LSI Logic Licenses ARC’s USB HS-OTG

ARC's USB HS Technology Gaining Increased Acceptance Among Tier 1 Companies

SAN JOSE, CA., April 14, 2003 – ARC International (LSE: ARK), a world leader in user customizable processors, software and embedded cores for communications and consumer products, announced today that LSI Logic Corporation, a leading designer and manufacturer of communications, consumer and storage semiconductors, has licensed its USB High-Speed On-the-Go (OTG) and device technology. LSI Logic will integrate this technology into its CoreWare® library of intellectual property, thereby reducing the risk of adding USB HS-OTG functionality to new products.

LSI Logic's CoreWare design methodology includes a library of high-level, industry-standard IP building blocks, which are connected together electronically to form an entire system on a single chip. LSI Logic customers can take advantage of CoreWare to increase performance, lower system cost and accelerate time-to-market.

"LSI Logic is dedicated to providing our customers with a broad portfolio of IP, helping them bring products to market more quickly," said Massimo Verita, vice president of Consumer Custom Solutions for LSI Logic. "By adding ARC's USB platform to our CoreWare library, our customers will be able to rapidly and easily integrate OTG functionality into their next generation products achieving Right-First-Time, On Time™ results."

"Customers value LSI Logic for its ability to provide a complete design solution, a one-stop shop that can integrate process technologies, intellectual property from its CoreWare library, design methodology, and embedded memories,"said Mike Gulett, president & CEO of ARC International. "As the leading provider of USB HS OTG technology for embedded designs, we are pleased to see a company like LSI Logic recognize its worth and make it available to those CoreWare customers prepared to push the technological envelope."

ARC's USB HS-OTG is the world's first integrated and optimized USB for embedded systems development. ARC provided all the building blocks necessary for integration USB into an SoC or an ASSP. This includes USB HS 2.0 high-speed, full-speed and low-speed Host/Device dual role OTG controller and device-only controllers as well as the complete software stack. Providing customers with one-stop for all their development needs, reduces the risk as well as the time to product production.

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-customisable 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, ARCangel, ARCompact, ARChitect, ARCform, CASSEIA, High C, High C/C++, SeeCode, MetaDeveloper, MetaWare, Precise Solution, Precise/BlazeNet, Precise/EDS, Precise/MFS, Precise/MQX, Precise/MQXsim, Precise/RTCS, Precise/RTCSsim are trademarks of ARC International. All other brands or product names are the property of their respective holders.