ARC International licenses its microprocessor to Infineon Technologies for next generation product technology

Elstree, 28 February 2001 - ARC International plc (LSE:ARK), a leading designer and developer of customisable, high-performance microprocessors and related intellectual property solutions, announced today that Infineon Technologies, a leading innovator in the international semiconductor industry, has licensed ARC?s 32-bit user-configurable microprocessor for its next generation DSL (digital subscriber line) transceiver technology.

Infineon?s decision is based on the flexibility of ARC?s processor core as well as the development tool support available from ARC. Bob Terwilliger, CEO of ARC International, commented, ?This is another significant design win for us. Infineon?s choice of ARC?s microprocessor core demonstrates that our technology is being increasingly accepted by blue-chip names in the industry. In addition, our technology enables customers like Infineon to develop new products that can give them competitive advantage - quickly.?

Some of the key benefits that Infineon is likely to gain from using ARC?s technology for its project are: the ability to use multiple ARC processors in its chip; the ability to optimise instructions to increase system performance, and the lower power consumption afforded by the small size of the processor core itself. As demonstrated by Cisco Systems last year, custom instructions are the property of the developer rather than ARC, which means it is possible to gain significant advantage from being able to differentiate products from competitors.

Development tool support for ARC is available from MetaWare, a wholly owned subsidiary of ARC, which provides integrated compilers and debuggers for ARC's microprocessor.

ARC International plc is listed on the London Stock Exchange (LSE:ARK).

ARC and Tangent-A4, are trademarks of ARC International (UK) Limited/ARC International plc. All other brands or product names are the property of their respective holders.

ARC International (UK) Ltd. and ARC Cores Inc. trade under the name of ARC Cores. ARC Cores is a trademark of ARC International (UK) Limited. All other brands or product names are the property of their respective holders.

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.