ARCH Arc Capital

ARC Capital Holdings Limited
04 May 2007



                          ARC CAPITAL HOLDINGS LIMITED


                    INVESTS IN CHINA AUTOMOTIVE AFTERMARKET

London, UK, 4 May 2007 - ARC Capital Holdings Limited, ("ARCH" or "the Company")
(ARCH.LN), a closed-end fund traded on the AIM market of the London Stock
Exchange, is pleased to announce that it has entered into an agreement to invest
USD 12 million through a convertible bond in New Focus Auto Tech Holding Limited
("NFA"), a company listed on the Hong Kong Stock Exchange (0360.HK).  Its
aftermarket automotive services and merchandise retailing division, already one
of the largest in China, operates under the Autolife brand, and had a network of
289 stores as at the end of 2006, of which 87% are franchised.  It offers an
array of automotive detailing, maintenance, repair and aftermarket
beauty-related modification services as well as related merchandise retailing.
NFA also manufactures electrical power converters, booster cables, portable
electrical generators, high-intensity headlights among other accessories for
automotive use, both for the export and the domestic market.  Its products are
sold through the aftermarket and as OEM parts to major automotive manufacturers
including SAIC Volkswagen, Brilliance (a manufacturer for BMW in China), Chery,
Dongfeng, and beginning in 2007, Audi.  NFA had audited revenues of RMB 507.5
million (USD 65.5 million) in 2005 and net earnings of RMB 55.6 million (USD
7.17 million).

Overview of the Transaction

ARCH has agreed to subscribe to a USD 12 million 3-year convertible bond issued
by NFA.  The conversion price has been fixed at HKD 2.0737, a discount of
approximately 8.81% to volume weighted average price of the NFA shares on 27
April 2007 of HKD2.27, and a discount of approximately 16.5% to the 20-day
average closing price of the Shares over the last twenty trading days
immediately preceding and including 27 April 2007 of HKD2.48.

Upon conversion, ARCH shall hold 45,217,391 shares representing an equity
interest of 10.2% of NFA's expanded capital.  ARCH's effective entry valuation
at any time over the conversion option period of the next 3 years is USD 128.2
million.  On completion, ARCH shall have the right to appoint one member to the
board of directors of NFA, who shall have the right of veto over such standard
major decisions as change in business or capital structure, substantial M&A
transactions, operating budget, appointments of key personnel, structural debt,
among others.  ARCH will also enjoy a right of immediate repayment with interest
if there is a material adverse change in the financial performance of NFA.
Finally, the major shareholder of NFA holding has undertaken to transfer to ARCH
additional shares of NFA upon its exercise of the conversion option if the share
price of NFA is below HKD 2.00 at the time of conversion.

Investment Rationale

A total of 5.18 million cars were sold in China in 2006, an increase of 30% over
2005 according to official figures.  The accumulated stock of passenger cars in
China has reached 16.1 million in 2006.  At the same time, due to China's WTO
commitments to reduce tariffs as well as industry competition, average car
prices have declined steadily while disposable incomes have risen, further
driving car purchases.

ARCH and its manager, ARC Capital Partners Limited, believe that the growth of
aftermarket automotive services and merchandise is directly proportional to the
rise of sales in passenger cars, which is closely related to the intention and
ability of consumers to purchase them.  The aggregate market for automotive
services relevant for Autolife was estimated at RMB 32.2 billion (USD 4.2
billion) in 2006, and growing at a CAGR of about 24%.  Sustained automotive
sales growth and rapid accumulation of automotive stock is expected to drive
demand for automotive services and merchandise.  At this time, there is firm or
brand dominant in the provision of aftermarket automotive services or
merchandise in China.  With adequate investment and its first mover advantage
critical to securing sites, Autolife, already one of China's largest chains in
this sector, has good prospects to reach a position of dominance, while NFA's
manufacturing business continues to deliver steady growth and profits.

About ARC Capital Holdings Limited

ARC Capital Holdings Limited is a  closed-end fund whose shares are traded on
the AIM Market of the London Stock Exchange plc. The Company was admitted to
trading on AIM in June 2006, to make and hold investments primarily in the
retail, consumer products and services sectors of China, Greater China and other
countries in Asia.

Forward-looking Statements

This announcement contains forward-looking statements subject to the inherent
uncertainties in predicting future results and conditions. Any statements that
are not statements of historical fact (including statements containing the words
"believes," "plans," "anticipates," "expects," "estimates" and similar
expressions) should also be considered to be forward-looking statements. Certain
factors could cause actual results and conditions to differ materially from
those projected in these forward-looking statements. The Company undertakes no
obligation to update such statements to reflect subsequent events.

For further information, please contact:




MANAGER:                                             LEGAL COUNSEL:



Clement Kwong, Managing Director                     Jon Lewis, General Counsel
ARC Capital Partners Limited                         Pacific Alliance Group
Suite 1905 City Center of Shanghai                   16/F St. John's Building
Tower A, 100 Zunyi Road                              33 Garden Road
Shanghai, PRC 200051                                 Central, Hong Kong
Tel:  +8621 62371202                                 Tel:  +852 29180088
Fax:  +852 35447699                                  Fax:  +852 29180881
clement@arccapitalchina.com                          jlewis@pacific-alliance.com

BROKER:                                              INVESTOR RELATIONS:



Hiroshi Funaki                                       Simon Moyse
LCF Edmond de Rothschild Securities                  Brian Cattell
Tel:   +44 20 7845 5960                              Finsbury Group
Fax:  +44 20 7845 5961                               Tel:  +44 20 72513801
h.funaki@lcfr.co.uk                                  simon.moyse@finsbury.com
                                                     brian.cattell@finsbury.com


Nominated AdvisEr:


Philip Secrett
Grant Thornton Corporate Finance
Tel:  +44 8709912578
Philip.J.Secrett@gtuk.com



Note:  Conversions from RMB to USD are made at RMB7.8 to USD1.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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