CopperGate Takes New Multiuse ARC License To Develop Home Networking Products

SAN JOSE, Calif., and ST. ALBANS, England -- July 23, 2008 - ARC International (LSE: ARK), a leading provider of consumer intellectual property (IP) to OEM and semiconductor companies, has announced a new license agreement with CopperGate Communications.  CopperGate's products enable consumers to use existing coaxial and phone lines in the home to network, share and play multimedia content via entertainment devices such as HD-enabled IPTVs and multi-room DVRs.  CopperGate will use its new ARC license to create high performance, next-generation chipsets targeting the "existing wire" home networking and Multi-Dwelling Unit (MDU) broadband access markets.

The home entertainment services market has evolved from the single-service option of the past decade to a market in which service providers offer combined voice, video, and Internet access packages to consumers.  CopperGate is at the forefront of this market shift, commercializing technology developed with multi-company consortiums that support and standardize these new "Triple-Play" services using existing-wire home networking solutions.

"Consumers and operators crave bandwidth for home entertainment applications like triple play and this agreement makes it easy for CopperGate to deliver the performance they require," said Gabi Hilevitz, chief executive officer of CopperGate. "With the latest ARC technology, CopperGate will continue to be the performance leader - staying ahead of growing customer needs by enabling gateways, optical network terminals and set-top boxes to easily network over existing wires."

Bill Jackson, ARC's vice president of marketing, added, "The prevailing business model for IP licensing is to purchase by the project.  In a fast moving, competitive market environment, the model is sorely out of date. This new agreement provides CopperGate a long-term, corporate-wide licensing arrangement that allows them to concentrate on their core technology development while ARC concurrently enhances the licensed IP."

About CopperGate

CopperGate Communications, the Everywire Home Networking Company™ develops high performance chipsets for broadband access and networking for high fidelity home entertainment applications such as HD-enabled IPTV, multi-room DVRs, and video on demand (VOD). As a leader in multi-wire home networking, only CopperGate is capable to offer both HomePNA and HomePlug technology for individual homes and multi-dwelling and multi-tenant units (MDU/MTU) worldwide. CopperGate chipsets have been deployed by leading triple-play service providers representing nearly 100 million lines and have already connected more than 15,000 miles of coax. Founded in 2000, CopperGate is headquartered in Tel Aviv, Israel with offices in the United States, Taiwan, Korea, China and Japan.

For more information, please visit www.copper-gate.com.

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 140+ 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.