ARC's Scalable Processor Technology Chosen by Sun Microsystems.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 1, 2001

ARC International plc (LSE:ARK), trading through its subsidiaries as ARC Cores, has announced that Sun Microsystems, Inc. (Nasdaq:SUNW) will be using ARC's processor technology in high-performance integrated circuits that will be incorporated into a new range of high-end servers, as part of a corporate licensing agreement signed in Q3 2001.

Sun's high-end server engineering group required a flexible open architecture to address critical performance issues, while supporting evolving specification and input/output subsystem requirements. ARC's processor technology met that need.

John Brennan, vice president, hardware engineering, for the enterprise systems products group, said, "We carried out an extensive evaluation of the embedded processors currently available, and their features. ARC has an established track record, multi-processor debug and real time trace support, and an established and proven processor tool chain."

ARC's user-customizable processor technology is ideally suited to networking and interface applications, including those requiring multiple processor implementations. Over thirty customers have developed, or are developing networking devices; ARC's remaining licensees are developing or have already introduced consumer products and wireless products. In the networking space, the main benefits of ARCtangent(TM) are the ease with which customers can implement multiple processor architectures that improve performance, or obtain greater efficiencies using custom instructions.

John Stockton, interim CEO of ARC, said, "ARC is continuing to win approval from industry leaders, as this new license from Sun Microsystems demonstrates. An increasing number of top tier companies are taking out corporate or company-wide licensing agreements for many reasons. They value the competitive advantage of the technology, its scalability for future changes or requirements, and the ease with which it is possible to differentiate the end-product solution."

Stockton adds, "ARC's track record with its platform IP (intellectual property) approach is important. In an era where standards are constantly evolving, original equipment manufacturers need to be equipped with technology that allows them to meet those new requirements swiftly. System-on-a-chip (SoCs) developers need more than just IP -- they need the tools (eg. multi-processor debug), software and relevant peripheral IP to accelerate designs. This is what makes ARCtangent so attractive to SoC designers today."

About ARC International

ARC International plc is a leading developer of user-customizable, high-performance 32-bit processor cores (including ARCtangent(TM)), development tools, peripherals and other intellectual property (IP), enabling reduced time to market for system-on-chip products. ARC's 58 customers include Conexant Systems, Cypress Semiconductor, Fujitsu Microelectronics, IBM, Infineon Technologies, QLogic, SanDisk and Sun Microsystems. Products based on ARC's technology include digital still cameras, set-top boxes, and network processors. MetaWare Inc., Precise Software Technologies Inc., and VAutomation Inc. are wholly owned subsidiaries of ARC International, providing software development tools, hardware and software intellectual property and real-time operating systems for an integrated approach to system-on-chip development. ARC's third-party partners include Cadence, Flextronics, Intrinsix, Synopsys, TSMC, UMC, Wind River, and Xilinx.

ARC International plc and its group companies employ more than 200 people at its headquarters in Elstree, England, and in research and development, sales, and marketing offices across North America, Europe, and Israel. ARC International plc is listed on the London Stock Exchange (LSE:ARK). The company's web site is at www.arccores.com.

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.

Note to Editors: 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, the ARC logo, ARCtangent, ARCangel, ARCompact, ARChitect, ARCform, BlueForm, and CASSEIA are trademarks of ARC International (UK) Ltd. All other brands or product names are the property of their respective holders.