CYPRESS SEMICONDUCTOR LICENSES ARC INT'L TECHNOLOGY IN PARTNERSHIP DEAL.

Cypress Semiconductor (NYSE: CY) has licensed its ARCtangent-A4 processor in a corporate multiple-license agreement to be implemented over the next five years.

Cypress plans to use the ARCtangent processor in a number of new product designs, the first user being its Interface Products Division, which designs and manufactures the industry's leading USB products. Cypress will also take delivery of the ARCtangent-A5 when it becomes available later this year; ARC announced the new instruction set architecture for this processor earlier this month.

David Wooten, chief technology officer for Cypress's Interface Products Division, said, "We've identified a number of groups within the company which could benefit from ARC's processor technology and the tool chain from its MetaWare subsidiary. We evaluated the leading RISC processor companies and found that ARC's configurable processor approach is ideal for the wide range of applications that we are contemplating. ARC is also extremely responsive to our product support needs."

Bob Terwilliger, president & CEO of ARC Cores, said, "We are pleased to announce Cypress as a licensee. The fact that we will be working with them over the next few years demonstrates the level of commitment we are getting from industry leaders to both our technology and the company. We have over 50 customers developing systems on a chip for wireless, networking and consumer electronics products."

Cypress Semiconductor (NYSE: CY) is "Driving the Communications Revolution" by providing high-performance integrated circuit solutions to fast-growing markets, including data communications, telecommunications, computation, consumer products, and industrial control. With a focus on emerging communications applications, Cypress's product portfolios include high-speed data communications ICs; networking-optimized and micropower static RAMs; high-bandwidth multi-port and FIFO memories; high-density programmable logic devices; timing technology solutions; and controllers for Universal Serial Bus (USB).

ARC International plc is a leading developer of customizable, high-performance microprocessor cores, including ARCtangent, and related intellectual property technology enabling designers to reduce time to market for their system-on-a-chip products. Over 50 customers use ARC's technology, including: BrightCom, Conexant Systems, Cypress Semiconductor, Fujitsu Microelectronics, IBM, Infineon Technologies, SanDisk, Texas Instruments and VTech Communications. Products available based on ARC's technology include digital still cameras, set-top boxes, and network processors.

MetaWare Inc., Precise Software Technologies Inc. and VAutomation Inc. are wholly owned subsidiaries of ARC International, providing software development tools, hardware and software intellectual property and real-time operating systems for an integrated approach to system on a chip development. ARC's third-party partners include Cadence, Flextronics, Intrinsix, Synopsys, TSMC, UMC, Wind River and Xilinx.

With headquarters in Elstree, England, ARC International plc and its group companies employ approximately 300 people in research and development, sales, and marketing offices across North America, Europe and Israel. ARC International plc is listed on the London Stock Exchange (LSE:ARK). The company's Web site is located at www.arccores.com.