Aarohi Communications Extends ARC License Agreement

ELSTREE, England, July 12, 2005 – ARC International (LSE: ARK), the world leader in configurable CPU/DSP processor cores and application subsystems, today announced that Aarohi Communications has extended its existing license for an ARC™ configurable processor core. Aarohi, an ARC licensee since 2002, will use the core in its next-generation Intelligent SAN Component. Aarohi’s current ARC-Based™ AV150 Intelligent Storage Processor recently won the Network Storage Conference ‘Interconnect Product of the Year’ award and incorporates multiple configurable ARC cores.

Dr. Kaushik Patel, vice president of hardware engineering at Aarohi, said, “ARC’s configurable cores have played a significant role in the success of our Intelligent Storage Processor. By extending this license agreement for use in our next-generation Intelligent SAN Component we will enable high-performance, scalable and cost-effective implementations of the next-generation storage and server infrastructure.”

“By taking a new license for one of our processors, Aarohi is the latest customer to deepen its commitment to ARC’s configurable CPUs,” said Derek Meyer, vice president of marketing for ARC International. “Using our patented technology, Aarohi’s award-winning design team will have the ability to configure the core to ensure it is highly optimized to the needs of their storage and server infrastructure customers.”

About ARC International plc

ARC International is the world leader in low-power, high-performance 32-bit configurable CPU/DSP processor cores, subsystems, real-time operating systems and development tools for embedded system design. ARC's patented configurable and extendible cores assist customers in the development of next generation digital media, consumer and communications devices, resulting in lower cost, higher performance SoC products.

ARC International maintains a worldwide presence with corporate offices in San Jose, California, USA and Elstree, UK. The company has research and development offices located in England and the United States. For more information please visit the ARC website at: www.ARC.com. ARC International is listed on the London Stock Exchange as ARC International plc (LSE: ARK).

ARC, ARC-Based and the ARC logo are trademarks or registered trademarks of ARC International. All other brands or product names contained herein are the property of their respective owners. This press release may contain certain "forward-looking statements" that involve risks and uncertainties. For factors that could cause actual results to differ, visit the company’s Website as well as the listing particulars filed with the United Kingdom Listing Authority and the Registrar of Companies in England and Wales.