New VRaptor(TM)-Based ARC(R) Video Subsystems Set the Standard for High Quality Video Encode in Consumer Devices.

Patent Pending "Dynamic Adaptive Encoding" Technology Enables Ultra Low Power Operation to Meet Wide Ranging System Constraints

ST. ALBANS, England -- ARC International (LSE:ARK) today set a new standard for high-quality video encoding with the introduction of five new members of the ARC[R] Video Subsystem family: AV 417V, AV 407V, AV406V, AV 404V, and AV 402V. All include ARC's new patent-pending technology "dynamic adaptive encoding" that enables encoding of video streams at the lowest power. The products are capable of encoding and decoding up to Standard Definition resolution video using advanced video coding standards such as H.264. The AV 417V is already shipping to customers; all are now available for licensing by companies worldwide.

ARC Video Subsystem family members enable SoC designers to quickly create unique products for a range of portable media players and tethered consumer multimedia appliances. Based on the recently introduced VRaptor[TM] Multicore Architecture, each is programmable, encodes and decodes a wide range of popular video standards, and comes with optimized media processing elements including:

    -- A member of the configurable ARC 700 core family

    -- Up to two 128-bit SIMD Media Processors

    -- A dual-channel media-optimized DMA engine

    -- Separate multi-standard encoding and decoding accelerators

    -- Programmable motion estimation accelerator

    -- SoC development tools

    -- Optimized video codecs:

        -- (encoders) H.264 BP, MPEG-4 SP/ASP, H.263 profile 0, and
           JPEG

        -- (decoders) H.264 BP, MPEG-4 SP/ASP, H.263 profile 0, VC-1
           SP, MPEG-2 MP, MJPEG, JPEG, GIF, TIFF, and PNG

The ARC[R] Video Subsystem Family

The new family comprises five new subsystems that are based upon the VRaptor Multicore Architecture. Features and configuration for all five are shown in the table below:

[TABLE OMITTED]

"ARC's new family of VRaptor-based video subsystems represent several steps forward for designers looking to use third Party IP to craft their next silicon solution," said Richard Wawrzyniak, senior market analyst for ASIC and SoC, at Semico Research Corp. "The subsystems' very low power consumption coupled with high performance and very small die size make them ideal to incorporate into next generation SoCs that are trying to hit low price points. In addition, the RISC processor in these heterogeneous, multicore subsystems can function as the processing element in many applications without needing to interface to a host processor making them even more attractive. They can double as processors themselves performing computing functions other than just those specific to the target feature set."

High Quality Video Encode - the New Frontier in Multimedia Processing

Websites such as YouTube that enable individuals to post personally crafted video vignettes are a social phenomenon rapidly spreading around the globe. However, video quality of this content suffers from being captured by low-quality encoders that are typical in today's camera phones and digital cameras.

With the high quality encode capability in the new ARC Video Subsystems, SoC developers can design chips that are differentiated and solve the disparate challenge of providing superior resolution encoding while consuming little power. Market opportunities for such products are booming. Research firms project the worldwide installed base of just camera phones will top 1.5 billion units by 2010, becoming the most prevalent image capture devices in the world.

ARC - Setting the Standard in Video Quality

The top of the new line of ARC Video Subsystems is the AV 417V. Using the City video benchmark (a 30-second video clip of the Manhattan skyline) it achieves approximately a 300 percent improvement in quality compared to quality from the encoders typically found in today's portable devices.

The ARC Video Subsystems achieve high quality video encode by employing algorithms ("tools") specified from standards bodies for video codecs such as H.264, which is up to five times more complex than other coding standards. Their high performance architecture (based on VRaptor) allows usage of the demanding encoding algorithms at reasonable clocking frequency resulting in a power-efficient solution.

The AV 417V Subsystem occupies just 4.95 mm2 in a 90nm process technology and achieves the following encode and decode performances:

* H.264 BP encode of D1, 30 fps video stream of up to 10 Mbps bit rate, operating under 200 MHz 

* H.264 decode of D1, 30 fps video stream of 1.5Mbps bit rate, operating at 160 MHz

Low Power Via ARC's New "Dynamic Adaptive Encoding" Technology

A major innovation embodied in the new members of ARC's Video Subsystem Family is the patent pending technology called Dynamic Adaptive Encoding. The technology encodes video optimally under any system condition. Video encoding is a repetitive task that executes a set of algorithms to encode a digitized video stream or a set of digitized still images into such standards as H.264 BP, MPEG-4 SP/ASP, H.263 profile 0, and JPEG. Dynamic Adaptive Encoding continuously evaluates system resources and adaptively applies different processing resources to achieve the optimum result. For example, dynamic adaptive encoding allows the designer to adjust the encoding process in a phone with a fully charged battery versus one running close to empty.

ARC Video Subsystems - A New Way to Differentiate SoCs

Un-optimized, general purpose CPUs and DSPs cannot efficiently process complicated multimedia algorithms. Therefore, SoC designers typically have to implement numerous general purpose cores on a chip resulting in exploding silicon footprints and high power consumption. This approach is less than ideal for portable applications.

Alternatively, dedicated fixed-function hardware blocks are used to process specific media algorithms. However, this approach offers no programmability to adapt to evolving codec standards thereby limiting the product's life span. ARC's Video Subsystems are uniquely optimized to the special processing needs of video and audio applications. They are as follows:

* Programmable to handle multi-format codecs and additional user-specific applications

* Configurable to enable maximum product differentiation 

* Pre-integrated and pre-verified to eliminate much of the software and hardware design effort

* Efficient video encode using very low power and little silicon real estate

ARC VRaptor[TM] Multicore Architecture

The new members of the ARC Video Subsystem family are based upon the recently introduced VRaptor Multicore Architecture. It is a scalable heterogeneous processor architecture that overcomes the performance challenge of low power multimedia processing. VRaptor provides three distinct classes of ARC core modules. The first class includes a configurable 700 family core, and a range of specialized SIMD multimedia processors optimized for functions such as low-pass deblocking filters and pixel transforms. The second class includes accelerators, such as entropy encoders and decoders and motion estimators. These perform multimedia processing tasks more efficiently than general-purpose, programmable cores. And the third class includes high speed DMA controllers to relieve the CPU from complex data movement often found in multimedia codecs.

Connecting VRaptor's heterogeneous multicore resources together is its unique remote procedure invocation over communication channels capability. The 700 processor core, SIMD accelerators, DMA engine, entropy encoders and decoders, and motion estimation accelerators are all loosely coupled and operate independently of one another. The 700 processor core apportions work to each of the accelerators using a simple fire-and-forget message. The message in main memory enables a zero overhead context switch that directs the accelerator to perform a task and inform the 700 processor when complete, at which time the 700 processor immediately issues the accelerator another context switch that initiates another task. In this manner all the accelerators are kept running independently at full speed without having to await the result of any other processing resource in the system.

Availability

The ARC Video Subsystem family is now available for licensing by companies worldwide. For more information contact ARC International at [e-mail] or visit www.arc.com.

About ARC International plc

ARC International is the world leader in configurable media subsystems and CPU/DSP processors. Used by over 140 companies worldwide, ARC's configurable solutions enable the creation of highly differentiated system-on-chips (SoCs) that ship in hundreds of millions of devices annually. ARC's patented subsystems and cores are smaller, consume less power, and are less expensive to manufacture than competing products.

ARC International maintains a worldwide presence with corporate and research and development offices in Silicon Valley and St. Albans, 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.