Arc Appoints Senior Executives to Management Team.

Business Editors/High Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 7th, 2002

ARC International (LSE: ARK), a leader in user-customizable processors and software for communications and consumer products, has announced the appointment of three senior executives to its management team, to be located at its San Jose, CA, office. Farzad Zarrinfar joins ARC International as senior vice president of marketing, Haig Yaghoobian as senior vice president of corporate development, and Dennis McDonald as senior vice president of human resources.

As seasoned executives with significant experience in their disciplines in the semiconductor and communications industries, they will materially strengthen ARC's senior management team, contributing the additional skills and contacts for ARC to pursue growth.

Mike Gulett, CEO of ARC International, "We are delighted that these excellent high-performance executives have chosen to join the team at ARC at this exciting stage in our development. The Company has already developed the foundations of success with its breadth of technology and its premiere customer base. With the addition of these three veterans, we are now better positioned to exploit the market opportunities available to us, and to realize the potential of ARC's technology."

Farzad Zarrinfar, with more than 20 years experience, joins ARC from Sony Semiconductor in San Jose where he was vice president of strategic marketing. He was formerly vice president of product marketing at Altera, and has worked for Samsung, LSI Logic, Martin Marietta and Texas Instruments. He has an MSEE degree from Southern Methodist University and an MBA from the University of Phoenix.

With more than 20 years experience in broadband communications, Haig Yaghoobian joins ARC in a newly created role, responsible for identifying and executing successful partnerships of all kinds designed to extend ARC's reach. He has extensive experience and contacts in the investment and venture communities, and will bring these fully into play to help ARC to be competitively positioned. He was most recently vice president of corporate development at Virata, and has also held senior business development positions with AT&T, Pacific Telesis, TCI and Digital Equipment. He has an MS in Computer Science from Boston University.

Dennis McDonald has more than 25 years experience in human resources (HR) management for technology companies. He was most recently the vice president of North American HR at Virata and he was vice president of HR for Rise Technology and Paradigm Technology. He also worked for VLSI Technology and Fairchild Semiconductor in HR management. He has a BBA degree from St. John's University in New York.

Notes to editors

About ARC International

ARC International is a leading developer of user-customizable, high-performance 32-bit RISC/DSP processor cores (including ARCtangent(TM)), with integrated development tools, peripherals and software. Its integrated intellectual property solutions assist customers in rapidly developing next generation wireless, networking and consumer electronics products, reducing time to market for system-on-chip products. Products based on ARC's technology include digital still cameras, set-top boxes, and network processors.

ARC International employs over 200 people in research and development, sales, and marketing offices across North America, Europe and Israel, with key offices in Elstree (England) and San Jose (CA, USA). Full details of the company's locations and other information are on the company's web site, www.arccores.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.

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