ARC International Announces Comprehensive Licensing Agreement with Broadcom for Configurable Technology

Multi-Year Development Agreement Targets High-Growth Consumer Applications

SAN JOSE, Calif. November 29, 2004 – ARC International (LSE: ARK) today announced a multi-year licensing agreement that makes available the embedded industry's leading configurable technology to Broadcom Corporation. Under the terms of the agreement, Broadcom will use ARC's low-power, configurable microprocessors and MetaWare® tools to develop leading-edge system-on-chips (SOCs). Among the ARC™ technology licensed by Broadcom were the ARC 600 and ARC 700 processor cores, which are an ideal fit for applications that require both low power and small die size.

“This relationship with Broadcom is another important endorsement of our strategy to leverage configurable technology in high-growth markets with industry leaders,” said Derek Meyer, vice president of marketing for ARC International. “With Broadcom's choice to license ARC technology, it joins nearly a hundred other silicon and system vendors that are driving leading-edge SOC designs using the industry's first truly configurable platform.”

“In high volume consumer electronics, lowering the cost and getting the product to market are vital,” said Daniel Marotta, group vice president of Broadcom's Broadband Communications Group. “As we continue to bring low-cost SOCs to market, ARC's configurable core architecture and tools meet critical cost points and design parameters.”

ARC's industry-leading configurable technology enables designers to develop application-optimized silicon designs. By enabling specific trade-offs in performance, size and power, customers such as Broadcom are able to design differentiated solutions that are highly cost-effective.

The ARC 600 core is optimized to deliver high performance in a small silicon area with minimal power consumption. The ARC 700 core provides the smallest 400 MHz processor available today, and supports complex applications with an MMU and processing modes to enable feature-rich and secure operating systems. Both the ARC 600 and ARC 700 cores are DSP-enhanced and eliminate the need for additional signal processing engines.

About ARC

ARC International is a world leader in low-power, high-performance 32-bit configurable CPU/DSP processor cores, subsystems, real-time operating systems and development tools for embedded system design. ARC's configurable and extendible cores assist customers in the development of next generation digital media, consumer and communications devices, resulting in lower cost, higher performance SOC products.

ARC International maintains a worldwide presence with corporate offices in San Jose, California, USA and Elstree, UK. 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).

ARC, the ARC logo, MetaWare and ARC-Based are trademarks or registered trademarks of ARC International. All other brands or product names contained herein are the property of their respective owners. This press release may contain certain "forward-looking statements" that involve risks and uncertainties. For factors that could cause actual results to differ, visit the company's Website as well as the listing particulars filed with the United Kingdom Listing Authority and the Registrar of Companies in England and Wales.