ARC International’s WLAN Now Delivers Complete Soft IP Blocks for 802.11a/b/g Modem/Baseband and MAC SoC Designs

Application-specific soft IP expands ARC SoC development platform and reduces time-to-market and costs for Wi-Fi access point and client devices

San Jose, CA, January 20, 2003 – ARC International (LSE: ARK), a world leader in configurable System-on-Chip (SoC) platform technologies, today announced WLAN Now, a complete IEEE 802.11a/b/g modem/baseband and MAC soft IP building block solution for SoC-based wireless LAN access point and client devices. WLAN Now is the latest application-specific soft IP extension for the ARC SoC development platform, a unified system development tool chain that includes the 32-bit ARCtangent™ RISC/DSP microprocessor core, and is fully optimized for communications and consumer products.

"As wireless LAN connectivity becomes more prolific in a range of embedded applications, design emphasis is shifting from a chipset model to an IP-based model," said Allen Nogee, a senior analyst with In-Stat/MDR. "By 2006, embedded-type wireless LAN applications will account for more than 50% of all wireless LAN applications. ARC is one of the very few companies well positioned to execute on this trend."

WLAN Now provides wireless LAN developers with a synthesizable architecture to integrate 802.11a, 802.11b or 802.11g, (draft standard), functionality into their SoC, ASSP or ASIC products. ARC's highly configurable and extensible architecture allows developers to readily implement current IEEE specifications, custom specifications or potential software upgrade functionality that supports future IEEE standards such as 802.11e, Quality of Service (QoS) or 802.11i security features.

WLAN Now also supports 802.11a/g multi-mode functionality for developers who require maximum flexibility in their wireless LAN devices while reducing their time-to-market and development costs. By providing a highly integrated, unified development tool chain, wireless LAN developers can also reduce the number of IP suppliers and overall design risks. ARC's flexible, fully integrated SoC platform with WLAN Now peripheral extensions consists of the ARCtangent 32-bit RISC/DSP microprocessor core, 802.11a/b/g modem/baseband processing, all hardware MAC accelerators and embedded MAC software stack.

ARC's freely intermixable 16/32-bit ARCompact™ Instruction Set Architecture incorporated into the ARCtangent-A5 microprocessor provides code size improvements of up to 30% over the ARCtangent-A4, making the WLAN Now platform ideal for low-cost devices.

"WLAN Now addresses the complex issues faced by system designers trying to add wireless LAN capability to their product lines," said Mike Gulett, president and chief executive of ARC International. "WLAN Now extends ARC's commitment to providing system designers with the necessary building blocks they need to quickly implement, synthesize and fine-tune a complex system design before committing to silicon. With the explosive market growth of WLAN, designers need the time-to-market and cost leverage that using the WLAN Now product offers."

ARC's WLAN Now product offering will be available in a variety of options including: single mode (802.11a, 802.11b or 802.11g draft standard), multi-mode (802.11a/b or 802.11a/g), STA or BSS.

Features include:

Broad support 802.11a/b/g data speeds

Advanced digital modem design for increased interference rejection giving superior data throughput performance in a crowded RF environment

Complete hardware accelerated baseband designed for the latest Zero-IF low cost, radio architectures

Advanced encryption engine supports WEP, TKIP and AES

Low gate count and fully synthesizable

Process-independent

Software based MAC running on the ARCtangent processor enables future upgrades as IEEE standards evolve for features such as security, QoS, IAPP and 5-GHz globalization

Customers who choose the WLAN Now complete 802.11a/b/g modem/baseband and MAC IP solution from ARC receive an industry leading design and services package unmatched in the industry, because it is:

Designed in synthesizable Verilog® for easy technology migration

Designed for easy integration into an SoC

Supplied selection of scripts:

• Verilog compilation
• Synthesis
• Test insertion

Supplied with a complete test bench suite

Comprehensive documentation and training

Turnkey IC design and IP integration service available on request

The WLAN Now solution gives designers unparalleled freedom in designing their next wireless LAN-enabled product. With a cutting edge design for the latest technologies, a high performance digital baseband and software based MAC that is upgradeable as the standards continue to evolve; designers will have the time to focus on the core differentiators that set their product apart in the marketplace. WLAN Now will be available in March 2003.

About ARC International
ARC International is the first company to offer integrated solutions for SoC design, in an effort to minimize design risk for customers developing next generation wireless, networking and consumer electronics products. In 1998, ARC introduced the industry's first user-customizable 32-bit RISC/DSP processor core. In early 2000, ARC became the first company to integrate the development tools, peripherals, RTOS and software that enabled the designer to get better design optimization and performance. ARC's approach of providing a single source for the major SoC building blocks reduces the number of IP suppliers, reduces cost, reduces the risk of system-on-chip design and reduces time-to-market.

ARC's products include the ARCtangent™ user-customizable 32-bit RISC/DSP processor, the first USB 2.0 OTG high speed controller on the market and an 802.11 MAC and baseband multi-standard IP core.

ARC International employs 200 people in research and development, sales and marketing offices across North America, Europe and Asia. 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, ARCompact, and ARCtangent are trademarks of ARC International. All other brands or product names are the property of their respective holders.