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Sony Semiconductor Kyushu Licenses ARCtangent™ Processor

Relationship Broadens ARC’s Presence in Japan’s Consumer Electronics Market
San Jose, CA., August 11, 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 Sony Semiconductor Kyusyu Corporation had licensed the patented ARCtangent processor with DSP extensions, because it delivers more computational power than a stand alone RISC processor, but draws less power than other combined RISC/DSP implementations.

“Sony Semiconductor Kyushu is a recognized leader in developing technologies that push the technical envelope,” said Mike Gulett, president and CEO of ARC International. “Its consumer electronics products consistently provide users with new and innovative features. We are pleased they selected the ARCtangent technology for integration into next-generation consumer electronics.”

The ARCtangent processor, with optional DSP extensions, addresses the performance requirements of demanding DSP applications. It can also handle the increasing amount of RISC processing now required in DSP applications. The DSP extensions add multiply-accumulate functions to the ARCtangent to deliver more computational power. In addition to these extension instructions, the available XY memory significantly increases data throughput. These features permit the ARCtangent to address more complex DSP applications than typical RISC/DSP cores, while maintaining all of the RISC functionality.

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, http://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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Sony Semiconductor Kyushu Licenses ARCtangent™ Processor

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