Re Contract

ARC International
                  

     TTPCom Delivering ARC-Based 2.75G Cellular Engine Designs To
                      Silicon Designers Globally

     ARC-Based(TM) CBEmacro Product Initial Result of Wide Ranging
                               Agreement

ARC International (LSE:ARK) and TTPCom (LSE:TTC), the world's leading
independent supplier of digital wireless technology, today announced that the
companies have partnered to deliver low-cost digital cellular engines to the
burgeoning global handset market. Under the terms of a wide-ranging agreement,
TTPCom has implemented ARC's configurable processor cores in the company's
latest cellular baseband engine (CBEmacro) that is available to silicon
designers globally. A demonstration of the ARC-Based(TM) CBEmacro product was
given to customers and prospects at Japan's Embedded Technology show in Yokohama
earlier this month. Other terms of the agreement include marketing and sales
activities.

ARC's configurable processor technology proved to be a significant asset to
TTPCom in the design of the CBEmacro product. ARC's unique CPU/DSP solution
allowed TTPCom's designers to use a single architecture for TTPCom's dual core
general purpose and DSP processing solution. TTPCom also obtained performance
improvements in terms of memory usage, clock speed and power consumption using
custom instructions created by the ARChitect(TM) processor configurator, a tool
that allows engineers to quickly and easily customize an ARC core.

"The ARC-Based CBEmacro product represents a significant addition to our product
line," said Dr. Tony Milbourn, managing director of TTPCom. "Mobile handsets are
increasingly differentiated by multimedia technologies and high-end application
capabilities, rather than the underlying cellular engine. ARC's configurable
processor technology enables us to easily provide the core cellular
functionality, while ensuring that the design meets the critical cost parameters
of cellular handset designers. ARC is strategic to our future product plans and
we look forward to growing our relationship in the cellular marketplace."

"Industry leaders are leveraging the benefits of ARC's configurable technology
to create their next generation products without the bloat that is typical of
other processor architectures," said Carl Schlachte, president and CEO of ARC
International. "TTPCom is a prime example of the increasing number of companies
that are leveraging our technology to create cost-effective and innovative
solutions to meet demanding market requirements. We are excited that TTPCom
chose us for the EGPRS CBEmacro product and look forward to deepening the
relationship as ARC extends its reach into the cellular arena."

About TTPCom's Cellular Baseband Engine Macro (CBEmacro)

TTPCom's CBEmacro is a family of complete cellular engine designs and associated
services to allow the timely and cost-effective implementation of EGPRS and 3GPP
baseband solutions by semiconductor companies, with an aggressive roadmap
meeting the future needs of the cellular handset market. The underlying
technology, CBEcore, is well proven and has appeared in numerous cellular
baseband chipsets by world leading semiconductor manufacturers since its
creation in 1993.

About TTPCom

Based in Cambridge, UK, TTPCom Ltd. is the principal operating subsidiary of TTP
Communications plc (LSE:TTC). The company develops intellectual property used in
the design and manufacture of wireless communication terminals. TTPCom licenses
its technology to leading semiconductor and terminal manufacturers worldwide,
including Analog Devices, Intel, LG, Renesas, Sharp, Siemens and Toshiba.

TTPCom has established a world leading position with its GPRS, EDGE and 3G
protocol software; offers rapid customization of handsets through its AJAR
applications framework; and for those manufacturers for whom a fast time to
market is critical, TTPCom also offers complete handset and module designs. Over
20 million devices using TTPCom technology were shipped during 2003. More
information can be found on TTPCom's website at: http://www.ttpcom.com.

About ARC International

ARC International is a 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 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, ARChitect 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.

CONTACT: ARC International
         Lee Garvin Flanagin, 408-437-3433
         [e-mail]
             or
         TTPCom, Ltd.
         Angela Manthorpe, [phone]
         [e-mail]
             or
         Tulchan Communications
         Tim Lynch, 44 020 7353 4200