Re Agreement

Arc International PLC
30 January 2001

                                        
               Wind River and ARC International Speed Configurable
                                System-on-a-Chip
                      Development with VxWorks and Tornado

ARC International plc (LSE:ARK) and Wind River Systems,  Inc.  (Nasdaq: WIND)
today announced that Wind River's VxWorks real-time operating system (RTOS)
and Tornado integrated development environment are available for ARC
International's user-configurable microprocessor core.

ARC has also joined Wind River's value-added reseller (VAR) program,  allowing
ARC  to  bundle the run-time license for the market-share leading  VxWorks 
RTOS with the ARC processor. This agreement provides customers with a complete
one-stop  hardware  and  software  solution, reducing time-to-market 
obstacles  for embedded-system developers of networking and
consumer-electronics devices.

'We have been working closely with Wind River on the port of VxWorks and
Tornado for  the ARC processor',  said Jim Turley, senior vice president of
marketing  at ARC  International.  'We want to ensure that our customers
receive a quality RTOS and  development  tools from the industry's leader,
Wind River,  and  that  they continue  to  enjoy the freedom to configure
their specific features  in  record time.   The new age of customizable
processors has arrived, and our goal  is  to provide our customers with the
tools they need to get to market months ahead of schedule with a competitive
edge.'

'Together  ARC and Wind River can give developers using ARC's
user-configurable microprocessor  core  a complete and integrated development 
solution,  allowing them  to  compete  by focusing on their value-add and
reducing time  to  market,' said  Curt  Schacker,  vice  president  of 
corporate  marketing  and  corporate development at Wind River.  Wind River is
pleased to be working with ARC to help meet the needs of the rapidly growing
configurable system-on-a-chip market.'


For further information, please contact:

ARC International plc                                  020 8236 2800
Peter Aubusson


Notes to editors:

ARC International
ARC  International is a leading designer and developer of  customizable, 
high-performance microprocessor cores and related intellectual property
solutions for integrating  microprocessors with embedded systems applications.
ARC's 32-bit RISC processor is an application specific processor, or  ASP, 
which  can  be customized  for  use  in a wide variety of increasingly
sophisticated  products, including   telecommunications,  voice  and  data  
networking,   and   consumer electronics  products.  ARC's technology enables
designers  to  rapidly  develop prototype  designs for validation of design
concepts, to reduce the  cycle  time between design, development and physical
prototype to the launch of a product.

With  headquarters  in Elstree, England, ARC International  plc  and  its 
group companies  employ  over  200  people in research  and  development, 
sales,  and marketing  offices across North America and Europe.  MetaWare,
Precise  Software Technologies  and VAutomation are wholly owned subsidiaries
of ARC International plc,  providing  software development tools, hardware and
software  intellectual property and real time operating systems offering a
single source solution  when required for system on a chip development.  The
company's website is located  at
http//www.arccores.com or phone  [phone] (UK) or +1  408  360
2120 (USA).

Wind River
Wind  River,  www.windriver.com, is a worldwide leader in embedded software 
and services  for  creating connected smart devices. Wind River  provides 
software-development  tools, real-time operating systems, and advanced 
connectivity  for use   in   products  throughout  the  Internet, 
telecommunications   and   data communications,  digital  imaging,  digital 
consumer  electronics,  networking, medical,  computer peripherals,
automotive, industrial automation  and  control, and aerospace/defense
markets. Wind River is how smart things think. Founded  in 1983,  Wind  River
is headquartered in Alameda, California, with  operations  in sixteen
countries worldwide.