ARC Announces Partnership with ViXS Systems

SAN JOSE, Calif., and ST. ALBANS, England — ARC International (LSE: ARK), a leading provider of consumer intellectual property (IP) to OEM and semiconductor companies, announced today that ViXS Systems Inc., has taken a license for ARC’s multimedia solutions for use in its XCode™ chipset family. The XCode family has been a catalyst for one of the hottest trends in consumer electronics: the video processing of multiple high definition (HD) video streams. Consumers are fueling the need to have HD video content delivered throughout the home, and according to market analysts close to 200 million households will have HD televisions by 2012.

A key part of ViXS’s decision to adopt ARC for its XCode chipset family was the multimedia expertise ARC obtained through its recent acquisitions, including Alarity and Teja.

The ARC-Based™ XCode chip already has demonstrated impressive HD video processing performance and is being used by leading CE manufacturers. Products currently incorporating ViXS’s XCode include PVRs that process and store many hours of HD content, place shifting products that distribute HD content over the Internet, PCs that transcode HD video content to popular mobile device formats and Advanced Digital TVs (DTVs).

“The consumer electronics industry is moving at a rapid pace towards processing, storing and streaming HD content throughout the home,” said Sally J. Daub, president and CEO, of ViXS Systems. “XCode is the first single-chip multi-stream HD video processing product shipping in the market today with leading CE manufacturers. Its flexibility enables our OEM and ODM customers the ability to provide compelling HD functionality to consumers: streaming HD video content throughout the home, quickly converting HD video for portable devices, managing and playing user-generated content, watching TV remotely, and recording multiple HDTV programs simultaneously.

Carl Schlachte, president and CEO added, “The ViXS XCode solution is a prime example of how ARC enables customers to be successful with products that provide a compelling multimedia experience and achieve a distinct competitive advantage in the market. We applaud ViXS as they continue to redefine the consumer electronics industry by enabling leading-edge devices that are bringing the world of HD television to consumers.”

About the ARC-Based™ XCode™ Chip
The XCode 3290 is the world’s most advanced MPEG-4 chip that can transcode, encode, and decode multimedia content. It provides consumers the ability to:

• Quickly convert video for portable devices and manage their own user-generated video content
• Watch TV remotely
• Time-shift their favorite TV shows
• Play YouTube content
• Distribute video over the Internet
• Record multiple TV programs simultaneously.