Agreement with Intel

Arc International PLC
11 September 2007

Media Contact:
Lee Garvin Flanagin
ARC International
[phone]
[e-mail]


            ARC Signs Licensing Agreement for Configurable Solutions
                     For Next-Generation Computing Products


ST. ALBANS, England, September 11, 2007 - ARC International (LSE: ARK), the
world leader in configurable multimedia subsystems and CPU/DSP cores, today
announced it has signed a new multi-year, royalty bearing licensing agreement
with Intel Corporation.  The agreement covers several ARC(R) products and was
completed in the second half of 2007.

Key benefits ARC's configurable solutions bring to Intel's system-on-chip (SoC)
developers include the ability to reduce power consumption and increase a
chipset's performance by adding custom instruction extensions.  Additionally,
ARC provides comprehensive support and training to Intel development centers in
North America.

Jim McGregor, In-Stat's principal analyst and research director for enabling
technologies, said, "Intel is renowned for driving the direction of technology
through the development of leading-edge semiconductors and platform solutions.
By combining ARC processor-based wireless broadband solutions with low-power X86
processors, Intel is underscoring its commitment to achieving flexible and
power-efficient solutions through heterogeneous multi-core platforms."

McGregor added, "Intel has become a leader in wireless broadband communications
through its leadership in Wi-Fi and WiMAX technology for mobile applications.
In-Stat predicts that the rapid adoption of this technology could lead to close
to 480 million mobile devices shipping in personal and professional applications
by 2010, including mobile PCs, mobile Internet devices (MIDs), ultra mobile PCs
(UMPCs), portable media players (PMPs), digital handsets, and other consumer
electronic devices."

Carl Schlachte, president and CEO of ARC International, said, "This is a
landmark announcement for ARC.  We are honored by Intel's adoption of the
company's configurable products."

About ARC's Patented Configurable Technology

ARC's patented configurable processor technology enables 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 subsystem or processor.  The benefit is an SoC with an 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.


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About ARC International plc
ARC International is the world leader in configurable media subsystems and CPU/
DSP processors.  Used by over 140 companies worldwide, ARC's configurable
solutions enable the creation of highly differentiated system-on-chips (SoCs)
that ship in hundreds of millions of devices annually.  ARC's patented
subsystems and cores are smaller, consume less power, and are less expensive to
manufacture than competing products.

ARC International maintains a worldwide presence with corporate and research and
development offices in California and St. Albans, UK.  For more information
visit www.ARC.com.  ARC International is listed on the London Stock Exchange as
ARC International plc (LSE: ARK).

ARC 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, including the
development, implementation, and release of features described herein. These are
at the sole discretion of ARC International. Licenses from 3rd parties for
certain software and essential patents may be required depending on licensee's
use/implementation. For other 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.


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            The company news service from the London Stock Exchange