ARC Announces New Licensing Agreements with Leading Semiconductor Companies in Asia

ARC's Configurable Subsystems and Processors Continue to be Adopted by Leading Semiconductor Companies in China, Taiwan, and Korea

ELSTREE, England, March 28, 2007 – ARC International (LSE: ARK), the world leader in configurable media subsystems and CPU/DSP processors, today announced new licensing agreements with leading Asia-based semiconductor companies. Each is a new ARC customer, and all have adopted ARC's patented configurable solutions to create system-on-chips (SoCs) for high-growth applications such as multimedia, VoIP phone, and flash memory devices. See companion news releases dated March 28, 2007 for more information about two of these new ARC customers.

These license wins underscore the growing number of semiconductor companies in Asia that are using ARC's configurable products to displace "fixed architecture" alternatives, and as companion solutions to internally developed CPUs and processors from firms such as ARM Holdings. These trends have boosted the number of license agreements for ARC from semiconductor companies throughout Asia in calendar year 2006, and led to a record 239 percent increase in revenue from customers in that region.

"We have been pleased with the strong adoption of ARC's configurable products by one of the world's largest and fastest growing communities of semiconductor companies," said Derek Meyer, senior vice president of sales and marketing at ARC International. "We welcome these new customers to ARC as they join close to 140 others who are using ARC's configurable subsystems and cores to create SoCs for high-growth markets."

AD Technology
AD Technology of Korea has selected the configurable ARC® 750D core with associated voice codecs to drive the company's new Power Line Communications (PLC) SoC. The PLC chip will provide Internet, phone and other communications services for a project initiated by the government of the Republic of Korea and the Korean Electricity & Power Research Institute (KEPR). See companion press release dated March 28, 2007 for more details.

Crystal Media
Crystal Media of Taiwan is a fabless semiconductor company devoted to the development of Internet phone SoC solutions for the emerging VoIP market. An affiliate of semiconductor foundry giant UMC and founded in 2004, Crystal Media has taken a license for the configurable ARC 750D core to develop next-generation consumer VoIP solutions. The ARC 750D core provides Crystal Media's SoC design team with the ability to increase the performance of their ARC-Based™ chip while reducing die size and lowering overall development cost.

Fullhan Microelectronics
Fullhan Microelectronics, ARC's first publicly announced customer in China, is a leading provider of advanced H.264 video codecs and chips for multimedia applications. Fullhan has taken a license for the configurable ARC 625D core to create SoCs for a range of next-generation consumer applications, including broadband IP set-top boxes, mobile TV solutions, HD DVD, Blu-ray DVD, digital TV, and digital security surveillance products.

Phison Electronics
Phison Electronics Corporation of Taiwan has adopted the configurable ARC 605 core for the creation of next generation Flash NAND Drives. Phison selected the ARC core after a thorough evaluation showed it offers a smaller gate count and lower power consumption compared to competitive offerings, and because of ARC's leadership position in the flash storage market for memory devices that incorporate a 32-bit microprocessor. See companion press release dated March 28, 2007 for more details.

About ARC International plc
ARC International is the world leader in configurable subsystems and CPU/DSP processors that are used by semiconductor companies worldwide to create system-on-chip (SoC) designs that provide a strategic competitive advantage. ARC's patented configurable products are smaller, consume less power, are less expensive to manufacture, and provide a higher degree of differentiation over what can be created using "fixed architecture" core alternatives.

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

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