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ARC International

Press Release

ARC-Based™ Sanyo Digital Camera
Wins "Editors Choice" Award in MacLife Magazine

SAN JOSE, Calif., and ST. ALBANS, England, March 25, 2008 - ARC International (LSE: ARK) has announced that one of its multimedia subsystems is being used in the Sanyo Xacti CG65 digital video camera, which recently won an "editor's choice" award in MacLife Magazine. The ARC-Based™ camera is ideal for the "YouTube Generation" as it was designed to provide easy drag-and-drop video file transfer via USB. It encodes video content using H.264, has a maximum resolution of 6 megapixels, and weighs only 9 ounces.

In a review of the ARC-Based digital camera, editors of MacLife Magazine commented, "Given our tendency to want to record so many of life's moments, it's nice to have a versatile, portable camera like the Xacti CG65." The full review can be read at http://www.maclife.com/article/sanyo_xacti_vpc_cg65

Featured in the Sanyo camera is a special H.264 video compression chip from Qpixel, one of ARC's first subsystem licensees. The QPixel chip leverages an ARC multimedia subsystem and encodes AVC/H.264 in real-time using low overall power consumption. The captured file size is reduced by up to 25 percent over typical MPEG-4 cameras. The result is a high quality video recording of up to 10 hours in length using an 8GB SDHC memory card in TV-HQ mode.

About ARC International plc

ARC International is the world leader in multimedia subsystems and configurable 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 San Jose and Lake Tahoe, Calif., St. Albans, England, and St. Petersburg, Russia. 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.