ARC International plc announces the resignation and departure from his position with immediate effect of Mike Gulett, Chief Executive Officer

ARC International plc (LSE: ARK), a world leader in user-customizable processors for embedded system design, today announces the resignation and departure from his position with immediate effect of Mike Gulett, Chief Executive Officer.

Peter van Cuylenburg, ARC's Chairman, has assumed the role of interim CEO. Mike Morrissey, an experienced operating executive, has joined ARC to serve as Chief Operating Officer until a new CEO is appointed. Mr. Morrissey was formerly CEO of ZSP Corporation. Prior to that, Mr. Morrissey was Group Vice President at KLA Instruments, after spending 26 years in various roles with AT&T and NCR, including Vice President/General Manager roles in the PC and semiconductor business divisions. Mike Gulett will work on a consulting basis for two months, assisting the Board with the transition.

'After two years of hard work here at ARC it is time to make a change,' said Mike Gulett. I am leaving with mixed feelings but I have confidence in the new Board of Directors and ARC's management team and employees.'

Commenting on these changes, Dr. van Cuylenburg said: 'I am delighted that Mike Morrissey is joining our team, as he will bring valuable turnaround experience to the task. On behalf of the Board, I'd like to thank Mike Gulett for his work during his two year period as Chief Executive Officer of ARC.'

The Board of Directors has begun a search to recruit a new Chief Executive Officer.

'ARC's Board of Directors believes that there are substantial opportunities to build value in the business' said Dr. van Cuylenburg. 'ARC is the world leader in 32-bit embedded processors that can be customized by users to produce exactly the processor they require, with supporting peripherals and easy-to-use design software. Our customers are continually looking for ways to make their products more competitive, and we are uniquely positioned to help them achieve optimal and differentiated solutions.

'ARC already has more than 170 design wins with over 90 customers, including a large number of the world's leading semiconductor and electronics companies.

Many of today's fastest-growing professional and consumer electronics products use ARC processors and peripherals, including: Wi-Fi mobile computers, USB storage devices, cable modems, PDAs, DVD players, MP3 players, digital still cameras, educational games, digital televisions, and many other successful products.

'From an operating perspective', Dr. van Cuylenburg continued, 'ARC has just introduced a very competitive new product in the ARC 600. We are very pleased with the initial response as customers evaluate the product. As stated in our third quarter results, the company has continued to reduce its operating expenses. We intend to introduce further operational improvements and reduce corporate overhead expenses in a continuing drive towards profitability and revenue growth.'

Preliminary results for the year ended 31 December 2003 will be announced on Wednesday, 4th February 2004.

Notes To Editors:

ARC International is the world's leading vendor of user-customizable 32-bit RISC/DSP processor for embedded systems. ARC's solutions deliver low cost, low power and high performance for next-generation networking, communications, industrial control, storage, and consumer electronics products to world- lass customers.

ARC introduced the industry's first user- customizable 32-bit RISC/DSP processor core as well as the industry's first USB Hi-Speed On- he-Go core. Today, ARC supplies comprehensive solutions that include a real-time operating system, development tools, processor cores, peripheral cores, and software IP that enable developers to optimize the cost, power, and performance of their applications.

ARC International employs approximately 180 people in research and development, sales and marketing offices across North America, Europe and Asia. Full details of the company's locations and other information are available on the company's website, http://www.arc.com

ARC International is listed on the London Stock Exchange as ARC International plc (LSE: ARK).