Partnership Deal

Arc International PLC
25 July 2001



         Cypress Semiconductor Licenses ARC International Technology

                             in Partnership Deal

         ARC's User-customisable Processor and Tool Chain Are Chosen

                         For Next-generation Products



Elstree, England, 25 July 2001 - ARC International plc (LSE: ARK), the leading
developer of user-customisable, high-performance microprocessors and related
intellectual property solutions, has announced today that Cypress
Semiconductor (NYSE: CY) has licensed its ARCtangentTM-A4 processor in a
corporate multiple-licence agreement to be implemented over the next five
years. Cypress plans to use the ARCtangent processor in a number of new
product designs, the first user being its Interface Products Division, which
designs and manufactures the industry's leading USB products. Cypress will
also take delivery of the ARCtangent-A5 when it becomes available later this
year; ARC announced the new instruction set architecture for this processor
earlier this month.



David Wooten, Chief Technology Officer for Cypress's Interface Products
Division, said, 'We've identified a number of groups within the company which
could benefit from ARC's processor technology and the tool chain from its
MetaWare subsidiary. We evaluated the leading RISC processor companies and
found that ARC's configurable processor approach is ideal for the wide range
of applications that we are contemplating. ARC is also extremely responsive to
our product support needs.'



Bob Terwilliger, President and Chief Executive Officer of ARC, said, 'We are
pleased to announce Cypress as a licensee. The fact that we will be working
with them over the next few years demonstrates the level of commitment we are
getting from industry leaders to both our technology and the company. We have
over 50 customers developing systems on a chip for wireless, networking and
consumer electronics products.'



                                    -Ends-

For more information, please contact:



ARC International plc



Peter Aubusson

Investor Relations Manager

[phone]



Nitin Dahad

Director of Worldwide Communications

[phone]



About Cypress

Cypress Semiconductor (NYSE: CY) is ''Driving the Communications Revolution''
TM by providing high-performance integrated circuit solutions to fast-growing
markets, including data communications, telecommunications, computation,
consumer products, and industrial control. With a focus on emerging
communications applications, Cypress's product portfolios include high-speed
data communications ICs; networking-optimized and micropower static RAMs;
high-bandwidth multi-port and FIFO memories; high-density programmable logic
devices; timing technology solutions; and controllers for Universal Serial Bus
(USB). More information about Cypress is available at http://www.cypress.com.



About ARC International

ARC International plc is a leading developer of user-customisable,
high-performance microprocessor cores, including ARCtangentTM, and related
intellectual property technology enabling designers to reduce time to market
for their system-on-a-chip products. Over 50 customers use ARC's technology,
including: BrightCom, Conexant Systems, Cypress Semiconductor, Fujitsu
Microlectronics, IBM, Infineon Technologies, SanDisk, Texas Instruments and
VTech Communications. Products available based on ARC's technology include
digital still cameras, set-top boxes, and network processors.

MetaWare Inc., 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 a chip development. ARC's
third party partners include Cadence, Flextronics, Intrinsix, Synopsys, TSMC,
UMC, Wind River and Xilinx.

With headquarters in Elstree, England, ARC International plc and its group
companies employ over 300 people 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 website is
located 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 Cores, ARCtangent and ARCangel are trademarks of ARC International (UK)
                                     Ltd.

      'Driving the Communications Revolution' is a trademark of Cypress
                                Semiconductor.

    All other brands or product names are the property of their respective
                                   holders.