Re Agreement

Arc International PLC
17 April 2001



            ARC chosen by CellGuide for wireless location chipsets



Elstree, England, 17 April 2001 - ARC International plc (LSE:ARK), a leading
designer and developer of customisable, high-performance microprocessors,
announced today that CellGuide, an Israel-based fabless communications
semiconductor company, is to use ARC's user-configurable 32-bit processor core
in its devices for the high-growth wireless location market.

'The ability to provide accurate and reliable location information of wireless
devices such as cellular phones, pagers and personal digital assistants (PDAs)
is likely to enable new and compelling commercial services based on
location-sensitive information such as intelligent internet applications,
geo-based billing and automobile location-related services,' said Joseph Nir,
CEO of CellGuide. According to a study carried out by the Strategis Groupe
(April 2000), wireless location services will generate more than $81.9 billion
for European operators alone by the year 2005.

CellGuide selected ARC's processor because of the ability to configure the
processor to suit CellGuide's applications, and the ability to optimise the
processor for small die size and low power consumption. CellGuide has
developed a unique technology featuring GPS receiving capability in a wireless
handset. 'ARC's processor plays a significant part in the technology that
relies on location-enabling chips, allowing us to develop a low cost, low
power design architecture,' adds Joseph Nir.

Bob Terwilliger, CEO of ARC comments, 'CellGuide's use of our processor core
indicates ARC's technology is becoming an attractive choice for products that
need to be battery-powered and low cost. A number of digital cameras and
cordless phones containing ARC microprocessors are now being shipped by our
licensees, demonstrating that designers are incorporating configurable
processors in such products.'

For more information, contact:

ARC International plc:



Media:

Nitin Dahad, Director of Worldwide Communication

[phone]



Investors

Peter Aubusson, Investor Relations Manager

[phone]



About ARC International

ARC International plc, is a leading designer and developer of customisable,
high-performance microprocessor cores and related intellectual property
technology for telecommunications, voice and data networking, and consumer
electronics embedded systems. ARC's TangentTM processor is an application
specific processor (ASP) which can be customised for use in a wide variety of
increasingly sophisticated products. The innovative configurability of the
processor enables ARC to license its technology directly to original equipment
manufacturers (OEMs) as well as to semi-conductor merchant vendors. ARC's
technology enables designers to reduce time to market and to work with the
semiconductor manufacturers and technologies of their choice.

ARC's licensees include: Austria Mikro Systeme, BrightCom, Chameleon Systems,
Conexant, Fujitsu Microelectronics, Hyperchip, IBM, Infineon Technologies,
SanDisk, Texas Instruments, Vtech Communications and Xemics.

With headquarters in Elstree, England, ARC International plc and its group
companies employ 280 people in research and development, sales, and marketing
offices across North America and Europe. MetaWare Inc., Precise Software
Technologies Inc. and VAutomation Inc. are wholly owned subsidiaries of ARC
International, providing software development tools, hardware and software
intellectual property and real time operating systems offering multiple
integrated products for system on a chip development.

ARC International plc is listed on the London Stock Exchange (LSE:ARK). The
company's website is located at www.arccores.com



About CellGuide

CellGuide has developed a unique architecture that combines several location
technologies into a single solution.

CellGuide's mission is to become the world leader in developing, manufacturing
and marketing highly accurate, low-cost, low-power, wireless location chipsets
/IP and software.

CellGuide's ability to accurately and reliably locate Mobile devices (cellular
phones, pagers, PDAs, and others) will enable new and compelling commercial
services based on location-sensitive information such as intelligent Internet
applications, geo-based billing, automobile location-related services and
others.

CellGuide currently has more than 20 patents pending, covering the various
aspects of its unique PinPointerTM technology family of products.

www.cell-guide.com



For more information about CellGuide, contact



Mr. Joseph Nir

CEO

CellGuide Ltd

[phone]

[e-mail]



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.



ARC International (UK) Ltd. and ARC Cores Inc., both of which are wholly owned
  subsidiaries of ARC International plc, trade under the name of ARC Cores.

         ARC Cores is a trademark of ARC International (UK) Limited.

    All other brands or product names are the property of their respective
                                   holders.