ARC International Completes Integration of Three Subsidiaries Into One Company

Finishes initiative started in early 2002

San Jose, CA, June 17, 2002 - ARC International (LSE:ARK), a leader in semiconductor and software technology licensing, today announced completion of the integration of its three subsidiaries into the parent company, finalizing a plan announced early in 2002 by new CEO Mike Gulett.

The three subsidiaries: MetaWare, a Santa Cruz, CA toolset maker, VAutomation, a provider of communication peripherals, located in Nashua, NH, and Ottawa, Canada-based Precise Software Technologies, a provider of application-software platforms, are all now operating under the name ARC International.

"This is a very important accomplishment," said CEO Mike Gulett. " By bringing these companies together, we have significantly enhanced our product offering. In effect, we become a one-stop shop for embedded RISC/DSP processors, RTOS, software, peripherals and development tools. We have a unique product portfolio, and we can offer integrated products that are not available from any other company."

"What's more", he continued, " Customers are assured that all of our products have been tested and guaranteed to work with each other. By providing solutions that include the processor integrated with the USB or Ethernet, RTOS and protocol stack along with the development tools, ARC International enables our customers to reduce their time to market, reduce their cost, reduce their number of IP suppliers and reduce their risk."

ARC International's MetaWare products include debuggers and compliers, such as the High C/C++/EC++ Embedded Development Tool Suite, SeeCode Debuggers and toolsets for ARC™, ARM®, StrongARM®, MIPS®, PowerPC®, picoJAVA® and XScale® cores. The Precise products now under the ARC International brand include the Precise/MQX™ RTOS and Precise/RTCS™ networking stack with optional IPSec, NAT and other protocols and optional embedded I/O components that are required for developing various types of resource-constraint devices. The company's software can be found operating in hundreds of smart devices in the marketplace - digital telephone sets, PBXs, xDSL and cable modems, set-top boxes, personal digital assistants (PDAs), and process control applications.

The VAutomation side of ARC International features USB High Speed OTG (On-The-Go) and 1.1, Ethernet MAC and microprocessor cores such as Turbo 186™, V8, V8086, V186, VZ80, and V6052. In addition to development tools, VAutomation also produces the FPGA-based Intellicore Prototyping System, V8-µRISC™ Assembler/Debugger and Software Simulator, and the Paradigm FS2 Suite.

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, High C/C++/EC++, Precise/MQX, Precise/RTCS, SeeCode, Turbo 186, V8-µRISC, are trademarks of ARC International. MetaWare is a registered trademark of ARC International. All other brands or product names are the property of their respective holders.