Trading Update

Arc International PLC
09 January 2008



Media Contact:                Investor Contact:
                             
Lee Garvin Flanagin           Juliet Clarke
                               
ARC International             Financial Dynamics

[phone]               [phone]

[e-mail]          [e-mail]
                             

                        ARC International plc Year Ended
                        December 31, 2007 Trading Update

                    Revenue Increased Over 20% Year-on-Year

                       Record Backlog and Sales Pipeline

                      Royalty Revenue Up Approximately 50%


ST. ALBANS, England, January 9, 2008 - ARC International (LSE: ARK) today
announced that its unaudited revenue for the financial year ended December 31,
2007 is expected to be approximately $30 million (£15 million), an increase of
over 20 percent on a constant dollar basis compared to financial year 2006.
This takes into consideration the ongoing weakness of the dollar compared to
sterling.  In addition, both backlog and sales pipeline at January 1, 2008 are
significantly ahead of their positions at January 1, 2007.  Licensing and
maintenance revenues have increased, and royalty income for the year as a whole
is expected to be approximately 50 percent greater than 2006.


These significant improvements were achieved despite general economic concerns
among certain North American customers.  During the second half of 2007 this led
to delays affecting the closing of approximately $2.0 million (£1 million) of
new licensing contracts.  These are expected to close early in 2008.  Although
the impact of these contract delays has been substantially mitigated by good
cost management, the EBITDA loss for the year as a whole will be slightly higher
than management's previous expectations due to incremental operating expenses of
approximately $3.7 million (£1.9 million) as a result of the three acquisitions
completed during 2007.


Carl Schlachte, president and CEO, commented, "2007 was a year of solid
achievements for ARC International with significant progress on the two key
planks of the company's strategy.  Firstly, overall revenues grew more than 20
percent, which included increased licensing, maintenance, royalty revenues.  In
particular, royalties were up close to 50 percent over 2006 and now represent
approximately one-third of total revenues.  In 2007, the company announced the
two largest customer agreements in its history, which added to ARC's backlog and
enables the company to begin 2008 with its strongest ever backlog and sales
pipeline.


"Secondly, ARC substantially enhanced its product portfolio and technology base
by completing and successfully integrating three strategic acquisitions, and
adding world-class technological expertise to the management team.  These
provide further impetus to ARC's growth potential, and the achievements in 2007
strengthen ARC's competitive position and underpin the company's plans for
continued growth."


Announcement of Preliminary Results for Financial Year 2007
On Wednesday February 20, 2008 ARC International will announce results for the
twelve months ended December 31, 2007.  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 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.


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