ARC International The Leading Supplier Of USB-OTG IP Announces 13 Licenses In Six Months

San Jose, CA., February 17, 2003 – ARC International (LSE:ARK), a world leader in configurable System-on-Chip (SoC) platform technologies, today announced its USB Now™ has attracted rapid industry acceptance. On June 10, 2002, ARC unveiled USB Now, the world's first integrated and optimized platform for USB SoC IP platforms. Within six months, ARC has signed 13 licenses, and validated its platform approach to the market.

ARC leveraged USB experience that dates back to 1996. This development experience enabled ARC to introduce the industry's first embedded High-Speed USB On-The-Go (OTG). USB-OTG enables high-speed communications between mobile and consumer electronics devices, for example a digital camera and a cell phone can share files directly, without the need for a PC. USB Now is the first of ARC's fully-integrated application-specific development platforms. It includes the ARCtangentTM-A5 synthesizable CPU core, USB 2.0 host/device core with OTG technology, and embedded software stack.

"People are familiar with the Universal Serial Bus (USB) and the ease with which it allows them to interface their PC to other peripherals like printers and cameras," said Andy Haines, ARC's senior vice president of marketing. "As mobile computing devices, like PDAs, cell phones, digital cameras offer more functionality, users are going to want to interconnect them with the same ease. But they need it in an integrated format and right now ARC is the only one with the complete IP solution for the embedded market."

According to a recent Gartner Group report, devices that enable personal connectivity "represent a market opportunity of tens of billions of dollars a year in the second half of this decade." ARC's approach to providing all the building blocks for specific applications minimizes the developers' risk, and cost and helps them get into that market more quickly.

About ARC
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 provides software development and system software for ARM, PowerPC and MIP's processors as well as for its own ARCtangent processor family.

ARC International employs 198 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, ARCtangent, and USB now are trademarks of ARC International. All other brands or product names are the property of their respective holders.