ARC International Adds Hardware Extensions To Its Processor Core For IPSec Acceleration

ARCprotect Offers SoC Designers a Complete Hardware/Software Security Solution

San Jose, Calif., August 18, 2003 — ARC International (LSE: ARK), a world leader in user-customizable processors, silicon peripheral IP, real-time operating system and development tools for embedded system design, today introduced its ARCprotect™ security solution, offering a complete hardware and software security suite to system-on-chip (SoC) designers. The ARCprotect security suite utilizes IP-based hardware extensions to the ARCtangent processor core, as well as ARC’s IPShield security software that supports IPSec and IKE security policies. The extensions within the ARCtangent processor enable the acceleration of IPSec algorithms, speeding the processor security algorithms by an order of magnitude. By leveraging the added security extensions within the ARCtangent processor, along with the IPShield software, customers can quickly and affordably develop reliable and secure networking devices.

“Network security is quickly becoming the primary concern for today’s SoC designer, and we are committed to ensuring that our processors contain the most advanced security features,” said Andy Haines, senior vice president of marketing at ARC International. “With its tremendous cost savings advantages and its full compliance to IETF standards, we believe our ARCprotect security suite of hardware and software is the most comprehensive solution for securing networking and embedded applications today.”

ARCprotect provides designers with an ideal system-level security solution. The IPShield software within ARCprotect is fully compliant with the IETF IPSec and IKE standards, and can be used to implement a broad spectrum of security policies in any type of embedded device. IPShield reliably manages packets at 50 Mbps, full duplex.

ARCprotect enables SoC designers to meet their security requirements by leveraging the hardware and software security features within ARC’s processor cores. Developed specifically for the ARCtangent processor, ARC’s unique IP security solution efficiently facilitates the processing and full compliance of IPSec standard components. Additionally, with the inclusion of IPSec instruction extensions to the ARCtangent processor, much of the workload that is required for IPSec is migrated from software to hardware, freeing up processor bandwidth to perform other tasks.

ARCprotect utilizes ARC’s popular ARChitect and MetaDeveloper systems to profile the entire security platform, analyze instruction distribution and cache behavior, and identify hardware acceleration logic, making it an ideal IP security solution for SoC development.

About ARC

ARC International is a world leader in SoC and embedded software design and development minimizing risk for customers developing next-generation wireless, networking, industrial control, storage and consumer electronics products. ARC introduced the industry’s first user-customizable 32-bit RISC/DSP processor core, the industry's first USB Hi-Speed On-The-Go IP and today supplies turnkey embedded solutions that combine a real-time operating system, development tools and peripheral hardware and software that enable developers to better design optimization and performance. ARC provides a single source for the major SoC and embedded software building blocks reducing the number of suppliers, reducing cost, reducing risk and reducing time-to-market.

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, http://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.

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