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This paper proposes a design and implementation scheme of a NE2000 compatible Ethernet interface for embedded system based on ARM7 and RTL-8019 NIC (network interface controller) hardware platform. The design aims at the characteristics that the embedded system only has limited resources and reduced any unnecessary operation process. The logic structure, operation principle and DMA controller data sending and receiving principles of RTL-8019 NIC and Ethernet frame encapsulation process have been explained in detail. The registers programming process for realizing NIC initialization, operation of local/remote DMA controller and Ethernet frame sending and receiving have been deeply discussed, providing a completed implementation scheme of sending and receiving an Ethernet frame.