STMicroelectronics Licenses ARM Microprocessor Cores

    GENEVA, Switzerland, & CAMBRIDGE, UK--April 11, 2001--STMicroelectronics and ARM ((LSE:ARM); ), the industry's leading provider of 16/32-bit embedded RISC microprocessor solutions, today announced that STMicroelectronics has licensed the ARM7(TM), ARM9(TM) and ARM10(TM) families of microprocessor cores for use in its system-on-chip (SoC) devices.
    Through this agreement, STMicroelectronics is building on its existing relationship with ARM, including a 1998 license of the ARM7TDMI(R) core and the ARM720T(TM) core license in 1999. STMicroelectronics is integrating the ARM(R) microprocessor cores into its technology roadmap for wireless, wireline and printer businesses, and will also use ARM cores to provide complex SoC solutions to customers in the areas of automotive and digital audio. The license will give STMicroelectronics the possibility to use the ARM SecurCore(TM) microprocessor core for applications where content protection is essential. The licensing agreement will augment ST's offering of processor cores for the design of advanced integrated chips.
    "ST is one of the world leaders in SoC products, covering multiple market segments, and the inclusion of these industry-leading ARM cores in its designs will enable ST to extend the capabilities that its products offer," said Robin Saxby, chairman and CEO, ARM. "This licensing agreement further demonstrates the breadth of markets for which ARM's industry-proven designs offer leading solutions."
    "To satisfy the needs of our customers for ever more complex SoC solutions, ST has taken several initiatives," said Aldo Romano, corporate vice president and general manager, Telecom, Peripheral and Automotive Groups, ST. "To expand its portfolio of processor cores, ST welcomes this opportunity to reinforce its cooperation with ARM with this new agreement. With broad access to the ARM core family and our own advanced ST100 DSP developments, we are in the best position to serve the most demanding partners in the field of telecommunications, peripherals and automotive. The combination of the ARM cores and ST100 DSP core in a powerful and effective processing platform will provide optimum solutions for a broad range of applications."

    About ARM

    ARM is the industry's leading provider of 16/32-bit embedded RISC microprocessor solutions. The company licenses it's high-performance, low-cost, power-efficient RISC processors, peripherals, and system-on-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.

    About STMicroelectronics

    STMicroelectronics (formerly SGS-Thomson Microelectronics) is a global independent semiconductor company, whose shares are traded on the New York Stock Exchange, on the Paris Bourse and on the Milan Stock Exchange. The Company designs, develops, manufactures and markets a broad range of semiconductor integrated circuits (IC's) and discrete devices used in a wide variety of Microelectronics applications, including telecommunications systems, computer systems, consumer products, automotive products and industrial automation and control systems. In 2000 the company's net revenues were $7,813.2 million and net earnings were $1,452.1 million. Further information on ST can be found at www.st.com.

    Some of the above statements, that are not historical facts are statements of future expectations and other forward looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended) that are based on management's current views and assumptions and that involve known and unknown risks and uncertainties that could cause actual results or performances to differ materially from those in such statements due to, amongst other factors :(i) general business and economic conditions in the markets in which we and our customers operate including but not limited to periodic downturns in the semiconductor market, (ii) market demand for our products and changes in customer order patterns and requirements including but not limited to order cancellation or rescheduling, (iii) competitive factors including the pricing of products in an increasingly competitive environment, (iv) the development qualification and availability of new products and technological changes, (v) our ability to implement cost reductions in a timely manner and the success of those actions, (vi) manufacturing risks, (vii) insufficient, excess or obsolete inventory, (viii) our ability to recruit and retain skilled personnel, (ix) currency fluctuations and other risks.

    Unfavorable changes in any of the above or other factors listed under "Risk Factors" from time to time in the Company's SEC reports including the Form 20F for the year ended December 31, 1999 which was filed with the SEC on June 27, 2000, could materially affect the Company.

    ARM and ARM7TDMI are registered trademarks of ARM limited. ARM7, ARM720T, ARM9, ARM10 and SecurCore 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); it's operating company ARM Limited; and the regional subsidiaries ARM, INC.; ARM KK; ARM Korea Ltd; ARM Taiwan.