ARC International Signs Software Marketing Agreement with Metrowerks; Metrowerks to Distribute ARC's Software to World-Wide Customer Base.

Business & High-Tech Editors

SAN JOSE, Calif.--(BUSINESS WIRE)--July 25, 2002

ARC International (LSE: ARK), a world leader in configurable SoC platform technologies, announced today that Metrowerks, recognized experts in software development tools, have signed an agreement allowing Metrowerks to market licenses and support services in conjunction with its own products.

Under the terms of the agreement, Metrowerks will distribute ARC products to its customer base worldwide, directly or indirectly through distributors, bundled with Metrowerks products or on a stand-alone basis. Metrowerks is an independently operating subsidiary of Motorola, Inc. (NYSE:MOT).

Metrowerks develops and markets the CodeWarrior Development Tools suite, which enables software developers to quickly and easily create embedded products and applications. Metrowerks intends to provide complete reference platforms targeting the networking and communications market that will enable developers to quickly build and deploy smart network-enabled devices.

"CodeWarrior and PowerPC are used by thousands of developers worldwide", said Mike Gulett, president and CEO of ARC International. "Bundling ARC's MQX RTOS and the networking stacks with the Metrowerks products will expose these products to new customers and potentially open some new sales channels into those markets."

"ARC's combination of a royalty-free sales model and inclusion of source code allows Metrowerks to provide developers a flexible, cost-effective solution," said John Smolucka, vice president of marketing, Metrowerks. "In addition, because ARC builds its own real-time TCP/IP Communications Stack, the protocol stacks are highly integrated into the OS, providing extremely high performance."

The marketing partnership between ARC and Metrowerks underscores the need for companies to collaborate in order to maximize customer opportunities and to address the available market. It is also consistent with ARC's pledge to make it easier for customers to get to volume quicker, by dealing with fewer IP suppliers that can provide them with more of a solution. Relationships like this demonstrates the commitment of ARC International to provide its partners with the tools necessary to meet their market objectives, and to effectively extend the market reach of both companies.

About ARC International

ARC International is an industry-leading developer of embedded user-customizable, high-performance 32-bit RISC/DSP processor cores, with integrated development tools, peripherals, RTOS and software. These integrated products and solutions are a result of the acquisitions of MetaWare, VAutomation and Precise Software Technologies. ARC's integrated intellectual property solutions assist customers in rapidly developing next generation wireless, networking and consumer electronics products, reduce the number of IP suppliers, reduce time-to-market, reduce costs, and reduce their risk for System-on-Chip product development. Products based on ARC's technology include digital still cameras, set-top boxes, and network processors.

ARC International employs more than 200 people in research and development, sales, and marketing offices across North America, Europe and Israel. Full details of the company's locations and other information are on the company's web site, www.ARC.com. ARC International is listed on the London Stock Exchange as ARC International plc (LSE:ARK).

About Metrowerks

Metroworks creates CodeWarrior software and hardware products and services for developers with a particular focus on the following industries: consumer electronics; transportation; wireless; and networking and communications. The CodeWarrior product line includes development tools and middleware that enable customers to decrease their time to market. The company also offers services, training, custom software development, and managed developer programs. Founded in 1985, Metrowerks is today an independently operating subsidiary of Motorola, Inc. (NYSE:MOT). Metrowerks corporate headquarters are in Austin, Texas; Metrowerks European headquarters is Basel, Switzerland; and Metrowerks Japan is headquartered in Tokyo. For more information, please visit http:/www.metrowerks.com/

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

ARC, the ARC logo, ARChitect and ARCtangent are trademarks of ARC International. All other brands or product names are the property of their respective holders.