ARC Delivers Complete High-Speed USB On-The-Go Software Offering with New Class and Device Drivers

Drivers Complement Company's Existing USB Software Stack to Provide Industry's First Complete Software Package for Primary USB OTG Applications

EMBEDDED SYSTEMS CONFERENCE, SAN FRANCISCO, CA., April 22, 2003 – ARC International (LSE: ARK), a world leader in user-customizable processors, silicon peripheral IP, real-time operating systems and software tools for embedded system development, announced today the availability of class and device drivers for Hi-Speed USB On-The-Go (OTG) applications. The new drivers complement ARC's existing USB software stack to form the industry's first complete software package for Hi-Speed USB OTG devices, enabling customers to reduce development costs and accelerate their time to market. The drivers are available precompiled for the company's ARCtangent™ microprocessors, and as ANSI C source code for other popular processor architectures, such as ARM and MIPS. ARC developed the class and device drivers for the six primary USB classes: mass storage, printers, human interface devices (HID), hubs, audio and communications.

"We're building on the success of our host-only USB software stacks to provide fully-tested device and class drivers for the emerging USB On-The-Go market," said Mike Gulett, ARC's president and CEO. "To date, class drivers for USB On-The-Go have not been readily available to system designers, making our complete driver solutions extremely attractive to developers looking for a time-to-market advantage."

The ARC device drivers can also be used as a starting point for developers wishing to customize their own device drivers to implement value-added features that will differentiate their products. Using the ARC device drivers as sample code provides designers with a head start on their customized solution and contributes to lower development costs.

ARC utilized its internally developed device drivers to fully test and debug the company's corresponding class drivers. Customers can be assured that the ARC driver sets are proven complete solutions that provide a stable platform for developing their end products. Drivers for the company's ARCtangent microprocessors are provided in native code. Drivers for other processor architectures are provided as source code. ARC's existing USB software stack includes a USB host API, a USB OTG API component and a USB device API.

Price and Availability
Class drivers are available now with prices starting at $15,000.

ARC and USB OTG
ARC's USB development experience, which dates back to 1996, enabled the company to introduce the industry's first embedded High-Speed USB On-The-Go (OTG) solution. USB-OTG enables high-speed communications between mobile and consumer electronics devices. For example a digital camera and a cell phone can share files directly, without the need for a PC.

ARC unveiled USB Now TM, in June 2002, as the world's first integrated and optimized platform for USB SoC IP platforms. USB Now combines ARC's award-winning configurable, extendable 32-bit RISC/DSP microprocessor with industry-leading Hi-Speed USB 2.0 On-The-Go connectivity, plus an embedded RTOS with USB stack and software development tools.

About ARC
ARC International pioneered the integrated development environment for SoC design in an effort to minimize design risk for customers developing next generation wireless, networking and consumer electronics products. 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 enable the designer to better design optimization and performance. ARC's approach to 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 ARCtangentTM user-customizable 32-bit RISC/DSP processor;

USB 2.0 On-The-Go (OTG) Full Speed Host and Device; small Ethernet 10/100 MAC, and other peripherals;

MetaWare® C/C++ Compiler, the most popular integrated software development tool suite for SoC design;

SeeCodeTM , the leading tool for simultaneous, multi-processor debugging;

Precise/RTCSTM, embedded Internet stack and related software protocols;

Precise/MQXTM, a scalable real-time operating system (RTOS).

ARC's software tools, RTOS and embedded software are also available for ARM, PowerPC and MIPS processors.

ARC International employs approximately 200 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 available on the company's website, 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. In view of the many applications in which its Licensees may use the ARC products, ARC cannot warrant that those applications do not infringe the patents of others. ARC strongly encourages its Licensees to become familiar with the policies governing the use and licensing of intellectual property established by any organization whose standards the Licensee wishes to follow, and to review the list most standards-promulgating organizations publish, of entities that claim to have patents relating to the relevant standards or underlying technology.

ARC, the ARC logo, ARCtangent, ARCangel, ARCompact, ARChitect, ARCform, CASSEIA, High C, High C/C++, SeeCode, MetaDeveloper, MetaWare, Precise Solution, Precise/BlazeNet, Precise/EDS, Precise/MFS, Precise/MQX, Precise/MQXsim, Precise/RTCS, Precise/RTCSsim are trademarks of ARC International. All other brands or product names are the property of their respective holders.