Holding in Company

Arc International PLC
19 February 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 follows:

AXA S.A. knows that they were interested in 11,486,589 ordinary shares of 0.1p
in the 272,572,761 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 10,895,816 shares (4.00%) and a non-material interest of
590,773 shares (0.22%).

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
3.71% to 4.00%.


LETTER FROM ARC INTERNATIONAL PLC





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


Total number of shares held as at 16/02/01 was 11,486,589 the breakdown of which
is set out below:


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

AXA UK Investment Co ICVC      696    Trustees of AXA UK    HSBC Global Custody
                                      Investment Co ICVC    Nominee (UK) Limited
UK Tracker Fund                       UK Tracker Fund
(Non Material)




AXA UK Investment Co ICVC    7,250    Trustees of AXA UK    HSBC Global Custody
                                      Investment Co ICVC    Nominee (UK) Limited
Distribution Fund                     Distribution Fund
(Non Material)


AXA UK Investment Co ICVC  148,700    Trustees of AXA UK    HSBC Global Custody
                                      Investment Co ICVC    Nominee (UK) Limited
UK Growth Fund                        UK Growth Fund
(Non Material)


Sun Life Global
 Management Ltd              5,602    Trustees of the       Bank Generale
                                      Sun Life              Luxembourg
UK Growth                             Global Management     
(Non Material)                        UK Growth            


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


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


Sun Life Nominees Ltd        2,587      Trustees of the Abb   HSBC Global 
A/c 10                                  Kent Pension Scheme   Custody Nominee   
(Non Material)                                                (UK) Limited   

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



Sun Life Nominees Ltd         544      Trustees of the       HSBC Global Custody
A/c 20                                 Princess Pension      Nominee (UK)
(Non Material)                         Scheme                Limited



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


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


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


Sun Life Pensions          20,489      Sun Life Pensions     HSBC Global Custody
Management Ltd                         Management Ltd        Nominee (UK)
(Material)                                                   Limited


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


Sun Life Pensions         150,000     Sun Life Pensions      HSBC Global Custody
Management Ltd A/c X                  Management Ltd         Nominee (UK)
(Material)                                                   Limited


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

Sun Life Assurance      4,355,123     Sun Life Assurance     HSBC Global Custody
Society Plc                           Society Plc            Nominee (UK)
(Material)                                                   Limited

Sun Life Unit Assurance  120,000      Sun Life Unit          HSBC Global Custody
Ltd A/c X                             Assurance Ltd          Nominee (UK) 
(Material)                                                   Limited


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


AXA Royale Belge          17,000      (Registration details
(Non Material)                         upon request)


AXA Luxembourg           100,000      (Registration details 
(Non Material)                        upon request)

AXA Investment Managers  147,500      (Registration details
Hong Kong                              available upon request)
(Non Material)


AXA Equity & Law Life   6,097,926     Axa Equity & Law Life  Axa Equity & Law
Assurance Society Plc                 Assurance Society Plc  Life Assurance
(Material)                                                   Society Plc


AXA General Unit           80,405     HSBC Global Custody    HSBC Global Custody
Trust                                 Nominee (UK) Limited   Nominee (UK) Ltd
                                      as Trustees of the
(Non Material)                        Trust




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


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


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



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




NM Global Fund                110     Trustees of the NM     State Street
                                      Global Fund            Nominees Ltd
(Non-Material)                                               A/C UE26




Guardian Royal Exchange    50,324     Guardian Royal         Chase Nominees Ltd.
Staff Pension Trustees                Exchange Staff         A/C 00994
Corporation                           Pension
(Non Material)


                                      Holding as % of Issued Capital

Total Material      10,895,816                      4.00
Total Non-Material     590,773                      0.22
                    ----------                   ---------
Total               11,486,589                      4.22%
                    ==========                   =========


AELLAS - AXA Equity & Law Life Assurance Society Plc (previously named as Equity
& Law Life Assurance Society Plc)
AXA Insurance UK - previously named as AXA Insurance
AXA Financial Inc - previously named as Equitable Companies Inc.