Trading Statement

ARC International Plc
                  

ARC International plc Announces Trading Update for the Six Months Ended June 30,
2005

ARC International (LSE:ARK), the world leader in configurable CPU/DSP processor
cores and application subsystems, today announced that its unaudited turnover
for the first half of calendar year 2005 will be approximately GBP 5.4 million
pounds, nearly 9 percent higher than the corresponding period and business in
2004. The company also disclosed a significant agreement with a new customer and
the date for announcing its interim results. See accompanying press release
entitled "ARC International Signs Licensing Agreement with a Leading Smartcard
Technology Provider."

Commenting on the trading update, Monica Johnson, chief financial officer, said,
"We're pleased to report that we signed seventeen new licenses for the first
half of the year. However, the delay of one contract and expected delivery in
the second half for 2 other contracts resulted in revenue below expectations.
Headcount and expenses remain inline with management's expectations and our
significant cash position is substantively unchanged from the 2004 year end."

Carl Schlachte, president and chief executive officer, said, "Although these
results are slightly below our own expectations, we continue to be pleased with
ARC's increasing licensing momentum and with the growing adoption of our
patented configurable technology by market leaders. The 2005 semiconductor
market started slowly and with cautious outlooks from several industry analysts,
due to overall inventory build-up in 2004. ARC was initially affected by this
environment, but our licensing activity returned to expected levels in recent
months. As a result, we remain optimistic about ARC's business for the remainder
of this calendar year and beyond as we continue with our strategy to bring the
benefits of configurable CPU technology to the global embedded market."

Announcement of Interim Results for the First Half 2005

On Wednesday July 27, 2005 ARC International will announce interim results for
the six months ending June 30. A morning meeting will be held in London for
analysts. Interested parties should contact Tulchan Communications for more
information.

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 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. 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.

    CONTACT: ARC International
             Lee Garvin Flanagin, 408-437-3433 (Media)
                 or
             Tulchan Communications Group
             Kate Inverarity or Tim Lynch, [phone] (Analysts)