Holding(s) in Company

Arc International PLC
18 January 2002

LETTER TO: COMPANY ANNOUNCEMENTS OFFICE



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

We have been advised on 17th January 2002 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 follows:

AXA S.A. knows that they were interested in 31,222,643 ordinary shares of 0.1 p 
in the 283,465,840 share capital immediately after the time when the obligation 
of disclosure arose pursuant to section 198 of the Act. These shares represent a
beneficial interest of 19,670,252 shares (6.94%) and a non-beneficial interest 
of 11,552,391 shares (4.08%).

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 16/01/02 is 
per the Appendix below.

This notification is due to an increase in the total holding from 10.98% to 
11.02%.

FROM: ARC INTERNATIONAL PLC
CHARLES RENDELL

                    DISCLOSURE OF INTEREST IN SHARES OF 
                    ARC INTERNATIONAL PLC ORD 0.1P

               TOTAL NUMBER OF SHARES HELD AS AT 16/01/02 WAS 
               31,222,643 THE BREAKDOWN OF WHICH IS SET OUT BELOW:


NAME OF THE          NUMBER OF       PARTICULARS OF          REGISTERED AS
COMPANY/FUND         SHARES          BENEFICIAL OWNERS     


AXA UK Investment Co                Trustees of AXA UK    HSBC Global Custody
ICVC UK Tracker Fund                Investment Co ICVC    Nominee (UK) Limited
(Non-Beneficial)     2,210          UK Tracker Fund       A/c 845315
                                                          
AXA UK Investment Co                Trustees of AXA UK    HSBC Global Custody 
ICVC Distribution Fund              Investment Co ICVC    Nominee (UK) Limited
(Non-Beneficial)     7,250          Distribution Fund    A/c 845029

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

AXA UK Investment Co                Trustees of AXA UK    HSBC Global Custody 
ICVC UK Smaller                     Investment Co ICVC    Nominee (UK) Limited
Companies Fund                      UK Smaller Companies  A/c 844359
(Non-Beneficial)   9,780,000        Fund

AXA UK Investment Co                Trustees of AXA UK    HSBC Global Custody 
ICVC UK Opportunities               Investment Co ICVC    Nominee (UK) Limited
Fund (Non-Beneficial) 150,000       UK Opportunities Fund A/c 889598

Pan Euro UK Secure                  Pan Euro UK Secure    Barclays Nominees Ltd
Growth                              Growth                A/c 6000BQ
(Non-Beneficial)     600,000

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

Sun Life Global                     Trustees of the Sun    Bank Generale        
Management Ltd                      Life Global Management Luxembourg
Distribution (Non-                  Distribution           A/c 750749
Beneficial)          150,000

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

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

Sun Life Nominees                    Trustees of the WABCO  HSBC Global Custody 
Ltd A/c 18                           Automotive UK Pensions Nominee (UK) Limited
(Non-Beneficial)      1,269          Scheme                 A/c 777086

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

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

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

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

Sun Life Pensions                    Sun Life Pensions      HSBC Global Custody 
Management Ltd                       Management Ltd         Nominee (UK) Limited
(Non-Beneficial)     40,000                                 A/c 867815

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

Sun Life Pensions                    Sun Life Pensions      HSBC Global Custody 
Management Ltd                       Management Ltd         Nominee (UK) Limited
A/c X (Beneficial)  700,000                                 A/c 867530

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

Sun Life Assurance                   Sun Life Assurance     HSBC Global Custody 
Society Plc                          Society Plc            Nominee (UK) Limited
(Beneficial)         7,258,584                              A/c 776934

Sun Life Unit                        Sun Life Unit          HSBC Global Custody 
Assurance Ltd                        Assurance Ltd          Nominee (UK) Limited
A/c X (Beneficial)   300,000                                A/c 867268

Sun Life Pensions                    Sun Life Pensions      RBSTB nominees  
Management Ltd                       Management Ltd         designation Sunpen
(Beneficial)         21,000                                 
                                                                     
Sun Life                             Sun Life               Sun Life   
International                        International          International
(IOM) Ltd                            (IOM) Ltd              A/c  SLI 11
(Beneficial)       1,000,000                                 

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

AXA Royale Belge                     (Registration details available upon
(Non-Beneficial)     400,000          request)

AXA Sun Life plc                     AXA Sun Life plc       AXA Sun Life plc   
(fmly AXA Equity & Law               (fmly AXA Equity & Law   
Life Assurance                        Life Assurance  
Society plc)                          Society plc)
(Beneficial)       9,921,051

AXA General Unit                    HSBC Global Custody   HSBC Global Custody 
Trust                               Nominee (UK) Limited  Nominee (UK) Limited
(Non-Beneficial)   80,405           as Trustees of the    A/c 880868            
                                    Trust

AXA Re UK                           AXA Re-Insurance      AXA Equity & Law 
(Beneficial)      300,000           (UK) Ltd              Nominees Ltd 
                                                          A/c AXARE

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



Total Beneficial                    Holding as % of Issued Capital
Interest          19,670,252                 6.94

Total Non-Beneficial
Interest          11,552,391                 4.08

Total             31,222,643                11.02 %