New License Agreement

Arc International PLC
06 February 2008

Media Contact:                       Investor Contact:
Jonah McLeod                         Juliet Clarke
ARC International                    Financial Dynamics
[phone]                      [phone]
[e-mail]                 [e-mail]


                  Leading Smartcard Provider Again Adopts ARC
               For High Volume, Ultra High Security Applications

SAN JOSE, Calif. and ST. ALBANS, England, February 6, 2008 - ARC International
(LSE: ARK) today announced that it has signed a new agreement with a major
smartcard company that first licensed ARC's configurable solutions in 2005.
High volume applications where smartcards are used include retailers, GSM phone
providers, banks and airlines.  The new license enables the existing ARC
customer access to multiple ARC products to create new solutions for
smartcard-related access control and identification devices.

"Being able to easily access medical, financial, legal, and multimedia content
is a vital part of the end user experience," commented Bill Jackson, ARC's vice
president of marketing.  "Smartcards represent another application where ARC is
providing a solution unique from competitive offerings.  Our customer changed
our IP to provide the consumer secure access to confidential personal
information anytime and anywhere.  And with potentially millions of smartcards
in circulation, our customer is assured that his custom design will be harder
for thieves to compromise.  We are delighted that we have again been selected to
help our customer address this growing market."

Smartcards are a natural target for hackers, and if compromised companies could
lose millions of dollars in lost revenue due to product recalls.  ARC's
configurable solutions enable designers to customize the core and add custom
extensions to create a proprietary design that is unique to the creator and
extremely difficult to reverse engineer.  Similarly, ARC enables the smartcard
designers to remove unwanted functions to create a very small solution which is
vital to keep manufacturing costs down in high volume applications.


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About ARC International plc
ARC International is the world leader in configurable multimedia 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. 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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