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ARC Launches Sound-to-Silicon Audio IP Solutions

Solutions Cut OEM and Chip Vendor Development Costs While Delivering Consumers Superior Audio Quality

ARC International (LSE: ARK) today introduced new vertically integrated audio intellectual property (IP) solutions for three major consumer electronics product categories: digital TVs and home theaters, portable media devices, and PC and laptop computers. These “sound-to-silicon” solutions comprise ARC’s industry leading audio enrichment software, low power hardware platform, optimized codecs and related software, and development and mastering tools and services. ARC’s solutions are an industry first, and can save OEM and semiconductor companies millions of dollars in development costs while providing consumers superior audio experiences for music, movies, and games.

OEMs benefit from ARC’s Sonic Focus™ software’s acoustical modeling and time domain analysis engine that was created in the studio and on the stage and refined by years of partnerships with world class music industry icons and fans. Optimized to the low power ARC Sound Subsystem, it delivers a natural listening experience and extends playback time on battery powered products. Lastly, OEMs benefit from mastering tools and services, and can choose from multiple silicon suppliers offering ARC-Based chips for their devices.

For semiconductor companies, the “Sonic Focus ready” ARC Sound Subsystem offers one of the lowest power and smallest form factors in the industry. Codecs, drivers, OSs, and software development and EDA tools complement the configurable ARC processor in the subsystem, reducing development and test time. By leveraging the configurable nature of the ARC Sound Subsystem in combination with the scalable Sonic Focus audio IP, semiconductor customers can design a platform to target multiple audio applications.

“ARC is pioneering a new way for OEM and chip companies to deliver compelling electronics products. With our new sound-to-silicon solutions, customers can create unique products that increase competitiveness, lower development costs, and greatly improve the consumer multimedia experience in a variety of key market segments,” said Carl Schlachte, president and CEO of ARC International.

“The appeal of digitized music is the convenience of having a huge library of music and video recordings instantly available on your home computer or in the palm of your hand,” says Tom Paddock, vice president of audio systems at ARC International. “However, the digitization process removes much of the dynamic impact, the warmth and the “life” from the original recording. The Sonic Focus technology, driving ARC’s three new vertically integrated solutions, restores nearly all of that lost fidelity and results in a listener experience that more closely resembles the artist’s original intention.”

Enriched Bass Listening Experience
Each ARC solution includes the recently introduced Virtual Bass™ software that delivers a rich bass sound on existing speakers and headphones, thereby eliminating the need for expensive woofers. For a video describing this new technology please visit http://www.arc.com/sonicfocus/virtual_bass.html and click on the video icon shown below.

ARC Portable Media Device Solution
Implemented on a portable media device, the ARC PMD solution enables consumers to enjoy music, movies, and games anywhere and anytime with a home entertainment center listening experience and extended playback time. It provides an integrated audio offering that chip vendors can differentiate to reduce silicon cost and operating power and provide competitive advantage. The solution allows OEMs to cut their manufacturing cost while building a product that will engage the consumer.

ARC Digital TV and Home Theater Solution
The ARC Digital TV and Home Theater solution creates a compelling home entertainment center listening experience that provides for the ear what high-definition video provides for the eye. The ARC solution eliminates costly components for the OEM, such as center channel speakers and woofers, thus reducing speaker count along with amplifiers and hardware. The ARC solution enables chip builders to create a differentiated device that addresses set-top box, digital TV, home theater, and home media server applications.

ARC PC and Laptop Solution
The ARC Personal Computer and Laptop audio solution provides a home entertainment center listening experience on PCs and laptops using existing speakers or headphones. The solution comprises industry-leading ARC Sonic Focus audio enrichment products that refine the sound so it resembles the original performance, while eliminating the need for costly audio components.

Availability
ARC’s integrated audio solutions are available immediately for licensing to OEMs and semiconductor companies. ARC-Based chips incorporating the “Sonic Focus ready” ARC Sound Subsystem are available to OEMs. For more information, contact info@arc.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 www.ARC.com. ARC International is listed on the London Stock Exchange as ARC International plc (LSE: ARK).

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ARC, ARC-Based, Sonic Focus, and Virtual Bass 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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