ARC International plc Announces Trading Update

ARC International Plc
                  

ARC International (LSE:ARK), the world leader in configurable multimedia
subsystems and CPU/DSP processors, today announced that its unaudited turnover
for the first half of fiscal year 2006 will be approximately GBP 6.0 million
pounds, 11 percent higher than the corresponding period in 2005. This is broadly
inline with expectations, and the company is confident about trading in the
second half of the fiscal year.

Commenting on the trading update, Victor Young, chief financial officer, said,
"All-time-high revenue from customers in Asia, as well as growing royalty income
and improving median deal size from ARC's newer products helped drive top-line
growth in our subsystem and processor licensing business. Additionally, all
outstanding licensing agreements that were delayed from the second half of 2005
have now been completed. We achieved expense reductions in targeted areas,
however we have allowed for certain costs for the first half of fiscal year 2006
to be slightly higher when compared to the same period in 2005 as part of
increasing our sales efforts and delivery of new products."

Carl Schlachte, president and chief executive officer, said, "Management is
pleased with the results of our strategy to expand the industry's use of ARC's
configurable subsystems and processors. In particular, market leaders are
publicly embracing our newer products for high-growth multimedia applications,
and the Video Subsystem has seen a tremendous ramp in licensing that surpasses
any of our standalone microprocessor offerings. Some customers continue to
require larger, more complex agreements with extended negotiations. However, we
are optimistic with the sales pipeline for the second half of this fiscal year
and remain focused on meeting our year-end business goals."

Announcement of Interim Results for the First Half 2006

On Wednesday August 2 ARC International will announce interim results for the
six months ending June 30. A morning meeting will be held in London for
analysts. Interested parties should contact Tulchan Communications for more
information.

About ARC International plc

ARC International is the world leader in configurable subsystems and CPU/DSP
processors that are used by semiconductor companies worldwide for
next-generation system-on-chip (SoC) design. ARC's patented configurable
processor technology enables the development of consumer, networking, mass
storage and other cost-sensitive devices that are smaller 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).

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. 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.
    CONTACT: ARC International
             Lee Garvin Flanagin, 408-437-3433 (Media)
             or
             Tulchan Communications Group
             Julie Foster, [phone] (Analysts)