HUAWEI TECHNOLOGIES LAUNCHES ARM POWERED WIRELESS PRODUCTS.

Huawei Technologies and ARM (NASDAQ:ARMHY) have signed a major licensing agreement for ARM7 and ARM9 family microprocessors. Huawei has launched a range of new wireless products based on the ARM architecture in 2006. The company's existing strength in mobility ideally positions it to target the WCDMA wireless market with the ARM Powered solutions.

Speed of product development, containing costs and managing risks were key factors in Huawei's decision for a partner and processor architecture that would help it succeed in this highly competitive market.

"Simply put, we must innovate to stay competitive. Entering the wireless market will have a great impact on our business, so it was critical to select an architecture on which we could rely," said He Tingbo, vice president of Research & Development, Huawei Technologies. "We have to move fast and be flexible in order to keep abreast of changing consumer demands. ARM's extensive Partner network and expertise in creating digital solutions for consumers on the move provides the balance we need."

Huawei has licensed the ARM7TDMI microprocessor core and the ARM926EJ Prime Starter Kit -- which includes the ARM926EJ microprocessor core, the ARM926EJ PrimeXsys Platform and the Embedded Trace Macrocell module. The ARM926EJ Prime Starter Kit provides Huawei with methodology and hardware for verification and system integration -- and a platform for accelerating new designs to market.

Huawei will also leverage the ARM Connected Community, including ARM Foundry Program Partners, for third-party development tools and support for technologies. This also means members of the ARM Partner network in China will have even greater access to design their own system-on-chip products, supporting the advancement of the electronics industry in China.

"This strategic agreement underlines ARM's experience and knowledge in China. Huawei is an exciting company to be aligned with, especially at this time and at this point in its evolution," said Jun Tan, president of ARM China. "The ARM architecture is a proven foundation on which Huawei can create products to enable consumers to access meaningful digital content whether at home, work or at play."

About Huawei Technologies

Huawei Technologies Co., Ltd. Incorporated in 1988 and headquartered in Shenzhen, China, Huawei Technologies specializes in the R&D, production and marketing of telecoms equipment, providing customized network solutions in fixed, mobile, optical and data communications networks. Huawei is now a key player in China's telecom market and is quickly becoming an active participant in the global telecom market.

Huawei focuses on such areas as WCDMA, CDMA2000, NGN, xDSL and data communications. Currently Huawei has 22,000 employees and sales in 2003 reached 3.83 billion US dollars. More information on Huawei is available at http://www.huawei.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.

ARM can be found on the World Wide Web at http://www.arm.com/.

For more information, call 415/593-8425.