ARC Configurable Processors Gain Software Support from Industry Leader, Green Hills Software, Inc.

Business Editors/High-Tech Writers

SAN JOSE, Calif. & SANTA BARBARA, Calif.--(BUSINESS WIRE)--March 29, 2004

ARC(TM) Further Delivers on Its Promise to Expand Product Offerings

Through Strategic Partnerships with Industry Leaders

ARC International (LSE:ARK), a world leader in user-customizable RISC/DSP processors, peripheral IP, application platforms for digital media and networking communications, today announced its partnership with Green Hills(R) Software, Inc. a recognized market leader in embedded software development tools and royalty-free real-time operating systems (RTOS). Through this partnership, Green Hills Software, Inc. will retarget its MULTI(R) Integrated Development Environment (IDE), debug system and high- and low-end in-circuit emulation pods to support ARC configurable processors including the ARCtangent(TM)-A4, the ARC 600 and ARC 700 processors. ARC customers will be able to license MULTI for ARC processors directly from ARC or from Green Hills Software.

"In the February ARC financial results announcement, we stated that we would partner with external companies to provide our customers with a more complete solution," said Carl Schlachte, ARC President and Chief Executive Officer. "This strategic relationship with Green Hills is an important example of ARC delivering on its promises to the industry and there will be many others to come."

By combining the MULTI IDE and the Green Hills debug system with ARC's ARCangel(TM) prototyping system and the ARC MetaWare(R) compiler, engineers have a powerful, tightly integrated system for developing sophisticated applications for ARC's 32-bit configurable RISC/DSP processors. Announcements will be made in the future regarding operating system support for royalty-free operating systems such as Green Hills' ultra-reliable, secure, memory-protected INTEGRITY(R) RTOS, Green Hills' new small footprint VelOSity(TM) microkernel, and ThreadX from Express Logic.

"ARC is delivering high-performance, configurable processor solutions to an impressive list of customers involved in the fast growing markets of network communications and digital media products," said Craig Franklin, Green Hills Vice President of Advanced Products. "We are eager to extend our reach into ARC's extensive customer base and to provide these companies with our world-class products.

"By marrying our powerful, application-specific platforms with Green Hills' industry renowned MULTI IDE and their superior worldwide service and support, we are providing our customers with the ultimate software development environment while maintaining the highest level of configurability," said David Fritz, ARC VP, Marketing. "Our partnership with Green Hills gives our customers an even stronger competitive edge through faster product development times and decreased development costs."

Availability

MULTI for ARC processors will be available 3rd quarter of 2004.

About Green Hills Software

Founded in 1982, Green Hills Software Inc. is the technology leader for real-time operating systems and software development tools for 32- and 64-bit embedded systems. The royalty-free INTEGRITY RTOS, compilers, MULTI and AdaMULTI Integrated Development Environments and Green Hills TimeMachine Debugger offer a complete development solution that addresses both deeply embedded and high-reliability applications. Green Hills Software is headquartered in Santa Barbara, CA, with European headquarters in the United Kingdom. For more information, visit www.ghs.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. All other brands or product names are the property of their respective holders.