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AD Technology Adopts ARC’s Configurable Core To Enable High Speed Internet and Data To Millions of Homes in Korea

Configurable ARC® 750D Core Driving AD Technology's SoCs Providing Data and Voice Communications Over Power Lines

ELSTREE, England, March 28, 2007 – ARC International (LSE: ARK) today announced that AD Technology has taken a license for the configurable ARC® 750D core with associated voice codecs to create the company's new Power Line Communications (PLC) system-on-chip (SoC). AD Technology's ARC-Based™ PLC will be provide Internet, phone and other communications services via Korea's electric power grid to tens of millions of homes throughout the country under a contract awarded by the Korean government. This announcement is part of a series of new licensing agreements with semiconductor companies throughout Asia made today by ARC International. See companion news release dated March 28, 2007 for more details.

"Power line communication is not easy to realize because it requires intensive integer computing and signal processing," said Jun Suk Kim, president and CEO of AD Technology. "Our PLCs must enable senders to modulate data signals on top of noisy alternating current, and receivers to decode that data at each node. We chose ARC's configurable processor over other IP vendors because its smaller silicon area, lower power consumption, and higher performance better enables our design team to create a chip that can handle the demanding computing requirements of power line communications."

Derek Meyer, senior vice president of sales and marketing at ARC International, said, "The selection by AD Technology is a significant win for ARC by a leader in Korea's burgeoning semiconductor industry, and another recognition by a high-growth company of the benefits ARC's configurable solutions offer compared to competitive products. The potential PLC technology holds for Korea is enormous, and we are hopeful that our solution will enable AD Technology to realize the potential of this high volume market throughout Asia."

About Power Line Communications
In December 2004 Korea's Ministry of Commerce, Industry, and Energy (MOCIE) announced that it would invest 500 billion won over five years to foster communications and information technology distribution over the country's electric power grid. MOCIE also announced that it expected commercialization of broadband PLC by the beginning of 2007. To date field tests have been performed in close to 1,500 households, and 24 Mbps and 50 Mbps PLC systems already have been developed. PLC systems are also being deployed in other Asian countries, including China.

The Configurable ARC® 750D Core
At 533 MHz, power consumption of 0.16 mW/MHz and a die size of 1.23mm2, the ARC 750D core is a best-in-class configurable processor core for embedded processing applications that demand high performance. Its MMU-based memory subsystem is ideal for complex system-on-chips (SoCs) running Linux or other high-end operating systems. The configurable 750D core is a complete processor solution for networking applications, home entertainment systems, portable devices such as smart phones and PDAs, automotive telematics systems, and many other information-based products.

All of ARC's cores are created with ARChitect™ – ARC's revolutionary patented configuration tool. ARChitect's GUI-based development environment offers SoC designers a simple drag-and-drop menu from which they can select from up to 20,000+ pre-configured options or create custom instruction extensions that are optimized to the ARCompact™ ISA. In minutes, customers can use ARChitect to create a highly differentiated, proprietary ARC-Based™ processor that consumes less power and has fewer transistor gates than is possible using a "fixed architecture" alternative.

strong>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.

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.