Holding in Company

Arc International PLC
27 June 2001


LETTER TO COMPANY ANNOUNCEMENTS OFFICE

NOTIFICATION OF INTEREST(S) IN SHARES UNDER SECTION 198 COMPANIES ACT 1985 
('THE ACT')

We have been advised today by AXA Investment Managers UK Ltd that AXA S.A. of
25 Avenue Matignon, 75008 Paris and its subsidiaries are deemed to have an
interest in our shares as fallows:

AXA S.A. knows that they were interested in 17,721,848 ordinary shares of 0.1p
in the 276,333,525 share capital immediately after the time when the obligation
of disclosure arose pursuant to section 198 of the Act. These share represent a
material interest of 16,731,075 shares (6.05%) and a non-material interest of
990,773 shares (0.36%).

The identity of each registered holder of the shares to which this notice
relates as far as is known to AXA Investment Managers UK Ltd as at 16/02/01 is
per the Appendix below.

This notification of change is due to an increase in the material holdings from
5.92% to 6.05%.

LETTER FROM ARC INTERNATIONAL PLC
 

                     DISCLOSURE OF INTERESTS IN SHARES OF
           APPENDIX - NOTICE UNDER SECTION 198 OF THE COMPANIES ACT 1985
                     ARC INTERNATIONAL PLC ORD GBP0.001 SHARES

Total number of shares held as at 25/06/01 was 17,721,848 the breakdown of which
is set out below:

Name of the                     Number of    Particulars of      Registered
Company Fund                    Shares       Beneficial          as
                                             owners

AXA UK Investment Co ICVC            696     Trustees of AXA     HSBC Global
UK Tracker Fund                              UK Investment Co    Custody Nominee
(Non-Beneficial)                             ICVC UK Tracker     (UK) Limited
                                             Fund                a/c 845315

AXA UK Investment Co ICVC          7,250     Trustees of AXA     HSBC Global
Distribution Fund                            UK Investment       Custody Nominee
(Non-Beneficial)                             Co ICVC             (UK) Limited
                                             Distribution        a/c 845029
                                             Fund

AXA UK Investment Co ICVC        148,700     Trustees of AXA     HSBC Global
UK Growth Fund                               UK Investment       Custody Nominee
(Non-Beneficial)                             Co ICVC             (UK) Limited
                                             UK Growth Fund      a/c 845005

Sun Life Global                    5,602     Trustees of the     Bank Generale
Management Ltd                               Sun Life Global     Luxembourg
UK Growth                                    Management UK       a/c 750749
(Non-Beneficial)                             Growth

AXA World Funds                  25,901      (Registration
British Equities Fund                         details 
(Non-Beneficial)                              available upon
                                              request)

AXA World Funds                     247      (Registration
UK Balanced                                   details
(Non-Beneficial)                              available upon
                                              request)


Sun Life Nominees Ltd             2,587       Trustees of the    HSBC Global
A/c 10                                        ABB Kent Pension   Custody Nominee
(Non-Beneficial)                              Scheme             (UK) Limited
                                                                 a/c 777043

Sun Life Nominees Ltd             1,269       Trustees of the    HSBC Global
A/c18                                         WABCO Automotive   Custody Nominee
(Non-Beneficial)                              UK Pensions Scheme (UK) Limited
                                                                 a/c 777086

Sun Life Nominees Ltd               544       Trustees of the    HSBC Global
A/c 20                                        Princes Pension    Custody Nominee
(Non-Beneficial)                              Scheme             (UK) Limited
                                                                 a/c 777094

Sun Life Nominees Ltd             1,384       Trustees of the    HSBC Global
A/c 29                                        Cobham Pension     Custody Nominee
(Non-Beneficial)                              Plan               (UK) Limited
                                                                 a/c 777167


Sun Life Nominees Ltd               198       Trustees of the    HSBC Global
A/c 31                                        Princes (1977)     Custody Nominee
(Non-Beneficial)                              Pension Scheme     (UK) Limited
                                                                 a/c 785078

Sun Life Nominees Ltd               857       Eldridge Pope      HSBC Global
A/c 32                                        Pension Fund       Custody Nominee
(Non-Beneficial)                                                (UK) Limited
                                                                 a/c 873426


Sun Life Pensions                20,499       Sun Life Pensions  HSBC Global
Management Ltd                                Management Ltd     Custody Nominee
(Beneficial)                                                     (UK) Limited
                                                                 a/c 867815

Sun Life Pensions                31,358       Sun Life Pensions  HSBC Global
Management Ltd A/c X                          Management Ltd     Custody Nominee
(Beneficial)                                                     (UK) Limited
                                                                 a/c 867396

Sun Life Pensions               500,000       Sun Life Pensions  HSBC Global
Management Ltd A/c X                          Management Ltd     Custody Nominee
(Beneficial)                                                     (UK) Limited
                                                                 a/c 867530

Sun Life Pensions                98,259       Sun Life Pensions  HSBC Global
Management Ltd A/c X                          Management Ltd     Custody Nominee
(Beneficial)                                                     (UK) Limited
                                                                 a/c 867372

Sun Life Assurance            6,643,150       Sun Life Assurance HSBC Global
Society Plc                                   Society Plc        Custody Nominee
(Beneficial)                                                     (UK) Limited
                                                                 a/c 776934

Sun Life Unit Assurance         300,000       Sun Life Unit      HSBC Global
Ltd A/c X                                     Assurance Ltd      Custody Nominee
(Beneficial)                                                     (UK) Limited
                                                                 a/c 857268

Sun Life Pensions                21,000       Sun Life Pensions  RBSTB nominees
Management Ltd                                Management Ltd     designation
(Beneficial)                                                     Sunpen


AXA France                      147,500       (Registration
(Non-Beneficial)                              details available
                                              upon request)

AXA Royala Belge                417,000       (Registration
(Non-Beneficial)                              details available
                                              upon request)

AXA Luxembourg                  100,000       (Registration   
(Non-Beneficial)                              details available
                                              upon request)

AXA Sun Life plc              9,115,158       AXA Sun Life plc   Axa Sun Life 
(fmly Axa Equity &                            (fmly Axa Equity   plc
Law Life Assurance Society                    & Law Life 
plc)                                          Assurance Society
(Beneficial)                                  plc)

AXA General Unit Trust
(Non-Beneficial)                 80,405       HSBC Global        HSBC Global
                                              Custody Nominee    Custody Nominee
                                              (UK) Limited       (UK) Limited
                                              as Trustees of the a/c 880866
                                              Trust

NM Master Trust                     143       National Mutual    State Street
Superannuation                                Life Association   Nominees Ltd
(fmly NMZ EFG                                 of Australia       A/C U828
International Sector Fund)                    (New Zealand)
(Beneficial)

NMLA Statutory Funds                950       National Mutual    State Street
(Beneficial)                                  Life Association   Nominees Ltd
                                              of Australia       A/C U827

NMNZ Life Fund                      294       National Mutual    State Street
                                              Life Association   Nominees Ltd
                                              of Australia       A/C U828
                                              (New Zealand)


NMLA Smaller Companies              264       National Mutual    State Street
(Beneficial)                                  Life Association   Nominees Ltd
                                              of Australia       A/C UE08

NMFM International Fund             199       Trustees of the    State Street
(Non-Beneficial)                              NMFM International Nominees Ltd
                                              Fund               A/C UE20

NM Global Fund                      110       Trustees of the    State Street
(Non-Beneficial)                              NM Global Fund     Nominees Ltd
                                                                 A/C UE28

AXA UK Group Pension Scheme      50,324       AXA UK Group       Chase Nominees
(Non-Beneficial)                              Pension Scheme     Ltd
                                                                 a/c 00994

                                              Holding as %
                                              of issued capital
Total Beneficial Interest    16,731,075            6.05
Total Non-Beneficial Interest   990,773            0.36

Total                        17,721,878            6.41%