ARC 700 Raises the Bar for High Performance, Low Gate Count Processors; World's Smallest 400MHz RISC/DSP Processor.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 16, 2004

ARC International (LSE:ARK), a world leader in user-customizable processors, peripheral IP, real-time operating systems and development tools for embedded system design, today announced its highest performance configurable, extendable architecture, the ARC(TM) 700. The ARC(TM) 700 performance-tuned architecture targets an extensive range of deeply embedded applications that require optimal performance.

The 32-bit ARC 700 architecture follows ARC's pioneering trend of providing high-performance, user-configurable 32-bit RISC/DSP processors with very low gate count and best-in-class low power requirements. The ARC 700 is a synthesizable architecture that easily achieves 400MHz in worst-case conditions using 0.13 micron process through a 7-stage optimized pipeline configuration. ARC supports this product with a suite of peripheral IP, software development tools and software IP representing a complete system solution.

"The culmination of more than 10 years of processor experience and significant customer input has resulted in the development of the ARC 700 -- our most innovative architecture to date," said David Fritz, VP of Marketing at ARC International. "This product line spotlights our technology leadership and demonstrates our determination to address today's most competitive applications demanding high performance, low gate count and low power."

Achieving the Highest Performance, Low-Silicon Area Architecture

ARC was able to achieve clock speeds of 400MHz and above through a sophisticated pipeline structure that supports out-of-order completion, non-blocking access, 2-level hit-under-miss scheduling, and configurable dynamic branch prediction for maximum throughput. The ARCompact ISA significantly reduces code memory footprint, helping designers achieve lower system cost while maximizing performance. The 16/32-bit ARCompact ISA reduces code size by up to 40 percent when compared to standard 32-bit only ISA architectures. The ARC 700 architecture allows designers to easily extend the ISA by adding their own customized instructions or ARC's DSP package to further reduce frequency requirements.

ARC 700 Addresses Emerging and Convergent Applications

The seven-stage pipeline and extendible RISC/DSP architecture provides the ARC 700 with significant processing power for today's networking, storage, multimedia and wireless applications. It can target the most challenging high-performance designs while offering small size, low power, and high performance. The ARC 700 allows designers to integrate additional features into their products without moving to a larger, power-hungry processor or requiring additional external logic.

Multiprocessing, Peripherals and More

The ARC 700 architecture further expands the "CPU Island" architecture that is proven to dramatically reduce integration effort and greatly facilitate multiprocessor design. The CPU Island's completely synchronous interface supports BVCI and AMBA bus interfaces while totally isolating the core and memory from peripherals and high-speed system bus co-processors. The clean, pre-verified boundary provides designers with a quicker timing closure path. ARC's rich offering of proven IP peripheral devices are pre-verified with the ARC 700 core further reducing risk and time-to-market.

For additional technical details, go to www.arc.com/700.

Availability

The ARC 700 soft core is available today in RISC configurations. The DSP version of the ARC 700 will be available in Q2, 2004. For pricing and licensing information, please contact any ARC sales office at http://www.arc.com/company/locations.html.

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 optimise the design and performance of their applications. ARC also supplies embedded system software, consisting of MQX RTOS and various protocol stacks for a variety of embedded processors. 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 180 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).

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. In view of the many applications in which its Licensees may use the ARC products, ARC cannot warrant that those applications do not infringe the patents of others. ARC strongly encourages its Licensees to become familiar with the policies governing the use and licensing of intellectual property established by any organization whose standards the Licensee wishes to follow, and to review the list most standards-promulgating organizations publish, of entities that claim to have patents relating to the relevant standards or underlying technology.

ARC, the ARC logo, ARCtangent, ARCangel, ARCompact, ARChitect, ARCform, CASSEIA, High C, High C/C++, SeeCode, MetaDeveloper, MetaWare, Precise Solution, Precise/BlazeNet, Precise/EDS, Precise/MFS, Precise/MQX, Precise/MQXsim, Precise/RTCS, Precise/RTCSsim are trademarks of ARC International. All other brands or product names are the property of their respective holders.