Trading Statement

Arc International PLC
13 September 2001


                  TRADING STATEMENT AND MANAGEMENT CHANGES


Elstree, UK - 13 September 2001: ARC International plc (LSE:ARK.L), a leading
designer and developer of customisable, high-performance microprocessors and
related intellectual property solutions, today provided an update on trading
and announced changes in directors' responsibilities.

Key Points

  * Difficult market conditions continuing in third quarter 2001
  * Market interest in ARC's technology remains high
  * Previously announced cost reduction programme fully implemented
  * Bob Terwilliger relinquishes role of CEO
  * John Stockton, previously non-executive Chairman, becomes interim CEO
  * Jan Tufvesson, a non-executive director, appointed non-executive
    Chairman


Trading Statement

The difficult market conditions affecting our customers' businesses that
resulted in a marked slowdown in concluding licence agreements during the
second quarter of 2001, have continued during the third quarter. Market
interest in ARC's technology remains high, as reflected in the quantity and
quality of our active customer prospects. However, turnover in the third
quarter is now expected to be no higher than £2 million.

The cost reduction programme to reduce staff numbers, announced on 1st August,
has been implemented and progress is being made on cutting occupancy costs.
Although visibility in our market continues to be limited, we remain confident
about the longer-term prospects for our innovative technology.

Results for the third quarter ending 30 September 2001 will be reported on 1
November 2001.


Changes in Directors' Responsibilities

The Board has agreed with Bob Terwilliger that, with immediate effect, he will
stand down as Chief Executive Officer and as a Director. The Board wishes to
thank Bob for his substantial contribution to the development of ARC over
recent years.

John Stockton, who was previously non-executive Chairman of the Company, has
assumed the role of interim Chief Executive Officer and the Company has
commenced a search for a new CEO. John has extensive experience in senior
operational management positions in a number of semiconductor companies.

Jan Tufvesson, who is currently a non-executive director, has been appointed
non-executive Chairman.

               -----------------------------------------------


For further information, please contact:

Simon Poulton
CFO
ARC International plc
020 8236 2800

Peter Aubusson
Investor Relations Manager,
ARC International plc
020 8236 2800

Sue Pemberton
Citigate Dewe Rogerson
020 7638 9571


ARC's management will be available on 020 7638 9571 on 13 September.

ARC will host a conference call for analysts and investors at 9.00 a.m. BST
today, 13 September. The dial in number for participants will be: +44 (0) 20
8240 8244; Password: ARC International.

A replay of the call will be available for five days on the following number:
[phone]; Access code 668972

A recording of the call will also be audio streamed on the Investor Relations
section of the website: www.arccores.com from approximately 2.00 p.m. on 13
September.



Notes to Editors:

John Stockton became a non-executive director of ARC in December 1999 and
Chairman of the Company in March 2000. John has extensive senior operational
management experience within the semiconductor industry. From 1992 to 1996, he
was Chairman, President and Chief Executive Officer of Tamarack Storage
Devices, Inc. Subsequently he was involved in the formation of Simages (now
TeraLogic) and was a cofounder and part-time Chief Technology Officer of
sVISION, Inc. He has also held the positions of Chief Executive Officer of
CRISC (now Stream Machine) and Chief Executive Officer of Synergy
Semiconductor Inc. He has provided consulting services to MCC, the Mayfield
Fund and VLSI Technology, Inc.

Jan Olof Ingemar Tufvesson became a non-executive director of ARC
International in December 1999. Since 1998, he has been a management
consultant and is also non-executive Chairman of Dialog Semiconductor plc.
Prior to that he worked for Ericsson for eighteen years.

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 56 licensees use ARC's technology
including: Austria Mikro Systeme, BrightCom, Conexant Systems, Cypress
Semiconductor, Fujitsu Microelectronics, IBM, Infineon Technologies, Qlogic,
RF Micro Devices, SanDisk, Texas Instruments and Vtech Communications. ARC's
target markets are telecommunications, voice and data networking, and consumer
electronics embedded systems. Products available based on ARC's technology
include digital still cameras, set-top boxes and network processors.

With headquarters in Elstree, England, ARC International plc and its group
companies employ about 230 people in research and development, sales, and
marketing offices across North America and Europe. 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 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 is a trademark of ARC International (UK) Limited.

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