Acquisition

Arc International PLC
15 June 2007



Financial Contact:                         Media Contact:
Juliet Clarke                              Lee Garvin Flanagin
Financial Dynamics                         ARC International
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[e-mail]                       [e-mail]



                  ARC Acquires Tenison to Speed Time to Market
                       Of Customers' Complex SoC Designs;
                    Establishes Cambridge Engineering Center


          New Products Will Model and Simulate ARC(R) Customers' Chips
             That Integrate ARC with Non-ARC Intellectual Property


ST. ALBANS, England, June 15, 2007 - ARC International (LSE: ARK) today
announced that it has acquired Tenison Technology EDA, Limited, a privately held
company that is a leading provider of software tools used to help develop
system-on-chip (SoC) designs.  Its customer list includes "Tier 1" companies
such as Broadcom, Freescale, and Renesas.  The acquisition includes fifteen key
members of Tenison's engineering team, patents, and products such as the VTOCTM
software suite and IP eXchange technology.



The acquired products will provide highly accurate models of ARC's configurable
processors and multimedia subsystems.  Moreover, they will allow customers to
simulate virtually all logic on any ARC-BasedTM chip, including those using
non-ARC technologies such as customer-developed intellectual property (IP) and
IP from other suppliers like ARM Holdings.



Additionally, ARC International announced the establishment of an engineering
center in Cambridge, England, and the appointment of Dr. David Greaves to ARC's
Office of the CTO (Chief Technology Officer).  The office's charter is to
advance ARC's technology innovation and leadership in the areas of
configurability, multicore SoC design, and software development environments.
Dr. Greaves is a faculty member and lecturer at the University of Cambridge
Computer Laboratory, a founder of Virata, and the founder and chief scientist of
Tenison; he is a technology advisor to companies such as AT&T and BT (British
Telecommunications).



Founded in 1999 from work originating at Cambridge University, Tenison's
advanced modeling, simulation, and verification products help chip designers
accurately predict critical metrics of an SoC before the design is sent for
manufacture.  This speeds chip development, shortens time to market, and results
in a more optimized solution.



Carl Schlachte, president and CEO of ARC International, said, "SoCs for consumer
applications are increasingly dominated by chips incorporating multiple
processors along with IP from multiple sources.  To address the design
challenges of customers using these technologies, ARC now will provide its own '
Star IP' and software tools along with Tenison's technology to enable customers
to create power-efficient, high performance, and low cost SoCs.  This will
enhance ARC's ability to service customers using ARC subsystems and cores as
part of an SoC design that includes other design components."



The consideration will be £1 million in cash.  The acquisition may have a cost
impact of up to £350,000 on ARC's financial year 2007 operations.  For the year
ended December 31, 2006 Tenison reported a net loss of £1.4 million.  Its gross
assets as of May 31, 2007 were £275,000.  Under the terms of the UKLA listing
rules this acquisition is a Class 2 transaction and does not require shareholder
approval.



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About ARC International plc
ARC International is the world leader in configurable media subsystems and 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 California and St. Albans, 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.




                      This information is provided by RNS
            The company news service from the London Stock Exchange                 SELM