ARC International plc ("ARC" or the "Company") Interim Management Statement.

SAN JOSE, Calif. & ST. ALBANS, England -- ARC International (LSE:ARK), a leading provider of consumer intellectual property (IP) to OEM and semiconductor companies, today issued its first Interim Management Statement as required by the UK Listing Authority's Disclosure and Transparency Rules, covering the period January 1, 2008 to the date of this announcement.

Current Trading and Financial Performance

ARC has signed a number of new licensing agreements since the beginning of the year including contracts delayed from the fourth quarter of 2007.

Backlog and cash position remain strong and ARC is achieving cost savings as a result of recent acquisitions. Conditions in North America continue to reflect weakness in the U.S. economy and some prospective customers are experiencing delays and cancellations of planned projects. Despite the market softness, new licensing opportunities continue to be identified. Management remains confident in the company's trading opportunities and expects ARC's financial performance for the year ending December 31, 2008 to be in line with expectations.

Acquisition

On February 12, 2008, ARC acquired Sonic Focus, Inc. and its audio enhancement technology designed for a wide range of electronic products. For financial year 2007, Sonic Focus operations were breakeven with approximately PS600,000 in revenue. The acquisition is not expected to negatively impact ARC's 2008 operating results. Sonic Focus has an established customer base of "Tier 1" OEMs globally and is gaining significant traction in the audio post-processing market. We are making good progress on our integration plans.

Outlook

ARC has a solid foundation upon which to deliver continued growth. Management's confidence in the company's trading prospects remains unchanged since the preliminary results statement in February.

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([TM]) 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).

ARC, ARC-Based, and Sonic Focus 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.