Sand Video Integrates Multiple ARCtangent Processors Into Next-Generation Video Compression Codecs

Flexible ARCtangent 32-bit RISC Evolves with Syntax Standard

San Jose, Calif., August 11, 2003 –ARC International (LSE: ARK), a world leader in user-customizable processors, silicon peripheral IP, real-time operating system and development tools for embedded system design, announced today that SandVideo, a recognized expert in motion video semiconductor compression technology, has licensed the ARCtangentTM, a 32-bit user-configurable RISC/DSP core for inclusion in its Advantage264TM family of H.264 and MPEG 2 codecs because of the core’s flexibility and performance.

“The syntax standard for H.264 is evolving, and as leaders in this technology segment, we needed a processor that would enable us to rapidly adopt changes in the syntax standard,” said Peter Besen, president and CEO of Sand Video. “H.264 encoding is at least 5-10x more complex and decoding 2-4x more complex than with MPEG2. By integrating multiple instances of the ARCtangent to handle syntax parsing and control of some of the hardwired elements, our designers were able to concentrate on those design elements that will deliver that kind of performance.”

“Our customers are continuously reminding us of the importance of user configurability in the development of new designs,” said Mike Gulett, president and CEO of ARC International. “The market need is changing so rapidly that standards can’t keep up with demand for new products. Our customers select ARC’s technology because it adapts to their changing needs, not the other way around.”

The ARCtangent processor, a user-customizable RISC/DSP core for ASIC and system-on-chip (SoC) products, comes with a highly-optimized tool chain. The MetaWare® tool suite fully supports the capabilities of the ARCtangent processor including multiprocessor debugging and extensibility for processor customization. ARC is currently the only IP vendor to provide tightly-integrated microprocessor and peripheral IP, as well as the software development tools and RTOS. By providing all the elements, ARC reduces the number of IP vendors. That in turn reduces the development time and risk so customers’ products get to market more quickly.

About ARC
ARC International is a world leader in SoC and embedded software design and development minimizing risk for customers developing next-generation wireless, networking, industrial control, storage and consumer electronics products. ARC introduced the industry’s first user-customizable 32-bit RISC/DSP processor core, the industry's first USB Hi-Speed On-The-Go IP and today supplies turnkey embedded solutions that combine a real-time operating system, development tools and peripheral hardware and software that enable developers to better design optimization and performance. ARC provides a single source for the major SoC and embedded software building blocks reducing the number of suppliers, reducing cost, reducing risk and reducing time-to-market. ARC International employs approximately 200 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).

About Sand Video, Inc.
Sand Video is a fabless semiconductor manufacturer focused on developing and marketing superior next generation, standards-based semiconductors compression technology for a broad range of video applications. Sand Video is a privately-held, venture-backed company based in Andover, Mass. For more information on Sand Video, visit www.sandvideo.com.

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.