ARC Signs Licensing Agreement for Configurable Solutions For Next-Generation Computing Products

ST. ALBANS, England, September 11, 2007 – ARC International (LSE: ARK), the world leader in configurable multimedia subsystems and CPU/DSP cores, today announced it has signed a new multi-year, royalty bearing licensing agreement with Intel Corporation. The agreement covers several ARC® products and was completed in the second half of 2007.

Key benefits ARC's configurable solutions bring to Intel's system-on-chip (SoC) developers include the ability to reduce power consumption and increase a chipset's performance by adding custom instruction extensions. Additionally, ARC provides comprehensive support and training to Intel development centers in North America.

Jim McGregor, In-Stat's principal analyst and research director for enabling technologies, said, "Intel is renowned for driving the direction of technology through the development of leading-edge semiconductors and platform solutions. By combining ARC processor-based wireless broadband solutions with low-power X86 processors, Intel is underscoring its commitment to achieving flexible and power-efficient solutions through heterogeneous multi-core platforms."

McGregor added, "Intel has become a leader in wireless broadband communications through its leadership in Wi-Fi and WiMAX technology for mobile applications. In-Stat predicts that the rapid adoption of this technology could lead to close to 480 million mobile devices shipping in personal and professional applications by 2010, including mobile PCs, mobile Internet devices (MIDs), ultra mobile PCs (UMPCs), portable media players (PMPs), digital handsets, and other consumer electronic devices."

Carl Schlachte, president and CEO of ARC International, said, "This is a landmark announcement for ARC. We are honored by Intel's adoption of the company's configurable products."

About ARC's Patented Configurable Technology

ARC's patented configurable processor technology enables SoC designers to create silicon that is optimized to the end application. Designers have the freedom to retain necessary functionality while removing unneeded features in a configurable ARC subsystem or processor. The benefit is an SoC with an optimal balance of speed, area and power for a specific application, resulting in a lower power, smaller chip that is less expensive to manufacture. Adding custom instructions to ARC's subsystems and cores, designers can achieve major gains in application efficiency by defining custom extensions that accelerate critical code.

About ARC International plc

ARC International is the world leader in configurable media subsystems and CPU/DSP processors. Used by over 140 companies worldwide, ARC's configurable solutions enable the creation of highly differentiated system-on-chips (SoCs) that ship in hundreds of millions of devices annually. ARC's patented subsystems and cores are smaller, consume less power, and are less expensive to manufacture than competing products.

ARC International maintains a worldwide presence with corporate and research and development offices in California and St. Albans, UK. For more information visit www.ARC.com. ARC International is listed on the London Stock Exchange as ARC International plc (LSE: ARK).