ARM Q2 and Half Year 2008 Trading Update

(1) Includes catch-up royalties in H1 2008 of $2.1m (GBP1.1m) and in H1 2007 of $2.1m (GBP1.1m).

    Q2 2008 - Financial Summary

                                  US GAAP Normalised*          US GAAP

    GBPM
                               Q2 2008  Q2 2007  % Change Q2 2008  Q2 2007

    Revenue                      65.0     65.5     -1%      65.0     65.5
    Income before income tax     21.1     22.5     -6%      12.6     12.0
    Operating margin             31.5%    32.0%             18.3%    16.0%
    Earnings per share (pence)   1.17     1.18     -1%      0.71     0.64
    Net cash generation**        26.5     10.0
    Effective fx rate ($/GBP)    1.97     1.97


    H1 2008 - Financial Summary

                                  US GAAP Normalised*          US GAAP

    GBPM
                               H1 2008  H1 2007  % Change H1 2008  H1 2007

    Revenue                     132.9    132.0      1%     132.9    132.0
    Income before income tax     42.5     44.1     -4%      24.8     24.7
    Operating margin            31.0%    31.1%             17.7%    16.5%
    Earnings per share (pence)   2.33     2.32      1%      1.39     1.34
    Net cash generation**        40.2     25.5
    Effective fx rate ($/GBP)    1.97     1.96


    *   Normalised figures are based on US GAAP, adjusted for
        acquisition-related, share-based remuneration and restructuring
        charges.
    **  Before dividends and share buybacks, net cash flows from share option
        exercises and acquisition consideration.
    *** Dollar revenues are based on the group's actual dollar invoicing,
        where applicable, and using the rate of exchange applicable on the
        date of the transaction for invoicing in currencies other than
        dollars. Approximately 95% of invoicing is in dollars.


    Contacts:

    Fiona Laffan/Pavla Shaw                Tim Score/Ian Thornton
    Brunswick                              ARM Holdings plc
    +44(0)207-404-5959                     +44(0)1628-427800



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