Silicon Motion Takes an ARC® License to Target Digital Multimedia and Solid State Storage Devices

TAIPEI, Taiwan & SAN JOSE, Calif. & ST. ALBANS, England - January 27, 2009 - ARC International (LSE:ARK) announced that Silicon Motion Technology Corporation (NasdaqGS:SIMO) has taken a license to design ARC’s IP into chips for high-volume consumer multimedia products such as mobile TV, portable media players and MP4 players, as well as flash memory and solid state storage devices.

Using ARC’s configurable multimedia IP platforms, Silicon Motion determined they can rapidly design highly differentiated chips that cost less and operate more efficiently than alternative solutions. And utilizing ARC’s technology across Silicon Motion’s product portfolio can bring multimedia capabilities to consumers in new and exciting devices in a cost efficient way.

"Demand in digital multimedia has created a significant increase in consumer and embedded devices that allow users to view, store, share, and enjoy their pictures, video and digital music anytime and anywhere,” said Wallace Kou, president and CEO of Silicon Motion. “ARC has been a good partner in delivering IP that we can differentiate to serve this growing market demand. We plan to leverage this new licensing agreement to extend our leadership by developing leading edge SoCs that efficiently process and store audio, video and data files, while reducing power consumption for portable applications."

"Silicon Motion is a valued customer that is at the forefront of creating solutions that enhance the consumer multimedia experience,” said Carl Schlachte, president and CEO of ARC International. "This new license agreement is a testament to the complete solution we bring to our customers that include tools to quickly build a chip solution, as well as IP solutions that are more power efficient and can be implemented at lower cost than competitive offerings. We look forward to continuing our long term relationship with Silicon Motion.”

About Silicon Motion


Silicon Motion Technology Corporation (NasdaqGS:SIMO) is a fabless semiconductor company that designs, develops and markets high performance, low-power semiconductor solutions for the multimedia consumer electronics market. We have three major product lines: mobile storage, mobile communications, and multimedia SoCs. Our mobile storage business is composed of microcontrollers used in NAND flash memory storage products such as flash memory cards, USB flash drives, SSDs, embedded flash applications, and card readers. Our mobile communications business is composed of mobile TV tuners, CDMA RF ICs, and electronic toll collection RF ICs. Our multimedia SoCs business is composed of products that support portable multimedia players, DAB systems, PC cameras, and embedded graphics applications.
For additional information on Silicon Motion, please visit: http://www.siliconmotion.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 150+ 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, St. Petersburg, Russia, and Hyderabad, India. For more information visit http://www.arc.com. ARC International is listed on the London Stock Exchange as ARC International plc (LSE:ARK).


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