Appointment of AIFM and Depositary

NEWS RELEASE

21 July 2014

The Biotech Growth Trust PLC

       The European Union Alternative Investment Fund Managers Directive       

Appointment of Alternative Investment Fund Manager and Depositary

The Biotech Growth Trust PLC (the "Company) announces that with effect from 22
July 2014 the Company will enter into arrangements necessary to ensure
compliance with the European Union Alternative Investment Fund Managers
Directive (the "Directive").

The Company has appointed Frostrow Capital LLP (the "Manager") as its
alternative investment fund manager ("AIFM") on the terms and subject to the
conditions of a new management agreement between the Company and the Manager
(the "Management Agreement").

The existing management agreement between the Company and the Manager dated 5
April 2007 (the "Original Management Agreement") has been terminated.

In addition, the Company has entered into a portfolio management agreement (the
"Portfolio Management Agreement") with the Manager and OrbiMed Capital LLC (the
"Portfolio Manager"), pursuant to which the Manager has delegated portfolio
management of the Company's assets to the Portfolio Manager. The investment
management agreement between the Company and the Portfolio Manager dated 26
April 2006 (the "Investment Management Agreement") has been terminated.

The Company has appointed J.P. Morgan Europe Limited (the "Depositary") to act
as the Company's depositary for the purposes of the Directive pursuant to a
depositary agreement between the Company, the Manager and the Depositary (the
"Depositary Agreement").

The custody agreement between the Company and Goldman, Sachs & Co. has been
terminated.

The Company has also entered into a delegation agreement (the "Delegation
Agreement") with the Prime Broker, the Manager and the Depositary, pursuant to
which the Depositary has delegated the safe-keeping of certain of the Company's
assets to J.P. Morgan Clearing Corp (the "Prime Broker").

The Company has also appointed J.P. Morgan Clearing Corp. (the "Prime Broker")
and certain other J.P. Morgan entities to provide the Company with execution,
clearing, settlement, custody, financing and other services pursuant to an
institutional account agreement between the Company, the Prime Broker and other
members of the JPMorgan group (the "Institutional Account Agreement").

Each of the Management Agreement, the Portfolio Management Agreement, the
Depositary Agreement and the Delegation Agreement shall enter into effect on 22
July 2014. 

Further details of the agreements follow.

Management Agreement

The Management Agreement is based on the Original Management Agreement and only
differs to the extent necessary to ensure that the relationship between the
Company and the Manager is compliant with the requirements of the Directive.

Under the Management Agreement, the Manager has agreed to, either itself or
through delegates, provide all of the usual and necessary services of a manager
of an investment trust company, including such risk management, portfolio
management, accounting, administrative, consultancy, advisory, company
secretarial and general management services as are necessary for this purpose
and to advise the Company generally in relation to trends in the investment
trust sector, and such other corporate, financial, legal, regulatory,
accounting and other issues as are likely to affect the policies or strategies
of the Company.

The Company will pay the Manager a fixed fee (plus VAT if applicable) of £
60,000 per annum accruing daily and payable quarterly in arrears on each
Calculation Date (as defined in the Management Agreement), plus a periodic fee
at the rate of 0.30% per annum of Market Capitalisation (as defined in the
Management Agreement) payable quarterly.

The Manager's liability to the Company under the Management Agreement is
limited in certain respects, including in respect of any loss, claim, costs,
charges and expenses, liabilities or damages arising out of the acts or
omissions of any investment manager or investment adviser to whom it has
delegated its portfolio management function. However, in all cases, all
limitations of liability of the Manager to the Company are subject to the
applicable rules of the Directive.

The Management Agreement contains provisions under which the Company will
indemnify the Manager against liability in the absence of negligence, wilful
default, fraud or breach of contract.

Either party may terminate the Management Agreement by giving to the other not
less than 12 months' written notice (or such shorter period of written notice
as the other party may accept). It may also be terminated with immediate effect
by either party in specified circumstances.

Portfolio Management Agreement

The Portfolio Management Agreement is based on the Investment Management
Agreement and only differs to the extent necessary to ensure that the
relationship between the Company, the Portfolio Manager and the Manager is
compliant with the requirements of the Directive.

The fees payable by the Company to the Portfolio Manager for its services under
the Portfolio Management Agreement remain the same as under the Investment
Management Agreement.

The liability provisions in the Portfolio Management Agreement are broadly the
same as those in the Investment Management Agreement, but the Company will now
indemnify the Portfolio Manager for any losses incurred as a result of the
Manager's actions.

Either party may terminate the Portfolio Management Agreement by giving to the
other not less than 12 months' written notice (or such shorter period of
written notice as the other party may accept). It may also be terminated with
immediate effect by the parties in specified circumstances.

Depositary Agreement

The Company will pay the Depositary for its services such amounts as may be
agreed between the Depositary and the Company, together with the Depositary's
reasonable and properly incurred out of pocket or incidental expenses, costs or
charges. Except for fees of sub-custodians within the Depositary's regular
sub-custody network, which will be borne by the Depositary, any sub-custodian
fees or fees charged by any other sub-custodian, which will be at normal
commercial rates, will also be recouped from the Company. The Depositary is
permitted to deduct any monies owed to it from the Company's cash accounts.

The Depositary will be liable to the Company and its shareholders for any loss
suffered by them arising from the negligent or intentional failure to perform
its obligations pursuant to the Depositary Agreement or applicable law.

The Company will indemnify the Depositary against any liabilities imposed on it
in connection with the Depositary's appointment or the performance of its
obligations under the Depositary Agreement, other than as a result of the
Depositary's fraud, negligence or wilful misconduct.

The Depositary Agreement is terminable by any party on six months' written
notice and (unless the Company has been wound up) will not terminate until a
replacement depositary is appointed. It may also be terminated immediately in
specified circumstances.

Delegation Agreement

The Delegation Agreement transfers the Depositary's liability under Article 21
(12) of the Directive for the loss of the Company's financial instruments held
in custody by the Prime Broker to the Prime Broker in accordance with Article
21(13) of the Directive. While the Depositary Agreement prohibits the re-use of
the Company's assets by the Depositary or the Prime Broker without the prior
consent of the Company or the Manager acting on behalf of the Company, the
Company has consented to the transfer and reuse of its assets by the Prime
Broker in accordance with the terms of the Institutional Account Agreement by
entering into the Institutional Account Agreement.

The Prime Broker must exercise due care and diligence in the performance of its
services under the Delegation Agreement and will be liable to the Depositary,
the Company, or the Manager acting on behalf of the Company, for any direct
loss arising from the Prime Broker's negligence, fraud, or wilful default in
the performance of those duties or from its intentional failure to perform them
or for its breach of the terms of the Delegation Agreement.

The Delegation Agreement is terminable by the Depositary on thirty days' notice
to the other parties, or immediately in specified circumstances.

Institutional Account Agreement

Under the terms of the Institutional Account Agreement, the Prime Broker and/or
other members of the JPMorgan group (together, "JPMorgan") may provide the
Company with execution, clearing, settlement, custody, financing and other
services. As security for the Company's obligations to JPMorgan, the Company
may be required to transfer margin to JPMorgan.

Upon the occurrence of certain events of default with respect to the Company,
as specified in the Institutional Account Agreement, JPMorgan may, inter alia,
accelerate, cancel, terminate or liquidate or otherwise close out the
Institutional Account Agreement or any transaction thereunder and retain any
margin, set-off or recoup any obligation of JPMorgan to the Company against any
obligation of the Company to JPMorgan and sell or otherwise liquidate any of
the Company's margin which it holds.

Under the terms of the Institutional Account Agreement, the Prime Broker is
authorised to borrow, lend or otherwise use all cash and any security carried
by the Prime Broker in the Company's accounts for a greater sum than, and for
period longer than, the Company's obligations to the Prime Broker and the Prime
Broker will have no obligation to maintain a like amount of similar property in
possession or control. In the event of the Prime Broker's insolvency, the
Company may be unable to recover such assets in full.

JPMorgan will charge fees for the services provided under the Institutional
Account Agreement at its then-prevailing rates and may change such rates upon
prior written notice.

The Company has agreed to indemnify JPMorgan for its losses, claims, damages,
liabilities, obligations, penalties, taxes, judgements, awards and costs other
than in the event of JPMorgan's wilful misfeasance, bad faith or gross
negligence. JPMorgan will have no liability to the Company under the
Institutional Account Agreement save in the event of its wilful misfeasance,
bad faith or gross negligence.

Any party may terminate the Institutional Account Agreement on 30 days' prior
written notice to the others.

Certain Information required to be disclosed under the FCA's Investment Fund
Sourcebook ("FUND")

In accordance with the requirements of the Directive, the Manager is required
to make available to potential investors the following information, which is
announced by the Directors of the Company on behalf of the Manager:

  FUND 3.2.2R Information                         Information                  
           Item                                                                
                                                                               
2 Procedures by which the       In accordance with Listing Rule 15.4.8, the    
AIF may change its              Company must obtain the prior approval of its  
investment strategy or          shareholders to any material change to its     
investment policy, or both.     investment policy. Under Listing Rule 15.4.9,  
                                in considering what is a material change to the
                                published investment policy, the Company should
                                have regard to the cumulative effect of all the
                                changes since its shareholders last had the    
                                opportunity to vote on the investment policy   
                                or, if they have never voted, since the        
                                admission to listing.                          
                                                                               
                                All non-material changes will be made by       
                                approval of the Board.                         
                                                                               
3 Main legal implications       Legal Implications                             
of the contractual                                                             
relationship entered into       Upon an investor becoming a shareholder, the   
for the purpose of              shareholder will be bound by the terms of the  
investment.                     memorandum and articles of association of the  
                                Company (the "Articles) which take effect as a 
                                contract between the shareholders and the      
                                Company. Shareholders will have the rights and 
                                obligations set out in the Articles of the     
                                Company and the U.K. Companies Act 2006.       
                                                                               
                                The Articles are subject to the laws of England
                                and Wales and may be amended by a special      
                                resolution of holders of the Company's shares  
                                as provided for under the Articles.            
                                                                               
                                The Company is incorporated as a public company
                                with limited liability in England and Wales and
                                the Company and all or substantially all of its
                                directors and officers are expected to be      
                                located in the U.K. Certain judgments obtained 
                                in EU member states (or Iceland, Norway and    
                                Switzerland) can be enforced in England and    
                                Wales under the Brussels Regulation or the 2007
                                Lugano Convention and certain judgements in a  
                                country to which any of the Administration of  
                                Justice Act 1920, the Foreign Judgments        
                                (Reciprocal Enforcement) Act 1933 or the Civil 
                                Jurisdiction and Judgments Act 1982 applies can
                                also be enforced in England and Wales by making
                                an application to the High Court for an order  
                                for registration of the judgment for           
                                enforcement. The Court may decline to recognise
                                the judgments in limited circumstances.        
                                                                               
                                It may be possible to enforce a judgment in a  
                                country to which none of the above regimes     
                                apply if it is: (1) final and conclusive on the
                                merits; (2) given by a court regarded by       
                                English law as competent to do so; and (3) for 
                                a fixed sum of money.                          
                                                                               
                                Investors' rights against service providers    
                                                                               
                                The Company is reliant on the performance of   
                                services provided by certain third party       
                                service providers, including the Manager, the  
                                Portfolio Manager, the Prime Broker, the       
                                Depositary, sponsors and corporate             
                                stockbrokers, legal advisors, registrars and   
                                the auditor (the "Service Providers"). No      
                                shareholder, in their capacity as such, will   
                                generally have any direct contractual claim    
                                against any Service Provider with respect to   
                                such Service Provider's default of any of their
                                duties towards the Company.                    
                                                                               
5 How AIFM complies with        The Manager intends to cover potential         
the requirements relating       professional liability risks resulting from its
to professional liability       activities as AIFM by holding professional     
risk.                           indemnity insurance against liability arising  
                                from professional negligence which is          
                                appropriate to the risks covered, in accordance
                                with the Directive and all applicable rules and
                                regulations implementing the Directive in the  
                                UK (the "AIFM Rules").                         
                                                                               
6(a) AIFM management            The Manager has delegated portfolio management 
functions delegated by the      of the Company's assets to the Portfolio       
AIFM.                           Manager pursuant to the Portfolio Management   
                                Agreement.                                     
                                                                               
6(b) Any safe-keeping           The Depositary has delegated safe-keeping of   
function delegated by the       certain of the Company's assets to the Prime   
depositary                      Broker pursuant to the Delegation Agreement.   
                                                                               
6(c) The identity of each       The Portfolio Manager is OrbiMed Capital LLC.  
delegate                                                                       
                                The Prime Broker is J.P. Morgan Clearing Corp. 
                                                                               
6(d) Any conflicts of           The Company does not consider that any         
interest that may arise         conflicts of interest arise between the Manager
from such delegations           and the Portfolio Manager.                     
                                                                               
                                The Company does not consider that any         
                                conflicts of interest arise between the        
                                Depositary and the Prime Broker.               
                                                                               
8 A description of the          The Manager maintains a liquidity management   
AIF's liquidity risk            policy to monitor the liquidity risk of the    
management, including the       Company. The Company's shareholders have no    
redemption rights of            right to redeem their shares from the Company  
investors                       but may trade shares on the secondary market.  
                                However, there is no guarantee that there will 
                                be a liquid market in the shares.              
                                                                               
10 Fair treatment of            The Manager has established procedures,        
investors                       arrangements and policies to ensure compliance 
                                with the principles more particularly described
                                in the AIFM Rules relating to the fair         
                                treatment of investors. The principles of      
                                treating investors fairly include, but are not 
                                limited to:                                    
                                                                               
                                (a) acting in the best interests of the Company
                                and of its shareholders;                       
                                                                               
                                (b) ensuring that the investment decisions     
                                taken for the account of the Company are       
                                executed in accordance with the Company's      
                                investment policy and objective and risk       
                                profile;                                       
                                                                               
                                (c) ensuring that the interests of any group of
                                shareholders are not placed above the interests
                                of any other group of shareholders;            
                                                                               
                                (d) ensuring that fair, correct and transparent
                                pricing models and valuation systems are used  
                                for the Company;                               
                                                                               
                                (e) preventing undue costs being charged to the
                                Company and its shareholders;                  
                                                                               
                                (f) taking all reasonable steps to avoid       
                                conflicts of interests and, when they cannot be
                                avoided, identifying, managing, monitoring and,
                                where applicable, disclosing those conflicts of
                                interest to prevent them from adversely        
                                affecting the interests of shareholders; and   
                                                                               
                                (g) recognising and dealing with complaints    
                                fairly.                                        
                                                                               
14 Availability of the          The Company's latest annual report can be found
latest annual report.           on the Company's website at the following      
                                address: www.biotechgt.com                     
                                                                               
16 Identity of prime            Please see above under "Institutional Account  
brokers, description of         Agreement".                                    
material arrangements with                                                     
prime brokers and                                                              
management of conflicts,                                                       
transfer and reuse of AIF                                                      
assets and any transfer of                                                     
liability.                                                                     
                                                                               
17 Availability of periodic     In accordance with the AIFM Rules, the Manager 
and regular information         intends to publish the following information in
required under FUND 3.2.5R      relation to the Company's portfolio in its     
and FUND 3.2.6R.                annual report and audited accounts, which can  
                                be found on the Company's website -            
                                www.biotechgt.com:                             
                                                                               
                                (a) the percentage of the Company's assets that
                                are subject to special arrangements arising    
                                from their illiquid nature;                    
                                                                               
                                (b) any new arrangements for managing the      
                                liquidity of the Company;                      
                                                                               
                                (c) the current risk profile of the Company and
                                the risk management systems employed by the    
                                Manager to manage those risks; and             
                                                                               
                                (d) the total amount of leverage employed by   
                                the Company.                                   
                                                                               
                                Any changes to the following information will  
                                be provided by the Manager to investors without
                                undue delay:                                   
                                                                               
                                (a) the maximum level of leverage which the    
                                Manager may employ on behalf of the Company;   
                                and                                            
                                                                               
                                (b) the right of re-use of collateral or any   
                                changes to any guarantee granted under any     
                                leveraging arrangement.                        

For further information please contact:

Victoria Hale

Frostrow Capital LLP, Company Secretary

Telephone: [phone]

20472643.2.EU_BUSINESS