VXIS Adopts Configurable ARC(TM) Video Subsystem For Portable Digital TV Applications.

HSINCHU, Taiwan -- ARC International (LSE:ARK), the world leader in configurable CPU/DSP processors and application-specific subsystems, today announced that VXIS Technology Corporation of Taiwan has taken a license for the ARC(TM) Video Subsystem. VXIS will use ARC's configurable and pre-verified Video Subsystem to create system-on-chips (SoCs) for the high-growth portable digital TV market. This announcement is part of a series of new licensing agreements ARC made public today from its Hsinchu, Taiwan office. Visit www.arc.com for more details.

VXIS develops semiconductor chips for digital video imaging systems. The company already has successfully deployed products for video decoding, video deinterlacing and advanced video capture applications. In July 2004, VXIS released a video processing chip for small and medium size flat-panel displays, and now has a commanding share of the sub-ten inch LCD market. The VX1818 chip is the first one to integrate video decoder, scalar, deinterlacing capability with T-CON (Timing Controller) and OSD (On Screen Display) functions in an integrated solution for small and medium size flat-panel display monitors.

"When we saw the ARC Video Subsystem demonstrated at ConfigCon Taiwan, we immediately knew it offered our design team a robust platform for the development of next-generation LCD display chips," said David Cho, president of VXIS Technology Corporation. "During the evaluation process, ARC's Video Subsystem demonstrated better results than a number of competitive solutions, including fixed architecture products. The ARC Video Subsystem met the small size, low power consumption and video processing requirements."

Gregory Fawson, president of S2 Data Corporation, said, "The demand for mobile digital TV-capable platforms is set to explode as operators launch entertainment services over emerging DVB-H, MediaFLO, DAB and multicast networks. ARC's Video Subsystem will enable silicon suppliers to develop SoCs for the mobile DTV market meeting OEM demands for a powerful multi-format media processing platform, with rich functionality and a low power profile. We anticipate that the industry will receive more details on ARC solutions for mobile DTV at the upcoming Mobile DTV Technology and Strategy Conference on May 24th in San Jose where ARC will be presenting."

Derek Meyer, senior vice president of sales and marketing at ARC, added, "ARC Video is one of our newest configurable subsystems that is experiencing tremendous demand from companies creating SoCs for media-centric applications. VXIS, already a leader in the LCD market, will be able to leverage our Video Subsystem to enhance their strong product portfolio with value-added capabilities. We welcome VXIS to the growing community of companies that have adopted our patented configurable products and look forward to their success with future ARC-Based solutions."

About S2 Data Corporation's Mobile Digital TV Conference

The Mobile DTV Technology and Strategy Conference is the industry's most vital forum to develop strategic directions for the development of new platforms, services and technologies which will transform the way consumers experience mobile content. The Mobile DTV Conference provides attendees with perspectives from the leading innovators among semiconductor companies, device manufacturers, operators, content owners, and technology suppliers. Attendees will gain valuable insights on making the right strategic technology decisions and deploying and managing the complex Mobile DTV technology ecosystem. Visit www.s2data.com/mdtvcon for more information.

About the Configurable ARC(TM) Video Subsystem

The ARC Video Subsystem includes an ARC 700 family core that is coupled with the company's award winning single instruction multiple data (SIMD) accelerator, which was specifically designed for video and audio processing. A media-centric DMA engine incorporated in the ARC Video Subsystem is highly tuned to efficiently handle multimedia packet transfers. Supported video decoders include H.264, VC-1, MPEG-4 and MPEG-2. Supported imaging codecs include JPEG, MJPEG, GIF, PNG and TIFF.

The ARC Video Subsystem is programmable, enabling the customer to include additional codecs or algorithms. Because it's based upon an ARC 700 family core, the subsystem can run at up to 533 MHz in a 0.13 micron process, and developers can use the same software development tools that support a 700-class processor. The ARC SIMD accelerator in the Video Subsystem was developed to exploit data parallelism that is abundant in media applications. A single instruction can compute up to eight separate 16-bit video pixels in parallel through the use of a 128-bit wide data path. ARC's SIMD accelerator utilizes in excess of 100 new vector instructions that were specifically selected to accelerate algorithms commonly used in video and imaging applications, such as discrete cosine transforms and filters. It is directly coupled with the configurable 700 family core in the subsystem, and is more efficient than using a fixed core with a bus-connected hardwired co-processor.

About VXIS Technology Corporation

VXIS Technology Corp was founded in February 1999, with the D-Link Corporation and SiS Technology Corporation as its corporate shareholder. VXIS is located in the Hsinchu Science-based Industrial Park, and focuses on the development of chips for digital video imaging systems. VXIS already has successfully developed products including video decoder, video deinterlacer and advanced video capture ICs. In July 2004, VXIS released a video processing chip for small and medium size flat-panel displays, the VX1818. The chip is the first one on the market to integrate video decoder, scalar, deinterlacing, T-CON (Timing Controller) and OSD (On Screen Display) functions as a completely integrated solution for small and medium size flat-panel display monitors. For more information, please visit www.vxis.com

About ARC International plc

ARC International is the world leader in low-power, high-performance 32-bit configurable CPU/DSP processor cores, subsystems, real-time operating systems and development tools for embedded system design. ARC's patented configurable CPU technology assists customers in the development of next generation digital media, consumer and communications devices, resulting in lower cost, higher performance SoC products.

ARC International maintains a worldwide presence with corporate offices in San Jose, California, USA and Elstree, UK. The company has research and development offices located in England and the United States. For more information please visit the ARC website at: www.ARC.com. ARC International is listed on the London Stock Exchange as ARC International plc (LSE:ARK).

ARC, the ARC logo and ARC-Based 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. For 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.