New Licencee

Arc International PLC
1 November 2001

             Sun Microsystems licenses ARC's processor technology

                     for a new range of high-end servers

Elstree, UK, 1st November 2001: ARC International plc (LSE: ARK), a leading
developer of user-customisable, 32-bit processor cores, development tools,
peripherals and other intellectual property (IP), has announced that Sun
Microsystems, Inc. (Nasdaq: SUNW) will be using ARC's processor technology in
high-performance integrated circuits that will be incorporated into a new
range of high-end servers, as part of a corporate licensing agreement signed
in Q3 2001.

Sun's high-end server engineering group required a flexible open architecture
to address critical performance issues, while supporting evolving
specification and input/output subsystem requirements. ARC's processor
technology met that need.

John Brennan, vice president, hardware engineering, for the enterprise systems
products group of Sun said, 'We carried out an extensive evaluation of the
embedded processors currently available, and their features. ARC has an
established track record, multi-processor debug and real time trace support,
and an established and proven processor tool chain.'

ARC's user-customisable processor technology is ideally suited to networking
and interface applications, including those requiring multiple processor
implementations. Over thirty customers have developed, or are developing,
networking devices; ARC's remaining licensees are developing, or have already
introduced, consumer products and wireless products. In the networking space,
the main benefits of ARCtangentTM are the ease with which customers can
implement multiple processor architectures that improve performance, or obtain
greater efficiencies using custom instructions.

John Stockton, interim Chief Executive Officer of ARC, said, 'ARC is
continuing to win approval from industry leaders, as this new licence from Sun
Microsystems demonstrates. An increasing number of top tier companies are
taking out corporate or company-wide licensing agreements for many reasons.
They value the competitive advantage of the technology, its scalability for
future changes or requirements, and the ease with which it is possible to
differentiate the end-product solution.'

Stockton adds, 'ARC's track record with its platform IP (intellectual
property) approach is important. In an era where standards are constantly
evolving, original equipment manufacturers need to be equipped with technology
that allows them to meet those new requirements swiftly. System-on-a-chip
(SoC) developers need more than just IP - they need the tools (eg.
multi-processor debug), software and relevant peripheral IP to accelerate
designs. This is what makes ARCtangent so attractive to SoC designers today.'

                                     Ends



For more information contact:



ARC International plc

Peter Aubusson

Investor Relations Manager

[phone]



Nitin Dahad

Director of Worldwide Communications

[phone]



About ARC International

ARC International plc is a leading developer of user-customisable,
high-performance 32-bit processor cores (including ARCtangentTM), development
tools, peripherals and other intellectual property (IP), enabling reduced time
to market for system-on-chip products. ARC's 58 customers include Conexant
Systems, Cypress Semiconductor, Fujitsu Microelectronics, IBM, Infineon
Technologies, QLogic, SanDisk and Sun Microsystems. Products based on ARC's
technology include digital still cameras, set-top boxes, and network
processors. MetaWare Incorporated, Precise Software Technologies Inc., and
VAutomation Inc. are wholly owned subsidiaries of ARC International, providing
software development tools, hardware and software intellectual property and
real-time operating systems for an integrated approach to system-on-chip
development. ARC's third-party partners include Cadence, Flextronics,
Intrinsix, Synopsys, TSMC, UMC, Wind River, and Xilinx.

ARC International plc employs 230 people at its headquarters in Elstree,
England, and in research and development, sales, and marketing offices across
North America, Europe, and Israel. ARC International plc is listed on the
London Stock Exchange (LSE:ARK). The company's web site is at
www.arccores.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.

  ARC International (UK) Ltd. and ARC Cores, Inc., both of which are wholly
   owned subsidiaries of ARC International plc, trade under the name of ARC
Cores. ARC, the ARC logo, ARCtangent, ARCangel, ARCompact, ARChitect, ARCform,
BlueForm, and CASSEIA are trademarks of ARC International (UK) Ltd. All other
    brands or product names are the property of their respective holders.