A MAN arrested by police investigating the killing of a 42-year-old at a popular North-East beauty spot was released on bail last night.

The 46-year-old was arrested by officers armed with machine guns as part of the investigation into the murder of David "Noddy" Rice, in South Shields, South Tyneside.

Mr Rice was shot several times by two masked men as he sat in a car overlooking the North Sea, near Marsden Grotto.

The arrested man came from Wallsend, North Tyneside, and has been bailed pending further inquiries, a Northumbria Police spokesman said.

Mr Rice was shot up to six times through the window of his car at 4pm on Wednesday. He managed to drag himself out of the vehicle, but collapsed and was shot in the head by one of the men. Both attackers, who were wearing balaclavas, then sped away in a Ford Mondeo, which was found dumped and burnt-out in nearby Lizard Lane.

It is understood police are still hunting another suspect and attention is being focused on any links Mr Rice may have had with South Tyneside's criminal underworld.

As witnesses called for help, it is thought some people tried to aid Mr Rice, of St Vincent Street, South Shields, but he was too badly injured. He died moments after arriving at South Tyneside District Hospital.

Acting Chief Superintendent Neil MacKay, from South Shields police, is appealing for anyone in the area at the time of the killing to come forward.

He said: "We need to hear from people driving past the car park or on buses running between South Shields and Sunderland along the Coast Road.

"These people might think they know nothing that will be of any use to us, but that is something we need to be able to decide ourselves."

Mr Rice, who was well-known to police, was understood to be involved in the borough's drug scene, and had been attacked before. He was also sentenced to five-and-a-half years in prison in 1996 for dealing in Ecstasy.

In recent years, he is believed to have been involved in a number of businesses in South Tyneside.

Police are looking at any involvement he may still have had in the borough' s drugs scene, and are investigating rumours that he was still connected to the supply of class A drugs.

Early in 2002, Mr Rice was left scarred for life when he and a woman were attacked on the dance floor of the Eivissa nightspot, in South Shields.

He was taken to Shotley Bridge Hospital for plastic surgery to a wound from his ear to his chin.

In August of the same year, Mr Rice avoided jail despite admitting assaulting a police officer and possession of cocaine.

South Tyneside magistrates heard that Mr Rice struggled so violently when he was arrested, police officers were forced to use a CS spray to restrain him.

He was sentenced to a 150-hour community service order.

Marsden Area Residents' Association secretary Geraldine White said: "It's absolutely frightening. You just don't expect anything like this to happen. It's like something you see on television, not something that happens on your doorstep."