ARC and Realtek Sign Agreement to Extend Reach of ARC Sonic Focus Audio Technology into PCs and Laptops

Companies Have Already Secured Major Design Win with “Tier 1” PC Company

SAN JOSE, Calif., and ST. ALBANS, England, May 26, 2009 – ARC International (LSE: ARK) and Realtek Semiconductor, the premier silicon supplier for PCs and laptops, have agreed to bundle the ARC® Sonic Focus™ suite of audio enrichment software with Realtek codecs shipped to its OEM and ODM customers globally.  In return, ARC has optimized its Sonic Focus software technology for the Realtek codec for PC and laptop applications.  The companies’ efforts already have resulted in a major win with a tier one PC OEM, in which the Sonic Focus software suite on a Realtek codec will enhance the multimedia experience for consumers using music, movies, and games.

“ARC’s Sonic Focus audio enrichment software is generating significant attention among key players in the PC and consumer electronics industry as a means of reducing bill-of-materials costs,” said Wayne Lin, vice president of Computer Peripherals Business Unit at Realtek Semiconductor Corp. “Sonic Focus technology also can be tailored to a specific device so it delivers a unique, signature sound experience.  This creates differentiation for the OEM and ODM customer and is a key reason we chose to partner with ARC for the PC and laptop market.”

“The agreement with Realtek is a significant endorsement of ARC’s audio quality strategy by a renowned industry leader in the PC and embedded markets.  Working in partnership, ARC and Realtek will extend the benefits of Sonic Focus audio technology to a broader range of OEMs and ODMs developing PC and laptop applications,” said Michael Franzi, worldwide vice president of marketing at ARC International. “In the highly competitive consumer electronics market, the key to winning is providing OEM and ODM companies with fast development and cost-effective solutions that improve the multimedia experience for consumers.  Sonic Focus technology is unique in its ability to achieve these goals, while improving the consumer audio experience.  It was developed over years of partnerships with music and movie industry icons and now delivers a powerful audio experience to worldwide consumers using a variety of electronics products.”

The ARC-Realtek agreement marks another milestone in ARC’s new direction of offering complete Sound-to-Silicon solutions to chip manufacturers and OEMs and ODMs customers.

Experience ARC’s Sound-to-Silicon solutions for yourself during Computex 2009 in Taipei from June 2 to June 6. Please contact Maggie.Chou@arc.com to schedule a time to hear a demonstration.