2 Related party transactions

During the year, the Company paid royalty fees of £81,000 (2006: £124,000; 2005: £33,000) and made cross-licence payments of £nil (2006: £nil; 2005: £26,000) to Superscape Group plc (Superscape), a company in which Mike Inglis, an executive director of ARM, was a non-executive director during the year. Amounts owed to Superscape at 31 December 2007 and 2006 were £nil. In addition, in 2007 the Company received royalty fees of £14,000 (2006: £19,000; 2005: £2,000) and licence fees of £nil (2006: £nil; 2005: £11,000) from Superscape. At 31 December 2007, £nil (2006: £17,000) was owed by Superscape.

Also in 2007, the Company received licence fees of £4,000 (2006: £3,085,000; 2005: £321,000), support and maintenance income of £32,000 (2006: £37,000; 2005: £37,000) and evaluation tools fees of £123,000 (2006: £82,000; 2005: £17,000) from CSR plc, a company in which John Scarisbrick, a non-executive of ARM, was an executive director during the year. Amounts owed by CSR plc at 31 December 2007 were £31,000 (2006: £14,000).

During 2007, the Company received funding for SOI technology development of £1,507,000 (2006: £319,000; 2005: £nil) from SOI TEC Silicon On Insulator Technologies SA (“Soitec”). Furthermore, the Company paid £181,000 (2006: £nil; 2005: £nil) to Soitec during the year in relation to license income from the two parties’ ongoing collaborative agreement to develop SOI technology. Soitec is an SOI IP company in which Doug Dunn, Company Chairman, is a non-executive director. At 31 December 2007, £nil (2006: £383,000) is owed by Soitec. Amounts owed to Soitec at 31 December 2007 and 2006 were £nil.