ARC International Announces USB Now™, the World's First Integrated and Optimized USB for SoC IP

Hi-Speed USB 2.0 Host/Device platform to be showcased at the  USB 2.0 Developers Conference, San Jose, June 10-11, 2002

San Jose, CA, June 10, 2002 - ARC International (LSE: ARK), a leader in user-customizable processors, software and embedded cores for communications and consumer products, today introduced USB Now, the world's first integrated and optimized USB for System-On-Chip (SoC) IP platforms.

USB Now includes On-The-Go (OTG) functionality for Hi-Speed USB 2.0 peer-to-peer communications between mobile and consumer electronics devices. OTG is a supplement to the USB 2.0 specification that features limited host capability for portable devices, low power requirements, and the transfer of information between USB-enabled products without requiring a PC.

USB Now provides a fully integrated platform consisting of the ARCtangent™-A5 synthesizable CPU core, USB 2.0 host/device core with OTG technology, and embedded software stack. Significant benefits to ARC's customers include:

• Reduced time to market
• Reduced development costs
• Reduced number of IP suppliers
• Reduced risk

"USB Now is a major step forward and addresses the complex end-to-end challenges of embedded host and device Hi-Speed USB 2.0," commented Mike Gulett, president and chief executive of ARC International. "It allows developers to analyze a system architecture and then fine-tune a synthesizable, flexible Hi-Speed USB 2.0 host/device core quicker and better than any alternative."

ARC's USB Now is available in either combined host/device or device-only options, and is also available for interface to non-ARC CPUs. Features include:

• Support for directly connected high (480Mbps), full (12Mbps) and low speed (1.5Mbps) modes
• Dual-role On-The-Go (OTG) support to switch between host and device
• Reduced memory footprint through use of ARCompact™ instruction set
• Embedded OTG software stack
• Support for UTMI and Philips interfaces and forthcoming UTMI+ transceiver interface
• Extra CPU bandwidth available for system tasks

In addition to reducing design risks, the USB Now platform configures many items in firmware that competing solutions cast in hardware. This flexibility enables a single silicon implementation to track with evolving market demands, or to service multiple USB applications without change to the silicon. These unique, pre-integrated and field tested features reduce the costs and risks associated with design re-spins, and result in reduced silicon area and smaller code footprint.

USB Now will be available beginning in August 2002. Click here to view the USB Now datasheet. ARC will preview the USB Now platform at the USB 2.0 Developers Conference (San Jose, CA, June 10-11, 2002).

ARC International will also be conducting two sessions at this conference:

"Succeeding with UTMI" by Peter Tengstrand, ARC International Principal Engineer
"High-Speed Operation with USB On-The-Go" by Chris Kolb, ARC International Chief Engineer and Bart Vertenten, Philips Semiconductor System Architect

About ARC International

ARC International is a leading developer of embedded user-customizable, high-performance 32-bit RISC/DSP processor cores, with integrated development tools, peripherals, RTOS and software. These integrated products and solutions are a result of the acquisitions of MetaWare, VAutomation and Precise Software Technologies. ARC's integrated intellectual property solutions assist customers in rapidly developing next generation wireless, networking and consumer electronics products, reducing time to market, reducing their cost, reducing the number of IP suppliers and reducing their risk for system-on-chip products. Products based on ARC's technology include digital still cameras, set-top boxes, and network processors.

ARC International employs more than 200 people in research and development, sales, and marketing offices across North America, Europe and Israel. Full details of the company's locations and other information are on the company's web site, 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.

ARC, the ARC logo, ARCtangent, ARCompact, and USB Now are trademarks of ARC International. All other brands or product names are the property of their respective holders.