NOTE TO ALL CREDITORS

 In accordance with an Order of the High Court dated 18 December 2009, the time periods by which the Joint Administrators must send a copy of the statement of their Proposals to every creditor, give notice of the initial Creditors' Meeting, and hold the initial Creditors' Meeting have been extended.

 Important Announcement

December 3 2009

We are pleased to announce that on 20 November 2009, the management of funds previously with Arc Capital and Income Plc (*) was transferred to Merchant Capital Limited. Merchant Capital, the FSA authorised and regulated wholly owned subsidiary of Merchant House Group plc (MHG, quoted on AIM; website at http://www.merchanthousegroup.com/ ) will take over the management of the client relationships whilst client funds will be held at Merchant Capital client accounts with Pritchard Stockbrokers Limited. This arrangement will ensure the continuity of the Arc business as all the funds under management will now be administered by Merchant Capital and will enable Merchant to launch its own plan management business.

We will be writing to you in the near future to confirm your holdings with the new owner of the business and we are working hard to ensure that normal service will be resumed as soon as possible.

In the meantime please accept our apologies for any uncertainties caused by the administration process and any delay in payments to you which may have occurred as a result. For your convenience the old Arc Capital & Income (ACI) website will be made available on a temporary basis to give you access to current ACI plan brochures and prices until a new website is constructed.

(*) excluding Lehmans backed products which continue to be dealt with by CBW

For enquires:

Broker sales 0207 332 2205
Administration queries 0845 890 8915