Flextronics Semiconductor Becomes First Partner In new ARM licensing program

Agreement Enables Flextronics to Licence ARM Cores to Third Parties

SUNNYVALE, CA AND CAMBRIDGE, UK-- Nov. 14, 2002 – Flextronics Semiconductor, a business unit of Flextronics, (NASDAQ: FLEX), the leading Electronics Manufacturing Services (EMS) provider, and ARM [(LSE: ARM) (NASDAQ: ARMHY)], the industry's leading provider of 16/32-bit embedded RISC processor technology, today announced that Flextronics Semiconductor is the first Partner to participate in the new ARM Approved Licensing Program. This new program will enable Flextronics Semiconductor to license specific ARM® core technology to their customers.

ARM has introduced this new licensing program to enable Partners such as Flextronics Semiconductor to license ARM core technology, thereby providing their customers with end-to-end services. The cores that can be currently licensed through Flextronics include the ARM7TDMI® core, the ARM922T™ core and the ARM946E™ core and this offering will be expanded in line with the products to be offered through the ARM Foundry Program.

"We have developed this new licensing program to enable even greater access to the industry-leading ARM architecture," said Mike Inglis, EVP, Marketing, ARM. "Flextronics is our first licensee in this new channel and as a global industry leader, they have extensive manufacturing, design and technology expertise to bring to OEMs worldwide. Our Partnership with them in this new program will further increase momentum and open new markets to both parties."

Since July 2002, Flextronics has been a member of ATAP™, the ARM technology access program. As a member, Flextronics' ASIC design centers in Niwot, Colorado (US) and Oak Ridge, Tennessee (US) have been providing design services utilizing the ARM core for their OEM customers.

"Having the ability to license ARM cores directly to our customers will enable Flextronics to further penetrate this valuable market," said Glen Wiley, VP of Semiconductor Technology, Flextronics. "By dealing with one party for core technology, design and manufacturing, Flextronics' customers can lower their costs while improving time-to-market."

About Flextronics Semiconductor
Flextronics Semiconductor, a business unit of Flextronics, provides ASIC products and IC design services. ASIC products include full system-on-chip (SoC), standard cell and gate array ASIC (digital, analog, and mixed-signal); IC design services include FPGA (field-programmable gate array) conversion, ASIC retargeting and backend IC design capabilities. Flextronics Semiconductor has design centers worldwide that work with customers to deliver system-level solutions in silicon, increasing functionality and reliability while reducing cost. For more information, please visit Flextronics Semiconductor at www.flextronics.com/semiconductor.

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-on-chip (SoC) designs to leading international electronics companies. ARM also provides comprehensive support required in developing a complete system. ARM's microprocessor cores are rapidly becoming a 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 and ARM7TDMI are registered trademarks of ARM Limited. ARM922T, ARM946E and ATAP are trademarks of ARM Limited. All other brands or product names are the property of their respective holders. "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; and ARM China.