SanDisk Corporation Licenses ARC 600 Processor Core For Use in Flash Storage Products

SAN JOSE, Calif., August 9, 2004 – ARC International (LSE: ARK), a world leader in configurable RISC CPU/DSP processor cores and application platforms, today announced that SanDisk Corporation, the world's largest supplier of flash storage products, has licensed the ARC 600 RISC processor core and MetaWare® development tools for use in their next generation of flash storage products.

SanDisk, the leading supplier of flash data storage card products, designs, manufactures and markets digital imaging and audio storage products using its patented high density flash memory and controller technology. As an ARC licensee since 2000, SanDisk products are sold under the SanDisk label and by OEMs for use in products ranging from portable music players and digital cameras to smart phones and handheld computers.

"ARC's configurable processor technology has played a significant role in the success of our product,” said Yoram Cedar, senior vice president of engineering at SanDisk. "In planning for our next generation product lines, we had very strict size and performance requirements. After seeing that the ARC 600 core could be configured to optimally meet our size, area and performance needs, the choice was easy. We are on a relentless drive to decrease our costs while significantly improving performance to meet the needs of our customers and increase demand for our products.”

"SanDisk is an excellent example of how high volume customers can benefit from ARC's configurable processor technology. The ARC 600 delivers up to 30% higher code density, enabling the addition of new features while reducing die size. The end result is that our customers can have a more optimized product with an increased gross margin,” said Carl Schlachte, ARC CEO.

ARC 600 Processor Core
The ARC 600 RISC CPU/DSP processor core is optimized to deliver high performance in a small silicon area with minimal power consumption. It is configurable and extendible, which allows developers to balance performance and silicon area to deliver the most efficient solution to market as quickly as possible. Developers can modify and extend the Instruction Set Architecture (ISA) to optimize the processor core for their specific application.

About SanDisk Corporation
SanDisk, the world's largest supplier of flash memory data storage card products, designs, manufactures and markets industry-standard, solid-state data, digital imaging and audio storage products using its patented, high density flash memory and controller technology. SanDisk is based in Sunnyvale, CA. SanDisk's web site/home page address: http://www.sandisk.com

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About ARC
ARC International is a world leader in low-power, high-performance 32-bit RISC CPU/DSP configurable processor cores, real-time operating systems and development tools for embedded system design. ARC's configurable, extendible cores assist customers in their rapid development of next generation wireless, networking and consumer electronics systems, resulting in exceptionally competitive System-on-Chip products.

ARC International maintains a worldwide presence with corporate offices in Elstree, UK and San Jose, California, USA. The Company has research and development offices located in England and the United States. For more information please visit the ARC website at: www.ARC.com. ARC International is listed on the London Stock Exchange as ARC International plc (LSE:ARK).

This press release may include "forward-looking statements" that involve risks and uncertainties. Factors that could cause actual results to differ are discussed in the 'Investment Considerations' section of the Company's web site as well as the 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 obligation to update any forward-looking statements.

ARC, the ARC logo, ARCtangent, ARCangel, ARChitect, ARCform, and MetaWare are trademarks of ARC International. SanDisk and the SanDisk logo are trademarks of SanDisk Corporation, registered in the US and other countries. All other brands or product names are the property of their respective holders.