ARC International Establishes a New Identity For the Company's Embedded Software Business

MQX Embedded™ to Provide Proven Software for Embedded Devices Across Leading Microprocessor Architectures

ELSTREE, United Kingdom, February 21, 2005 - ARC International (LSE: ARK), the world leader in configurable CPU/DSP processor cores and application subsystems, today announced that it has established a separate identity for its embedded tools software business. Under this new identity, MQX Embedded™ will license optimized software tools, operating systems and software platforms for a wide range of 32-bit processor architectures to software developers within the embedded industry.

"For 25 years, MQX Embedded's technology has enabled software developers to get to market quickly using state-of-the-art solutions on leading microprocessor architectures," said Craig Slayter, vice president and general manager of ARC International's MQX Embedded. "The establishment of this new identity will enable MQX Embedded to more clearly differentiate itself within the embedded marketplace. Moving forward, MQX Embedded will continue to serve an expanding base of ARC and non-ARC customers with these optimized development solutions."

"The creation of the MQX Embedded identity will enable that part of ARC's business to better leverage its decades-long history as a leading provider of development tools, and more clearly communicate its unique value proposition in the industry," said Derek Meyer, vice president of marketing for ARC International.

About MQX Embedded™

MQX Embedded is a business of ARC International, and focuses on the software needs of embedded system developers for ARC-Based™ and non-ARC 32-bit microprocessor and DSP architectures. MQX Embedded's state-of-the-art technology includes the widely used MetaWare® software development tools and the MQX™ RTOS, as well as networking and other software platforms, for more than one hundred leading companies worldwide. To date, the MQX Embedded technology has helped power thousands of products that are shipping to markets including the aerospace, financial, construction, industrial, medical and semiconductor industries. For more information, visit www.MQXembedded.com.

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 configurable and extendible cores assist 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).

ARC, the ARC logo and ARC-Based are trademarks or registered trademarks of ARC International. All other brands or product names contained herein are the property of their respective owners. This press release may contain certain "forward-looking statements" that involve risks and uncertainties. For factors that could cause actual results to differ, visit the company's website as well as the listing particulars filed with the United Kingdom Listing Authority and the Registrar of Companies in England and Wales.