In this paper we present the design of a novel embedded processor architecture (which we call a µ-core) that makes use of a reconfigurable ALU. This core serves as the basis of custom 2-dimensional array architectures that can be used to accelerate algorithms such as cryptography and image processing. An efficient translation and mapping of instructions from the multi-core grid to the individual processor cores is proposed and illustrated with an implementation of the AES encryption algorithm on custom-sized grids. A simulation model was developed using Simulink and the performance analysis suggests a positive trend towards the development and utilization of such hardware.