Pricing and Allocation

Arc International PLC
21 September 2000


               NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN
           OR INTO, THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN


                            ARC INTERNATIONAL PLC

                           PRICING AND ALLOCATION

Following  completion  of the global bookbuilding exercise  on  20  September
2000, ARC International plc today announces:

Pricing and valuation

*   Offer price has been set at 210p per Ordinary Share.

*   Net  proceeds  to  the Company from the Global Offer  of  approximately
    £103.3 million.

*   Market capitalisation of the Company is approximately £545.9 million at
    the offer price.

*   Global  Offer of 75,000,000 Ordinary Shares, representing  29%  of  the
    total  enlarged ordinary share capital of ARC International plc,  of 
    which 54,000,000 new Ordinary Shares are to be issued by the Company and
    21,000,000 existing Ordinary Shares are to be sold by selling
    shareholders. In addition the Company has granted Goldman Sachs
    International an over-allotment option of an additional 11,250,000 new
    Ordinary Shares.

*   The Company's employees will subscribe for 435,791 Ordinary Shares at an
    offer price of 200p per share pursuant to the Employee Offer.


On  25  August  2000,  ARC International announced its intention  to  seek  a
listing on the London Stock Exchange.

ARC  International is a leading designer and developer of customisable, high-
performance microprocessor cores and related intellectual property  solutions
for  integrating  microprocessors  with embedded  systems  applications.  ARC
International  has designed Tangent, an application-specific processor  which
can  be  customised  for use in a wide variety of increasingly  sophisticated
products,  including  telecommunications,  voice  and  data  networking,  and
consumer electronic products.

Goldman  Sachs  International  is sole global  co-ordinator,  bookrunner  and
sponsor. Goldman Sachs International and UBS Warburg are joint lead managers.

Co-managers for the Global Offer are Robertson Stephens International, Chase
H&Q, Dain Rauscher Wessels and Nomura International.

NewMedia Investors Ltd acted as adviser to management for the Global Offer.

Commenting, Bob Terwilliger, Chief Executive:
'We are encouraged by the very heavy level of subscription in our initial
public offering which will enable the Company to fund its rapid pace of
growth.'


Expected timetable for dealings

*   Commencement of conditional dealings         8.00 am, 21 September 2000
*   Ordinary Shares credited to CREST accounts            28 September 2000
*   Admission and expected commencement of 
    unconditional dealings                       8.00 am, 28 September 2000


Enquiries:

Citigate Dewe Rogerson             020 7638 9571
Andy Cornelius
Sue Pemberton

This  announcement has been issued by and is the sole responsibility  of  ARC
International  plc  ('ARC International') and  has been approved  by  Goldman
Sachs  International solely for the purposes of Section 57 of  the  Financial
Services  Act 1986 of the United Kingdom. Goldman Sachs International,  which
is  regulated by The Securities and Futures Authority Limited, is acting  for
ARC   International  in  connection  with  the  offer  referred  to  in  this
announcement and no-one else and will not be responsible to anyone other than
ARC  International  for providing the protections afforded  to  customers  of
Goldman  Sachs International nor for providing advice in connection with  the
offer.

This  announcement  does  not constitute or form part  of  an  offer  or  any
solicitation of an offer for shares in ARC International. Any such  offer  or
solicitation will be made in listing particulars published in connection with
the proposed offer and any acquisition of shares should be made solely on the
basis of information contained in those listing particulars.

The  shares referred to herein have not been and will not be registered under
the  U.S. Securities Act of 1933, as amended (the 'Securities Act')  and  may
not  be offered or sold in the United States or to or for the benefit of U.S.
persons unless they are registered under the Securities Act or pursuant to an
exemption  from  such registration. No public offering of  ARC  International
shares shall be made in the United States.

Stabilisation/FSA
Notes to Editors

ARC  International plc ('ARC International' or the 'Company')  is  a  leading
designer and developer of customisable, high-performance microprocessor cores
and  related  intellectual property solutions for integrating microprocessors
with  embedded  systems applications. The Company has  designed  Tangent,  an
application-specific processor which can be customised  for  use  in  a  wide
variety of increasingly sophisticated products, including telecommunications,
voice and data networking, and consumer electronics products.

Using  the Company's ARChitect software, customers are able to rapidly design
and  configure  the  Tangent processor. Customers are also  able  to  develop
embedded  systems applications for the Tangent processor using the  Company's
SeeCode  software  tool  chain. In addition, the  Tangent  processor  can  be
repeatedly  tested and verified by the customer at each stage of development,
including  pre-  and  post-fabrication, to ensure that it  is  optimised  and
properly  configured  to  satisfy each customer's requirements.  The  Tangent
processor can be manufactured with any semiconductor silicon process, thereby
enabling customers to select the foundry of their choice.

The  Company licenses its Tangent processor and related intellectual property
solutions  to  system  original  equipment  manufacturers  and  semiconductor
vendors, including fab or fabless semiconductor manufacturers (companies with
or  without  the  ability  to  manufacture  semiconductors).   The  Company's
licensees  include, among others, Austrian Mikro System, BrightCom, Chameleon
Systems,    Fujitsu   Microelectronics,   Hyperchip,   MOSAID   Technologies,
PixelFusion,  SanDisk,  Sierra Imaging, Stream  Machine,  Texas  Instruments,
TopLayer Networks, Vitesse and Xemics.

The  Company's  principal  offices  are located in  Elstree,  England.  These
principal offices also include research and development and sales facilities.
The Company has three additional research and development offices located  in
Canada  and the United States. The Company also has sales offices across  the
United  States and in Canada, France, Germany, Israel and Sweden, as well  as
direct sales representation across the United States and in Japan.