Skymedi Selects ARCsound Audio Subsystem for Multimedia Flash Memory Controller Applications

ELSTREE, England, July 26, 2005 – ARC International (LSE: ARK), the world leader in configurable CPU/DSP processor cores and application subsystems, today announced that Taiwan-based Skymedi has taken a license for the ARCsound™ audio subsystem. Skymedi, a leader in multimedia flash memory controllers, selected ARC’s audio subsystem because of the significant benefits its small size and low power consumption offer in the development of the company’s next-generation controllers.

“After a thorough search of available audio solutions, we found the ARCsound subsystem was the superior choice to meet our strict design requirements,” said Kayi Yeh, research and development division deputy director at Skymedi. “Furthermore, ARC’s comprehensive subsystem roadmap gives our company access to a best-in-class multimedia platform to meet the needs of video-intensive applications.”

“Skymedi exemplifies how ARC customers are able to take advantage of configurability through licensable subsystems,” said Derek, senior vice president of sales and marketing at ARC International. “Our programmable ARCsound audio subsystem includes the essential software and hardware components that meet essential design specifications for multimedia SoCs. This enables ARC customers to spend critical design time on product differentiation.”

The ARCsound Audio Subsystem

The ARCsound audio subsystem is a licensable audio platform for use in high volume SoC designs. The ARCsound subsystem includes state-of-the-art audio codec software, a preconfigured ARC processor with custom audio extensions and a full suite of hardware and software development tools. A typical ARCsound configuration requires as few as 75,000 gates, consumes as much as 55 percent less system power and is up to 30 percent smaller compared to competitive solutions. The ARCsound subsystem meets stringent quality requirements for cost-sensitive, high-volume markets.

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. Certain applications may require customers to obtain a license from third party patent owners.

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.