ARC licenses processor to RF Micro Devices for BLUETOOTH chip set

Elstree, England, 5th June 2001 - ARC International plc (LSE:ARK), trading through its subsidiaries as ARC Cores, announced today that its configurable 32-bit processor technology and Universal Serial Bus (USB) controller have been licensed by RF Micro Devices (Nasdaq: RFMD), a leading provider of proprietary radio frequency integrated circuits (RFICs) for wireless communications applications, for its new Bluetooth? baseband controller. RF Micro Devices? new Bluetooth radio chip set includes the RF2968 transceiver and the RF3001 ARC-based digital baseband controller.

Dale Wilson, marketing manager for RF Micro Devices? silicon systems product line, said, ?When our RF3001 ARC-based baseband controller is combined with our existing RF2968 transceiver, we have a powerful, compact ultra-low-cost solution for Bluetooth enabled applications. Our near-term Bluetooth strategy includes offering a family of products targeted at specific applications. By using ARC?s core we are able to reduce the die size of our baseband controller to suit the requirements of specific host interfaces such as PCs, laptops and PC peripherals.?

?We chose ARC because of its flexibility as well as its affordable business model. ARC?s core is ?soft? rather than a fixed block, which allows better flexibility in layout. Also, the soft core is not fab-specific, allowing RFMD to utilize any CMOS fab - not just those that are licensed. The availability of ARC?s core as a Field Programmable Gate Array (FPGA) image has enabled us to quickly evaluate our design. The FPGA-based design can be used to exercise our Bluetooth radio to assure compliance and interoperability before committing the design to silicon,? added Wilson.

Ian Anderton, business development director at ARC Cores, comments, ?RF Micro Devices? RF3001 is a good example of using ARC?s platform-based approach for ease of integration. Specifically, this approach enables RF Micro Devices to integrate RF and mixed signal technology with ARC?s digital processor core and the USB. ARC?s core provides customers with a hardware/software co-development environment and intellectual property to accelerate product development and time-to-market. In addition, ARC?s user-customizable core is independent of technology, allowing fabrication to different processes.?

He added, ?The use of ARC's processor by a leading player in the wireless communications business is further evidence of the rapidly growing market penetration of ARC's configurable technology. RF Micro Devices is one of 50 customers who are using ARC?s technology across a broad range of applications in wireless communications, wired networking and consumer products.?

A recent survey from Merrill Lynch assesses the market size for Bluetooth-enabled devices at US $4.3 billion by 2005, with volume market starting in 2002. The highest penetration of Bluetooth devices will be in applications such as mobile telephones, headsets and consumer devices.

About RF Micro Devices

RF Micro Devices, Inc., an ISO 9001-certified manufacturer, designs, develops, manufactures and markets proprietary radio frequency integrated circuits (RFICs) for wireless communications applications such as cellular and PCS phones, wireless LANs and cable television modems. The Company offers a broad array of products--including amplifiers, mixers, modulators/demodulators, and single-chip receivers, transmitters and transceivers--representing a substantial majority of the RFICs required in wireless subscriber equipment. The Company's strategy is to focus on wireless markets by offering a broad range of standard and custom-designed RFICs in order to position itself as a "one-stop" solution for its customers' RFIC needs. In the September 4, 2000 issue of Fortune Magazine, RF Micro Devices was ranked second among Fortune's "100 Fastest Growing Companies." RF Micro Devices, Inc., is traded on the Nasdaq National Market under the symbol RFMD. The company?s website is at http://www.rfmd.com
 

This press release contains forward-looking statements that relate to RF Micro Devices' plans, objectives, estimates and goals. Words such as "expects," "anticipates," "intends," "plans," "projects," "believes," and "estimates," and variations of these words and similar expressions, identify these forward-looking statements. RF Micro Devices? business is subject to numerous risks and uncertainties, including probable variability in quarterly operating results, the rate of growth and development of wireless markets, risks associated with the operation of wafer fabrication facilities, its ability to manage rapid growth and to attract and retain skilled personnel, variability in production yields, raw material availability, manufacturing capacity constraints, dependence on a limited number of customers and dependence on third parties. These and other risks and uncertainties, which are described in more detail in RF Micro Devices? Annual Report on Form 10-K and its Prospectus dated December 19, 2000 included in its Registration Statement on Form S-3 (Registration No. 333-49432) filed with the Securities and Exchange Commission, could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements.

RF MICRO DEVICES® and RFMD® are trademarks of RFMD, LLC. BLUETOOTH is a trademark owned by Bluetooth SIG, Inc., U.S.A. and licensed for use by RF Micro Devices Inc. All other tradenames, trademarks and registered trademarks are the property of their respective owners.

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.