Holding(s) in Company

ARC International plc
                  TR-1: notification of major interests in shares

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1. Identity of the issuer or the underlying issuer of           Arc International PLC
 existing shares to which voting rights are attached:
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2. Reason for the notification (please tick the appropriate box or boxes)
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An acquisition or disposal of voting rights                                            X
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An acquisition or disposal of financial instruments which may result in the
 acquisition of shares already issued to which voting rights are attached
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An event changing the breakdown of voting rights
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Other (please specify):___________________________________________
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3. Full name of person(s) subject to the notification    Herald Investment Management Limited
 obligation:
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4. Full name of shareholder(s) (if different from 3.):   Bank of New York (OCS) Nominees Ltd
                                                            on behalf of Herald Investment
                                                                       Trust Plc
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5. Date of the transaction (and date on which the                   3 August 2007
 threshold is crossed or reached if different):
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6. Date on which issuer notified:                                   7 August 2007
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7. Threshold(s) that is/are crossed or reached:                           5%
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8. Notified details:
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A: Voting rights attached to shares
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Class/type of   Situation previous to Resulting situation after the triggering transaction
 shares          the Triggering
if possible      transaction
 using the ISIN --------------------------------------------------------------------------------
 CODE           Number of  Number of  Number of shares Number of voting    % of voting rights
                 Shares     Voting                      rights
                            Rights    ----------------------------------------------------------
                                      Direct           Direct   Indirect   Direct     Indirect
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  GB0009645481   6,660,000  6,660,000     8,350,000              8,350,000              5.49%
                                           (5.49%)
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B: Financial Instruments
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Resulting situation after the triggering transaction
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Type of financial Expiration   Exercise/ Conversion  Number of voting rights% of voting
 instrument        date         Period/ Date          that may be acquired   rights
                                                      if the instrument is
                                                      exercised/ converted.
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       None                                                                       Nil
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Total (A+B)
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Number of voting rights                     % of voting rights
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8,350,000                                   5.49%
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9. Chain of controlled undertakings through which the voting rights and/or the financial
 instruments are effectively held, if applicable:
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Herald Investment Management Limited, a discretionary investment manager, is the parent
 undertaking of an investment management business.
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Shareholder: Herald Investment Trust (in
 the name of Bank of New York (OCS
 Nominees Limited)                             8,350,000                             5.49%
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Total for Funds under the management of
 Herald Investment Management Limited          8,350,000                             5.49%
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Proxy Voting:
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10. Name of the proxy holder:                             N/A
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11. Number of voting rights proxy holder will cease to
 hold:                                                    N/A
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12. Date on which proxy holder will cease to hold voting
 rights:                                                  N/A
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13. Additional information:
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14. Contact name:                      Charles Rendell
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15. Contact telephone number:          01727 891430
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