ARC Announces Partnership with ViXS Systems

SAN JOSE, Calif., and ST. ALBANS, England -- June 3, 2008 - ARC International (LSE: ARK), a leading provider of consumer intellectual property (IP) to OEM and semiconductor companies, announced today that ViXS Systems, Inc. has taken a license for ARC's multimedia solutions for use in its XCode™ chipset family.  The XCode family has been a catalyst for one of the hottest trends in consumer electronics: the video processing of multiple high definition (HD) video streams.  Consumers are fueling the need to have HD video content delivered throughout the home, and according to market analysts close to 200 million households will have HD televisions by 2012.  
 
A key part of ViXS's decision to adopt ARC for its XCode chipset family was the multimedia expertise ARC obtained through its recent acquisitions, including Alarity and Teja.  
 
The ARC-Based™ XCode chip already has demonstrated impressive HD video processing performance and is being used by leading CE manufacturers.  Products currently incorporating ViXS's XCode include PVRs that process and store many hours of HD content, place shifting products that distribute HD content over the Internet, PCs that transcode HD video content to popular mobile device formats and Advanced Digital TVs (DTVs).
 
"The consumer electronics industry is moving at a rapid pace towards processing, storing and streaming HD content throughout the home," said Sally J. Daub, president and CEO, of ViXS Systems.  "XCode is the first single-chip multi-stream HD video processing product shipping in the market today with leading CE manufacturers.  Its flexibility enables our OEM and ODM customers the ability to provide compelling HD functionality to consumers: streaming HD video content throughout the home, quickly converting HD video for portable devices, managing and playing user-generated content, watching TV remotely, and recording multiple HDTV programs simultaneously."
 
Carl Schlachte, president and CEO added, "The ViXS XCode solution is a prime example of how ARC enables customers to be successful with products that provide a compelling multimedia experience and achieve a distinct competitive advantage in the market.  We applaud ViXS as they continue to redefine the consumer electronics industry by enabling leading-edge devices that are bringing the world of HD television to consumers."
 
About the ARC-Based™ XCode™ Chip

The XCode 3290 is the world's most advanced MPEG-4 chip that can transcode, encode, and decode multimedia content.  It provides consumers the ability to:  

• Quickly convert video for portable devices and manage their own user-generated video content
• Watch TV remotely
• Time-shift their favorite TV shows
• Play YouTube content
• Distribute video over the Internet
• Record multiple TV programs simultaneously

About ViXS Systems, Inc.

ViXS Systems is a fabless semiconductor company enabling advanced video processing technologies for top-tier Consumer Electronic (CE) and Personal Computer (PC) companies.  The company has developed advanced video codecs with unprecedented capabilities for processing, managing, protecting and distributing broadcast-quality video.  ViXS supplies IC solutions and full production reference designs to the world's top CE and PC manufacturers, OEMs and ODMs.  ViXS XCode video processors are deployed worldwide in a variety of designs such as IPTV/cable set-top boxes, multimedia PC boards, digital TVs, PVRs, and Blu-ray and HD DVD products.  Unique video technologies developed by ViXS, such as encoding, transcoding and decoding, provide CE and PC manufacturers with the necessary feature differentiators they need to become leaders in their respective markets.  An additional ingredient for the success of these products is ViXS' support of worldwide Conditional Access (CA) and Digital Rights Management (DRM) whereby one product platform can support worldwide coverage.  To date, ViXS has issued and filed over 100 patents.  Headquartered in Toronto, Canada, ViXS is a global company with offices located worldwide.  For more information, visit www.vixs.com.
 
About ARC International plc
ARC International is a world leading provider of consumer IP to OEM and semiconductor companies globally.  ARC's award-winning, vertically integrated audio and video solutions enable high quality multimedia content to be captured, shared, and played on a wide range of electronics devices.  ARC's 140+ customers collectively ship hundreds of millions of ARC-Based™ chips annually in products such as Mobile TVs, Portable Media Players, WiFi-/WiMAX-enabled computers, flash storage, digital cameras, network appliances, and medical and government systems.
ARC International maintains a worldwide presence with corporate and research and development offices in San Jose and Lake Tahoe, Calif., St. Albans, England, and St. Petersburg, Russia.  For more information visit www.ARC.com.  ARC International is listed on the London Stock Exchange as ARC International plc (LSE: ARK).