ARC International's Soft IP Core Combines with SMSC's USB 2.0 PHY to Achive High-Speed USB Certification

Complete USB 2.0 Solution Available to Customers, Including On-The-Go

Tucson, Arizona, June 10, 2002 - ARC International (LSE: ARK) and Standard Microsystems Corporation (Nasdaq: SMSC) today announced the availability of a complete USB 2.0 solution that is certified for high-speed operation by the USB Implementers Forum. Developers combining ARC's customizable VUSB-HS device controller with SMSC's industry-leading GT3200 PHY integrated circuit (IC) can reduce product cost and power consumption while accelerating time-to-market for products with 480-Mbps USB connectivity.

The GT3200 allows designers to keep the analog function of the USB 2.0 PHY external while synthesizing the VUSB-HS soft core into their system-on-chip using a traditional digital logic design flow. Designers can take advantage of the system-level architecture of ARC's VUSB-HS device controller to save hundreds of thousands of gates over competing solutions, resulting in reduced chip die area, power consumption, manufacturing cost and design complexity.

ARC recently introduced USB Now™, the world's first integrated and optimized USB for System-On-Chip (SoC) IP platforms. USB Now includes On-The-Go (OTG) functionality for Hi-Speed USB 2.0 peer-to-peer communications between mobile and consumer electronics devices. OTG is a supplement to the USB 2.0 specification that features limited host capability for portable devices, low power requirements, and the transfer of information between USB-enabled products without requiring a PC. USB Now is available beginning in August 2002.

"The USB 2.0 interface is completely penetrating the PC market, and SMSC is committed to supporting customers with leading high-performance, low-power products," said Marshall Lacoff, Vice President & General Manager of SMSC's Embedded Products group. "This combined solution allows our customers to introduce products with the confidence of knowing the device is UTMI-compliant and fully certified by the USB-IF Consortium for Hi-Speed USB 2.0 operation."

"SMSC's PHY is a perfect complement to ARC's innovative USB controller architecture," stated Haig Yaghoobian, ARC's Senior Vice President of Corporate Development. "Together, they provide customers with a superb combination of low-cost, low-power and fast time-to-volume production for USB 2.0 high-speed products."

The SMSC GT3200 Family

The GT3200 is a complete analog front-end interface that enables the design of new high-speed (480Mbps) USB peripherals. With its best-in-class power dissipation, the GT3200 is the only high-speed solution available today that can be utilized to operate a device in the USB low-power, bus-powered configuration. For peripheral designers targeting applications such as broadband modems, web cameras, and portable digital systems, this capability provides clear market differentiation. In addition, the GT3200 design allows for extremely cost-effective applications, requiring only a small number of low-cost external components. Finally, the GT3200 supports both 8 and 16-bit USB 2.0 Transceiver Macrocell Interface (UTMI) operation, allowing system designers great flexibility, confidence and freedom of choice. Samples of the GT3200 are available for immediate evaluation today. Evaluation boards and complete application details are available upon request.

ARC International's USB Controllers

ARC's peripheral controllers leverage the computing power and memory resources present in every embedded system to increase the flexibility and reduce the cost of implementing USB. Almost every aspect of USB operation can be changed in software, eliminating expensive hardware re-spins and slashing design verification time by allowing a single USB logic design to be used in multiple applications.

USB Now provides a fully integrated platform consisting of the ARCtangent™-A5 synthesizable CPU core, USB 2.0 host/device core with OTG technology, and embedded software stack.

Significant benefits to ARC's customers include:

• Reduced time to market
• Reduced development cost
• Reduced number of IP suppliers
• Reduced risk

ARC International is a leader in semiconductor and software technology licensing. These integrated products and solutions are a result of the acquisitions of MetaWare, VAutomation and Precise Software Technologies. ARC's integrated intellectual property solutions assist customers in rapidly developing next generation wireless, networking and consumer electronics products, reducing time to market, reducing their cost, reducing the number of IP suppliers and reducing their risk for system-on-chip products. Products based on ARC's technology include digital still cameras, set-top boxes, and network processors.

ARC International employs more than 200 people in research and development, sales, and marketing offices across North America, Europe and Israel. Full details of the company's locations and other information are on the company's web site, www.ARC.com. ARC International is listed on the London Stock Exchange as ARC International plc (LSE:ARK).

About SMSC

SMSC provides Real World Connectivity™ solutions for high-speed communication and computing applications. Leveraging a broad intellectual property portfolio and an extensive history in the design of the world's most preferred Advanced Input/Output products, SMSC delivers integrated hardware and software solutions to manage systems and connect peripherals in today's rapidly evolving computing architectures. SMSC works with industry leading OEMs to combine advanced digital, mixed-signal and analog functionality into Application Specific Standard Products.

The Company's Embedded Products connect people, machines and information. SMSC delivers integrated Ethernet and USB 2.0 solutions, along with a diverse range of other products, for network printers, set-top boxes, home gateway products, car navigation systems, cellular base stations, USB peripherals and more. SMSC is based in Hauppauge, New York and maintains offices worldwide, including locations in North America, Asia, Europe and Japan. SMSC operates engineering design centers in San Jose, CA, Hauppauge, NY, and Austin, TX, Tucson, AR and Phoenix, AR. More information about the Company is available on the World Wide Web at http://www.smsc.com.

FORWARD LOOKING STATEMENTS: Except for historical information contained herein, the matters discussed in this announcement are forward-looking statements that involve risks and uncertainties, including the timely development and market acceptance of new products, the impact of competitive products and pricing and the effect of changing economic conditions. SMSC competes in the semiconductor industry, which has historically been characterized by intense competition, rapid technological change, cyclical market patterns, price erosion and periods of mismatched supply and demand. In addition, sales of many of the Company's products depend largely on sales of personal computers and peripheral devices and reductions in the rate of growth of the PC and Embedded markets could adversely affect its operating results. These and other risks and uncertainties are detailed from time to time in the Company's reports filed with the SEC. Investors are advised to read the Company's Annual Report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission, particularly those sections entitled "Other Factors That May Affect Future Operating Results" for a more complete discussion of these and other risks and uncertainties. Standard Microsystems is a registered trademark, and SMSC and Real World Connectivity are trademarks of Standard Microsystems Corporation. Product names and company names are trademarks of their respective holders.

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