ARC International Announces Expanded Embedded Software Support for Next Generation Motorola ColdFire and PowerQUICC I PowerPC Processors

Support for MCF547x/548x and MPC87x/88x addresses increased need for software integration supporting new on-chip peripherals in Industrial Control and Networking markets

SAN JOSE, CA., May 17, 2004 – ARC International (LSE: ARK) today announced plans to support the next generation Motorola® ColdFire™ MCF547x/MCF548x and PowerPC™ MPC87x/MPC88x processor families with its royalty-free embedded software. The ARC embedded software support provides the highest level of hardware and software integration for new on-chip peripheral hardware, including USB 2.0 Device, USB 1.1 Host, FlexCAN and integrated security engines.

ARC software support for the MPC87x/MPC88x PowerQUICC I processor family for developers of communications applications ranging from Ethernet routers to wireless LAN equipment includes:

• USB 1.1 Host Software Kit including a software stack, a controller-specific driver, and example code, all tightly integrated with the MQX Real-Time Operating System (RTOS). The software kit also provides a class driver framework to manage the selected USB functions. Class drivers include printer, mass storage, communications, and human interface device support.
• Hardware Accelerated Encryption with IPShield ™ security software supporting IPSec, IKE, SSL and SSH protocols for integrated security engines to achieve optimal security performance.

For developers building industrial control applications such as smart sensors, robotics, industrial switches, motion and temperature control, and building surveillance, ARC software support for the MCF547x/MCF548x processor family includes:

• USB 2.0 Device Software Kit including a software stack, a controller-specific driver, and example code, all tightly integrated with MQX RTOS.
• FlexCAN with a FlexCAN device driver and CAN protocol support including CANOpen
• Hardware Accelerated Encryption with IPShield security software supporting IPSec, IKE, SSL and SSH protocols for integrated security engines to achieve optimal security performance.*

"For embedded developers, time to market is critical," said Jeri Ann May, Director of Marketing for Software. "ARC is chartered to provide tightly integrated foundation software, including RTOS, network stack, security, CAN, Ethernet and USB connectivity, available at the time of the processor introduction. This enables embedded designers to get a jump start on evaluation and development out-of-the-box, allowing them to focus on developing their core strengths rather than resolving time-consuming inefficiencies associated with the development or integration."

Availability
Complete software support, seamlessly integrated with the Metrowerks® CodeWarrior™ Development Environment, for the Motorola® ColdFire™ MCF547x/MCF548x and PowerPC™ MPC87x/MPC88x processor families will be available starting in Q2 2004. ARC will be demonstrating its embedded software for these processor families at the electronicaUSA in San Francisco, booth #1814. For a complete list of ARC software supporting the ColdFire and PowerPC processors please visit us at www.arc.com/software, or contact ARC for more details.

About ARC
ARC International is a worldwide provider of high quality software and knowledge for developers of embedded systems who are looking to reduce the time, effort and cost of bringing their products to market. ARC's portfolio of integrated software, featuring the MetaWare® development tools and MQX™, a royalty-free real-time operating system (RTOS) provided in full source code, operates on many popular processors, and includes excellent technical support. Streamlined for application development in industrial control, networking, consumer and storage markets, ARC's software solutions allow customers to succeed at meeting their goal for on-time and on-budget product development.

With technology based on more than 20 years of embedded expertise, ARC was the first company to integrate processors, development tools, peripherals, RTOS and connectivity solutions. The inventor of user-configurable 32-bit RISC processing and a leader in configurable System-on-Chip (SoC) platform technologies, ARC provides the tools and know-how to help customers manage the increasing complexity of system-level design. Please visit www.arc.com to learn more about ARC International (LSE: ARK).

* Subject to US/UK export controls.

This press release may include "forward-looking statements" that involve risks and uncertainties. Factors that could cause actual results to differ are discussed in the 'Inves™ent Considerations' section of the Company's web site as well as the 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 obligation to update any forward-looking statements. ARC, the ARC logo, ARCtangent, MetaWare, Precis/MQX and Precise/RTCS are trademarks of ARC International. All other brands or product names are the property of their respective holders.