ARC International Interim Management Statement

Trading In Line with Market Expectations

SAN JOSE, Calif., and ST. ALBANS, England -- November 10, 2008 - ARC International plc (LSE: ARK), a leading provider of consumer IP to OEM and semiconductor companies globally, today issued the following Interim Management Statement for the period from July 1, 2008 to the date of this announcement.

Overview

ARC's strategy of delivering vertically integrated multimedia solutions meshes well with ongoing and fundamental changes in the way consumer electronics devices are designed. The recently announced company restructuring to increase operational efficiencies and lower costs was early recognition of the challenging macro economic environment, which ARC expects to continue through 2009. As a result, ARC can now compete on a reduced cost basis while increasing its multimedia development resources, thereby accelerating the time to profitability and positive cash flows. This will strengthen ARC's competitive position and help grow its market share against the backdrop of a changing semiconductor industry.

Current Trading

Despite the current economic and industry environments and with its restructuring expected to be completed on schedule, ARC remains on target to achieve its 2008 revenue goals in line with market expectations. As demonstrated by recent licensing wins, customers from OEM and semiconductor companies continue to show strong interest in ARC's vertically integrated multimedia solutions, which include ARC's Sonic Focus audio enrichment technology. Royalty revenue from post-2004 contracts is strengthening due to better-than-anticipated market acceptance of ARC-Based™ consumer electronics devices in 2008. ARC's cash position remains strong, and the company is, as planned, starting to realize the financial benefits of the recently announced restructuring.

Outlook

For 2009 management remains cautious due to continuing uncertainty in the economic environment and fundamental industry changes. However, management is confident that ARC is well positioned to enhance its strategy of delivering vertically integrated multimedia solutions, while leveraging an optimized company structure that can operate on a reduced cost basis and a strong cash position.

About ARC International

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 150+ 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, St. Petersburg, Russia, and Hyderabad, India. For more information visit www.ARC.com. ARC International is listed on the London Stock Exchange as ARC International plc (LSE: ARK).