Under the terms, Arima will license Ericsson’s Radio and Baseband IP products. Integration into products such as PDA’s, handsets and mobile phones is planned to start during next year.

The agreement falls in line with Ericsson’s overall plan to strengthen

its foothold in the Asian market, said Maria Khorsand, president of

Ericsson Technology Licensing. Our goal is to integrate our Bluetooth

solutions into as many mass market consumer products as possible. The

contract with Arima is a testimony proving our commitment to reach the

mass market for all mobile handheld devices.

Ericsson’s radio transceiver, designed in 0.18-micron CMOS technology,

and the Baseband Core Product, named EBCP CherryRed, will be integrated

into most of the products manufactured by Arima, including PDA’s,

handsets and mobile phones.

The Bluetooth transceiver from Ericsson provides an exceptionally

compact radio solution and since EBCP CherryRed is already qualified the

time-consuming qualification work is virtually done, said Mr. Stephen

Lee, CEO, Arima. This together will enable us the fastest, most

valuable way of getting Bluetooth capability into our products.