Re Contract

Re Contract 

    LONDON--(BUSINESS WIRE)--April 14, 2003--

LSI Logic Licenses ARC's USB HS-OTG ARC's USB HS Technology
Gaining Increased Acceptance Among Tier 1 Companies

              
SAN JOSE, CA., April 14, 2003 - ARC International (LSE: ARK), a world
leader in user customizable processors, software and embedded cores
for communications and consumer products, announced today that LSI
Logic Corporation, a leading designer and manufacturer of
communications, consumer and storage semiconductors, has licensed its
USB High-Speed On-the-Go (OTG) and device technology. LSI Logic will
integrate this technology into its CoreWare(R) library of intellectual
property, thereby reducing the risk of adding USB HS-OTG functionality
to new products.

LSI Logic's CoreWare design methodology includes a library of
high-level, industry-standard IP building blocks, which are connected
together electronically to form an entire system on a single chip. LSI
Logic customers can take advantage of CoreWare to increase
performance, lower system cost and accelerate time-to-market.


"LSI Logic is dedicated to providing our customers with a
broad portfolio of IP, helping them bring products to market more
quickly," said Massimo Verita, vice president of Consumer Custom
Solutions for LSI Logic. "By adding ARC's USB platform to our CoreWare
library, our customers will be able to rapidly and easily integrate
OTG functionality into their next generation products achieving
Right-First-Time, On Time(TM) results."

"Customers value LSI Logic for its ability to provide a
complete design solution, a one-stop shop that can integrate process
technologies, intellectual property from its CoreWare library, design
methodology, and embedded memories,"said Mike Gulett, president & CEO
of ARC International. "As the leading provider of USB HS OTG
technology for embedded designs, we are pleased to see a company like
LSI Logic recognize its worth and make it available to those CoreWare
customers prepared to push the technological envelope."

ARC's USB HS-OTG is the world's first integrated and
optimized USB for embedded systems development. ARC provided all the
building blocks necessary for integration USB into an SoC or an ASSP.
This includes USB HS 2.0 high-speed, full-speed and low-speed
Host/Device dual role OTG controller and device-only controllers as
well as the complete software stack. Providing customers with one-stop
for all their development needs, reduces the risk as well as the time
to product production.


Notes to editors

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-customisable 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(TM) 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
MIP's 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, 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.


For more information, contact:

US:
Donna Wilson
Manager, Public Relations
ARC International
408-437-3482
email: [e-mail]

*T

   Short Name: Arc Intl PLC
   Category Code: CNT
   Sequence Number: 00003845
   Time of Receipt (offset from UTC): 20030411T172827+0100