Disposal

ARC International plc
                  

                         ARC INTERNATIONAL PLC

              SALE OF USB BUSINESS TO TRANSDIMENSION INC

The Board of Directors of ARC International plc (LSE: ARK), a world leader in
user-customizable processors and development tools for System-on-Chip (SoC)
design, and real-time operating systems for embedded control, today announces
the sale of its Peripheral Connectivity assets to TransDimension Inc for
consideration of £3.6 million. These assets include the ARC USB and Ethernet IP
cores, CertiPHY programme and support tools. TransDimension is a leading
provider of USB connectivity solutions for embedded applications.

The asset sale is primarily the USB business that is located in Nashua, New
Hampshire. At the time of the announcement of ARC's preliminary results in
February 2004, the USB business was scheduled to be consolidated into the
Elstree, UK facility resulting in the closure of the Nashua site. As a result of
today's announcement, the USB business, as well as the related assets and
facility, will be sold with the majority of its employees transferring to
TransDimension. The total turnover related to this business in 2003 was £2.9
million with an estimated operating loss of £1.3 million. Additionally, the
estimated restructuring charge announced in February will be reduced by £0.9
million and is currently expected to be approximately £1.3 million. Proceeds
from the sale will be used to fund working capital requirements in the second
half of 2004.

This transaction represents significant progress towards the company's goal to
reduce its cost structure and drive toward profitability by focussing primarily
on processor development. ARC will continue to work with TransDimension as a
strategic partner and will resell their USB products when combined with its
processor-based solutions.

ARC International will provide further details on the transaction and the
overall business at the interim results announcement. Complete results for the
six months to June 30th will be issued on July 21st.

Carl Schlachte, Chief Executive of ARC International plc, said:

'We are very pleased to have taken this important step towards delivering on our
stated strategy and look forward to maintaining a close partnership with
TransDimension. The overall implementation of our strategic redirection is on
track and we look forward to reporting on our progress in greater detail at the
interim results in July."

Enquiries:

ARC International plc

Carl Schlachte              Chief Executive Officer, [phone]
Monica Johnson              Chief Financial Officer, [phone]

Tulchan Communications      [phone]

About ARC

ARC International is a world leader in low-power, high-performance 32-bit
RISC/DSP user-customizable processor cores, real-time operating systems and
development tools for embedded system design. ARC's configurable, extendible
cores assist customers in their rapid development of next generation wireless,
networking and consumer electronics systems, resulting in exceptionally
competitive System-on-Chip products.

ARC International maintains a worldwide presence with corporate offices in
Elstree, UK and San Jose, California, USA. The Company has research and
development offices located in England and the United States. For more
information please visit the ARC website at: www.ARC.com. ARC International is
listed on the London Stock Exchange as ARC International plc (LSE:ARK).

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. The Company disclaims any intention or
obligation to update any forward-looking statements as a result of developments
occurring after the date such statement was first made. In view of the many
applications in which its Licensees may use the ARC products, ARC cannot warrant
that those applications do not infringe the patents of others. ARC strongly
encourages its Licensees to become familiar with the policies governing the use
and licensing of intellectual property established by any organization whose
standards the Licensee wishes to follow, and to review the list most
standards-promulgating organizations publish, of entities that claim to have
patents relating to the relevant standards or underlying technology.

ARC, the ARC logo, ARCtangent, ARCangel, ARCompact, ARChitect, ARCform, CASSEIA,
High C, High C/C++, SeeCode, MetaDeveloper, MetaWare, Precise Solution,
Precise/BlazeNet, Precise/EDS, Precise/MFS, Precise/MQX, Precise/MQXsim,
Precise/RTCS, Precise/RTCSsim are trademarks of ARC International. All other
brands or product names are the property of their respective holders.