MSILICON Electronics Integrates ARC’s USB 2.0 OTG Into Development Platform for Multimedia Storage

SAN JOSE, CA., September 22, 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, announced today that MSILICON Electronics, located in Hsin Chu, Taiwan, will integrate ARC’s High-Speed USB 2.0 On-the-Go (OTG), into its first family of products, a development platform for portable connectivity multimedia storage hub applications. A key decision factor in MSILICON’s choice of ARC as their USB IP vendor was that ARC is the technology leader in providing USB technology for SoC designs.

“With ARC’s High Speed USB 2.0 OTG technology built-in, the connectivity multimedia storage hub devices we design for system manufacturers, will have the capability of transferring data at a speed up to 480Mb/s among various types of storage interfaces,” said David Hsieh, Co-founder and executive vice president, MSILICON. “As a result, our solution will be able to make the media player devices, like HDD Jukebox, portable Multi-Media CDRW, portable Audio CD, Enclosure, and Image Tank etc, with the capability of not only media playback and encode, but also transferring files among HDD/CDRW/Audio CD, external Flash cards and USB devices.

“Many companies look to ARC to provide the technology that enables them to focus on their core areas of expertise,” said Andy Haines, ARC’s senior vice president, marketing. “By selecting ARC’s USB technology, MSILICON leverages its expertise in multimedia technology to develop a turn-key platform that allows system manufacturers to deliver various consumer products based on a single development platform.”

ARC International, USB OTG products are designed to provide the developer with world-class throughput performance, while maximizing the developer’s freedom and flexibility. ARC achieves this by providing an optimized blend of firmware and hardware. This firmware-hardware blend implements time-critical tasks in hardware gates and slower, human-speed tasks via flexible firmware solutions.

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, 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.

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