Holding in Company

Arc International PLC
16 October 2001

LETTER TO: COMPANY ANNOUNCEMENTS OFFICE

DATED:  15 OCTOBER 2001


NOTIFICATION OF INTEREST(S) IN SHARES UNDER SECTIONS 198 TO 202 COMPANIES ACT 
1985 ('THE ACT')

We have today received notification from CGNU plc that CGNU plc and its 
subsidiary company, Morley Fund Management Limited, no longer have a notifiable 
interest in the issued ordinary shares of 0.1p each in ARC International plc.

FROM: ARC INTERNATIONAL PLC