R.W. Baird Initiates Coverage of ARC International

ELSTREE, England, May 31, 2005 – ARC International (LSE: ARK), the world leader in configurable CPU/DSP processor cores and application subsystems, today announced that financial analyst Dan Ridsdale of Robert W. Baird Limited of London has initiated coverage of the company.

In a research note published May 16, Ridsdale noted that ARC International has achieved “an impressive turnaround” that is being driven, in part, by increasing market demand for configurable microprocessor technology. Furthermore, Ridsdale penned, “management believes the recent patent award has given the company far-reaching rights to configurable semiconductor design.”

Carl Schlachte, president and CEO of ARC International, stated, “We are pleased that distinguished institutions such as Baird continue to recognize ARC’s strong momentum and deepening penetration of embedded markets. More and more system OEMs and semiconductor companies are relying upon our patented configurable SoC technology to add more functionality and lower the cost of a wide range of high-volume consumer devices.”

About ARC International plc
ARC International is the world leader in low-power, high-performance 32-bit configurable CPU/DSP processor cores, subsystems, real-time operating systems and development tools for embedded system design. ARC's patented configurable and extendible cores assist customers in the development of next generation digital media, consumer and communications devices, resulting in lower cost, higher performance SoC products.

ARC International maintains a worldwide presence with corporate offices in San Jose, California, USA and Elstree, UK. 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).


ARC and the ARC logo are trademarks or registered trademarks of ARC International. All other brands or product names contained herein are the property of their respective owners. This press release may contain certain "forward-looking statements" that involve risks and uncertainties. For factors that could cause actual results to differ, visit the company’s website as well as the listing particulars filed with the United Kingdom Listing Authority and the Registrar of Companies in England and Wales.