ARC International Joins OCP-IP; Membership In Organization Helps Limit Risks Associated with Complex SoC Design.

Business Editors/High-Tech Writers

PORTLAND, Ore.--(BUSINESS WIRE)--Feb. 23, 2004

Open Core Protocol International Partnership (OCP-IP), today announced that ARC International (LSE:ARK), a world-leading provider of user-customizable processors, peripheral IP, real-time operating system and development tools for embedded system design, has joined the Organization. Membership in OCP-IP allows ARC customers reduced design time and reduces risks associated with SoC design, moving them to silicon fabrication more quickly. ARC plans to implement the OCP interfaces in its ARC 600 processor. This processor was announced in October 2003 at Microprocessor Forum and currently supports both the AMBA and BVCI busses. ARC intends to add OCP-IP interfaces during 2004 with the intention that it will be a native interface to the ARC 600. ARC is also planning for all future processor releases to have native OCP-IP interfaces.

"Our customers are building complex SoCs with ARC-based products, that have high performance interfaces," said David Fritz, Vice President of Marketing for ARC International. "Such SoC designs require an open, standards-driven interconnect model that allows scalability in delivering the highest performance possible while enabling IP reuse and limiting design risks. OCP-IP addresses this need and has strong support from the industry."

"ARC is a premiere provider of integrated solutions for SoC design," said Ian Mackintosh, President of OCP-IP. "We are pleased to have ARC adopt and endorse OCP. ARC's addition to the membership roster shows the strong support throughout industry for a single socket standard that everyone can use, no matter what their on-chip architecture, or whose processor cores they're using."

About OCP-IP

The OCP International Partnership Association, Inc. (OCP-IP) was announced in December 2001 to promote and support the open core protocol (OCP) as the complete socket standard that ensures rapid creation and integration of interoperable virtual components. OCP-IP's Governing Steering Committee participants are: Nokia (NYSE:NOK), Texas Instruments (NYSE:TXN), STMicroelectronics (NYSE:STM), United Microelectronics Corporation (NYSE:UMC), Sonics, and other industry leading companies. OCP-IP is a non-profit corporation delivering the first fully supported, openly licensed core-centric protocol that comprehensively fulfills system-level integration requirements. The OCP facilitates IP core reusability and reduces design time and risk, along with manufacturing costs for SoC designs. VSIA endorses the OCP socket, and OCP-IP is an Adoption Group of the VSI Alliance. For additional background and membership information, visit www.OCPIP.org.

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. 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.