Zoran Corporation Takes ARC IP Solution License

SAN JOSE, Calif., and ST. ALBANS, England -- January 13, 2009 -- ARC International (LSE: ARK) announced that Zoran Corporation has taken a license to use ARC's configurable consumer IP solution. The first Zoran consumer system on chip (SoC) platform to use ARC's unique IP solution is from Zoran's Mobile Division.

The value to Zoran of ARC's IP solution is to reduce power by up to 250 mW in multimedia SoCs while reducing overall silicon area cost. The license includes the Sonic Focus™ ready ARC® Sound 210 Subsystem. ARC's Sonic Focus™ enrichment technology returns quality lost when audio is digitized and compressed.

"We are delighted to sign this mutually beneficial agreement with ARC. Their silicon proven consumer IP solutions will allow us to continue to lead the semiconductor industry in developing efficient, low-cost and low-power multimedia platforms for our mobile products," said Coby Sella, senior vice president and general manager, Zoran's Mobile Division. "We have enjoyed working with ARC's excellent team."

"Zoran's decision to design our consumer IP solutions into its high volume mobile chip products, demonstrates confidence in our ability to help them win in a highly competitive market," said Sean Redmond, VP worldwide field operations at ARC International. "A key factor in our successful engagement is the alignment of our corporate strategies: to enable enhanced multimedia experiences to consumers on any device, at any time, and at any place. We look forward to continuing our strategic partnership with Zoran and contributing to their long-term success."

About ARC International plc

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 150+ 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.

ARC International maintains a worldwide presence with corporate and research and development offices in San Jose and Lake Tahoe, Calif., St. Albans, England, St. Petersburg, Russia, and Hyderabad, India. For more information visit www.ARC.com. ARC International is listed on the London Stock Exchange as ARC International plc (LSE: ARK).