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ARC International Licenses ARCtangent-A5™ Processor for Leapster™ Multimedia Learning System

Combined RISC/DSP Capabilities Provide High-Performance, Low-Power Processor Solution for Consumer Electronics

San Jose, Calif., March 1, 2004 – 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, today announced that LeapFrog Enterprises, Inc. a leading designer, developer and marketer of innovative technology-based educational products, has licensed the ARCtangent A5.1™ processor core for the Leapster™ Multimedia learning system, an award-winning new portable learning system. As a combined 32-bit RISC/DSP processor, the ARCtangent-A5 delivers greater performance than a stand-alone RISC processor, while at the same time consuming less power than other combined RISC/DSP solutions, making it a cost-efficient, solution-of-choice for consumer electronics applications.

Designed as an educational game player, electronic storybook reader, digital art studio and interactive video player, the Leapster platform teaches children to learn in the ways they like to play. A cartridge-based handheld learning system, the Leapster handheld is designed for children, ages 4-8, and delivers educational software for reading, math, music and other basic skills. Announced in October 2003, Leapster was named one of the hottest toys for Christmas 2003 by experts such as Jim Silver, co-publisher of Toy Wishes magazine, the Toy Industry Association (TIA) and Ann Orr, senior editor at Children's Software Revue.

"We required a low-power, low-cost, multi-functional microprocessor that could perform real-time tasks and the ARCtangent A5 provided the best solution," said Mike Perkins, Senior Vice President of Research and Development at LeapFrog Enterprises, Inc.

"LeapFrog is an innovator in the educational electronic products industry, and we are pleased that our processor expertise allowed our ARCtangent technology to integrated into the Leapster handheld, one of this year's most popular toys, " said Pete Hutton, vice president and general manager of the processor business unit at ARC International. "LeapFrog continues to make advances in educational electronics, and we look forward to working with them on future next-generation consumer electronics.

The ARCtangent-A5 can be configured and extended to best meet the demanding performance requirements of DSP applications, such as complex portable devices, as well as provide the RISC processing that many DSP applications now require, all in a small, single processor core. Optional DSP extensions, such as multiply-accumulate functions and configurable XY memory, increase computational power and data throughput, enabling the ARCtangent-A5 to increase performance for complex DSP applications without losing any of its RISC functionality.

Pricing and availability
Please contact your local sales offices for pricing and availability of the ARCtanget A5. The Leapster Multimedia learning systems is available now at major retail stores such as Toys "R" Us, Target and Wal-Mart, as well as online stores such as Amazon. Retail price is listed at $79.99.

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 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).

About LeapFrog
LeapFrog Enterprises, Inc. is a leading designer, developer and marketer of innovative, technology-based learning products and related proprietary content, dedicated to making learning effective and engaging for all ages, at home and in schools, around the world. The company was founded in 1995 and is based in Emeryville, California.

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.

LEAPFROG and LEAPSTER are trademarks or registered trademarks of LeapFrog Enterprises, Inc.

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ARC International Licenses ARCtangent-A5™ Processor for Leapster™ Multimedia Learning System

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