1 billion users in 100 countries

ARM and SPIRIT Form Strategic Partnership to Deliver Outstanding Mobile Multimedia Performance

ARM selects SPIRIT to bring increased multimedia performance to mobile consumer devices

MOSCOW, RUSSIA AND CAMBRIDGE, UK – Oct 4, 2006 — SPIRIT DSP, a leading provider of embedded voice and audio software engines, and ARM [(LSE: ARM); (Nasdaq: ARMHY)] announced today a strategic partnership to deliver outstanding multimedia performance to mobile digital audio and voice devices. SPIRIT’s highly-optimized software audio and voice engines now run on the ARM® AudioDE™ audio processor, delivering exceptionally low power consumption.

SPIRIT, a member of the ARM Connected Community, has been chosen by ARM as a preferred software Partner to provide outstanding performance and efficiency to media players and voice-enabled consumer electronic devices. SPIRIT is working with ARM to port and optimize SPIRIT’s wide codec portfolio to the ARM AudioDE data engine. Under the agreement, ARM will actively promote SPIRIT audio and voice software solutions to ARM Partners, OEMs and processor vendors worldwide.

“With today’s growing consumer entertainment and communication demands, high-performance, compact, multimedia-rich devices with long battery life have become critical,” said Andrew Sviridenko, chairman, SPIRIT DSP. “ARM is the architecture of choice for the mobile device market. SPIRIT’s collaboration with ARM benefits OEMs whose consumer electronic products require long battery life, as well as excellent audio and voice quality for superior entertainment and performance. With ARM’s unique offerings in OptimoDE™ data engines and AudioDE audio processors, the media and mobile industries can now vastly improve the end-user experience.”

“SPIRIT’s power efficient software solutions, combined with the ARM AudioDE audio processor will enable consumer electronics manufacturers to bring compelling, next-generation multimedia products to market quickly and with low risk,” said Dr. Tom Cronk, general manager, Data Engines, ARM. “SPIRIT and ARM share a common dedication to pioneering technologies that help maintain competitive advantage and leverage advanced efficiency for mobile audio and voice applications.”

SPIRIT software engines are integrated sets of highly optimized signal processing software components, including audio/voice codecs and utilities that implement playback, record and live conversation functionality on portable devices with considerable power savings. SPIRIT software voice engines integrate acoustic echo and noise cancellation, PLC, jitter buffer, ARS and multiple codecs, including SPIRIT wideband codec.

The ARM AudioDE audio processor is a best-in-class digital audio solution for designers of portable audio devices. The AudioDE audio processor is derived from ARM’s OptimoDE technology and is configured to meet the challenges of high performance and low cost while delivering exceptionally low power consumption. The AudioDE audio processor consumes a mere 0.1mW per MHz when implemented in 0.13-micron geometry, has a very small core size and small memory footprint. AudioDE is capable of running multiple codecs and post-processing algorithms – each task requiring minimal MHz; for example: AAC-LC decode in 9MHz, AMR-NB decode in 4MHz, and MP3 encode in just 16MHz.

Availability

The ARM AudioDE audio processor and SPIRIT audio and voice products are available for licensing immediately.

About SPIRIT

SPIRIT DSP (www.spiritDSP.com) is the world’s leading provider of carrier-grade voice & video software engines since 1996. SPIRIT communication software is used in over 80 countries and powers more than 100 million voice channels. SPIRIT counts among its direct customers Adobe, ARM, AT&T, Blizzard, BT, China Mobile, Cisco, Ericsson, HP, HTC, Huawei, Korea Telecom, Kyocera, LG, Microsoft, NEC, Oracle, Polycom, Radvision, Samsung, Siemens, Skype, Texas Instruments, Toshiba, ZTE, and 200+ other telcos, OEMs and software vendors. SPIRIT smart-phone OEM customers’ shipments jointly exceed 60% share of the global market.

03 October 2006