ARC International Announces Security Software for Embedded Networking Applications.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 18, 2003

IPShield(TM) Software Provides Privacy, Integrity and Authenticity,

for Motorola, IBM, ARM and MIPS Processor Applications

ARC International (LSE:ARK), a world leader in user-customizable processors, silicon peripheral IP, real-time operating system and development tools for embedded system design, today unveiled its IPShield(TM) software, an Internet security solution providing embedded designers the ability to build security into their network-connected systems. Intended for such applications as small office/home office (SOHO) routers, xDSL/cable modems and security equipment, current versions of the IPShield software are compliant with Internet engineering task force (IETF) standards, including IPSec and Internet key exchange (IKE), and support a variety of security algorithms. The IPShield software is tightly integrated with ARC's own compact, high-performance RTCS TCP/IP networking stack, so embedded developers can easily and cost-effectively incorporate strong, interoperable security features into their networking applications. The IPShield software is intended for designers wanting to incorporate IPSec software functions within their applications.

"With the amount of sensitive data being transmitted across today's IP network, security is rapidly becoming a required feature in all classes of network-connected embedded devices. With our IPShield software, we have developed a security solution that provides the privacy, integrity and authenticity that addresses this growing demand," said Andy Haines, senior vice president of marketing at ARC. "In addition, ARC is dedicated to providing an off-the-shelf security solution for hardware-accelerated encryption of network traffic, so developers can take advantage of the hardware security engine to achieve optimal performance for their designs."

The IPShield software, a part of the networking family of ARC software products for embedded system developers, enhances the capabilities of embedded networking applications by providing a standard platform for securing networks with encrypted tunnels over the Internet. The software supports a variety of encryption and hashing algorithms such as DES, 3DES, MD5 and SHA. It allows for chained transforms, nested tunnel and replay-attack preventions against packet analysis during data transfer.

The IPShield software code can be ported to proprietary hardware encryption accelerators and user-specific instructions to enable designers to quickly develop secure network applications over a broad spectrum of embedded devices. The IPShield software is tightly integrated with an RTCS TCP/IP stack, so it can be incorporated on any platform supported by RTCS, such as the ARC ARCtangent(TM), ARM(R), MIPS(R), Motorola(R) ColdFire(R) and Motorola/IBM PowerPC(R) architectures.

Pricing and Availability

The IPShield software is shipping today with pricing starting at $30,000 for a single product license.

Notes to editors

About ARC

ARC International is a world leader in SoC and embedded software design and development minimizing risk for customers developing next-generation wireless, networking, industrial control, storage and consumer electronics products. ARC introduced the industry's first user-customizable 32-bit RISC/DSP processor core, the industry's first USB Hi-Speed On-The-Go IP and today supplies turnkey embedded solutions that combine a real-time operating system, development tools and peripheral hardware and software that enable developers to better design optimization and performance. ARC provides a single source for the major SoC and embedded software building blocks reducing the number of suppliers, reducing cost, reducing risk and reducing time-to-market.

ARC International employs approximately 200 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.