Leading U.S-Based Semiconductor Company Takes $...

ARC International
                  

   ARC Reaffirms Financial Year 2006 Outlook and Sets Date for Announcement of
                               Preliminary Results

ARC International (LSE:ARK) today announced that one of the largest U.S.-based
semiconductor companies has taken a multiyear license expected to be valued in
the region of $11 million (USD) for ARC's patented multimedia subsystems and
configurable processors. The first phase of the contract is guaranteed at more
than $5M with over $2M in revenue recognizable for the year ended 31 December,
2006. This tier 1 customer, a first-time licensee, will use its long-term ARC
license to create media-based semiconductor chips targeting video- and
audio-rich devices.

Carl Schlachte, president and CEO of ARC International, said, "We are very
pleased to announce another industry leader has joined ARC's expanding community
of world-class customers. This underscores management's continued progress
toward the strategic goal of growing ARC's customer base with world-class, tier
1 companies. Industry leaders are increasingly adopting ARC's patented
subsystems and configurable processors as the 'solution of choice' for high
volume consumer applications. They enable the creation of lower cost, highly
differentiated solutions, which are distinct benefits that 'fixed architecture'
alternatives cannot offer."

Outlook and Announcement of Preliminary Results for Financial Year 2006

Having secured this important license win, the company remains comfortable with
market expectations for the year ending 31 December, 2006. On Wednesday 14
February, 2007 ARC International will announce results for the twelve months
ended 31 December, 2006. A morning meeting will be held in London for analysts.
Interested parties should contact ARC International 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 to create
system-on-chip (SoC) designs that provide a strategic competitive advantage.
ARC's patented configurable products are smaller, consume less power, are less
expensive to manufacture, 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, including the
development, implementation, and release of features described herein. These are
at the sole discretion of ARC International. 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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ARC International
Lee Garvin Flanagin, [phone] (Investors/Media)
[e-mail]
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