ARC International plc -- Interim Management Statement

May 20, 2009 -- ARC International, (LSE: ARK), a leading provider of consumer IP to OEM and semiconductor companies globally, provides an Interim Management Statement for the period from 1st January 2009 to the date of this announcement.

Market conditions remain challenging, with longer sales cycles, with the result that the Board is expecting to generate revenues for the first half of between £6m to £8m (H1 2008: £9.3m). However, ARC’s licensing pipeline is healthy and its balance sheet remains strong with cash balances of £9.8m at 30th April 2009.

Our recent strategic investment in R&D facilities in India and Russia has begun to deliver the anticipated returns, with the release of the new ARC Sound 211SFX and two new Sound-to-Silicon solutions, ahead of plan. These will be launched at Computex in Taiwan on 2nd June.

Geoff Bristow, newly-appointed CEO of ARC International, commented:

“The financial outlook for the first half is very disappointing, demonstrating the need for action. The Board and I are committed to achieving profitability and positive cash flow in the near term and we remain convinced of the long-term value within ARC and its market leading product set. These are tough times but I am confident that we can emerge as a stronger, more efficient business in the future. I look forward to updating the market with the action plan at the time of our interim results.”

The results for the six months to 30th June 2009 will be announced on 5th August 2009.