ARM is the industry's leading provider of 16/32-bit embedded RISC microprocessor solutions. ARM licenses its high-performance, low-cost, power-efficient RISC processors, peripherals, and system-on-chip designs to leading electronics companies. The company also provides comprehensive support required in developing a complete system. ARM's microprocessor cores are rapidly becoming a volume RISC standard in applications such as automotive, consumer entertainment, security, imaging, industrial, mass storage, networking and wireless. 

http://www.arm.com

CAMBRIDGE, UK, 19 April 2006-ARM Holdings plc [(LSE: ARM); (Nasdaq: ARMHY)] announces its unaudited financial results for the first quarter ended 31 March 2006 with total sterling revenues up 17% and normalised EPS up 34% compared to Q1 2005. 

Financial Highlights - Q1 2006

         Total revenues £64.6m (Q1 2005: £55.0m) up 17%
         Record normalised operating margin 35.6% (Q1 2005: 32.4%)
         Normalised income before tax £24.7m (Q1 2005: £18.9m) up 31%
         Normalised EPS 1.27p (Q1 2005: 0.95p) up 34%
         £7m returned to shareholders via rolling share buyback program

Operating Highlights - Q1 2006
         Long-term technology agreement signed with TSMC for physical IP at leading-edge process nodes 
         Record 572 million ARM Powered® products shipped, up 47% on comparable period last year
         Unit growth in non-mobile segments at 68% continues to outpace growth in mobile at 37%
         Record underlying PIPD royalties of £4.5 million
         15 processor and 9 physical IP licenses signed in the quarter
         Order backlog flat sequentially at quarter end
         Order backlog today higher than at start of year following early Q2 licensing activity
         Development Systems revenues up 38% 
 

Commenting on the first quarter, Warren East, Chief Executive Officer, said:

"We have seen encouraging activity in both licensing and royalties this quarter.  Interest in our new Cortex family of processors continues to grow with a further license signed in Q1 and a number of licensing discussions in progress. Our first license agreement for the most advanced (45nm) process technology has further strengthened our position as a leading provider of physical IP. We continued to extend our market penetration across the span of digital products with royalty units increasing 47% compared to the same period last year. Q1's result further underpins our confidence that ARM will achieve another strong performance in 2006 in line with current market expectations."