ARC-OS Changer Provides Developers the Flexibility to Reuse Legacy Code-base on Variety of RTOS

No Code Conversion, Easy Code Maintenance and Reduced Development Cost Saves Time to Market

San Jose, CA., February 24, 2003 – ARC International (LSE: ARK), a world leader in providing leading edge embedded software solutions, unveiled the ARC-OS Changer tool at the Embedded World show last week in Nuremberg, Germany. ARC's newest software tool eliminates the need to rewrite legacy application code each time the MQX™ Real Time Operating System (RTOS) is selected. The ability to reuse an existing code base enables developers to reduce the development costs and get their products to market more rapidly.

"Changing the code-base or re-writing applications code each time a new RTOS is selected is a hefty development investment that most people can't afford to go through," said Mike Gulett, ARC's president and CEO. "In addition to reducing cost and time to market, code reusability reduces the amount of risk involved in developing a new product from the ground up. The ARC-OS Changer integrates legacy software seamlessly with our MQX RTOS, giving users the freedom to migrate to MQX while leveraging a familiar application programming interface."

The ARC-OS Changer does not suffer the limitations of a one-to-one system call mapping technology found in some competitive products. The mapping technology often requires modification of the original application source code, and the behavior and functionality of the code is often altered or omitted because of the limitation of the new RTOS. ARC-OS Changer requires minimal code changes, and it does not modify any of the scheduler and/or the interrupt handler characteristics so that the underlying RTOS functionality and performance are minimally impacted. Since ARC-OS Changer does the conversion during compile time, the end result is high performance application code optimized for MQX, so users never have to compromise on performance.

Availability
The ARC-OS Changer will be available in March for users looking to convert from pSOS®, and VxWorks® to ARC's MQX RTOS.

About ARC
ARC International is the first company to offer integrated solutions for SoC design, in an effort to minimize design risk for customers developing next generation wireless, networking and consumer electronics products. In 1998, ARC introduced the industry's first user-customizable 32-bit RISC/DSP processor core. In early 2000, ARC became the first company to integrate the development tools, peripherals, RTOS and software that enabled the designer to get better design optimization and performance. ARC's approach of providing a single source for the major SoC building blocks reduces the number of IP suppliers, reduces cost, reduces the risk of system-on-chip design and reduces time-to-market.

ARC's products include the ARCtangent™ user-customizable 32-bit RISC/DSP processor, the first USB 2.0 OTG high-speed controller on the market and an 802.11 MAC and baseband multi-standard IP core. ARC provides software development and system software for ARM, PowerPC and MIP's processors as well as for its own ARCtangent processor family.

ARC International employs 198 people in research and development, sales and marketing offices across North America, Europe and Asia. 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, MQX, and ARC-OS Changer are trademarks of ARC International. OSChanger is a registered trademark of Mapusoft Technologies LLC. All other brands or product names are the property of their respective holders.