Introduction of AMBA, BVCI and USB 2.0 support opens new markets for ARCtangent-A4 user-customizable processor

Elstree, England, 3 September 2001 - ARC International plc (LSE: ARK), trading through its subsidiaries as ARC Cores, is introducing three new interfaces for its successful user-customizable 32-bit processor, to make it easier to connect third party and existing IP (intellectual property) to its processor and save precious development time. Announced today is support for the new USB 2.0 device controller specification. Developers can use the ARChitectTM processor configuration tool to add either USB 1.1 or USB 2.0 to the ARCtangentTM-A4 processor. Also being introduced are industry-standard BVCI and AMBATM interfaces for the core, making it the first soft IP processor core to support both standards.

The addition of these interfaces is an important part of ARC's strategy to ease the design process of integrating different pieces of technology. Ashish Sethi, product manager, commented, "By adding support for these standards, we are able to re-enforce the fundamental benefit of our technology - the ability to get high-performance embedded system designs to market quickly. ARCtangent-A4 can be connected to other parts of an SoC (system on chip) design even more easily and quickly using standard interfaces which can be selected through the ARChitect point-and-click tool. In addition, designers can plug in their own, or third party peripherals, that have been designed to support either one of the two standards."

He adds, "the increased connectivity, coupled with the multiple I/O interfaces of ARCtangent, make it one of the most suitable solutions for I/O-intensive embedded applications."

In adding USB 2.0, ARC has opened up a whole new market for ARC's processor technology in PC-based consumer electronics and office automation. Dataquest predicts that 493m USB enabled peripherals will be shipped in 2003. Supporting data transfer rates of 480Mb/s, USB 2.0 uses are mainly in connecting digital video and still cameras, video-conferencing equipment, external hard drives, scanners, and printers to PC desktops and laptops. ARC is the first to supply an integrated processor and USB 2.0 device controller as soft IP, enabling developers to choose any foundry for their design.

USB 2.0 is added to the ARCtangent-A4 processor using the ARChitect processor configuration tool. However, developers may also wish to add legacy and other third party IP to their SoCs. The introduction of the Basic Virtual Component Interface (BVCI), developed by the Virtual Socket Interface Alliance (VSIA), provides a standard by which developers can connect IP modules in an SoC directly with each other, rather than across a single bus. BVCI is fast becoming the interface of choice by third party IP vendors due to its higher performance data transfer capability and ease of implementation. The other popular model for IP connectivity is the AMBA bus standard developed by ARM. Supporting both connectivity methods opens up significant new opportunities for using ARC's processor technology.

USB 2.0 and BVCI connectivity will be offered through the ARChitect configuration tool during Q4 2001, while AMBA will be offered in Q1 of 2002.

About BVCI and AMBA
BVCI is a virtual component interface standard developed by the VSIA (Virtual Socket Interface Alliance). VSIA is an industry organization whose vision is to provide technical standards to accelerate system-chip development by specifying open standards that facilitate the mix and match of virtual components (intellectual property) from different sources. AMBA is an on-chip bus specification standard developed by ARM for the interconnection and management of functional blocks that make up a system-on-a-chip.

About ARC International
ARC International plc is a leading developer of customizable, high-performance microprocessor cores, including ARCtangent[tm], and related intellectual property technology enabling designers to reduce time to market for their system-on-a-chip products. Over 50 customers use ARC's technology, including: Austria Mikro Systeme, BrightCom, Conexant Systems, Cypress Semiconductor, Fujitsu Microelectronics, IBM, Infineon Technologies, QLogic, SanDisk, Texas Instruments and VTech Communications. Products available based on ARC's technology include digital still cameras, set-top boxes, and network processors.

MetaWare Inc., 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 for an integrated approach to system on a chip development. ARC's third party partners include Cadence, Flextronics, Intrinsix, Synopsys, TSMC, UMC, Wind River and Xilinx.

With headquarters in Elstree, England, ARC International plc and its group companies employs 235 people in research and development, sales, and marketing offices across North America, Europe and Israel. 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, ARCtangent and ARCangel are trademarks of ARC International (UK) Ltd.
All other brands or product names are the property of their respective holders.