Chipidea Microelectronics SA Licenses ARCtangent for Single-chip Bluetooth Application

San Jose, CA., February 24, 2003 – ARC International (LSE:ARK), a world leader in configurable System-on-Chip (SoC) platform technologies, announced today that CHIPIDEA Microelectronics SA, a broadline supplier of high performance analog and mixed-signal IP, has licensed the ARCtangent™-A4 microprocessor for inclusion into a complete Bluetooth™ solution. The new System-IP Platform, which will include RF Analog baseband, the ARCtangent-A4 microprocessor and embedded memory, will become part of Chipidea’s Virtual IP Builder application.

“Like ARC, CHIPIDEA is committed to providing the highest possible value to its customers,” said Miguel Sampaio, director of Chipidea Digital Technology Center. “We selected ARC’s technology because it takes up less space on the design, offers high design flexibility and performance, and consumes a little power. These features, which complement our extensive analog and mixed-signal IP portfolio, are necessary for a wide variety of products developed by our customers, specially for fast growing portable applications.” Bluetooth wireless technology revolutionizes the personal connectivity market by providing freedom from wired connections – enabling links between mobile computers, mobile phones, portable handheld devices, and connectivity to the Internet.

“CHIPIDEA shares our approach to the market – providing design teams with integrated SoC solutions,” said Andy Haines, ARC’s senior vice-president of marketing. “The two companies provide complementary IP for the same markets: wired and wireless networking, consumer electronics and communications. CHIPIDEA’s analog and mixed-signal offering complements our processors, peripherals and development tools. Our combined products reduce our customers’ development risk and time to market.

About CHIPIDEA
Founded in 1997, Chipidea Microelectronics S.A. is a broadline, one-stop-shop supplier of high performance Analog and Mixed-Signal IP that are silicon-proven on leading edge manufacturing processes.

From basic building blocks to complete systems, Chipidea's IP portfolio includes ADCs, DACs, PLLs and Synthesizers, Baseband Transmit and Receive Ports, RF front-ends, Analog and Digital Filters, Oversampling Modulators and Codec Analog Front-Ends, DC-DC Converters, Regulators, Digital Transceivers, Line Drivers and other Physical Interfaces. Chipidea's application drivers are in Communications, Multimedia and Consumer Electronics Applications.

Throughout its existence, Chipidea has experienced robust growth and continuous profitability making it one of the world leading, independent suppliers of analog and mixed-signal IP. Today, Chipidea is the working place for 130 people involved in IP research and development, CAD and technology support and test and characterization. They are located at the Company headquarters, in the metropolitan area of Lisboa, as well as in 3 other sites. One in Portugal, in the metropolitan area of Porto, one in Gdansk, Poland, and the third in Macau, China. Sales and marketing offices are located in the USA, Europe and Asia.

About ARC
ARC International is the first company to offer integrated solutions for SoC design, in an effort to minimize design risk for customers developing next generation wireless, networking and consumer electronics products. In 1998, ARC introduced the industry's first user-customizable 32-bit RISC/DSP processor core. In early 2000, ARC became the first company to integrate the development tools, peripherals, RTOS and software that enabled the designer to get better design optimization and performance. ARC's approach of providing a single source for the major SoC building blocks reduces the number of IP suppliers, reduces cost, reduces the risk of system-on-chip design and reduces time-to-market.

ARC’s products include the ARCtangent™ user-customizable 32-bit RISC/DSP processor, the first USB 2.0 OTG high speed controller on the market and an 802.11 MAC and baseband multi-standard IP core. ARC provides software development and system software for ARM, PowerPC and MIPs processors as well as for its own ARCtangent processor family.

ARC International employs 198 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 on the company's web site, 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.

ARC, the ARC logo and ARCtangent are trademarks of ARC International. All other brands or product names are the property of their respective holders.