ARC Announces USB Host and Device Software Development Kits

ARC's Highly Integrated Development Kit Greatly Reduces Complexity of Embedded System Designs Incorporating USB

Embedded World, Nuremberg, Germany, Feb 17, 2004 – ARC International (LSE: ARK), a leading provider in embedded software, today announced USB Host and Device Software Developers' Kits, supporting a variety of platforms including Motorola® ColdFire™, Motorola PowerPC and Intel® XScale™, targeted at low-end networking, industrial control, and consumer markets.

ARC's USB Software Developers' Kit significantly decreases USB development time by providing the USB Host and Device controller-specific software stacks and drivers, so that developers can quickly and easily develop their embedded applications with minimal risk. Additionally, ARC's close relationships with major processor suppliers such as Motorola and Intel allow ARC to provide tightly integrated foundation software, including RTOS, network stack and USB connectivity, available at the time of processor introduction.

“As the industry's first provider of USB 2.0 High Speed On-The-Go (OTG) IP, ARC holds abundant in-house knowledge and design expertise related to USB Connectivity in system development. As a result of this, we are confident our Developer's Kit will help customers create systems designed for the lowest cost and maximum efficiency,” said JeriAnn May, ARC Software Marketing Director.

ARC's USB Software Developer's Kits are offered in two packages: USB Host Developer's Kit and USB Device Developer's Kit. Each kit includes a software stack, a controller-specific driver, and example code. Each kit is also tightly integrated with ARC's MQX™ real-time operating system (RTOS), enabling embedded developers to use a familiar development environment to quickly incorporate USB connectivity into MQX-based embedded devices. ARC also offers a class driver framework to manage the selected USB devices to perform the selected USB functions. Class drivers include printer, mass storage, communications, and human interface device support.

Availability and Pricing
ARC's USB Software Developer's Kit for Device, supporting the Motorola® MCF5272 ColdFire® and Intel® IXP425 XScale® processors, is available immediately from ARC. The USB Software Developer's Kit for Host, supporting the Motorola MPC5200 PowerPC® processor, will be available in March 2004. Class drivers for Printer, Mass Storage, and Human Interface Devices are available today. The class driver for Communications will be available in March 2004, with the class driver for Audio available in Q2 2004. The USB Developer's Kit for Host starts at U.S $30,000, while the USB Developer's Kit for Device starts at U.S. $10,000. Class Drivers start at U.S. $5,000. All ARC USB Developer's Kit software is licensed with source code and without royalty fees.

About ARC Embedded Software
ARC International is a worldwide provider of high quality software and knowledge for developers of embedded systems who are looking to reduce the time, effort and cost of bringing their products to market. ARC's portfolio of integrated software, featuring the MetaWare® development tools and MQX™, a royalty-free real-time operating system (RTOS) provided in full source code, operates on many popular processors, and includes excellent technical support. Streamlined for application development in industrial control, networking, consumer and storage markets, ARC's software solutions allow customers to succeed at meeting their goal for on-time and on-budget product development. With technology based on more than 20 years of embedded expertise, ARC was the first company to integrate processors, development tools, peripherals, RTOS and connectivity solutions. The inventor of user-configurable 32-bit RISC processing and a leader in configurable System-on-Chip (SoC) platform technologies, ARC provides the tools and know-how to help customers manage the increasing complexity of system-level design. Please visit www.arc.com to learn more about ARC International (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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