Pete Hutton Joins ARC International as VP Engineering and General Manager

San Jose, CA., January 13, 2003 – ARC International (LSE:ARK), a world leader in configurable System-on-Chip (SoC) platform technologies, has appointed Pete Hutton as general manager and vice president of engineering of the UK engineering center. Based in Elstree, England, Pete will lead the company's largest engineering group with responsibility for all aspects of CPU research and development, including IP generation, modeling and development platforms. He reports directly to Bernard Glasauer, Sr. Vice President of World Wide Engineering.

"Pete brings over twenty years experience in all aspects of semiconductor design engineering" said Mike Gulett, ARC's president and CEO. "His familiarity with running large, multi-disciplinary engineering organizations will serve ARC well. Additionally, coming from the design services side of the business, he brings expertise in generating and using the virtual components and intellectual property required to construct SoCs and to successfully solve the numerous technical hurdles required to create complex circuits and systems. His experience in these areas, and specifically those related to robust and applications-specific IP development, will play an important role in ARC's continuing evolution as a systems/SoC IP powerhouse."

Pete joins ARC from Cadence in Scotland, where he spent 12 years in progressively more responsible roles including design center management, P&L management and business management. In his most recent role, Pete built the Livingston design center site from scratch, to the largest Cadence design center worldwide.

Prior to Cadence, Pete worked in circuit and system design engineering and program management roles at European Silicon Structures, Plessey and Burroughs. Pete holds a 1st Class Honors degree in Electronics and Microcomputer Systems from Dundee University and a Diploma in Digital Techniques from Heriot-Watt University.

About ARC
ARC International is an industry-leading developer of embedded user-customizable, high-performance 32-bit RISC/DSP processor cores, with integrated development tools, peripherals, RTOS and software. 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 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).

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. The Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date such statement was first made.

ARC and the ARC logo are trademarks of ARC International. All other brands or product names are the property of their respective holders.