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Kawasaki Microelectronics Selects ARC’s Processor Technology to Expand its ASIC IP Portfolio for Consumer Electronics Products

SAN JOSE, CA., November 3, 2003 – 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, announced today that Kawasaki Microelectronics, Inc., a leader in advanced yet affordable ASICs, has licensed a full suite of ARC's hardware and software technology to expand its ASIC intellectual property portfolio for consumer electronics products. The products licensed by Kawasaki include the ARCtangentTM-A5 RISC/ DSP processor, ARC's class leading VoIP's, digital wireless, digital imaging and audio codecs, and the MetaWareTM Tool Suite.

“Consumer electronics product manufacturers increasingly are using Kawasaki ASIC solutions because we offer advanced technology at affordable price points,” said Kyoichi Kissei, executive vice-president of sales, marketing and logistics of Kawasaki Microelectronics. “Our alliance with ARC will help us meet new market requirements for advanced technology, allowing us to expand our leadership position. We look forward to working with ARC to help our customers succeed.”

“Multimedia consumer products are becoming increasingly cost sensitive while at the same time, integrating more complex functionality,” said Andy Haines, senior vice president of marketing, ARC International. “ARC can minimize our partner's design risk by integrating elements like class leading VoP's, digital wireless, digital imaging and digital audio codecs with the high performance, low power and small area requirements of this new class of products.”

The audio codec libraries are optimized to run on the ARCtangent-A5 taking advantage of its customizable DSP extensions to reduce MIPs requirements. As a result, the library delivers some of the most MIPs-efficient digital audio software available on a small, low-power RISC or DSP platform.

Notes to editors

About Kawasaki Microelectronics
Kawasaki Microelectronics is the leader in advanced yet affordable ASIC semiconductor technology solutions. The company's innovative core technologies and world-class design support are used in the consumer electronics, computer, liquid crystal display, office-automation, networking, wireless, and electronic-storage markets. Deployed worldwide, Kawasaki's products enable customers to quickly introduce highly-competitive solutions. The company is an active participant in industry standards organizations, including the PCI Special Interest Group, MPEG-4 Industry Forum, and the USB Implementers Forum. Kawasaki has design centers in San Jose, Calif.; Boston, Mass.; Japan and Taiwan. For more information, contact the company at 408-570-0555, or visit its English-language web site at http://www.klsi.com, its Japanese-language web site at http://www.k-micro.com, or e-mail to info@k-micro.com

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, 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.

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Kawasaki Microelectronics Selects ARC’s Processor Technology to Expand its ASIC IP Portfolio for Consumer Electronics Products

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