Amlogic selects ARC's industry leading SoC IP technology for single-chip progressive scan DVD controller

Highly integrated ARCtangent™ synthesizable core, compiler and debugger tools provide lower cost and faster route to market

San Jose, CA, June 24, 2002 -ARC International (LSE: ARK), a world leader in semiconductor and software technology licensing, today announced that Amlogic Inc. has selected the company's System-on-Chip (SoC) IP technology to be incorporated into a highly integrated, single-chip back-end DVD player solution.

Amlogic is a leading provider of integrated MPEG-1, MPEG-2, DSP, video processing, and single-chip DVD products in the multimedia markets. The company's single-chip AML3300 combines a full function MPEG-2 decoding with progressive scan (480p), numerous dedicated and general-purpose peripherals, and an embedded 32-bit Host CPU derived from the ARCtangent-A4 synthesizable core. Amlogic also selected ARC's integrated compiler and debugger tool suite to reduce overall design risk and minimize the need for multiple IP suppliers.

"We selected ARC's development platform because of its price, performance and flexibility," said John Zhong, chairman, president and CEO of Amlogic. "ARC helped make the task of porting the software as seamless as the hardware integration effort. Ultimately, we found that ARC's documentation and technical support were superior to other third-party processor core companies, and we were not locked into a foundry-specific configuration often associated with other processor cores."

Zhong added, "In migrating to a new foundry, Amlogic had to consider available processor cores and the issues of porting existing software. The ARCtangent-A4 synthesizable core allowed us to target a particular foundry, technology and operating frequency. We were able to integrate ARC's IP into our environment instead of dealing with a black box during synthesis and layout. Another ARC benefit is the ability to select the appropriate cache sizes to maximize performance while at the same time moderate die size. ARC's highly integrated development platform allowed us to add custom instructions that enabled us to differentiate our audio/video processing applications."

The ARCtangent-A4 microprocessor core is a 32-bit user-customizable RISC/DSP architecture. Unlike almost all other processor architectures, it allows the customer (chip designer) to build a custom microprocessor with easy-to-use tools. Predefined instructions and features cut much of the development work, producing a much faster route to market. Using the ARChitect™ processor-configuration tool, designers can point and click their way to a custom ARCtangent-A4 microprocessor in a matter of moments. The extendability of the microprocessor gives designers the freedom to add their own IP and to patent their custom design.

"Our development partnership with Amlogic validates the ARCtangent architecture as a leading choice for high performance multimedia applications," said Mike Gulett, president and chief executive of ARC International. "We are pleased that ARC was able to provide the most cost efficient and time-saving development platform available to differentiate the Amlogic single-chip DVD chip design."

About Amlogic Inc.

Amlogic Inc., headquartered in San Jose, California, is a leading supplier of highly integrated System-on-Chip solutions in the fast growing multimedia and Internet consumer markets. Amlogic has set its course to deliver cost-effective systems building blocks that enable the design and deployment of a broad range of consumer products including the Internet-ready DVD players, one-way and two-way cable set-top boxes, and convergence device for broadband multimedia communication.

About ARC International

ARC International is an industry-leading developer of embedded user-customizable, high-performance 32-bit RISC/DSP processor cores, with integrated development tools, peripherals, RTOS and software. These integrated products and solutions are a result of the acquisitions of MetaWare, VAutomation and Precise Software Technologies. ARC's integrated intellectual property solutions assist customers in rapidly developing next generation wireless, networking and consumer electronics products, reducing time to market, reducing their cost, reducing the number of IP suppliers and reducing their risk for System-on-Chip product development. Products based on ARC's technology include digital still cameras, set-top boxes, and network processors.

ARC International employs more than 200 people in research and development, sales, and marketing offices across North America, Europe and Israel. Full details of the company's locations and other information are on the company's web site, 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 ARC, the ARC logo, ARChitect and ARCtangent are trademarks of ARC International. All other brands or product names are the property of their respective holders.