Press Release

ARC International Joins OCP-IP

Membership In Organization Helps Limit Risks Associated with Complex SoC Design

PORTLAND, ORE. — February 23, 2004 — Open Core Protocol International Partnership (OCP-IP) today announced that ARC International (LSE: ARK), a world-leading provider of user-customizable processors, peripheral IP, real-time operating system and development tools for embedded system design, has joined the Organization. Membership in OCP-IP allows ARC customers reduced design time and reduces risks associated with SoC design, moving them to silicon fabrication more quickly. ARC plans to implement the OCP interfaces in its ARC 600 processor. This processor was announced in October 2003 at Microprocessor Forum and currently supports both the AMBA and BVCI busses. ARC intends to add OCP-IP interfaces during 2004 with the intention that it will be a native interface to the ARC 600. ARC is also planning for all future processor releases to have native OCP-IP interfaces.

“Our customers are building complex SoCs with ARC-based products, that have high performance interfaces,” said David Fritz, vice president of marketing for ARC International. “Such SoC designs require an open, standards-driven interconnect model that allows scalability in delivering the highest performance possible while enabling IP reuse and limiting design risks. OCP-IP addresses this need and has strong support from the industry.”

“ARC is a premiere provider of integrated solutions for SoC design,” said Ian Mackintosh, president of OCP-IP. “We are pleased to have ARC adopt and endorse OCP. ARC’s addition to the membership roster shows the strong support throughout industry for a single socket standard that everyone can use, no matter what their on-chip architecture, or whose processor cores they're using."

About OCP-IP
The OCP International Partnership Association, Inc. (OCP-IP) was announced in December 2001 to promote and support the open core protocol (OCP) as the complete socket standard that ensures rapid creation and integration of interoperable virtual components. OCP-IP’s Governing Steering Committee participants are: Nokia [NYSE: NOK], Texas Instruments [NYSE: TXN], STMicroelectronics [NYSE: STM], United Microelectronics Corporation [NYSE: UMC], Sonics, and other industry leading companies. OCP-IP is a non-profit corporation delivering the first fully supported, openly licensed core-centric protocol that comprehensively fulfills system-level integration requirements. The OCP facilitates IP core reusability and reduces design time and risk, along with manufacturing costs for SoC designs. VSIA endorses the OCP socket, and OCP-IP is an Adoption Group of the VSI Alliance. For additional background and membership information, visit www.OCPIP.org.

About ARC
ARC International is a provider of uniquely optimized SoC solutions for exceptionally competitive markets. ARC's IP solutions consist of user-customizable 32-bit RISC/DSP processor cores with integrated development tools, peripherals and software. ARC solutions help companies develop application-specific SoCs that are differentiated and highly competitive for the wireless, multimedia and networking/storage markets.

ARC introduced the industry’s first user-customizable 32-bit RISC/DSP processor core and the industry’s first USB Hi-Speed On-The-Go IP. ARC’s turnkey embedded solutions, combining the processor core with a real-time operating system, development tools and peripheral hardware and software IP, enable developers to optimize the design and performance of their applications. ARC also supplies embedded system software, consisting of MQX RTOS and various protocol stacks for a variety of embedded processors. By providing designers with a single source for all major embedded silicon and software IP building blocks, ARC dramatically reduces their number of suppliers, thereby 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 Web site, www.arc.com. ARC International is listed on the London Stock Exchange as ARC International plc (LSE: ARK).

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