Trading Update

Arc International PLC
10 January 2007



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



                 ARC International plc Announces Trading Update
                      For the Year Ended 31 December 2006

            ARC's Full Year and Second Half 2006 Unaudited Revenues
                         To Exceed Market Expectations


ELSTREE, England, January 10, 2007 - ARC International (LSE: ARK), the world
leader in configurable subsystems and CPU/DSP processors, today announced that
its unaudited revenue for the financial year ended 31 December 2006 is expected
to be not less than £13.3 million, a 28 percent increase compared to financial
year 2005.  Unaudited revenue for the second half of financial year 2006 is
expected to be not less than £7.3 million, reflecting a 22 percent increase
compared to the first half of 2006 and a 46 percent increase compared to the
same reporting period in the second half of 2005.  These results exceed market
expectations, and reflect progress toward achieving the strategic goals of
attracting "tier 1" companies to adopt ARC's patented configurable solutions,
increasing median deal sizes, and signing larger agreements that include
multiple ARC products.

Carl Schlachte, president and CEO of ARC International, said, "We are pleased
about our progress in 2006 and that unaudited revenues for the full year and
second half of the financial year 2006 are expected to be higher than current
market consensus.  This reaffirms our company's strategy to provide value-added
configurable solutions for high-growth consumer applications.  ARC's leadership
position in the field of media subsystems is driving a higher percentage of
company revenue and licensing agreements."

Announcement of Preliminary Results for Financial Year 2006
On Wednesday 14 February 2007 ARC International will announce results for the
twelve months ended 31 December 2006.  A morning meeting will be held in London
for analysts. Interested parties should contact Financial Dynamics or ARC
International for more information.

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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.




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