Re Contract

ARC International Plc
                  

ARC Provides Infineon Technologies With New ARC(TM) 700 Configurable Core for 
                  Use in Wireline Access Applications

ARC(TM) 700 Processor Chosen by Infineon for Best-in-Class Performance, DSP
              Technology and Integrated Development Tools

ARC International (LSE:ARK), the world leader in configurable CPU/DSP processor
cores and application subsystems, today announced that Infineon Technologies, a
world leading broadband access IC vendor, has taken a license for the ARC(TM)
700 configurable processor core with ARC XY Advanced DSP technology for use in
its next-generation wireline access products. An ARC licensee since 2001,
Infineon will use the high-performance ARC 700 core to simultaneously perform
the functions of host and applications processing in a single processor, thereby
reducing the system's overall design complexity and silicon cost.

At up to 405 MHz in a 0.13 micron process, the configured versions of the ARC
700 configurable core family consume as little as 0.72mm(2) of silicon die area.
The processors' range of configurable options allows customers to select only
the features they need and extend the core with custom instructions to optimize
the design to the end application. The ARC 700 core family features a
high-performance architecture that offers a 16- and 32-bit instruction set, a
large number of pipeline stages and optimized development tools that speed
ARC-Based(TM) designs' time-to-market parameters.

"For years, ARC's configurable processor technology has been one of the key
enabling technologies in our broadband access product line," said Ulrich
Huewels, vice president of system engineering, wireline access business unit at
Infineon Technologies. "ARC's open architecture can be easily combined with our
application-specific IP, which enhances our competitive differentiation in the
wireline access market."

"The ARC 700 processor family is enabling an increasing number of industry
leaders to leverage the benefits of configurable technology in applications that
demand high computational performance and low cost," said Derek Meyer, vice
president of marketing at ARC International. "These are some of the reasons why
long-time customers such as Infineon are extending the use of our products for
use in high-volume market applications."

ARC(TM) 700 Processor Family

The ARC 700 family of configurable cores combines a powerful 32-bit CPU and a
full-featured DSP engine in a unified architecture. ARC 700 cores have the
computing power to meet the needs of the most demanding SoC tasks, such as
graphics, media codecs and packet processing. Cores within the ARC 700 family
also are ideal for high-end embedded OSs, such as Linux. For additional
information, visit: www.ARC.com/700.

ARC XY Advanced DSP Technology

ARC's XY Advanced DSP technology adds the power of a true DSP engine to ARC CPU
cores, enabling conventional and signal processing computation within a single
unified architecture. ARC XY Advanced DSP technology may be applied to most of
the cores within the ARC 600 and ARC 700 processor families.

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 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.

    CONTACT: ARC International
             Lee Garvin Flanagin, 408-437-3433
             [e-mail]

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