Configurable ARC 725D Core to Launch in Government Satellite Application

ELSTREE, England, August 21, 2006 – ARC International (LSE: ARK), the world leader in configurable multimedia subsystems and CPU/DSP processors, announced today that Honeywell has taken a license for the configurable ARC™ 725D core

Honeywell will incorporate the ARC processor into a satellite application, which requires semiconductor chips that provide a high level of security, operate reliably and continuously, and consume as few watts as possible over extended periods of time. ARC’s patented configurable processors will meet these challenging design criteria, enabling the creation of a chip that is ideally suited to the rigorous environment of extraterrestrial devices.

“Our configurable cores are particularly well suited for military/government applications because of the clone-resistant security a highly customized ARC CPU provides the designer,” said Derek Meyer, senior vice president of sales and marketing at ARC International. “Furthermore, by eliminating unneeded elements within the processor power consumption is kept to a minimum, reducing overall system power requirements.”

The Configurable ARC™ 700 Core Family

The configurable ARC 700 core family delivers the most power- and area-efficient 32-bit CPU and DSP processors in its performance class in a unified RISC architecture. At up to 700 MHz and over 1068 DMIPS performance in a 90 nanometer process, the 710D, 725D, and 750D cores meet the needs of the most demanding SoC applications. The 700 core family also makes an ideal platform for devices requiring high-end embedded OS’s such as Linux. Standard features include DSP instructions, RTOS, and secure processing support. ARC’s XY Advanced DSP subsystem, Memory Management Unit, and FPX floating point extensions are available options for each core.

Using ARC’s patented configurable CPU technology, SoC designers can easily optimize an ARC processor for their specific applications. Features and instructions can be added or removed to achieve a highly differentiated solution that consumes less power and less silicon area, and is unique and proprietary to its creator.

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 patented configurable CPU technology assists 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).