Acquisition

Arc International PLC
02 April 2007


Financial Contact:

Juliet Clarke

Financial Dynamics

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Media Contact:

Lee Garvin Flanagin

ARC International

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                         ARC Acquires Teja Technologies
           To Create Software Platforms and Development Environments
                    For the VRaptorTM Multicore Architecture

                 Teja's Award-Winning Multiprocessor Technology
       Will Accelerate Time to Market for ARC's VRaptor-Based Subsystems


ELSTREE, England, April 2, 2007 - ARC International (LSE: ARK) today announced
that it has acquired the key assets of Teja Technologies, Inc., a privately held
company based in San Jose, California and a technology leader that develops
heterogeneous multiprocessor software.  The acquisition includes Teja's software
products, key customer contracts, its engineering team, and patents for Teja's
award-winning technology.


Today ARC International also announced a series of organizational changes, some
of which are associated with this acquisition, including the appointment of a
Chief Operating Officer (COO) and creation of an Office of the CTO (Chief
Technology Officer).  See related news release dated April 2, 2007 for more
details.


Teja was founded in 1998 with funding from venture firms such as the Mayfield
Fund and Intel Capital.   Teja's customer list includes "Tier 1" companies such
as Intel, Cisco Systems, Samsung, and Sun Microsystems.  The acquisition of Teja
provides ARC with an acclaimed software development team that will help improve
existing and create new application analysis, architectural co-design, and
multicore runtime tools for products based upon ARC's VRaptorTM Multicore
Architecture.  These will complement ARC's current software and programming
solutions, such as the MQX(R) operating system and MetaWare Development Toolkit.


Carl Schlachte, president and CEO of ARC International, said, "Teja is a
recognized technology provider of multicore software platforms to semiconductor
companies and OEMs globally.  Its renowned engineering and R&D staff will extend
ARC's technical leadership and help advance the development of platforms for
ARC's next-generation solutions.  Furthermore, the acquisition brings an
immediate benefit to ARC's customers targeting the networking segment, as well
as a strategic benefit for the evolution of the VRaptor Multicore Architecture."


Akash Deshpande, founder and CTO of Teja Technologies, said, "The combination of
Teja's multicore software development expertise with ARC's next-generation
configurable architecture technology will be a powerful combination for the
global semiconductor industry.  ARC has clearly achieved industry-wide
recognition as a leader and quickly is becoming the solution-of-choice for
multimedia SoC design.  We are very pleased to play a role in increasing ARC's
momentum and to become an integral part of ARC's team."


The consideration will be $5 million (USD) in cash. An initial $3.4 million is
payable now with the balance to be paid in stages over two years based upon
completion of performance targets.  The acquisition may have a cost impact of up
to $2 million (USD) on ARC's financial year 2007 operations.  For the year ended
December 31, 2006 Teja reported a loss of $3.3 million.  The gross assets of
Teja on March 30, 2007 were $900,000 (USD). Under the terms of the UKLA listing
rules this acquisition is a Class 2 transaction and does not require shareholder
approval.


About the VRaptorTM Multicore Architecture

The VRaptor Architecture is a new configurable heterogeneous multi-processor
solution that scales to meet the demands of advanced audio, video, and high
definition media processing requirements in a wide array of consumer devices. It
supports multiple configurable ARC CPUs with media extensions, multiple
vectorized 128-bit SIMD processors, high performance streaming I/O, and domain
specific accelerators.  The VRaptor Multicore Architecture implements a new
active communication channels technology that provides point-to-point links in
hardware between the VRaptor cores, VRaptor accelerators and VRaptor I/O
elements, and carries commands as well as data.  The active communication
channels technology eliminates message interpretation overhead and provides for
a unified programming model that simplifies the programming overhead often
associated with multi-processor architectures.  The ARC VRaptor Multicore
Architecture will be the foundation of ARC's next-generation Media Subsystems.


                                     # # #


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.  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