Contract Extension

Arc International PLC 16 April 2007 Media Contact: Financial Contact: Lee Garvin Flanagin Juliet Clarke / Matt Dixon ARC International Financial Dynamics +1 408 437 3433 +44 20 7831 3113 lee.flanagin@arc.com juliet.clarke@fd.com 16 April 2007 Broadcom Standardizes on ARC's Configurable Technology for High Volume Multimedia Applications Broadcom Corporation Extends Existing ARC Relationship with New 10 Year Licensing Agreement ELSTREE, England, April 16, 2007 - ARC International (LSE: ARK) today announced that Broadcom Corporation has signed a 10 year extension to its existing licensing agreement with ARC International. It gives Broadcom long-term access to ARC's configurable solutions for the development of advanced system-on-chips (SoCs) targeting advanced multimedia applications. Broadcom is using ARC's configurable products to create SoCs for consumer devices that already are ramping to volume production, and incorporate standard and high definition advanced video compression capabilities. Daniel Marotta, senior vice president and general manager of Broadcom's Broadband Communications Group, said, "ARC's configurable technology is ideal for our engineering teams in Broadcom's Broadband Communications Group that are creating solutions for high volume consumer markets. By using ARC in our multimedia SoC development, we are able to design chips that meet our customers' requirements for the delivery of advanced video compression in silicon. We are pleased to extend our relationship with ARC and to standardize a key element of Broadcom's technology strategy on their configurable products." Carl Schlachte, president and CEO of ARC International, said, "Broadcom has been one of ARC's leading customers since 2004. This new ten year licensing agreement is a reflection of the high value a Tier 1 company places in ARC's patented configurable solutions for the design of advanced SoCs targeting high growth and high volume consumer applications. We welcome the beginning of a new chapter in the Broadcom/ARC relationship, and look forward to supporting their future market success with ARC-Based technology." About ARC's Patented Configurable Technology ARC's patented configurable subsystem and processor technology enables SoC designers to create silicon that is optimized to the end application. Designers have the freedom to retain necessary functionality while removing unneeded features in a configurable ARC product. The benefit is an SoC with a more optimal balance of speed, area and power for a specific application, resulting in a lower power, smaller chip that is less expensive to manufacture. Adding custom instructions to ARC's subsystems and cores, designers can achieve major gains in application efficiency by defining custom extensions that accelerate critical code. # # # 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. This information is provided by RNS The company news service from the London Stock Exchange
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