ARC Extends Its Security Software with Secured Socket Layer and Secured Socket Shell Protocols and Hardware Accelerated Encryption.

Business Editors/High-Tech Writers

Motorola Smart Network Developer Forum

Booth No. 500

DALLAS--(BUSINESS WIRE)--April 26, 2004

ARC International (LSE:ARK)

-- Tightly Integrated Hardware-Software Security Solution

Provides Accelerated Secure Communications in Network

Connected Control Applications Reducing Development Time,

Optimizing Performance and Reducing Development Cost

ARC(TM) International (LSE:ARK) today announced the addition of Secured Socket Layer (SSL) and Secured Socket Shell (SSH) protocols and integration with several on-chip encryption accelerators for IPSec, SSL and SSH to IPShield(TM), its security software product. This allows secure internet-to-internet data transmission, secure web transmission and VPN encryption for TCP/IP for a wide range of networking and industrial applications requiring protection from outside vulnerabilities. See related press release "ARC International Announces Security Software for Embedded Networking Applications" in August 2003.

The IPShield software is compliant with Internet Engineering Task Force (IETF) standards, including IPSec and Internet Key Exchange (IKE), SSL and SSH protocols, and it supports a variety of security algorithms, including DES, 3DES, AES, MD5 and SHA. With the addition of on-chip encryption accelerator support in IPShield for the Motorola MPC875/MPC885 and MPC8248/MPC8272 PowerPC(TM) processor families, developers achieve optimal security performance for their applications by offloading CPU intensive cryptographic operations without having to write the code themselves. And as more aspects of day-to-day-life, such as paying taxes and voting, require increased security levels, semiconductor vendors will deliver more powerful and advanced on-chip security solutions, continuing to drive up the complexity of embedded software applications. ARC's security-focused software minimizes the development risks and allows designers to focus on product differentiation and innovation rather than repetitive development and integration effort.

"Enabling safe and secure communication is critical with the proliferation of connected embedded devices. Our close customer relationships allow us to develop security solutions in tune with our customers design focus today and in the future," said Jeri Ann May, ARC Software Marketing Director. "ARC is dedicated to advancing our security portfolio with new security protocols and off-the-shelf support for on-chip hardware-accelerated encryption of network traffic, so developers can achieve optimal performance and minimal cost for their designs."

Pricing and Availability

The IPShield-IPSec software is shipping today with pricing starting at $30,000 for a single product license. On-chip hardware accelerator algorithms for IPShield-IPSec will be included starting in Q2 2004. The IPShield-SSL and IPShield-SSH protocols and on-chip hardware accelerator algorithms will be available in Q2 2004 with pricing starting at $25,000 for a single product license. All software from ARC is royalty free with source code provided. ARC will be demonstrating its IPShield software for Motorola PowerPC and ColdFire processors at the Motorola Smart Network Developer Forum in Dallas, booth #500.

About ARC

ARC International is a worldwide provider of high quality software and knowledge for developers of embedded systems who are looking to reduce the time, effort and cost of bringing their products to market. ARC's portfolio of integrated software, featuring the MetaWare(R) development tools and MQX(TM), a royalty-free real-time operating system (RTOS) provided in full source code, operates on many popular processors, and includes excellent technical support. Streamlined for application development in industrial control, networking, consumer and storage markets, ARC's software solutions allow customers to succeed at meeting their goal for on-time and on-budget product development.

With technology based on more than 20 years of embedded expertise, ARC was the first company to integrate processors, development tools, peripherals, RTOS and connectivity solutions. The inventor of user-configurable 32-bit RISC processing and a leader in configurable System-on-Chip (SoC) platform technologies, ARC provides the tools and know-how to help customers manage the increasing complexity of system-level design. Please visit www.arc.com/software to learn more about ARC International (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, ARCompact, ARChitect, MetaDeveloper, MetaWare, Precise/MQX and Precise/RTCS are trademarks of ARC International. All other brands or product names are the property of their respective holders.