Re Agreement

Arc International PLC
2 May 2001



NeuriCam chooses ARC microprocessor for automotive and fingerprint recognition
                                 applications



ARC International plc (LSE:ARK), a leading designer and developer of
customisable, high-performance microprocessors, announced today that NeuriCam
S.p.A, a fabless semiconductor company, has licensed ARC's processor
technology for use in its designs in automotive and fingerprint recognition
technology.

NeuriCam develops diversified and innovative technologies for image sensing,
machine vision and fast data processing. NeuriCam's capabilities range from
silicon design to system architectures and software development, enabling the
company to develop both standard products for digital cameras and digital
parallel processors, as well as customised vision systems and design services.
The first design is being manufactured in TSMC's 0.35 micron process through
Austria Mikro Systeme International.



Alvise Sartori, general manager of NeuriCam, said; 'We have already completed
one design using ARC's microprocessor for an automotive application. We are
now working on a fingerprint recognition chip for another customer. One of the
main benefits of ARC's processor is that it is silicon portable - which means
we can take the design to any semiconductor foundry.'



Jim Turley, senior vice-president of technology strategy at ARC commented;
'ARC's user-configurable 32-bit processor provides our customers with a key
commercial benefit, in that they can point and click to configure a custom
microprocessor and then take it to the semiconductor foundry of their choice.
This is important when customers need control of their manufacturing, rather
than being told by their silicon vendor which one they must use.'

                                     Ends

For further information, please contact:



ARC International plc



Media:

Nitin Dahad

Director of Worldwide Communications

[phone]



Investors:

Peter Aubusson

Investor Relations Manager

[phone]



About ARC International

ARC International plc, is a leading designer and developer of customisable,
high-performance microprocessor cores and related intellectual property
technology for telecommunications, voice and data networking, and consumer
electronics embedded systems. ARC's TangentTM processor is an application
specific processor (ASP) which can be customised for use in a wide variety of
increasingly sophisticated products. The innovative configurability of the
processor enables ARC to license its technology directly to original equipment
manufacturers (OEMs) as well as to semi-conductor merchant vendors. ARC's
technology enables designers to reduce time to market and to work with the
semiconductor manufacturers and technologies of their choice.



ARC's licensees include: Austria Mikro Systeme, BrightCom, Chameleon Systems,
Conexant, Fujitsu Microelectronics, Hyperchip, IBM, Infineon Technologies,
SanDisk, Texas Instruments, Vtech Communications and Xemics.

With headquarters in Elstree, England, ARC International plc and its group
companies employ 302 people in research and development, sales, and marketing
offices across North America and Europe. MetaWare Inc., Precise
SoftwareTechnologies 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 offering
multiple integrated products for system on a chip development.

ARC International plc is listed on the London Stock Exchange (LSE:ARK). The
company's website is located at www.arccores.com



About NeuriCam

NeuriCam S.p.A. is an innovation-oriented company operating in the design,
manufacture and marketing of integrated circuits and systems for the
industrial electronic market. Founded in 1998 by a group of researchers and
industrial partners, NeuriCam is a 'fabless' company in which chip and system
manufacturing are delegated to external facilities. The focus on design and
testing allows NeuriCam to use state-of-the-art tools and equipment to produce
and market highly sophisticated chips and systems while maintaining low
production costs. The company's web site is located at www.neuricam.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 is a trademark of ARC International (UK) Ltd. All other
brands or product names are the property of their respective holders.