ARC International and Hynix Semiconductor Announce SoC IP Alliance

ARC's IP leadership expands into worldwide communications and consumer markets; Hynix customers benefit with reduced development risks and costs

San Jose, CA and Seoul, Korea, July 22, 2002 – ARC International (LSE: ARK), a world leader in configurable System-on-Chip (SoC) platform technologies, and Hynix Semiconductor Inc., an industry leader in high quality semiconductors, today announced an alliance that extends ARC's communications and consumer product SoC IP solutions to Hynix's worldwide customers.

Hynix is expanding its design services IP portfolio by offering to its customers ARC's industry-leading 32-bit RISC/DSP ARCtangent™ microprocessor core architecture in hard macro IP form. Hynix's customers are assured reduced development costs and faster time-to-market for highly differentiated SoC designs.

"We are delighted to have ARC International as a Hynix SoC Alliance partner. Our alliance will help catalyze more business opportunities for joint customers in designing and manufacturing tomorrow's advanced SoC solutions using ARC's industry-leading IP. With ARC's IP leadership, Hynix looks forward to increasing the total number of customer designs using this path to silicon." said Channy Lee, vice president and general manager of Hynix's Semiconductor Manufacturing Service (SMS) Division responsible for foundry, ASIC and COT services.

Hynix's design services include a growing portfolio of third party semiconductor IP, as well as library cells, analog IP and embedded memory blocks developed in-house. As one of the top four semiconductor foundries in the world, Hynix is fully leveraged to provide a lower risk and cost effective development environment ranging from initial design to final silicon.

"ARC International's alliance with Hynix provides chip designers the best of both worlds, industry-leading SoC IP for highly differentiated designs combined with superior fabrication and manufacturing capabilities," commented Mike Gulett, president and chief executive of ARC International. "In addition to providing Hynix customers with high performance building blocks for communications and consumer product semiconductors, this alliance expands ARC International's role in Asia and narrows the production gap between silicon manufacturing and leading OEM product manufacturing centers in the region."

The ARCtangent is a low-cost 32-bit RISC architecture optimized for computational performance, digital-signal processing and I/O throughput. With its low power consumption, ARCtangent processors are ideal for battery-powered communications and consumer products where every milliwatt counts.

About ARC International
ARC International is an industry-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 the number of IP suppliers, reducing time-to-market, reducing costs, and reducing the risk for System-on-Chip product development. 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, ARChitect and ARCtangent are trademarks of ARC International. All other brands or product names are the property of their respective holders.

About Hynix Semiconductor Inc.
Hynix Semiconductor Inc., with its principal place of business in Ichon, Korea, is an industry leader in the development, sales, marketing and distribution of high-quality semiconductors including DRAM, SRAM, Flash memory and System IC products. To achieve a more balanced product portfolio, Hynix is aggressively expanding its System IC business, which accounted for a third of the revenues in 2001, focusing on foundry services and standard products including LCD Driver ICs, MCUs and Mobile Technology ICs. More information on Hynix Semiconductor Inc. and its products is available from the company's web site at http://www.hynix.com .