Holding in Company

Arc International PLC
3 August 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 that CGNU plc and its subsidiary company, Morley Fund
Management Limited now have an interest in 8,528,965 ordinary shares of 0.1p
each in ARC International plc representing 3.09% of the issued share capital of
276,334,775.

The identity of the registered holders of the shares to which this notice
relates and the number of shares held by each of them are set out in the two
Appendices below.

LETTER FROM: ARC INTERNATIONAL PLC
 


APPENDIX: CGNU PLC 

REGISTERED HOLDERS                          NUMBER OF SHARES HELD

BNY Norwich Union Nominees Ltd              5,748,683   (Material)

Chase GA Group Nominees Ltd                 1,665,466   (Material) 

CUIM Nominee Ltd                            1,075,816   (Material)

RBSTB Nominees Ltd                             39,000   (Material)
 


APPENDIX: MORLEY FUND MANAGEMENT LIMITED 


REGISTERED HOLDERS                          NUMBER OF SHARES HELD 
 
BNY Norwich Union Nominees Ltd              5,748,683   (Material) 

Chase GA Group Nominees Ltd                 1,665,466   (Material) 

CUIM Nominee Ltd                            1,075,816   (Material) 

RBSTB Nominees Ltd                             39,000   (Material)