Re Contract

ARC International Plc
                  

ARC International Announces Comprehensive Licensing Agreement with Broadcom for
                        Configurable Technology

                  Multi-Year Development Agreement Targets
                   High-Growth Consumer Applications

ARC International (LSE:ARK) today announced a multi-year licensing agreement
that makes available the embedded industry's leading configurable technology to
Broadcom Corporation. Under the terms of the agreement, Broadcom will use ARC's
low-power, configurable microprocessors and MetaWare(R) tools to develop
leading-edge system-on-chips (SOCs). Among the ARC(TM) technology licensed by
Broadcom were the ARC 600 and ARC 700 processor cores, which are an ideal fit
for applications that require both low power and small die size.

"This relationship with Broadcom is another important endorsement of our
strategy to leverage configurable technology in high-growth markets with
industry leaders," said Derek Meyer, vice president of marketing for ARC
International. "With Broadcom's choice to license ARC technology, it joins
nearly a hundred other silicon and system vendors that are driving leading-edge
SOC designs using the industry's first truly configurable platform."

"In high volume consumer electronics, lowering the cost and getting the product
to market are vital," said Daniel Marotta, group vice president of Broadcom's
Broadband Communications Group. "As we continue to bring low-cost SOCs to
market, ARC's configurable core architecture and tools meet critical cost points
and design parameters."

ARC's industry-leading configurable technology enables designers to develop
application-optimized silicon designs. By enabling specific trade-offs in
performance, size and power, customers such as Broadcom are able to design
differentiated solutions that are highly cost-effective.

The ARC 600 core is optimized to deliver high performance in a small silicon
area with minimal power consumption. The ARC 700 core provides the smallest 400
MHz processor available today, and supports complex applications with an MMU and
processing modes to enable feature-rich and secure operating systems. Both the
ARC 600 and ARC 700 cores are DSP-enhanced and eliminate the need for additional
signal processing engines.

About ARC

ARC International is a world leader in low-power, high-performance 32-bit
configurable CPU/DSP processor cores, subsystems, real-time operating systems
and development tools for embedded system design. ARC's configurable and
extendible cores assist customers in the development of next generation digital
media, consumer and communications devices, resulting in lower cost, higher
performance SOC products.

ARC International maintains a worldwide presence with corporate offices in San
Jose, California, USA and Elstree, UK. The Company has research and development
offices located in England and the United States. For more information please
visit the ARC website at: www.ARC.com. ARC International is listed on the London
Stock Exchange as ARC International plc (LSE: ARK).

ARC, the ARC logo, MetaWare and ARC-Based 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.

For more information, contact:

ARC International
Lee Garvin Flanagin, 408-437-3433
[e-mail]
  or
Tulchan Communications
Tim Lynch, 44 020 7353 4200