ARC Introduces New Modeling and Simulation Products To Speed ''Time to Market'' of ARC-Based SoCs

100% Cycle Accurate Models and Faster Instruction Set Simulators Enhance the Industry's Largest Environment of Hardware, Software, and Tools For Configurable SoC Design

CONFIGCON™ SHANGHAI DEVELOPER CONFERENCE, China, June 21, 2007 – ARC International (LSE: ARK) today introduced two new development tools that add to the growing portfolio of solutions used to create system-on-chips (SoCs) from ARC and its expanding partner network. The new ARC® xCAM tool provides completely cycle accurate models and is based upon recently acquired technology from Tenison Design Automation. Two new ARC xISS (instruction set simulator) tools operate up to 100 times faster than previous versions. The xCAM and xISS products will help ARC customers more easily and quickly create and test software earlier in the SoC design cycle, thereby speeding time to market of customers' chips.

The ARC xCAM tool extends the capabilities of previous modeling products by increasing cycle accuracy to 100 percent. It automatically generates models of customers' hardware configurations within minutes of producing RTL using the ARChitect™ Processor Configurator. Furthermore, cycle accurate models can be created as often as desired to test various configurations of ARC's processors.

The ARC xISS and xISS Turbo products provide up to 100 times better performance than the existing simulators, enabling software development to begin very early in the SoC development cycle. They implement state-of-the-art compiler technology to produce over 200 MIPS (million of instructions per second) performance.

Paul Holt, vice president of product development and services at ARC, said, "Writing and testing software on various hardware configurations at the start of the design cycle helps speed the creation of optimized ARC-Based silicon. These new modeling and simulation products will enable ARC customers to achieve this goal faster and with less design effort. Furthermore, the new tools are the latest additions to the growing portfolio of world class SoC development solutions available to ARC's customers worldwide."

The Growing ARC® Development Environment for SoC Design
Since pioneering configurable subsystems and processors, ARC and its partner network of close to 50 companies have invested tens of millions of dollars in hardware, software, and tools for SoC design. Today they comprise the industry's most comprehensive development environment for configurable subsystems and cores. Used on a daily basis by approximately 140 companies worldwide, these solutions enable the creation of optimized ARC-Based chips for a range of high-volume markets. Centered around the ARChitect Processor Configurator and industry-leading MetaWare® development toolkit, included elements and services are:

Co-Design and Co-Verification Solutions

• Emulators
• Processor models (such as the new ARC xCAM tool)
• Simulators (such as the new ARC xISS tools)
• Subsystem models
• System models

Hardware Development Solutions

• Architectural definition and exploration
• Design services
• EDA flows (standard and low power)
• Foundry services
• HDL development and simulation
• RTL configuration and creation
• RTL synthesis

Software Development Solutions

• Audio, video, and imaging codecs
• Compilers
• Debuggers
• Media players
• Middleware
• Operating systems
• Profilers
• Protocol stacks (multimedia, speech, security, communications)

ARC International also is involved in a number of industry organizations to further the technology advancement of configurable subsystems and processors. They include:

• Benchmarking groups
• Multimedia consortia
• Standards bodies
• Fabless semiconductor associations
• Low power SoC design initiatives
• Multi-processor and related IP associations

Availability

The ARC xCAM tool is available now for all members within the configurable ARC 700 core family. The ARC xISS tools are available now for all members within both the configurable ARC 600 and 700 core families. For more information contact ARC International at info@arc.com or visit www.arc.com.

About ARC International plc

ARC International is the world leader in configurable media subsystems and CPU/DSP processors. Used by over 140 companies worldwide, ARC's configurable solutions enable the creation of highly differentiated system-on-chips (SoCs) that ship in hundreds of millions of devices annually. ARC's patented subsystems and cores are smaller, consume less power, and are less expensive to manufacture than competing products.

ARC International maintains a worldwide presence with corporate and research and development offices in California and St. Albans, UK. For more information visit www.ARC.com. ARC International is listed on the London Stock Exchange as ARC International plc (LSE: ARK).