Sharp-eyed officers from Hastings police prevention team who stopped a suspect car on Sea Road, St Leonards, on Tuesday afternoon noticed an occupant hiding something inside the vehicle as they approached.
A check revealed it to be a quantity of what is suspected to be heroin and crack cocaine. The driver and passenger were arrested on suspicion of being concerned in the supply of class A drugs.
The driver was also arrested on suspicion of having no licence, insurance or MoT certificate.
The incident led to a flat being forcibly entered and searched at Marina, St Leonards, where another two men were found with some 200 wraps of heroin and crack cocaine, drugs paraphernalia and a combat knife.
Both were arrested on suspicion of possessing Class A drugs with intent to supply.
A 48-year-old man from Bexhill-on-Sea and a 55-year-old man from St Leonards-on-Sea have been released under investigation, and an 18-year-old man from Hackney, London, and a 19-year-old man, from Southall, London, have both been bailed while enquiries continue.