Re Contract

ARC International Plc
                  

     ARC Technology Chosen by Fujitsu Microelectronics Europe for
                 Next-Generation Consumer Applications

     Fujitsu Renews Commitment to ARC(TM) with New License for the
         High-Performance ARC 700 Configurable Processor Core

ARC International (LSE:ARK), the world leader in configurable CPU/DSP processor
cores and application subsystems, today announced that Fujitsu Microelectronics
Europe has taken a license for the ARC(TM) 700 configurable processor core for
use in high-volume consumer applications. An ARC customer since 2001, this new
licensing agreement deepens Fujitsu's commitment to ARC's configurable
architecture.

Fujitsu selected the ARC 700 processor core because of its ability to deliver
very high performance in a small die size. At up to 405 MHz in a 0.13 micron
process, the configured versions of the ARC 700 core family consume as little as
0.72mm(2) of silicon die area. The processors' range of configurable options
allows customers to select only the features they need and extend the core with
custom instructions to optimize the design to the end application.

"Because of the success of our ARC-Based designs, we have expanded Fujitsu's
commitment to ARC's configurable architecture by taking a license for the
high-performance ARC 700 core," said Dirk Weinsziehr, senior director marketing
at Fujitsu Microelectronics Europe. "By extending the core we are able to
enhance its performance while retaining a small form factor, making it an ideal
match for our next high-volume consumer chip.

"ARC-Based products continue to be extremely successful for our company and have
helped expand our technology into key consumer market segments," continued
Weinsziehr. "Our further investment in the ARC architecture is a strategic
decision for Fujitsu."

"Fujitsu's standardization upon the ARC architecture underscores the growing
number of industry leaders that are leveraging our configurable technology for
high-volume consumer applications," said Derek Meyer, vice president of
marketing at ARC International. "By enabling customers to add custom
instructions to an ARC core, SoC designers can have a proprietary yet
cost-effective solution. We are pleased with the deepening partnership with
Fujitsu Microelectronics Europe and look forward to contributing to the future
success of their next-generation ARC-Based products."

ARC(TM) 700 Processor Family

The ARC 700 family of configurable cores combines a powerful 32-bit CPU and a
full-featured DSP engine in a unified architecture. ARC 700 cores have the
computing power to meet the needs of the most demanding SoC tasks, such as
graphics, media codecs and packet processing. Cores within the ARC 700 family
also are ideal for high-end embedded OSs, such as Linux. For additional
information, visit www.ARC.com/700.

About ARC International plc

ARC International is the world leader in low-power, high-performance 32-bit
configurable CPU/DSP processor cores, subsystems, real-time operating systems
and development tools for embedded system design. ARC's configurable and
extendible cores assist customers in the development of next generation digital
media, consumer and communications devices, resulting in lower cost, higher
performance SoC products.

ARC International maintains a worldwide presence with corporate offices in San
Jose, California, USA and Elstree, UK. The company has research and development
offices located in England and the United States. For more information please
visit the ARC website at www.ARC.com. ARC International is listed on the London
Stock Exchange as ARC International plc (LSE:ARK).

ARC, the ARC logo and ARC-Based 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. For 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.

Note: In "0.72mm(2)," the "2" should read as superscript.

    CONTACT: ARC International
             Lee Garvin Flanagin, 408-437-3433
             [e-mail]