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ARC’s New Sound-to-Silicon Solutions Achieve Broad Industry Recognition

COMPUTEX COMPUTER EXHIBITION, Taiwan, June 3, 2009 – ARC International (LSE: ARK) today introduced two new Sound-to-Silicon solutions for OEMs and their system-on-chip (SoC) suppliers to wide acclaim by leading industry analysts. Please refer to www.arc.com for more information about ARC’s solutions for Media Phone and Mobile DTV applications.

Jim McGregor, chief technology strategist for In-Stat, said, “Even as video quality has been enhanced through HD and Blu-Ray, consumer electronics audio quality has suffered due to cost constraints.  ARC’s Sonic Focus Solutions change the game by providing a phenomenal experience through even average audio equipment.  Sonic Focus is unique in that it enhances audio quality by adapting its algorithms based on the content in the audio stream rather than taking a generic approach to post processing.  Not only does Sonic Focus provide great audio, it enhances the entire entertainment experience.”

Paul O'Donovan, Gartner's principal analyst, semiconductors group, commented, “ARC new Sound-to-Silicon Solutions provide really high-quality digital audio for consumer products, especially portable ones.  This is a huge opportunity for the company to redefine consumers' expectations of digital audio quality and their unique, complete hardware and software package is a great unique selling point.”

Rich Wawrzyniak, senior analyst for Semico Research Corporation, said, “When people hear ARC’s solution on a Media Phone or Mobile TV device they’ll think: Wow!  The improvements in vocal clarity, in addition to music presence and dialog, are quite palpable.  ARC’s latest technology is a great enhancement that will make these products more appealing to anyone, from Generation Y to Baby Boomers and beyond.  With Sound-to-Silicon, ARC is helping drive the evolution of the IP industry to offer more of a solution to both OEM and silicon suppliers.”

Ben Bajarin, senior analyst at Creative Strategies, said, “The Media Phone is one of the most promising new markets in consumer electronics, and is ready to boom. Telephone service providers view the device as a means of injecting new life into the kitchen wall phone. The Media Phone combines the power of a PC with the always-on functionality of the home telephone. ARC has identified a rapidly moving market with their Media Phone Solution and is providing chip companies and OEMs a fast track to entry.”

Ben Bajarin, senior analyst at Creative Strategies, also commented, “The approaching switchover to all-digital television broadcasting in the United States and other major countries will create an unprecedented opportunity for the Mobile DTV market. According to current market research, following the switchover traditional mobile digital TV broadcasters and cellular operators in many regions will launch DTV services that are forecast to attract over 500 million viewers by 2013. ARC is on the right track targeting this emerging market with a solution that makes companies more competitive while lowering their overall development costs.”

Tom R. Halfhill, senior analyst for In-Stat's Microprocessor Report, said, “ARC’s new Sound-to-Silicon platform is a smart way to leverage last year’s acquisition of Sonic Focus. ARC has a complete development package and audio subsystem for next-generation consumer gadgets, including Media Phones and Mobile DTVs. ARC’s technology conserves silicon and power while delivering high-quality sound.”

Will Strauss, president of Forward Concepts, said, “By embedding ARC’s Sound-to-Silicon technology, chip suppliers can eliminate much of their own multimedia development costs and enable better-sounding devices for their customers.  In particular, ARC’s ability to offer a unique ‘Loudness Advantage’ is very interesting and one of the key benefits of their approach.”

ARC, ARC-Based and Sonic Focus are trademarks or registered trademarks of ARC International with the U.S. Patent and Trademark Office and other international trademark organizations. 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.