ARC Adds Tality to Its Worldwide Design Center Network

Tality to Provide Design Expertise to Developers of Systems On a Chip (SoCs) Based On ARC's User-Customizable Processor

SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 29, 2001-- ARC International plc (LSE:ARK), trading through its subsidiaries as ARC Cores, has announced that Tality Corporation, a subsidiary of Cadence Design Systems (NYSE:CDN - news), has become a design services and development partner of ARC. The agreement between the two companies gives Tality access to the user-customizable ARCtangent(TM)-A4 processor, technology, software and development tools, enabling the generation of new designs and licenses for products based on ARC's technology.

Tality and ARC will also jointly develop application-specific intellectual property (IP) for the ARCtangent processor, offering platform solutions in the wireless, network gateway and communications market sectors. Details of these will be announced in coming months.

John Stockton, interim CEO of ARC Cores, said, "We expect to generate several new licenses from the addition of Tality to our worldwide design center network. Tality will provide expert design resources for ARC's customers who need engineering resources to complete their ARCtangent-based designs, particularly in wireless systems and full SoC applications."

Tality already has expertise with ARC's IP and tools, particularly in developing ARC's BlueForm(TM) product. Tality is a leading global provider of innovative engineering services and intellectual property (IP) for the design of complex electronic systems and integrated circuits. Tality has a wide range of IP that can be utilized by both ARC and Tality customers to facilitate low-risk development and fast time to market.

John Stockton added, "Tality will further enhance our capability to help customers accelerate the development of their SoCs." He explains, "Most of our customers develop an idea which will give them a competitive edge through substantial differentiation at the hardware level. They select ARC's technology because it allows them to achieve this quickly. But some customers don't have the design resources or expertise to integrate our processor, other IP, and software into their overall development, and that's where Tality adds value."

Brent Hudson, president of Tality Corporation, adds, "We are pleased to be able to strengthen the relationship between our companies. The experience we gained by combining our expertise and technology to help develop ARC's Bluetooth(TM) system IP will enable us to help our mutual customers bring innovative products to market."

Notes for Editors

About ARC's design centers

ARC's design centers, design services partners and other partners are part of the 'ARC Circle' program, details of which are under the 'Partners' section of www.arccores.com. In addition to Tality, ARC's worldwide network of design centers includes Bluefont Technologies (India), Delta (Denmark), Fraunhofer IIS (Germany), Intrinsix (USA), Mosaid (Canada), Palmchip (USA), and Systec (Japan). Other companies offering design services for ARCtangent-based projects include Ensigma Technologies and Espico.

About Tality

Tality Corporation, a subsidiary of Cadence Design Systems, Inc. (NYSE:CDN - news), is the world's largest electronic product development outsourcing provider. Leading and emerging technology companies around the globe leverage Tality's engineering services and intellectual property for the design of complex electronic systems and integrated circuits. Tality is headquartered in San Jose, California. For more information about Tality, please visit us at www.tality.com.

About ARC International

ARC International plc is a leading developer of user-customizable, high-performance 32-bit processor cores (including ARCtangent(TM)), development tools, peripherals and other intellectual property (IP), enabling reduced time to market for system-on-chip products. ARC's 58 customers include Conexant Systems, Cypress Semiconductor, Fujitsu Microelectronics, IBM, Infineon Technologies, QLogic, SanDisk and Sun Microsystems. Products based on ARC's technology include digital still cameras, set-top boxes, and network processors. MetaWare Inc., Precise Software Technologies Inc., and VAutomation Inc. are wholly owned subsidiaries of ARC International, providing software development tools, hardware and software intellectual property and real-time operating systems for an integrated approach to system-on-chip development. ARC's third-party partners include Cadence, Flextronics, Intrinsix, Synopsys, TSMC, UMC, Wind River, and Xilinx.

ARC International plc and its group companies employ more than 200 people at its headquarters in Elstree, England, and in research and development, sales, and marketing offices across North America, Europe, and Israel. ARC International plc is listed on the London Stock Exchange (LSE:ARK). The company's web site is at www.arccores.com.

Statements made in this press release that are not historical facts include forward-looking statements that involve risks and uncertainties. Important factors that could cause actual results to differ from those indicated by such forward-looking statements include, among others, market acceptance of the ARC technology; fluctuations in and unpredictability of the Company's quarterly results; general economic and business conditions; regulatory policies adopted by governmental authorities; assumptions regarding the Company's future business strategy; changes in technology; competition; ability to attract and retain qualified personnel; risks associated with the Company's international operations; and other uncertainties that are discussed in the "Investment Considerations" section of the Company's listing particulars dated 28 September 2000 filed with the United Kingdom Listing Authority and the Registrar of Companies in England and Wales.

ARC International (UK) Ltd. and ARC Cores, Inc., both of which are wholly owned subsidiaries of ARC International plc, trade under the name of ARC Cores. ARC, the ARC logo, ARCtangent, ARCangel, ARCompact, ARChitect, ARCform, BlueForm, and CASSEIA are trademarks of ARC International (UK) Ltd. All other brands or product names are the property of their respective holders.

Contact:
     ARC
     Nitin Dahad, +44 (0) 20 8236 2835
     nitin.dahad@arccores.com
        or
     BW & A
     Donna Wilson, 510/413-4994 x107
     donna@bwapr.com
        or
     Tality
     Jim Douglas, 408/944-7955
     jimd@tality.com
        or
     Cohn & Wolfe
     Leslie Taschner, 415/477-4542