ARC International plc Completes Integration of Its

ARC International plc Completes Integration of Its Subsidiary Companies 

    LONDON-(BUSINESS WIRE)-June 17, 2002-

ARC International plc Completes Integration of Its Subsidiary Companies

ARC International plc, (LSE:ARK), a leader in semiconductor and
software technology licensing, today announces that it has completed
the first steps of its recovery plan by integrating its three
subsidiary companies into one single unified business. This
restructuring will allow the company to market all products under the
name of ARC International.

The three subsidiary companies, acquired by ARC prior to
flotation; MetaWare, a software toolset maker; VAutomation, a provider
of communication peripherals and Precise Software Technologies, a
provider of application-software platforms, all now operate under the
ARC International brand.

At the preliminary results in February 2002, Mike Gulett, the
recently appointed Chief Executive, completed a review of the business
and announced his strategy to generate renewed momentum and exploit
ARC's innovative technology to drive top line growth and reach
profitability.

He committed to measures which would give the Company clearer
strategic direction and increased focus. The first task, to streamline
the operation into a single unified structure to market all products
under the name of ARC International has been successfully completed
and has facilitated significant improvements in ARC's product
offering. This is intended to improve revenue growth and reduce
overheads.

For customers, such as Fujitsu, Infineon Technologies and Sun
Microsystems, ARC is now a one-stop shop for embedded RISC/DSP
processors, RTOS, software, peripherals and development tools. ARC has
a unique product portfolio and can offer integrated products that are
not available from any other company.

Mike Gulett, CEO of ARC International plc commented:

"This marks an important step forward for ARC in the recovery
process. We are very pleased to have achieved the integration of our
subsidiaries so rapidly. Creating a unified business will assure
customers that all of our products are comprehensively tested and
guaranteed to work with each other.

"We continue to remain focused on achieving the strategic and
operational changes announced in February 2002 and will give a further
update on our progress at the interim results on the 25th July 2002."

                              

For more information, contact:
ARC International plc
Mike Gulett,               President and CEO                           001 408 437 3404
David Whitaker,            Director of Corporate Communications        001 408 437 3429
Natalie Godfrey,           Senior Communications Executive             0208 236 2838
Julie Foster,              Tulchan Communications                      020 7353 4200
*T


About ARC International plc

ARC International is a leading developer of embedded
user-customizable, high-performance 32-bit RISC/DSP processor cores,
with integrated development tools, peripherals, RTOS and software.
These integrated products and solutions are a result of the
acquisitions of MetaWare(R), Vautomation(TM) and Precise Software
Technologies(TM). ARC's integrated intellectual property solutions
assist customers in rapidly developing next generation wireless,
networking and consumer electronics products, reducing time to market,
reducing their cost, reducing the number of IP suppliers and reducing
their risk for system-on-chip products. Products based on ARC's
technology include digital still cameras, set-top boxes, and network
processors.

ARC International employs more than 200 people in research and
development, sales, and marketing offices across North America, Europe
and Israel. Full details of the company's locations and other
information are on the company's web site, www.ARC.com. ARC
International is listed on the London Stock Exchange as ARC
International plc (LSE:ARK).

About ARC's subsidiaries

ARC International's MetaWare products include debuggers and
compliers, such as the High C/C++/EC++TM Embedded Development Tool
Suite, SeeCode(TM) Debuggers and toolsets for ARC, ARM(R),
StrongARM(R), MIPS(R), PowerPC(R), picoJAVA(R) and XScale(R) cores.
The Precise products now under the ARC International brand include the
Precise/MQX(TM) RTOS and Precise/RTCS (TM) networking stack with
optional IPSec, NAT and other protocols and optional embedded I/O
components that are required for developing various types of
resource-constraint devices. The company's software can be found
operating in hundreds of smart devices in the marketplace - digital
telephone sets, PBXs, xDSL and cable modems, set-top boxes, personal
digital assistants (PDAs), and process control applications.

The VAutomation side of ARC International features USB High Speed
OTG (On-The-Go) and 1.1, Ethernet MAC and microprocessor cores such as
Turbo 186(TM), V8, V8086, V186, VZ80, and V6052. In addition to
development tools, VAutomation also produces the FPGA-based
Intellicore Prototyping System, V8-uRISC(TM) Assembler/Debugger and
Software Simulator, and the Paradigm FS2 Suite.

   Short Name: Arc Intl PLC
   Category Code: MSC
   Sequence Number: 00000307
   Time of Receipt (offset from UTC): 20020614T170853+0100