iStor Networks Licenses ARC Technology For iSCSI Processor And Leapfrogs Competition

Integrated Development Platform Enables Company to Jump Into Competitive Fray With Minimal Risk and Development Time

SAN JOSE, Calif., June 2, 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 that iStor Networks licensed the ARCtangent-A4TM, user-customizable RISC processor plus software and development tools in the development of its iSNP8000 (IP Storage Network Processor).  The iStor design is a multi-processor architecture with a very small footprint.  The ARCtangent-A4 met the design requirements better than other solutions.  Additionally, by leveraging the tight integration of hardware and software IP, iStor was able to minimize the design risk and time and complete its highly complex design.

"The iSNP8000 is the foundation of our entire product line," said Simon Huang, iStor's president and CEO.  "And we had three design objectives going into the development.  Our ASIC needed to be powerful, scalable and architecturally agnostic.  The ARCtangent-A4 met all these requirements.  Its tight integration with the Precise/MQXTM and the MetaWare® toolset enabled us to exercise various combinations of processors to determine which mix of tasks gave us the best performance."

"Network storage is a hugely competitive market and the players need the flexibility to scale their technology to meet the constantly-changing needs," said Mike Gulett, president and CEO of ARC International.  "iStor's agnostic architectural approach will enable them to offer state-of-the-art solutions as the market transitions from the current Fibre Channel offerings to iSCSI solutions."

According to IDC, the corporate need for storage is increasing at the same time existing architectures, e.g., Fibre Channel Storage Area Networks (SAN) and Gigabit Ethernet Network Attached Storage (NAS), are reaching their limitations.  SCSI over TCP/IP, or iSCSI, is emerging as a dominant industry standard interface for storage access in the server, data center and distributed enterprise environment.

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.