ARC International Announces Strategic Partnerships with Kogent and NSW to Service Growing Japanese Consumer Electronics Market

TOKYO, March 31, 2005 - In a move designed to expand its market share of Japan's consumer electronics industry, ARC International (LSE: ARK) today signed key agreements with leading distribution and design services companies in Japan. Kogent, Inc. and Nippon SystemWare Company, Ltd. (NSW) join ARC International's Tokyo-based sales and marketing team to extend the reach and appeal of ARC-Based technology with tier-one system OEMs and semiconductor companies throughout Japan.

Kogent, a division of Macnica Inc., will promote ARC's configurable cores and subsystem products to new customers in Japan. Kogent also will serve as the local distributor for ARC's embedded software products. NSW, one of Japan's leading design services firms, will offer design services for ARC's products, and provide software distribution services to ARC's licensees in Japan.

Motoshi Mineo, President of Kogent, Inc. said, "We are very excited to work with ARC International. Interest in configurable processor technology by Japanese companies is increasing. ARC's low gate count, low power and high performance CPU and audio subsystem technologies are ideally suited for the consumer, mobile and networking markets. Combined with Kogent's turn key ASIC business model, we can offer ARC's configurable technology as IP and/or the actual chip, which gives flexibility to Japanese customers."?E

"We are honored to have reached an agreement with ARC International to be both their design partner and their software distributor in Japan,"?Esaid Kiyoharu Kanai, executive managing director for NSW. "As semiconductor designs grow more and more complex and product life cycles continue to shrink, ARC's configurable processors will be in even greater demand. ARC's increasing profile throughout Japan coupled with the ongoing adoption of configurable technology, will help NSW expand our LSI Turnkey and SoC Solutions Businesses."

"Japan is the center of innovation within the consumer electronics industry, and presents a key market opportunity for ARC's configurable technology," said Carl Schlachte, president and CEO of ARC International. "Our configurable processor cores and application subsystems hold enormous potential for SoC developers who target the price sensitive consumer market. Through best-in-class relationships with companies such as Kogent, NSW and others, ARC is broadening the appeal of configurable technology in the Japanese marketplace."

About Kogent, Inc.

Founded in September of 2003, Kogent's mission is bring new technology to market by providing SoC design services, IP consulting services and technical support. As a leading Japanese distributor and representative for the electronics and information technology industries, Kogent creates unique, high quality, value-added solutions that customers are demanding.

About Nippon SystemWare Co., Ltd.

Founded in 1966, Nippon SystemWare Co., Ltd. (NSW) is an IT solution provider carrying out software development, device development, information processing services, and sales of system equipment. NSW provides the "Total Solution," from building systems tailored to a wide range of needs such as core systems and logistics/retail systems to the administration of large-scale systems and data center outsourcing. NSW is developing LSIs and software for "embedded systems"?Efound in cellular phones and digital home electronics, as well as providing an LSI Turnkey Business, a one-stop solution covering everything from System LSI design to manufacturing. The company is committed to the field of ubiquitous solutions, including IC tags and other mobile devices.

About ARC International plc

ARC International is the world leader in low-power, high-performance 32-bit configurable CPU/DSP processor cores, subsystems, real-time operating systems and development tools for embedded system design. ARC's configurable and extendible cores assist customers in the development of next generation digital media, consumer and communications devices, resulting in lower cost, higher performance SoC products.

ARC International maintains a worldwide presence with corporate offices in San Jose, California, USA and Elstree, UK. The company has research and development offices located in England and the United States. For more information please visit the ARC website at: www.ARC.com. ARC International is listed on the London Stock Exchange as ARC International plc (LSE: ARK).

ARC, the ARC logo and ARC-Based are trademarks or registered trademarks of ARC International. All other brands or product names contained herein are the property of their respective owners. This press release may contain certain "forward-looking statements" that involve risks and uncertainties. For factors that could cause actual results to differ, visit the company's Website as well as the listing particulars filed with the United Kingdom Listing Authority and the Registrar of Companies in England and Wales.

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