Palmchip Introduces MP3 Player SOC Hardware Platform with Embedded RISC Processor from ARC

San Jose, Calif. March 12, 2001 - Palmchip Corporation, a leader in SOC (system-on-chip) development platforms that feature popular embedded processor interfaces (for single-processor and multi-processor designs), today announced an MP3 SOC hardware platform featuring a configurable 32-bit RISC/DSP processor licensed from ARC Cores, Inc., a subsidiary of ARC International plc (LSE:ARK).

Palmchip and ARC will jointly market the highly integrated SOC platform solution for portable audio applications, delivered as RTL source code with
models and test benches. International Data Corp. predicts the MP3 device market in the United States will grow from the estimated 1.3 million units shipped in 2000 to 6.7 million in 2003. Low power and data compression requirements make it an ideal target market for embedded solutions. The combination of ARC's processor and MP3 software with Palmchip's integration architecture is well suited for low-power audio devices.

The PALM-FC-6710 is an SOC hardware platform with support for MMC (MultiMediaCard) devices, audio input and output sources, and serial interfaces, including UART and USB. It includes DMA support for peripheral interfaces to buffer memory for reduced firmware requirements, and power management for low-power operation. It integrates ARC's RISC processor with 8KB of CPU SRAM. The memory controller supports up to 4MB of external memory or memory-mapped ports. A second UART provides a debug communication port. As Palmchip's PalmPak™ platform features pre-verified and pre-integrated IP, the SOC development time, compared with traditional cell-based methods, can be reduced by up to four months.

"Adding ARC's processor to an application-targeted PalmPak SOC™ development platform provides designers with a highly integrated and flexible solution for portable audio device applications," said Melissa Jones, vice president of marketing, Palmchip Corporation. "Our hardware platform allows the customer to select software from a source of their choice and move quickly into silicon." Jones added, "An important advantage to a platform-based design with a configurable processor is that designers will be able to comply easily with changing requirements in the market, such as products specifications that evolve within the Secure Digital Music Initiative."

"Palmchip offers a highly competitive plug-and-play SOC solution," said Jim Turley, senior vice president of technology, ARC. "Our partnership with Palmchip demonstrates our continued commitment to developing strategic alliances with innovative companies so we can provide our customers with a broad range of leading-edge SOC solutions."

Palmchip's platforms, including FlexiSOC designs, are based on Palmchip's CoreFrame® integration architecture. The platforms contain the peripheral functions required for a basic SOC design, including system and watchdog timers, programmable I/O, and interrupt and memory controllers.

Note to editors: A product brief for the PALM-FC-6710 can be found at http://www.palmchip.com/?feed=flexiSOCdesigndoc.

About Palmchip
Palmchip Corporation develops and licenses SOC (system-on-chip) development platforms for embedded IC solutions. Key target applications include networking, portable communications and computing, storage, and multimedia. The company offers general-purpose platforms that contain interfaces to today's popular embedded processors. It also offers application-targeted platforms. Palmchip's IP is based on its CoreFrame® integration architecture. This technology is independent of processor, I/O or foundry, allowing designers flexibility in porting IP from any number of sources. Palmchip DirectConnectTM partners offer a range of third-party IP, software, and design tools that are compatible with the CoreFrame® architecture. Palmchip was established in 1996 and is today a privately held company based in San Jose, California (USA). It is a member of the Virtual Socket Interface Alliance and VCX. More information can be obtained at www.palmchip.com

About ARC International
ARC International plc, is a leading designer and developer of customizable, high-performance microprocessor cores and related intellectual property technology for telecommunications, voice and data networking, and consumer electronics embedded systems. ARC's Tangent processor is an application specific processor (ASP) that can be customized for use in a wide variety of increasingly sophisticated products. ARC's technology enables designers to reduce time to market and to work with the semiconductor manufacturers and technologies of their choice.

With headquarters in Elstree, England, ARC International plc and its group companies employ 280 people in research and development, sales, and marketing offices across North America and Europe. MetaWare Incorporated, Precise Software Technologies Inc. and VAutomation Inc. are wholly owned subsidiaries of ARC International, providing software development tools, hardware and software intellectual property and real time operating systems offering multiple integrated products for system on a chip development.

ARC International plc is listed on the London Stock Exchange (LSE:ARK). The company's website is located at www.arccores.com

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.

ARC International (UK) Ltd. and ARC Cores, Inc., both of which are wholly owned subsidiaries of ARC International plc, trade under the name of ARC Cores. ARC Cores is a trademark of ARC International (UK) Ltd. All other brands or product names are the property of their respective holders.

Palmchip, CoreFrame and the palm leaf logo are registered trademarks, and FlexiSOC, PalmPak, PalmBus and DirectConnect are trademarks of Palmchip Corporation.