ltd., and ARM [(LSE: ARM); (Nasdaq: ARMHY)], today announced that ESPICO has been chosen by ARM to be a lead software Partner for the ARM® OptimoDE™ Framework when used for audio applications. ESPICO will develop and market a variety of standards-based audio software codecs that will be optimized to run on OptimoDE embedded signal-processing data engines. As part of the agreement, ESPICO will license the OptimoDE Framework. The OptimoDE Framework for audio enables easy and rapid design of configurable VLIW-style processors whose micro-architectures are finely tuned to specific application domains, resulting in highly efficient processing and very low power.

Today's announcement is part of ARM's program of partnering with media software and hardware companies to enable consumer electronics manufacturers to bring differentiated products to market quickly and with low risk.  Together, the companies will offer complete solutions for OEMs developing embedded systems for portable audio devices, satisfying their requirements for long battery life and the ability to play music files in multiple audio formats.

"The successful business model for future generations of consumer electronics companies will be collaboration," said Tom Cronk, general manager, Data Engines, ARM. "Global alliances have always been key to ARM's success. As ARM rolls out its new partnerships, systems companies will have a wealth of highly specific, vertical solutions from which to choose."

"This agreement between ESPICO and ARM enables both companies to focus on our core competencies and stay at the leading edge of our areas of expertise," said Cliff Parris, CEO, ESPICO. "In this way, we bring a more complete, technically superior offering to our customers, quickly."

About OptimoDE Data Engines
ARM OptimoDE data engine technology is licensable intellectual property with an associated tool environment.  OptimoDE technology is a configurable VLIW-styled architecture targeted at high-performance embedded signal processing applications. The tool environment enables the designer to configure and extend the type and number of data path resource units. The size and topology of local storage and the level of interconnect are also fully configurable. OptimoDE data engines are programmed in either C or C++ and are provided with a sophisticated C compiler and profiling analysis tools.

About ESPICO
ESPICO Ltd., supply DSP software and DSP software consultancy services to the electronics industry. ESPICO Ltd., provides a range of products and services that allows its clients to bring better products to the market sooner. More information on ESPICO is available at http://www.espico.com/index.htm.

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 comprehensive product offering includes 16/32-bit RISC microprocessors, data engines, 3D processors, digital libraries, embedded memories, peripherals, software and development tools, as well as analog functions and high-speed connectivity products.  Combined with the company's broad Partner community, they 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

Safe Harbor Statement
This press release contains forward-looking statements, including statements regarding
ESPICO's plans to develop and market audio software codecs optimized for ARM's OptimoDE data engines.  These statements are subject to various risk factors including, without limitation, technical or other difficulties in the introduction, release and use of ESPICO's audio software codecs, and market acceptance of ESPICO's audio software codecs and ARM's OptimoDE data engines.  More information about potential factors that could affect ARM's business and financial results is included in ARM's Annual Report on Form 20-F for the fiscal year ended December 31, 2003 including (without limitation) under the captions, "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," which is on file with the Securities and Exchange Commission (the "SEC") and available at the SEC's website at www.sec.gov."

ARM is a registered trademark of ARM Limited. OptimoDE is a trademark of ARM Limited.  All other brands or product names are the property of their respective holders. "ARM"' is used to represent ARM Holdings plc; 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.; ARM Belgium N.V.; AXYS Design Automation Inc.; AXYS GmbH; ARM Embedded Solutions Pvt. Ltd.; and ARM Physical IP, Inc.