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Chips&Media Selects ARC™ 605 Core for Use in New Set-Top Box Chip

World's Smallest, Lowest Power 32-Bit Core to Power MPEG-2 Design by Korean Audio/Video Solutions Provider

ELSTREE, England, May 17, 2005 - ARC International (LSE: ARK), the world leader in configurable CPU/DSP processor cores and application subsystems, today announced that Chips&Media Inc. has licensed an ARC™ 605 processor core for use in a new MPEG2 codec design. Targeted at high volume set-top box applications, Chips&Media selected the ARC 605 core because it is smaller, lower power and provides up to twice the MHz performance than competitive cores.

In Mook Lee, vice president of business development at Chips&Media, said, "After evaluating competitive processors, it was clear that the ARC 605 core delivers the most cost-effective solution. Using ARC's configurable technology, we can ensure our MPEG chip meets critical design specifications and competitive price points in the market."

"ARC cores are an excellent fit for cost-sensitive consumer applications, such as MPEG devices, because they can be configured for very low power consumption and extremely small die size," said Derek Meyer, vice president of marketing at ARC International. "We welcome Chips&Media to the growing list of companies that are standardizing on ARC's patented configurable processor technology for high volume markets."

The ARC 605 Configurable Core
The ARC 605 processor core is the world's smallest, lowest power and most configurable 32-bit core. In a 0.13 micron process, it offers a maximum clock frequency of 250 MHz, power consumption of 0.06 mW/MHz and a die size of 0.31mm2. The 605 core is an ideal solution for a wide range of embedded control and computing functions within SoCs. The core is designed for hard real-time processing, where high speed and deterministic response are required. Custom instruction extensions may be incorporated to achieve application performance levels unattainable with fixed architecture cores.

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About ARC International plc
ARC International is the world leader in low-power, high-performance 32-bit configurable CPU/DSP processor cores, subsystems, real-time operating systems and development tools for embedded system design. ARC's patented configurable and extendible cores assist customers in the development of next generation digital media, consumer and communications devices, resulting in lower cost, higher performance SoC products.

ARC International maintains a worldwide presence with corporate offices in San Jose, California, USA and Elstree, UK. The company has research and development offices located in England and the United States. For more information please visit the ARC website at: www.ARC.com. ARC International is listed on the London Stock Exchange as ARC International plc (LSE: ARK).

ARC, the ARC logo and ARC-Based are trademarks or registered trademarks of ARC International. All other brands or product names contained herein are the property of their respective owners. This press release may contain certain "forward-looking statements" that involve risks and uncertainties. For factors that could cause actual results to differ, visit the company’s Website as well as the listing particulars filed with the United Kingdom Listing Authority and the Registrar of Companies in England and Wales.

For more information, contact:
Jessica Hoff
ARC International
+1 408 437 3477
Jessica.hoff@arc.com