ARC International plc Appoints New Chief Financial Officer

ELSTREE, UK, December 28, 2005 - ARC International (LSE: ARK), the world leader in configurable CPU/DSP processor cores and application subsystems, today announced the appointment of Victor Young to the position of Senior Vice President and Chief Financial Officer. Reporting to the president and CEO, Mr. Young is responsible for overseeing ARC's administrative and financial activities, where he will help grow revenue from the company's configurable core and subsystem products, assist with mergers and acquisition (M&A) strategy and liaise with international investors and financial analysts.

Mr. Young has over 35 years of corporate accounting and management experience with technology companies such as Selectica, Mobilitech and BOPS. His industry experience includes service as a partner with PricewaterhouseCoopers, where Mr. Young established the company's Coopers & Lybrand practice in Taiwan, a partner with the Asian-based venture capital firm W I Harper Group, and as advisor to numerous multinational manufacturing, telecommunications and service corporations.

"The board and I are pleased to welcome Vic to ARC International," said Carl Schlachte, president and CEO. "Vic has extensive experience in Asia, and an excellent track record of helping manage international financial organizations for growing semiconductor companies. His skills come at an important time for ARC as the company is benefiting from the rapid adoption of configurability, which is widely considered to be the SoC design methodology for the 21st century."

"ARC is one of the fastest growing semiconductor IP companies in the industry, and I am pleased to become part of the management team that is guiding the company's success," Young commented.

About ARC International

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 CPU technology assists 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).