CopperGate Takes New Multiuse ARC(R) License to Develop Home Networking Products

SAN JOSE, Calif. & ST. ALBANS, England--(Business Wire)--
ARC International (LSE:ARK), a leading provider of consumer
intellectual property (IP) to OEM and semiconductor companies, has
announced a new license agreement with CopperGate Communications.
CopperGate's products enable consumers to use existing coaxial and
phone lines in the home to network, share and play multimedia content
via entertainment devices such as HD-enabled IPTVs and multi-room
DVRs. CopperGate will use its new ARC license to create high
performance, next-generation chipsets targeting the "existing wire"
home networking and Multi-Dwelling Unit (MDU) broadband access
markets.

The home entertainment services market has evolved from the
single-service option of the past decade to a market in which service
providers offer combined voice, video, and Internet access packages to
consumers. CopperGate is at the forefront of this market shift,
commercializing technology developed with multi-company consortiums
that support and standardize these new "Triple-Play" services using
existing-wire home networking solutions.

"Consumers and operators crave bandwidth for home entertainment
applications like triple play and this agreement makes it easy for
CopperGate to deliver the performance they require," said Gabi
Hilevitz, chief executive officer of CopperGate. "With the latest ARC
technology, CopperGate will continue to be the performance
leader--staying ahead of growing customer needs by enabling gateways,
optical network terminals and set-top boxes to easily network over
existing wires."

Bill Jackson, ARC's vice president of marketing, added, "The
prevailing business model for IP licensing is to purchase by the
project. In a fast moving, competitive market environment, the model
is sorely out of date. This new agreement provides CopperGate a
long-term, corporate-wide licensing arrangement that allows them to
concentrate on their core technology development while ARC
concurrently enhances the licensed IP."

About CopperGate

CopperGate Communications, the Everywire Home Networking
Company(TM) develops high performance chipsets for broadband access
and networking for high fidelity home entertainment applications such
as HD-enabled IPTV, multi-room DVRs, and video on demand (VOD). As a
leader in multi-wire home networking, only CopperGate is capable to
offer both HomePNA and HomePlug technology for individual homes and
multi-dwelling and multi-tenant units (MDU/MTU) worldwide. CopperGate
chipsets have been deployed by leading triple-play service providers
representing nearly 100 million lines and have already connected more
than 15,000 miles of coax. Founded in 2000, CopperGate is
headquartered in Tel Aviv, Israel with offices in the United States,
Taiwan, Korea, China and Japan.

For more information, please visit www.copper-gate.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(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 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, 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.

ARC International
Jonah McLeod, +1-408-437-3477
Jonah.Mcleod@arc.com

Copyright Business Wire 2008