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Last checked at 
10 Nov 2008 07:00
Media Contact: Investor Contact:
Lee Garvin Flanagin Juliet Clarke/Matt Dixon
ARC International Financial Dynamics
+1 408 437 3433 +44 20 7831 3113
Lee.Flanagin@arc.com ark@fd.com
ARC International plcInterim Management Statement
Trading In Line with Market Expectations
SAN JOSE, Calif., and ST. ALBANS, England, November 10, 2008 - ARC International plc (LSE: ARK), a leading provider of consumer IP to OEM and semiconductor companies globally, today issued the following Interim Management Statement for the period from July 1, 2008 to the date of this announcement.
Overview ARC's strategy of delivering vertically integrated multimedia solutions meshes well with ongoing and fundamental changes in the way consumer electronics devices are designed. The recently announced company restructuring to increase operational efficiencies and lower costs was early recognition of the challenging macro economic environment, which ARC expects to continue through 2009. As a result, ARC can now compete on a reduced cost basis while increasing its multimedia development resources, thereby accelerating the time to profitability and positive cash flows. This will strengthen ARC's competitive position and help grow its market share against the backdrop of a changing semiconductor industry.
Current Trading
Despite the current economic and industry environments and with its restructuring expected to be completed on schedule, ARC remains on target to achieve its 2008 revenue goals in line with market expectations. As demonstrated by recent licensing wins, customers from OEM and semiconductor companies continue to show strong interest in ARC's vertically integrated multimedia solutions, which include ARC's Sonic Focus audio enrichment technology. Royalty revenue from post-2004 contracts is strengthening due to better-than-anticipated market acceptance of ARC-Based™ consumer electronics devices in 2008. ARC's cash position remains strong, and the company is, as planned, starting to realize the financial benefits of the recently announced restructuring.
Outlook
For 2009 management remains cautious due to continuing uncertainty in the economic environment and fundamental industry changes. However, management is confident that ARC is well positioned to enhance its strategy of delivering vertically integrated multimedia solutions, while leveraging an optimized company structure that can operate on a reduced cost basis and a strong cash position.
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About ARC International plc
ARC, ARC-Based, and Sonic Focus are trademarks or registered trademarks of ARC International with the U.S. Patent and Trademark Office and other international trademark organizations. 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.
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