ARM strengthens position in mass storage market with PALMCHIP investment.

LOS GATOS, Calif.--(BUSINESS WIRE)--March 31, 1997--Advanced RISC Machines (ARM)(1) today announced it has strengthened its position in the mass storage marketplace by taking a 45 percent shareholding in PALMCHIP, a mass storage design specialist.

This partnership will enable the two companies to combine ARM's low-cost, high-performance RISC architecture with PALMCHIP's mass storage peripherals, providing OEM customers with complete system-on-a-chip solutions that minimize overall design time and system costs.

Mass storage OEMs typically use dual-processor, discrete designs for their solutions; ARM's high-performance cores enables customers to migrate to a low-cost, single-processor architecture. Additionally, ARM's innovative tool technology and small size enable the processor cores to be integrated into the controller chip, reducing chip count and saving further cost.

"We believe ARM-based mass storage solutions are ultimately the most cost-effective and offer the quickest path to market, and our investment in PALMCHIP will enable ARM, through its partnership, to prove this," said Robin Saxby, president and CEO, ARM.

ARM has taken a leading role in the mass storage market through several of its semiconductor licensees. The addition of PALMCHIP to the ARM partnership will enable the ARM RISC architecture to become the complete mass storage system solution.

As an ARM partner, PALMCHIP has early access to ARM's RISC embedded controller technology. Additionally, the ARM semiconductor licensees will provide PALMCHIP with access to multiple silicon sources.

"ARM's single processor solution saves designers time and money, and has already resulted in several key design wins for PALMCHIP," said Jauher Zaidi, president and CEO, PALMCHIP.

PALMCHIP develops and supplies "System-on-a-Chip" solutions for the mass storage market. The company specializes in integrating both ARM RISC cores and DRAM into embedded controllers for high-performance, low-cost, low-power designs. PALMCHIP, which recently relocated from Los Gatos, Calif., to a larger, San Jose- based office, is also opening a design center in Pakistan.

ARM and PALMCHIP began working together in January 1996. PALMCHIP's first ARM-based device will go into high-volume production in Q3 '97.

PALMCHIP

Based in San Jose, Calif., PALMCHIP is an Intellectual Property provider for the mass storage market. PALMCHIP licenses its mass storage controller cores and embedded software code set, reducing mass storage applications design time and cost. PALMCHIP also offers expertise in ARM CPU core hardware and software integration as well as custom functional block design services.

For more information, visit the PALMCHIP website at http://www.palmchip.com .

Advanced RISC Machines (ARM)

ARM is the leader in microprocessor Intellectual Property. ARM designs and licenses fast, low cost, power efficient RISC processors, peripherals and "system-chip" solutions for embedded control, consumer/educational multimedia, DSP and portable applications. ARM supports its processor offerings with Development Hardware and Software and contract Design Services. ARM licenses its technology to leading semiconductor, software, and OEM partners worldwide who focus on applications, design and manufacturing.

Each partner offers unique ARM-related technologies and services which together satisfy a broad range of end-user needs. Through this partnering, ARM is rapidly becoming the global volume RISC standard. ARM has offices in Cambridge, UK; Los Gatos, Calif.; Munich, Germany; and Tokyo, Japan.

To learn more about ARM, visit the web site at http://www.arm.com -0-

NOTE TO EDITORS: (1) Registered U.S. Patent and Trademark Office ARM and the ARM Powered logo are trademarks of Advanced RISC Machines Limited.

CONTACT: Cain Communications (for ARM)

Mark Alden, 408/341-8960

e-mail: [e-mail]

or

PALMCHIP

Jauher Zaidi, 408/487-8696

e-mail: [e-mail]