Press release

08 February 2002

Re: Announcement by STMicroelectronics

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Imagination’s partnership with STMicroelectronics is focused upon using Imagination’s technology in a number of different markets. Imagination reports that in relation to the PC market, ST has today announced that it is currently seeking a buyer for its PC Graphics Business which utilises Imagination’s PowerVR technology and as a result will be withdrawing from this market area.

Imagination is aware of discussions taking place with interested parties and has been involved in supporting ST with these activities. In addition, a number of interested PC chip companies have approached Imagination regarding access to future PowerVR PC technologies.

Imagination and ST will continue their partnership activities to utilise Imagination’s technology in the set-top box market and expect to extend their relationship to the mobile device market in due course.

Imagination will update shareholders with any further developments.

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