Press release

17 May 2005

New Licence Agreement with Intel Corporation

Imagination Technologies Group plc, (“”Imagination Technologies””), a leader in system-on-chip intellectual property (SoC IP), announces that Intel Corporation (“”Intel””) has licensed both a member of its new generation, fully programmable PowerVR graphics and video processing IP family, codenamed Eurasia, and a next generation multi-standard video codec (video encode and decoder) IP core.

Intel has previously licensed PowerVR MBX family graphics and associated video and display cores.

Under the terms of its licensing arrangements, Imagination Technologies receives licence fees and royalty revenues on SoCs incorporating Imagination Technologies’ IP shipped by partners.

This new licence agreement has been concluded during the current financial year.

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