ARM Works With Canesta To Bring "Projection Keyboards" And Other Sight-Enabled Capabilities To Wireless And Embedded Systems

Canesta joins ARM PrimeXsys Community

CAMBRIDGE, UK AND SAN JOSE, CA.– Feb. 18, 2003 – ARM, [(LSE:ARM) (Nasdaq: ARMHY)], the industry's leading provider of 16/32-bit embedded RISC microprocessor solutions, and Canesta, a developer of electronic perception technology, today announced at the 3GSM Congress, Cannes, France, that Canesta has joined the ARM® PrimeXsys™ Community Program. Canesta will be bringing to the Community, a technology that enables electronic devices to "see" by tracking nearby objects in three dimensions in real time.

The first application of Canesta's electronic perception technology is the company's breakthrough "projection keyboard." By integrating the three-chip chip set into a wireless device, a full size "QWERTY" keyboard and mouse will be created by projected beams of light.

One of the limitations of current wireless devices such as smart phones and PDAs is the user data input method. Keyboards take up too much physical space and handwriting recognition is not as efficient. The Integrated Canesta Keyboard solves this problem by enabling typed data to be input into the portable electronic device with previously unheard of speed and accuracy. OEMs building smart phones and PDAs using the ARM PrimeXsys Platform now have a proven and integrated alternative to conventional keyboard input.

There are significant implications of building a projection keyboard into a wireless device. By making it practical to enter large amounts of data into small, untethered devices, they become useful for "real work" such as substantive correspondence, the use of analytical tools, or tasks requiring a high degree of interactivity. For example, a mobile worker could use his wireless device to conduct significant business email correspondence while on the road and leave the laptop at home, or create substantive financial reports like sales forecasts and customer order information without going back to the office. Moreover, in a world where wireless devices are being used for data-intensive activities, wireless network usage also has the potential to dramatically increase.

The ARM PrimeXsys Platforms provide system developers with all of the hardware, software and verification IP necessary to design a system-on-chip (SoC). Canesta has ported its projection keyboard technology to the PrimeXsys Platform. Wireless device manufacturers using the ARM PrimeXsys Platform including Canesta's technology will now be able to easily and quickly integrate this new capability to their devices, offering customers an easy-to-use and familiar method for typing text in applications.

"Increasing miniaturization of devices such as mobile phones and PDAs means that efficient data entry has now become a serious design consideration," said Nazim Kareemi, president and CEO of Canesta. "Existing graffiti, screen and thumb keyboard solutions can be awkward and slow to use. Canesta's electronic perception technology offers a viable alternative by presenting the user with a familiar keyboard that can be used on any flat surface. As a member of the ARM PrimeXsys Community Program, Canesta's technology will be readily available to handset manufacturers and will help proliferate this highly effective solution."

"The PrimeXsys Community Program was formed with the intention of supporting ARM's network of Partners by offering a wealth innovative technology solutions ported to a common development environment – thereby helping meet their design needs quickly, cost-effectively and easily," said Oliver Gunasekara, director, Wireless Segment, ARM. "With ARM as the microprocessor technology of choice in more than 85 percent of the world's mobile phones, Canesta's technology adds a key ingredient to the handset design portfolio of smart phones and PDAs by offering the benefits of a full QWERTY keyboard in a tiny physical space."

Canesta and ARM will be giving demonstrations of this technology – please visit us in: Hall 2, Stand D56 at the 3GSM Congress, Cannes, France, 2003

http://www.3gsmworldcongress.com/?/src=emf

About Canesta
Canesta is the inventor of a revolutionary, low-cost electronic perception technology that enables ordinary electronic devices to perceive and react to nearby objects or individuals in real time.

When sight-enabled with Canesta's unique electronic perception chips and software, consumer, automotive, industrial, military, and medical products will gain functionality and ease of use not possible in an era when electronics were blind.

Canesta was founded in April 1999, and is located in San Jose, CA. The company has filed or has been granted in excess of 30 patents. Investment to date exceeds $20 million, from Carlyle Venture Partners, Apax Partners (formerly Patricof & Co Ventures, Inc.), JPMorgan Partners (formerly Chase Capital Partners), TechFund Capital, and Thales Corporate Ventures (formerly Thomson-CSF Ventures.) Canesta has over 40 employees.

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 http://www.arm.com/

ARM is a registered trademark of ARM Limited. PrimeXsys is a trademark 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 Consulting (Shanghai) Co. Ltd. .

Canesta Keyboard and Perception Chipset are trademarks of Canesta Inc. All other trademarks and registered trademarks are those of their respective companies.

Additional background information on Canesta is available at www.roeder-johnson.com.