ARC Signs $15M Multiyear License With One of the Largest Consumer Electronics Companies

Landmark Agreement Underscores the Premium Industry Leaders Assign to ARC’s Configurable Solutions

ELSTREE, England, April 3, 2007 – ARC International (LSE: ARK) today announced that one of the largest consumer electronics companies has taken a multiyear license valued at $15 million (USD) for ARC’s patented configurable processors. Further details of the nature of the customer and its targeted high-growth applications are confidential.

Carl Schlachte, president and CEO of ARC International, said, "This significant customer agreement is one of the largest ever completed by a ‘Star IP’ company. More importantly it underscores the confidence and value Tier 1 consumer electronics companies continue to place in our configurable processor solutions."

About ARC’s Patented Configurable Technology

ARC’s patented configurable subsystem and processor technology enables system-on-chip (SoC) designers to create silicon that is optimized to the end application. Designers have the freedom to retain necessary functionality while removing unneeded features in a configurable ARC product. The benefit is an SoC with a more optimal balance of speed, area and power for a specific application, resulting in a lower power, smaller chip that is less expensive to manufacture. Adding custom instructions to ARC’s subsystems and cores, designers can achieve major gains in application efficiency by defining custom extensions that accelerate critical code.

About ARC International plc

ARC International is the world leader in configurable subsystems and CPU/DSP processors that are used by semiconductor companies worldwide to create system-on-chip (SoC) designs that provide a strategic competitive advantage. ARC’s patented configurable products are smaller, consume less power, are less expensive to manufacture, and provide a higher degree of differentiation over what can be created using "fixed architecture" core alternatives.
ARC International maintains a worldwide presence with corporate and research and development offices in California and Elstree, UK. For more information visit www.ARC.com. ARC International is listed on the London Stock Exchange as ARC International plc (LSE: ARK).