ARC International’s Customers Lead Way in Multiprocessing Design

More than Two-Dozen Companies have Integrated Multiple ARCtangent Cores into a Variety of Multiprocessor Applications While Utilizing ARC's MetaWare Software

San Jose, Calif., June 18, 2003 –ARC International (LSE: ARK), a world leader in user-customizable processors, silicon peripheral IP, real-time operating systems and software tools for embedded system development, today claimed that approximately 25 percent of ARC's customers have used the ARCtangent processor and MetaWare tools in multiprocessor designs in a range of applications including networking, telecommunications and multimedia. Customers utilizing ARC's processor cores and development software have successfully integrated anywhere from eight to 128 ARCtangent cores into a single chip.

"The use of multiple cores for multiprocessing designs is gaining tremendous momentum," said Andy Haines, senior vice president of marketing at ARC International. "According to a report from Future Horizons, the average number of processors per chip has increased by more than 100 percent since 1999. Today, the average number of processors per chip is six. We believe the need for programmability and application-specific instruction sets will drive the continued adoption of multiple cores in designs. With ARC's history of enabling multiprocessor design, we are well positioned to support this growth."

ARC's MetaWare tool suite has been successfully used to develop and deploy numerous multiprocessor designs. The software features ARC's SeeCode™ debugger, providing users with an advanced, user-configurable debugger for high-performance applications. Aiding in the development and debugging of multiprocessor designs, the SeeCode debugger offers a Coordinated Multi-Processor Debugging (CMPD) facility, enabling the debug of multi-processor applications of up to 256 processors in a single debugging session. The Metaware tool suite supports ARCtangent, ARM, MIPS and PowerPC.

About ARC's Multiprocessing Solution
ARC's success in multiprocessor design is in its ability to provide both an industry-leading processor core as well as software for multiprocessor development and debug. ARC's multiprocessing solution has been implemented in many applications to date, including applications that feature as many as 128 ARCtangent processor cores. The ARCtangent processor is a user-customizable RISC/DSP core for ASIC and system-on-chip (SoC) products and comes with a highly optimized tool chain. The ARCtangent cores are compact in terms of transistor count, making them ideal for multiprocessor applications. The MetaWare tool suite fully supports the capabilities of both the ARCtangent processor and non-ARC-based processors including multiprocessor debugging and extensibility for processor customization.

About ARC
ARC International pioneered the integrated development environment for SoC design in an effort to minimize design risk for customers developing next generation wireless, networking and consumer electronics products. 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 enable the designer to better design optimization and performance. ARC's approach to 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 ARCtangentTM user-customizable 32-bit RISC/DSP processor;
• USB 2.0 On-The-Go (OTG) Full Speed Host and Device; small Ethernet 10/100 MAC, and other peripherals;
• MetaWare® C/C++ Compiler, the most popular integrated software development tool suite for SoC design;
• SeeCodeTM , the leading tool for simultaneous, multi-processor debugging;
• Precise/RTCSTM, embedded Internet stack and related software protocols;
• Precise/MQXTM, a scalable real-time operating system (RTOS);
• ARC's software tools, RTOS and embedded software are also available for ARM, PowerPC and MIP's processors. 

ARC International employs approximately 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 available on the company's website, 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. In view of the many applications in which its Licensees may use the ARC products, ARC cannot warrant that those applications do not infringe the patents of others. ARC strongly encourages its Licensees to become familiar with the policies governing the use and licensing of intellectual property established by any organization whose standards the Licensee wishes to follow, and to review the list most standards-promulgating organizations publish, of entities that claim to have patents relating to the relevant standards or underlying technology. 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