Net Asset Values & Joint Offer Update

24 February 2010

                              Joint Announcement                               

                 Baronsmead VCT 3 plc and Baronsmead VCT 4 plc                 

                               ("the Companies")                               

     Joint Offer for Subscription to raise up to £16 million in aggregate      

                   by way of an issue of New Ordinary Shares                   

                              ("the Joint Offer")                              

                    Net Asset Values and Joint Offer Update                    

Net Asset Values

The Boards of the Companies announce that the net asset values of their
Ordinary shares as at 19 February 2010 were as follows:

  * Baronsmead VCT 3 plc - 96.75p per share
   
  * Baronsmead VCT 4 plc - 90.12p per share
   
Extension to deadline for First Allotment

The Prospectus for the Joint Offer dated 18 January 2010 states that investors
whose subscription forms are received by noon on Friday 26 February 2010 (the
"First Allotment") will receive an additional allocation of 1 per cent of the
amount of their application by way of additional shares.

Following advice received from the Receiving Agent to the Joint Offer, The City
Partnership (UK) Limited, the deadline for applications to be included in the
First Allotment (and thereby receive the additional allocation as noted above)
has been extended from noon to 5.00 pm on Friday 26 February 2010. Accordingly,
the directors of the Companies will meet on Monday 1 March 2010 to allot shares
with respect to successful applications received by 5.00 pm on Friday 26
February 2010.

Offer Price per New Ordinary Share for the First Allotment

Based on the net asset values as at 19 February 2010, Offer Prices of New
Ordinary Shares to be allotted as a result of subscriptions received by Friday
26 February 2010 are as follows:

  * Baronsmead VCT 3 plc - 102.50p per New Ordinary Share
   
  * Baronsmead VCT 4 plc - 95.50p per New Ordinary Share
   
The Offer Price at which the New Ordinary Shares will be allotted in each
Company has been calculated separately on the basis of the following formula
(the "Pricing Formula"):

"Latest published net asset value of an existing Ordinary Share (NAV) divided
by 0.945 (to allow for issue costs of 5.5 per cent.) rounded up to the nearest
0.5p per share."

As a result, the Offer Prices have been calculated as follows:

      Offer Prices of New Ordinary Shares to be Allotted on 1 March 2010       

                                    Baronsmead VCT 3 plc  Baronsmead VCT 4 plc 
                                                                               
                                       (pence per New        (pence per New    
                                       Ordinary Share)       Ordinary Share)   
                                                                               
Latest published NAV                        96.75                 90.12        
                                                                               
Latest published NAV divided by            102.38                 95.37        
0.945                                                                          
                                                                               
Offer Price (Rounded up to nearest         102.50                 95.50        
0.5p)                                                                          

Allotment Procedure

The amount of an investor's subscription will be split into two equal monetary
amounts, for example an investment of £20,000 will be split so that £10,000
will be invested in each Company. The following worked example shows how the
number of New Ordinary Shares that would be allotted to an investor who
subscribes £20,000 in the Joint Offer in time for the First Allotment is
calculated. In the example below the allotment includes the 1 per cent extra
allocation, but ignores any additional New Ordinary Shares that may be allotted
if an authorised financial adviser has waived some or all of the introductory
commission that would otherwise be due to them and requested that this waived
commission be reinvested in additional shares for the benefit of their client.

      Worked Example of a subscription of £20,000 in the First Allotment       

                                    Baronsmead VCT 3 plc  Baronsmead VCT 4 plc 
                                                                               
Amount allocated                           £10,000               £10,000       
                                                                               
Amount including additional                £10,100               £10,100       
allocation                                                                     
                                                                               
Offer Price                                102.50                 95.50        
                                                                               
Number of New Ordinary Shares*              9,853                10,575        

*Rounded down to the nearest whole share

Expected Timetable for the First Allotment

Share and tax certificates are due to be sent to investors within ten business
days of the allotment of shares; i.e. by 12 March 2010. Authorised financial
advisers to whom introductory commission is payable should expect to receive
payment by 12 March 2010 together with a statement showing how the commission
due to them has been calculated. If investors or advisers have any questions
about the allotment of New Ordinary Shares or the payment of introductory
commission they should contact The City Partnership (UK) Limited on 0131 243
7210 (no investment advice can be given).

Dealings in New Ordinary Shares will commence three business days after
allotment.

Future Availability of the Joint Offer

Provided the Joint Offer is not fully subscribed beforehand the subscription
lists with respect to the second allotment will close at 5.00 pm on Thursday 25
March 2010.

Copies of the Prospectus and the Supplementary Prospectus are available for
inspection during normal business hours at the Document Viewing Facility, The
Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14
5NS and may be obtained, free of charge, by collection from:

  * Baronsmead VCT 3 plc website: www.baronsmeadvcts.co.uk/vct3
   
  * Baronsmead VCT 4 plc website: www.baronsmeadvcts.co.uk/vct4
   
  * ISIS EP LLP, 100 Wood Street, London, EC2V 7AN, Telephone: [phone]
   
  * Execution Noble & Company Limited, The Old Truman Brewery, 91 Brick Lane,
    London E1 6QL, Telephone: [phone]
   
  * RAM Capital Partners, 74 Chancery Lane, London WC2A 1AD, Telephone: 020
    3006 7530
   
For further information please contact:

Michael Probin, ISIS EP LLP, 0207 506 5796

Lenny Norstrand, RAM Capital Partners LLP, 0203 006 7530

Robin Smeaton, The City Partnership (UK) Limited, 0131 243 7210

Barry Lawson, Secretary to the Companies, 0207 506 5652