Micronas Licenses USBHS-OTG From ARC International

San Jose, CA., February 10, 2003 – ARC International (LSE:ARK), a world leader in configurable System-on-Chip (SoC) platform technologies, announced today that Micronas (SWX Swiss Exchange: MASN, Neuer Markt Frankfurt: MNSN) has licensed its USB High-Speed On-the-Go controller. Micronas will make use of USB High-Speed On-the-Go (USBHS-OTG) to explore new applications for its targeted consumer and multimedia products.

"Micronas sees high-speed USB as a key interface to further expand the reach of our audio and video ICs into new converging markets," said Dr. Peter Weigand, head of the multimedia group of Micronas. "We are pleased to extend our relationship with ARC."

This is the second time Micronas has licensed USB technology from ARC. In early 2001, Micronas integrated ARC's USB core into an audio controller that was developed for a range of dedicated audio applications such as USB headsets, PC connectivity for stereo systems, and online gaming including the Live Kit for the Microsoft® Xbox.

"Our USB technology has been a world beater and our USBHS-OTG product, the first to market, is faster and less expensive than competing technologies," said Mike Gulett, president and CEO, ARC International. "Our platform approach will enable Micronas to more easily integrate the technology into their devices.

"ARC's low gate count USBHS-OTG architecture allows its customers to implement low cost stationary and compact, power efficient handheld USB peripherals, which can communicate directly without the need for a PC.

About Micronas
Micronas (SWX Swiss Exchange: MASN, Neuer Markt Frankfurt: MNSN), a semiconductor company group with worldwide operations, is a leading supplier of cutting-edge IC and sensor system solutions for consumer electronics, multimedia and automotive electronics. The holding is headquartered in Zurich (Switzerland). Currently, the Micronas group employs about 1600 people. In 2001, it generated over CHF 566 Million in sales. For more information on Micronas and its products, please visit www.micronas.com.

About ARC
ARC International is the first company to offer integrated solutions for SoC design, in an effort to minimize design risk for customers developing next generation wireless, networking and consumer electronics products. In 1998, ARC introduced the industry's first user-customizable 32-bit RISC/DSP processor core. In early 2000, ARC became the first company to integrate the development tools, peripherals, RTOS and software that enabled the designer to get better design optimization and performance. ARC's approach of providing a single source for the major SoC building blocks reduces the number of IP suppliers, reduces cost, reduces the risk of system-on-chip design and reduces time-to-market.

ARC's products include the ARCtangent™ user-customizable 32-bit RISC/DSP processor, the first USB 2.0 OTG high-speed controller on the market and an 802.11 MAC and baseband multi-standard IP core. ARC provides software development and system software for ARM, PowerPC and MIPs processors as well as for its own ARCtangent processor family.

ARC International employs 198 people in research and development, sales and marketing offices across North America, Europe and Asia. 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.