Altek Labs, Inc. Licenses Integrated SoC Development Platform from ARC International

One-stop-shop for IP, software, and development tool minimizes number of IP vendors, reducing risk, cost and development time

San Jose, Calif., May 19, 2003 – ARC International (LSE:  ARK), a world leader in user-customizable processors, silicon peripheral IP, real-time operating systems and software tools for embedded system development, announced today that Altek, a technical leader in the development of Digital Still Cameras (DSCs), has licensed a highly integrated development platform for use in the development of advanced product families.  The development platform, which includes the ARCtangentTM processor, ARC's MetaWare Software Development Tool Suite and ARC's MQX/Real Time Operating System (RTOS) allows Altek to more quickly develop new and innovative lines of differentiated Digital Still Cameras.

As a result of selecting ARC's completely integrated SoC development platforms, Original Design Manufacturers (ODMs), like Altek can free up their R&D dollars on those design elements that really push the technical envelope and raise the competitive bar.

According to the Market Intelligence Center of the Institute for Information Industry, a corporate body sponsored by Taiwan's central government, "Taiwan manufactured nearly eight million units in 2001, or 36 percent of the DSCs worldwide.  Japan accounted for 62.5 percent."

"We've been innovating in this market since 1996," said Rachel Chang, Altek's Investor Relations Manager.  "In 1999 we produced Taiwan's first one megapixel (one million pixels) DSC.  ARC's integrated IP, software and development tools will assist us as we move toward the design and production of highly differentiated products."

"Altek's technical innovations have enabled them to capture eight percent of the world market for DSCs in a short time," said Mike Gulett, ARC's president and CEO.  "We are pleased that our technology was selected to help them expand their market reach."

Taiwanese companies manufacture and design between 81 and 85 percent of their products for foreign digital camera makers and according to Yvonne Chen, an analyst at III's Market Intelligence Center, more than 60 percent of those cameras end up in the United States.

About ARC
ARC International pioneered the integrated development environment for SoC design in an effort to minimize design risk for customers developing next generation wireless, networking and consumer electronics products.  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 enable the designer to better design optimization and performance.  ARC's approach to 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 ARCtangentTM user-customizable 32-bit RISC/DSP processor;
• USB 2.0 On-The-Go (OTG) Full Speed Host and Device; small Ethernet 10/100 MAC, and other peripherals; 
• MetaWare® C/C++ Compiler, the most popular integrated software development tool suite for SoC design; 
• SeeCodeTM , the leading tool for simultaneous, multi-processor debugging;
• Precise/RTCSTM, embedded Internet stack and related software protocols;
• Precise/MQXTM, a scalable real-time operating system (RTOS);  
• ARC's software tools, RTOS and embedded software are also available for ARM; PowerPC and MIPS processors. 

ARC International employs approximately 200 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 available on the company's website, 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. In view of the many applications in which its Licensees may use the ARC products, ARC cannot warrant that those applications do not infringe the patents of others. ARC strongly encourages its Licensees to become familiar with the policies governing the use and licensing of intellectual property established by any organization whose standards the Licensee wishes to follow, and to review the list most standards-promulgating organizations publish, of entities that claim to have patents relating to the relevant standards or underlying technology.

ARC, the ARC logo, ARCtangent, ARCangel, ARCompact, ARChitect, ARCform, CASSEIA, High C, High C/C++, SeeCode, MetaDeveloper, MetaWare, Precise Solution, Precise/BlazeNet, Precise/EDS, Precise/MFS, Precise/MQX, Precise/MQXsim, Precise/RTCS, Precise/RTCSsim are trademarks of ARC International. All other brands or product names are the property of their respective holders.