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October 12, 1998

ARM ON LOOK-OUT FOR NEW MARKETS

By CBR Staff Writer

ARM Holdings Plc continues to shrug off the problems of the semiconductor industry worldwide with nine month net profits up 98.6% to 4.1m pounds on revenues that increased 62% to 29.7 pounds. The UK RISC chip company has a significant advantage in being a fab-less operation. But what is really driving the company forward is the demand for its processors in the buoyant market for mobile information devices. ARM is hungry for new markets. Earlier this month the company announced completion of a project to port Windows CE to its processors. And R&D costs, which have climbed from 31% of revenues to 34% in the past year, are unlikely to diminish. ARM is now looking to integrate its processors into next-generation hard disk drive in projects with Cirrus and Lucent. ARM will unveil its new high-end ARM10 processor at the Embedded Processor Forum in San Jose, California later this week. The ARM10 is aimed at the set-top box and digital TV markets.

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