Digeo Expands ARC License to include new ARC600 RISC/DSP For Its Next Generation Set Top Boxes

Current ARC multi-processor licensee renews commitment to ARC core

SAN JOSE, Calif., June 23, 2004 – ARC International (LSE: ARK), a world leader in user-customizable RISC/DSP processors and application platforms for digital media, wireless and networking communications, today announced that Digeo, Inc., a leading provider of media center software and services, has licensed the ARC 600 RISC/DSP core, MetaWareÔ development tools, MP-3 and AC-3 audio technology for use in its X-Stream™ media center chipset.

Digeo's X-Stream Chipset features the industry's highest level of integration and dramatically cuts cost for Moxi and other media center devices. The chipset combines the functions of over two dozen chips, resulting in power and space savings as well as increased reliability. The innovative X-Stream includes new features such as high definition user interface, increased processing and graphics performance and up to four tuner digital video recording capability.

As an ARC licensee since 2002, Digeo has already incorporated four ARCtangent™-A5 processors into its current generation of X-Stream chipsets. The ARC 600 processor will initially be used as a part of the audio system and perform the processing required for MP-3 and AC-3 decode. Future chipset generations will migrate to a full ARC 600 platform.

“While searching for a processor to power our next-generation chipset, we had strict requirements for a high-performance audio solution but also knew that sophisticated development tools and solid support were vital to our continued design success. As a long-time ARC customer we have been extremely pleased with their integrated audio solutions and tools in addition to their great customer support. Upgrading to the ARC 600 was a natural choice,” said Toby Farrand Digeo's Chief Technology Officer.

“Digeo is an excellent example of how our customers' products have become increasingly feature-rich by taking advantage of our multi-media capabilities. Because the ARC 600 audio platform has class-leading performance and small area footprint, we are able to provide our customers with a solution that enables them to take highly competitive products to the market faster and, with less development effort than is required using conventional methods.” said David Fritz, ARC marketing vice-president.

ARC 600
The ARC 600 RISC/DSP delivers similar performance to leading scalar fixed-point general purpose DSPs in a fraction of the area. By combining RISC and DSP functions within a single core, the ARC 600 can replace a dual processor system while dramatically reducing area and power. An added benefit is that software development for both RISC and DSP configurations can be done with one tool chain, enabling faster software development and requiring only one development community.

The ARC 600 with DSP also offers an optional high bandwidth XY memory option to target higher performance applications. The DSP extensions fully utilize the ARC 600 32-bit architecture and SIMD instructions to aid in accelerating functions such as Viterbi and FFT. The ARC 600 processor can encode 2 channels of stereo AC-3 Dolby Digital and decode 1 channel of 5.1 AC-3 Dolby Digital audio simultaneously on a single processor, making it the most efficient audio solutions in its class.

About Digeo, Inc.
Digeo, Inc., provides media center software and services that inspire consumer loyalty, generate new incremental revenue, and position cable as the leading source for home entertainment.

The Moxi™ platform from Digeo powers a new generation of media centers through which cable operators can deliver high-revenue services and applications—such as digital video recording (DVR), high-definition TV, and on-demand and pay-per-view content—to the whole home at competitive cost per TV. The multi-TV architecture and breakthrough user interface of the Moxi platform provide all Moxi applications including DVR, DVD, information on demand, jukebox, photos, games, and more from any cable access point in the home using existing wiring. Digeo has also developed an innovative chipset that integrates essential media-center functionality and can substantially reduce future set-top box production costs.

Additionally, Digeo offers the Digeo™ iTV service to over one million subscribers, which is the most widely deployed cable iTV service in North America. With Digeo iTV, cable operators can increase the value of their existing digital set-tops by offering field-tested services that have demonstrated increased customer satisfaction and churn reduction, and effective cross-selling of video-on-demand (VOD) and pay-per-view (PPV) offerings.

Moxi™ Media Center customers include Comcast, Charter and Adelphia. Digeo is primarily backed by Paul Allen's Vulcan Inc. The company has offices in Kirkland, Wash., Palo Alto, Calif. and Longmont, Colo. For more information, please visit www.digeo.com.

About ARC
ARC International is a provider of uniquely optimized SoC solutions for exceptionally competitive markets. ARC's IP solutions consist of user-customizable 32-bit RISC/DSP processor cores with integrated development tools, peripherals and software. ARC solutions help companies develop application-specific SoCs that are differentiated and highly competitive for the wireless, multimedia and networking/storage markets.

ARC introduced the industry's first user-customizable 32-bit RISC/DSP processor core and the industry's first USB Hi-Speed On-The-Go IP. ARC's turnkey embedded solutions, combining the processor core with a real-time operating system, development tools and peripheral hardware and software IP, enable developers to optimize the design and performance of their applications. By providing designers with a single source for all major embedded silicon and software IP building blocks, ARC dramatically reduces their number of suppliers, thereby reducing cost, reducing risk and reducing time-to-market.

ARC International employs approximately 140 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, http://www.arc.com. ARC International is listed on the London Stock Exchange as ARC International plc (LSE: ARK).

This press release may include "forward-looking statements" that involve risks and uncertainties. Factors that could cause actual results to differ are discussed in the 'Investment Considerations' section of the Company's web site as well as the 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 obligation to update any forward-looking statements.

ARC, the ARC logo, ARCtangent, ARCangel, ARChitect, ARCform, and MetaWare are trademarks of ARC International. Digeo, Moxi, X-Stream and Mini-me are trademarks of Digeo, Inc. All other brands or product names are the property of their respective holders.