ARC International Teams up with Ashling Microsystems for RISC Development Support

Ashling delivers complete range of emulators and trace development tools for 32-bit ARCtangent™ RISC/DSP microprocessor core

San Jose, CA., October 14, 2002 – ARC International (LSE: ARK), a world leader in configurable System-on-Chip (SoC) platform technologies, announced today that it has partnered with Ashling Microsystems, a recognized expert in Embedded Software development tools, to provide complete debug solutions for systems based on the ARCtangent user-customizable 32-bit RISC/DSP microprocessor core. By extending its suite of emulators and trace development tools, Ashling is now fully positioned to reduce the time-to-market and development costs for ARC-based processor designs.

The new Ashling Vitra, Genia and Opella emulators provide users with essential run-time control and trace tools for ARC's reconfigurable cores. By applying Ashling's powerful real-time debug technology, the Ashling tools design team has ensured that users of the ARCtangent embedded RISC/DSP core can benefit from a powerful, flexible and cost effective development and debug toolset for both pre-first-silicon and post-first-silicon design.

"This new cooperation means that users of ARC's unique reconfigurable RISC architecture can utilize the Ashling toolset to rapidly and reliably design, integrate, debug and validate their products," commented John Murphy, CEO of Ashling Microsystems. "We're excited at the opportunity to support ARC in delivering these innovative and powerful tools to the embedded-systems community, and to further strengthen our business relationship with ARC."

"Ashling has a long track record of success in development tools and we are pleased that they are quickly rolling out a range of tools for SoC developments based on our embedded RISC/DSP architecture," said Mike Gulett, president and chief executive of ARC International. "The combination of ARC's proprietary MetaWare tools and the Ashling tools gives our customers a very effective set of development tools to help them to bring innovative products and applications to market quickly."

The full ARC tools environment includes ARC's flagship MetaWare High C/C++ Embedded Development Tool Suite; the MetaWare SeeCode™ Debugger; a JTAG emulator and a Real-time Trace system from Ashling. Together, ARC and Ashling deliver the essential tools for design starts on all ARC-based RISC architectures.

About ARC International

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 the number of IP suppliers, reducing time-to-market, reducing costs, and reducing the risk for System-on-Chip product development. 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).

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

About Ashling Microsystems
Ashling Microsystems (founded in 1982) is a privately held international Embedded Software Development Tools company. Ashling designs and manufactures In-Circuit Emulators, JTAG/BDM Emulators, Smart Card development tools, Source Debuggers, Integrated Development Environments, Development Boards and Software Quality Assurance tools. Through its close cooperation with leading semiconductor vendors Ashling is now a world leader in the Embedded Software development tools market. Ashling's semiconductor partners include ARC International, MIPS Technologies, Philips Semiconductors, Motorola Semiconductors, NEC, Oki, ARM Ltd. and Infineon Technologies. Ashling's R&D Centre is in Limerick, Ireland. The company's North America Sales and Support Center is in Sunnyvale, California, with sales subsidiaries in the United Kingdom and France and distributors throughout the world. Full details of Ashling's locations and other information are on the company's web site at www.ashling.com.