Parthus Licenses NavStream[tm] Platform to ARM Enabling GPS Integration into Next Generation Mobile Phones and Automotive

NavStream[tm] technology cross licensing agreement further enhances the strategic and equity partnership between ARM and Parthus

San Jose, Calif./Dublin, Ireland - August 30, 2000 - Parthus Technologies plc (Nasdaq: PRTH, LSE: PRH), a leading developer of semiconductor intellectual property (IP) for the Mobile-Internet market, today announces that it has concluded a licensing and royalty agreement with ARM [(LSE: ARM); (Nasdaq: ARMHY)], the industry's leading provider of 16/32-bit embedded RISC microprocessor solutions, for the Parthus NavStream[tm] Platform. Under the agreement, ARM will jointly sell and market the NavStream[tm] Platform to its global network of partners, which includes many of the world's leading semiconductor companies and mobile phone manufacturers.

GPS (Global Positioning System) is poised to play a critical role in the Mobile-Internet arena. GPS utilizes information from satellites and wireless networks to instantly locate any mobile device to within 5-20 meters. A recent US Federal Communications Commission (FCC) mandate has dictated that by October 1, 2001, all cellular carriers in the US must be able to instantly locate cellular callers to emergency 911 services. GPS is currently the only technology that provides consistent and accurate positioning to satisfy this FCC requirement.

In addition to this FCC legislation, GPS also offers many commercial opportunities to wireless operators through 'location-based m-Commerce'. Operators can sell many unique services such as real-time driving directions, traffic information and personalized concierge services such as nearby restaurants, stores, ATMs, and places of interest. As GPS becomes ubiquitous in cars and mobile phones new uses will emerge such as automated road tolling and parking fees based on location and asset protection - if a car or phone is stolen, it will be possible to locate it over the Internet

The ARM7TDMI® core-based NavStream[tm] technology is a complete GPS Platform incorporating radio, baseband and software stacks for both mobile phone and automotive markets. Uniquely NavStream[tm] delivers unrivalled location accuracy (locates users to under five meters within the five second E911 guideline) to any device, be that a mobile phone, PDA (Personal Digital Assistant) or GPS enabled vehicle, and from anywhere in the world. NavStream[tm] is architected to be air interference independent, functions to any wireless standard and operates inside houses, moving vehicles, under heavy foliage and in dense city locations across the globe. Furthermore, the platform is designed to deliver lowest cost to implementing GPS in handsets and automotive, with novel hardware and software features that maximize sensitivity (-176dbw), eliminate frequency jamming and minimize power consumption. Uniquely, NavStream[tm] can operate in both GSM and CDMA networks.

Under terms of the agreement, ARM will incorporate NavStream[tm] into its core technology offerings. In addition, ARM will sub-license the NavStream[tm] Platform to its global network of customers and partners. The agreement includes both license and royalty fees to Parthus.

Brian Long, Chief Executive Officer, Parthus Technologies plc today commented:

"ARM is the undisputed leader in designing and licensing microprocessors to the mobile phone market and we are extremely pleased to extend our existing technical and equity partnership with this licensing agreement for our GPS technology. This technology enables wireless operators to offer location based services that are seen as killer applications for the rapidly emerging m-Commerce market such as real time maps, pinpointing nearest restaurants or banks, and locating people."

Robin Saxby, Chief Executive Officer, ARM Holdings plc added:

"ARM is committed to working closely with our partners to provide a full range of technology solutions, and to enable a digital 'foundation' for the next generation of mobile electronics products, from automotive navigation systems to wireless information devices. This agreement with Parthus will enable us to build upon our already strong presence in the wireless market, introducing a new level of innovation while reinforcing ARM's role as the architecture of choice for the digital world."

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About ARM Holdings plc

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

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