Re Agreement

Re Agreement 

    LONDON--(BUSINESS WIRE)--July 25, 2002--

ARC International Signs Software Marketing Agreement with Metrowerks;
 Metrowerks to Distribute ARC's Software to World-Wide Customer Base

ARC International (LSE: ARK), a world leader in configurable SoC
platform technologies, announced today that Metrowerks, recognized
experts in software development tools, have signed an agreement
allowing Metrowerks to market licenses and support services in
conjunction with its own products. Under the terms of the agreement,
Metrowerks will distribute ARC products to its customer base
worldwide, directly or indirectly through distributors, bundled with
Metrowerks products or on a stand-alone basis. Metrowerks is an
independently operating subsidiary of Motorola, Inc. (NYSE:MOT).

Metrowerks develops and markets the CodeWarrior Development Tools
suite, which enables software developers to quickly and easily create
embedded products and applications. Metrowerks intends to provide
complete reference platforms targeting the networking and
communications market that will enable developers to quickly build and
deploy smart network-enabled devices.

"CodeWarrior and PowerPC are used by thousands of developers
worldwide", said Mike Gulett, president and CEO of ARC International.
"Bundling ARC's MQX RTOS and the networking stacks with the Metrowerks
products will expose these products to new customers and potentially
open some new sales channels into those markets."

"ARC's combination of a royalty-free sales model and inclusion of
source code allows Metrowerks to provide developers a flexible,
cost-effective solution," said John Smolucka, vice president of
marketing, Metrowerks. "In addition, because ARC builds its own
real-time TCP/IP Communications Stack, the protocol stacks are highly
integrated into the OS, providing extremely high performance."

The marketing partnership between ARC and Metrowerks underscores the
need for companies to collaborate in order to maximize customer
opportunities and to address the available market. It is also
consistent with ARC's pledge to make it easier for customers to get to
volume quicker, by dealing with fewer IP suppliers that can provide
them with more of a solution. Relationships like this demonstrates the
commitment of ARC International to provide its partners with the tools
necessary to meet their market objectives, and to effectively extend
the market reach of both companies.

About ARC International

ARC International is an industry-leading developer of embedded
user-customizable, high-performance 32-bit RISC/DSP processor cores,
with integrated development tools, peripherals, RTOS and software.
These integrated products and solutions are a result of the
acquisitions of MetaWare, VAutomation and Precise Software
Technologies. ARC's integrated intellectual property solutions assist
customers in rapidly developing next generation wireless, networking
and consumer electronics products, reduce the number of IP suppliers,
reduce time-to-market, reduce costs, and reduce their risk for
System-on-Chip product development. Products based on ARC's technology
include digital still cameras, set-top boxes, and network processors.

ARC International employs more than 200 people in research and
development, sales, and marketing offices across North America, Europe
and Israel. Full details of the company's locations and other
information are on the company's web site, www.ARC.com. ARC
International is listed on the London Stock Exchange as ARC
International plc (LSE:ARK).

About Metrowerks

Metroworks creates CodeWarrior software and hardware products and
services for developers with a particular focus on the following
industries: consumer electronics; transportation; wireless; and
networking and communications. The CodeWarrior product line includes
development tools and middleware that enable customers to decrease
their time to market. The company also offers services, training,
custom software development, and managed developer programs. Founded
in 1985, Metrowerks is today an independently operating subsidiary of
Motorola, Inc. (NYSE:MOT). Metrowerks corporate headquarters are in
Austin, Texas; Metrowerks European headquarters is Basel, Switzerland;
and Metrowerks Japan is headquartered in Tokyo. For more information,
please visit http:/www.metrowerks.com/

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

ARC, the ARC logo, ARChitect and ARCtangent are trademarks of ARC
International. All other brands or product names are the property of
their respective holders.

   Short Name: Arc Intl PLC
   Category Code: AGR
   Sequence Number: 00000507
   Time of Receipt (offset from UTC): 20020724T190524+0100