Philips Semiconductors and ARM Expand Relationship With Long-Term Licensing Agreement.

Business Editors & High-Tech Writers

EINDHOVEN, The Netherlands and CAMBRIDGE, UK--(BUSINESS WIRE)-- April 10, 2001

Philips Semiconductors Extends Its Nexperia SoC Roadmap

With a Broad Range of ARM Cores

Philips Semiconductors, a division of Royal Philips Electronics (NYSE:PHG)(AEX:PHI), and ARM (LSE:ARM)(Nasdaq:ARMHY), the industry's leading provider of 16/32-bit embedded RISC microprocessor solutions, today announced a five-year agreement which provides Philips Semiconductors' Nexperia Silicon Systems Platform customers with access to a comprehensive range of ARM(R) cores and supporting technology.

Philips Semiconductors, via its acquisition of VLSI Technology, was the first ARM Partner licensee in 1990, and a long history of joint success exists between the two companies. Philips Semiconductors will leverage this new agreement to extend its Nexperia Platform system-on-chip (SoC) core roadmap into a broad range of applications. This unique, expanded relationship allows Philips Semiconductors to quickly assimilate new ARM core family members, providing customers with significant time-to-market advantages. Philips Semiconductors' key new ARM core-based initiatives include leading-edge digital audio, Internet appliance, wireless communications, imaging, automotive and microcontroller-based applications.

"The next few years will see ever increasing customer demand for IP that can be easily integrated into silicon systems. Relationships with market leaders such as ARM will help drive Philips Semiconductors' industry-leading Nexperia SoC power and performance improvements into the future," said Theo Claasen, executive vice president and chief technology officer, Philips Semiconductors. "Today's long-term, strategic agreement demonstrates both companies intent to drive ARM core-based digital solutions into new high-volume application markets."

"ARM's expanded relationship with Philips Semiconductors builds on our long history of joint success," said Warren East, chief operating officer, ARM. "Philips Semiconductors' expertise in SoC integration and very high-volume production will continue the momentum of the ARM architecture into broad, leading-edge consumer applications, by offering compelling solutions to end customers."

As a result of this agreement, Philips Semiconductors will now be designing the ARM9E(TM), ARM9EJ(TM) and ARM10(TM) family core processors into leading-edge consumer designs. This new agreement also gives access to the ARM SecurCore(TM) SC100(TM) core processor, designed for secure and eCommerce applications.

Philips Semiconductors' experience with the ARM architecture spans advanced SoC designs and market-leading design tools and expertise gained as a result of its acquisition of VLSI Technology. In a separate announcement today, Philips Semiconductors announced its latest Rapid Silicon Prototyping (RSP) design platform, Velocity RSP9, which will be available in Q4 2001. A natural extension to the existing Velocity RSP family, Velocity RSP9 platform will provide a state of the art SoC design platform for the ARM946(TM) architecture. Currently, Philips Semiconductors is shipping its Velocity RSP7+ (ARM7(TM) core-based) platform to a broad range of customers addressing multiple mainstream and emerging markets.

For more information on Philips Semiconductors' Nexperia Silicon Systems Platform, visit www.philips.semiconductors.com/nexperia.

About Philips Semiconductors

Philips Semiconductors, which had annual revenues of approximately US$6.3 billion in 2000, designs and manufactures semiconductors and silicon systems platforms. Philips Semiconductors is spearheading the emerging field of systems on silicon solutions with the innovative Nexperia(TM) platform and VLSI Velocity(TM) tool set. The company's Sea-of-IP(TM) design methodology allows plug and play intellectual property blocks for easily customizable products. The company is a leader in communications, consumer, PC peripherals and automotive semiconductors, which are key applications for convergence in end-user products. Philips Semiconductors is headquartered in Eindhoven, The Netherlands, and has operations throughout the world. For more information: www.semiconductors.philips.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-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 a registered trademark of ARM Limited. ARM7, ARM9, ARM9EJ, ARM946, ARM10, SecurCore and SC100 are trademarks of ARM. All other brands or product names are the property of their respective holders. "ARM" is used to represent ARM Holdings plc (LSE:ARM)(Nasdaq:ARMHY); its operating company ARM Limited; and the regional subsidiaries ARM, INC.; ARM KK; ARM Korea Ltd.; ARM Taiwan.