Hifn Powers Next Generation FlowThrough Security Architecture with ARC International’s Latest SoC Development Platform

User-customizable 32-bit ARCtangent™-A5 RISC/DSP development solution and application-specific communications extensions provide highly differentiated security processor designs

San Jose, CA, October 23, 2002 – ARC International (LSE: ARK), a world leader in configurable System-on-Chip (SoC) platform technologies, today announced the licensing of its user-customizable SoC development platform to Hifn™ (Nasdaq: HIFN), a leading supplier of advanced compression, encryption and classification technologies. ARC's latest generation 32-bit ARCtangent-A5 RISC/DSP microprocessor core and software-based unified development tool chain were selected for the design of Hifn's next generation HIPP III (Hifn Intelligent Packet Processing) family of security processors utilizing the innovative FlowThrough architecture.

Hifn's new breakthrough architecture will continue the company's mission to make high-speed next generation networks operate more securely. The ARCtangent core provides the essential blend of programmability and performance required for the most demanding and advanced applications. Programmability is the key to supporting the requirements of today's security landscape while providing the flexibility to address the features of tomorrow's divergent markets. Performance is a necessary complement since security technology must scale to support the needs of customers as they migrate to ever-higher performance levels.

Hifn's new breed of HIPP III security processors incorporating FlowThrough technology must handle not only cryptographic acceleration and packet processing, but also protocol stack functionality for encryption and authentication. "The ARCtangent cores offer the customization and flexibility we need to utilize multiple instances with optimized size and performance for each specific task," said John Metzger, Hifn's vice president of engineering.

"By utilizing ARC's tightly integrated IP building blocks optimized for embedded communications devices and a process-independent SoC development platform, Hifn will be able to reduce its time to market with a highly differentiated and powerful security processor design," said Mike Gulett, president and chief executive of ARC International. "In particular, Hifn's design team can focus primarily on optimizing the specifications for network security designs instead of allocating precious time and budget on IP interoperability risks, multiple test and verification tasks, and process-dependent issues."

The ARCtangent user-customizable 32-bit RISC/DSP microprocessor platform allows developers to synthesize and configure robust ASIC, ASSP, system-on-chip (SoC) and FPGA designs. Developers can readily customize their ARCtangent-based designs by optionally adding instructions, registers, DSP components, instruction and data caches, and peripherals to the base-case specifications of the RISC CPU by using an easy-to-use graphical user interface (GUI) included in the platform's integrated ARChitect™ processor configuration tool. ARChitect allows developers to make changes to the system design at later stages in the design cycle to accommodate changing specifications or to differentiate features.

About Hifn
Hifn, of Los Gatos, California makes integrated circuits and software for network infrastructure developers. Hifn's integrated data flow technology and unique HIPP architecture enables intelligent secure networks with compression, encryption and application recognition. This is central to the growth of the Internet, helping to make electronic mail, web browsing, Internet shopping and multimedia communications better, faster and more secure. Most of the major network equipment manufacturers use Hifn's patented technology to improve packet processing.

Hifn was founded in 1996 and is traded on the Nasdaq Stock Exchange under the HIFN symbol. For more information, contact: Hifn, 750 University Avenue, Los Gatos, CA 95032. Phone: 408-399-3500. Fax: 408-399-3501. Web: http://www.hifn.com.

Hi/fn and LZS are registered trademarks of Hi/fn®, Inc. Hifn, FlowThrough, and MeterFlow are trademarks of Hi/fn, Inc. All other trademarks are the property of their respective owners.

About ARC International
ARC International is an industry-leading developer of embedded user-customizable, high-performance 32-bit RISC/DSP processor cores, with integrated development tools, peripherals, RTOS and software. These integrated products and solutions are a result of the acquisitions of MetaWare, VAutomation and Precise Software Technologies. ARC's integrated intellectual property solutions assist customers in rapidly developing next generation wireless, networking and consumer electronics products, reducing the number of IP suppliers, reducing time-to-market, reducing costs, and reducing the risk for System-on-Chip product development. Products based on ARC's technology include digital still cameras, set-top boxes, and network processors.

ARC International employs more than 200 people in research and development, sales, and marketing offices across North America, Europe and Israel. Full details of the company's locations and other information are on the company's web site, www.ARC.com. ARC International is listed on the London Stock Exchange as ARC International plc (LSE:ARK).

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. The Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date such statement was first made

ARC, the ARC logo, ARCtangent, and ARChitect are trademarks of ARC International. All other brands or product names are the property of their respective holders.