XStreamHD(TM) Purchases License for Audio Processing Technology From ARC International

SAN JOSE, Calif. & ST. ALBANS, England—(BUSINESS WIRE)—September 30, 2008— ARC International (LSE:ARK), a world leading provider of consumer intellectual property (IP) to OEM and semiconductor companies globally, today announced that XStreamHD has taken a license for ARCs audio processing technology. XStreamHD has selected ARC audio processing technology for decoding of Dolby® Digital Plus for XStreamHDs ultimate home entertainment system which delivers Full HD (1080p) video and studio quality audio directly to the home via satellite.

The XStreamHD solution enables consumers to build unparalleled in-home entertainment networks and enjoy Premium HD content; including 1080p movies, lossless music, electronic games and HDTV anywhere in the home. XStreamHDs whole home HD entertainment solution includes the revolutionary XStreamHD Media Server that networks with multiple DLNA® compatible devices including the compact XStreamHD Media Receiver, TV, PC and game consoles.

IMS Research analysts forecast the worldwide market for HDTV to grow to nearly 148 million HDTV households by 2011, with nearly 41 percent of those households receiving HDTV programming via satellite. With XStreamHD consumers can select and enjoy Premium HD content from their Virtual Personal Library on their schedule. We are very excited to work with XStreamHD as they roll-out sea change technology that taps into consumer demand for easily accessible Premium HD, said Carl Schlachte, ARCs president and CEO.

ARCs audio processing technology was an essential building block in the development of our SoCs, said XStreamHD founder and CEO George Gonzalez. Our unique transport network is capable of delivering Full HD (1080p) video and up to 7.1 channels of lossless audio directly to the home via satellite to offer consumers a superior entertainment experience. We have carefully selected every component to build our revolutionary whole home entertainment solution.

XStreamHD is a great example of how ARC helps our customers maximize their success by accommodating fast moving market changes, said Schlachte. Furthermore, our engagement with XStreamHD provides an example of how we enable our customers to develop disruptive technology through a combination of our multimedia IP and software.

About XStreamHD

XStreamHD is leading the HD revolution and setting a new standard for the delivery and distribution of Full HD entertainment throughout the home. XStreamHD provides the first-ever transport network that delivers movies, music and games directly to the home via satelliteoffering Full HD (1080p) video and up to 7.1 channels of lossless audio. With XStreamHD, consumers can build a customized, unique, and unparalleled in-home entertainment network and enjoy the content they want most - including movies, music, electronic games, broadcast HDTV, and more - when its most convenient, anywhere in the home, and at the quality todays home theaters were designed to support. XStreamHD is based in McLean, Virginia. For more information, visit www.XStreamHD.com.

About ARC International plc

ARC International is a world leading provider of consumer IP to OEM and semiconductor companies globally. ARCs 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. ARCs 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).

ARC, ARC-Based, 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 companys Website as well as the listing particulars filed with the United Kingdom Listing Authority and the Registrar of Companies in England and Wales.

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