New Customer Win in High Growth Flash Market Highlights ARC's Growing Leadership

SAN JOSE, Calif., and ST. ALBANS, England, May 8, 2008 – ARC International (LSE: ARK), a leading provider of consumer intellectual property (IP) to OEM and semiconductor companies, today announced that a new customer has adopted ARC for use in the rapidly growing Flash market. This unnamed company chose ARC because of its recognized leadership in the Flash industry and to leverage the energy efficiency of ARC’s solutions. The new customer joins the growing list of announced ARC licensees servicing the Flash market, which includes the majority of the market leaders who supply ARC-Based™ products to the world’s major manufacturers.

“The availability of next-generation Flash storage has spawned a revolution in the way consumers access and experience multimedia content,” said Richard Wawrzyniak, senior market analyst at Semico Research Corporation. “This revolution is spreading to USB and Solid State Drives for desktop and laptop computers as well as to portable devices.” According to Semico Research, ARC has more than 30 percent market share in the Flash market that is projected to reach over $19 billion.

Bill Jackson, ARC’s vice president of marketing, commented, “ARC’s IP technology enables Flash manufacturers to create more sophisticated, feature-rich products without impact on size or power consumption, which is why ARC is becoming the solution of choice for better performing Flash products.”

About ARC International plc

ARC International is a world leading provider of consumer IP to OEM and semiconductor companies globally. ARC’s award-winning, vertically integrated audio and video solutions enable high quality multimedia content to be captured, shared, and played on a wide range of electronics devices. ARC’s 140+ customers collectively ship hundreds of millions of ARC-Based™ chips annually in products such as Mobile TVs, Portable Media Players, WiFi-/WiMAX-enabled computers, flash storage, digital cameras, network appliances, and medical and government systems.

ARC International maintains a worldwide presence with corporate and research and development offices in San Jose and Lake Tahoe, Calif., St. Albans, England, and St. Petersburg, Russia. For more information visit www.ARC.com. ARC International is listed on the London Stock Exchange as ARC International plc (LSE: ARK).