Final Results

THE INCOME & GROWTH VCT PLC

PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2007

Chairman's Statement

I am pleased to present the preliminary results of the Company for
the year ended 30 September 2007.

The middle part of this six-month period was overshadowed by
economic uncertainties including debt market tremors which then influenced
equity markets worldwide. The latter part has been dominated by the capital
restructuring and the name change from TriVest VCT plc to The Income & Growth
VCT plc, and the planning for the forthcoming subsequent Offer for
Subscription by the Company. I will comment in more detail about these events
below. The Board has been much encouraged by the positive Shareholder reaction
to these latter events.

Despite a fall in the net asset value per share, the performance of
the portfolio continues in general to provide encouragement. Falls in the
share prices of several of our quoted stocks have offset positive gains
elsewhere in the portfolio. As I reported last year, the Company paid an
interim dividend of 3 pence per share to Shareholders in respect of the year
ended 30 September 2007. This year capital gains have again been realised, and
in October 2007 a further interim dividend of 2 pence per share, also in
respect of the year ended 30 September 2007, was paid. These distributions
were in addition to the proposed final income dividend of 1 penny per share
and final capital dividend of 1 penny per share for the year ended 30
September 2007. The total dividends paid and proposed in respect of the year
under review will be 7.00 pence per share which compares with 3.25 pence per
share paid in the financial year 2006.

Economic Background

At the end of the six-month period ended 30 September 2007 stock
markets around the world were dominated by the difficulties in the US
sub-prime mortgage market and in the UK by the events surrounding the banking
activities of Northern Rock. Whilst the worst of the turmoil may be over in
the short term, there can be no certainty that further falls in these stock
markets will not be seen in the near future.

During the six-month period ended 30 September 2007 the FT 100
index rose 4.27% and the FT all share index by 2.7% whilst the AIM index fell
by 1.92%. The AIM new issue market has been largely dormant during this period
with many IPO prices being substantially lower at the end of the period.

Whilst the market in which the Company invests has not been
directly or immediately affected by these events, sentiment may nevertheless
have been affected, which could work in the Company's favour in the short to
medium term if buying prices become more attractive.

On the investment side generally, there is still no shortage of
equity and debt providers looking for good propositions possibly because,
inter alia, VCT managers which have raised substantial sums of money in recent
years must invest these funds within three years from the date of
subscription. Competition to finance such situations continues to remain
relatively strong, although hopefully more of these providers will become more
discerning or cautious. The Investment Advisers continue to be wary of some
high valuations being placed on businesses in the current market, but they
remain confident of sourcing good quality investments.

Net Asset Value

At 30 September, 2007, the Company's Net Asset Value (NAV) per
share had fallen to 100.52 pence (2006: 112.89 pence), a decline of 10.96%.
Whilst the Matrix Private Equity Partners LLP (MPEP) portfolio has risen by
£4.38 million during the period, that of Foresight Group LLP (Foresight) has
fallen by £8.87 million largely due to falls in the share price of several
quoted companies. The Company, after the proposed final income dividend of 1
penny per share, the proposed final capital dividend of 1 penny per share and
the earlier distributions of 3 and 2 pence per share referred to above, will
have distributed dividends of 16.45 pence per share since the Company's
launch. This total return since launch (including these dividends) of 114.97
pence compares with the initial NAV (after the launch expenses of the issue)
of 94.5 pence per share.

The Portfolio

At present, MPEP manages some 77.6 % of the portfolio with Foresight managing
22.4%. By market sector, the portfolio is evenly balanced with investments in
technology companies at 31.2%, manufacturing companies at 28.2%, construction
and building materials at 17.9% and the balance in a variety of other sectors.
When the portfolio is considered by stage of development, the portfolio is
heavily dominated by MBO / MBI investments at 69.8%, with 19.3% in AIM quoted
stocks, 8.7% in development capital companies and only 2.2% in early stage
investments.

As noted above, the Foresight portfolio has made mixed progress.
You may recall that in January 2006 Corero plc was bought by Mondas plc. In
April 2007 the Company received 1,358,525 additional shares in Corero in
respect of the earnout from the initial sale of Mondas. In June 2007 the
Company sold its investment in Rapide Communications Limited, realising a
total loss of £335,523.

An additional investment of £211,000 was made in July 2007 into
Sarantel Group plc. In the same month the Company sold its stake in SmartFOCUS
plc for £1,607,281, and its secured loan for £333,333. This represented a
cumulative profit of £1,240,615. However, the difficulties surrounding the
termination of the fuel additive contract with Petrol Ofisi in Turkey and the
subsequent fall in the share price of Oxonica plc has dominated the
performance of the Foresight portfolio during this period. The recent
restructuring of this company together with its further fundraising is
expected to stabilise the position of the company and allow it time to
demonstrate the value of its business. The sharp decline in Oxonica's share
price has been largely responsible for the fall in the net asset value of I&G
during this period.

Overall, the MPEP portfolio continues to perform extremely well with strong
trading performances being shown by some of the investments; notably Blaze
Signs, Youngman, PastaKing, Vectair, VSI and, not least, HWA. Within the MPEP
portfolio in April 2007, Image Source repaid £695,000 of its secured
subordinated loan. This produced a profit of £139,000, which together with the
capital repayment, means the Company received a total of £834,000. In the same
month Amaldis also repaid its loan stock of £890,000 pursuant to its
restructuring. In May 2007, our 100,000 preference shares in Inca Interiors
were converted into 36,370 A ordinary shares. In July 2007, we made an initial
investment of £656,900 into ordinary shares, preference shares and secured
loan stock in DiGiCo Europe. In September 2007, the Company made a further
investment of £977,531 into ordinary shares, preference shares and secured
loan stock in Blaze Signs Holdings, the manufacturer of signage for major
multiple retailers. This was to assist the company in its acquisition of
Active Sign Maintenance Limited.

In the Nova portfolio, the Company invested a further £135,000 into IDOX for
1,800,000 ordinary shares in June 2007. NexxtDrive continues to move ahead
with the development of its fuel efficiency products while it waits for an
opportune moment to seek a public listing. At the end of the financial year,
following Nova's resignation, the four investments and remaining cash were
allocated between Foresight and MPEP.

Revenue Earnings

The revenue earnings after tax as shown in the profit and loss
account for the year fell by £102,336. although there have been some sizeable
fluctuations in sources of income. Loan stock interest has fallen by £361,043,
mainly due to a decision taken to provide against the accumulated loan
interest receivable from Aquasium. Income dividends from investments more than
trebled to £148,606. Liquidity fund interest rose by £109,857 (41%), as higher
cash balances after disposals earned higher rates of interest.

Running costs were broadly similar to last year's other than an
increase in professional fees of £49,092, arising from costs incurred in the
restructuring of the Company.

The effective tax rate declined due to the receipt of higher
dividends from investee companies this year, which are not taxable, and a
lower level of disallowable expenditure, causing a fall in the tax charged
against revenue earnings of £81,479.

Dividends

The Company's revenue return per Ordinary Share was 0.62 pence per
share (2006: 0.86 pence per share). As noted above, your Board will be
recommending a final income dividend of 1 penny per share and a final capital
dividend of 1 penny per share in respect of the year under review at the
Annual General Meeting to be held on 6 February 2008. The dividends will be
paid on 15 February 2008 to shareholders on the Register on 18 January 2008.

Dividend Investment Scheme

We are again offering Shareholders the opportunity to re-invest
their dividends into shares of the Company at the latest published NAV per
share as at the payment date of the dividends. Board members have indicated
that they will be doing so to the extent of their full entitlement. The
relevant enclosed form should be returned to Capita Registrars at the address
given on the form so as to arrive by 31 January 2008 to ensure that you
qualify to receive the proposed final dividend as shares.

Valuation Policy

In accordance with accounting standards, quoted stocks are valued at bid
prices. It is worth commenting that the Fund holds a number of relatively
early stage AIM listed stocks with limited marketability. In such cases, the
price at which a sizeable block of shares could be traded, if at all, may vary
significantly from the market price used.

Change from TriVest VCT plc to The Income & Growth VCT plc

In my Letter of 12 September 2007 to you earlier this year I said
that:

"....The Board has been aware for some time that Nova Capital
Management (`Nova') wished to terminate its management agreement with the
Company when it believed it had discharged the tasks and responsibilities set
out in its mandate. Several months ago Nova and the Board concluded that this
position had now largely been reached. ...."

In the light of Nova's decision to resign and having reviewed
extensively various options, the Board considered that it would be in the best
interests of Shareholders to change the Company to a dual manager fund under
the existing management of Foresight and MPEP.

Foresight and MPEP became, therefore, the dual Managers of the
Company on 31 August 2007 when Nova resigned. I would like to take this
opportunity to thank Nova for its contribution in managing its portfolio over
the past five years, after taking on the mandate at a difficult time for the
portfolio in 2002, and I, together with the rest of the Board, wish Nova every
success in the future.

The proposals to restructure the Company were put to Shareholders
at an Extraordinary General Meeting on 9 October 2007. All Resolutions were
successfully passed. A total of 329 members who hold 4,826,201 Ordinary
Shares, representing 13.20% of the Company, submitted proxy votes on the
proposals. The Board was encouraged by this response and, on behalf of the
Board, I would like to thank all Shareholders for their support.

MPEP has to-date been the most successful of the Company's three
managers and is currently one of the top VCT managers in the marketplace. MPEP
was, therefore, selected to manage the new S Share fund which is currently
being raised.

Offer for Subscription by the Company

The Offer for Subscription under the Securities Note to raise up to £15m for
I&G by the issue of S Shares is being launched The reaction to date from
independent commentators and the leading IFAs has, as expected, been positive.

Share buy-backs

During the year ended 30 September 2007, the Company continued to
implement actively its buy-back policy and, accordingly, bought back 2,589,324
Ordinary Shares (representing 7.1 % of the shares in issue at the period end)
at a total cost of £2,189,016 (net of expenses of £13,087). These shares were
subsequently cancelled by the Company.

I&G Website

May I remind you that the Company has its own website which is now
available at www.incomeandgrowthvct.co.uk.

UK Private Equity 2007 Awards

I am delighted to be able to inform you that MPEP was short listed
for the third year running for the award for the Small Buyout House of the
Year by unquote ", the UK private equity journal of record. I am confident
that this is due in no small measure to the performance of their portfolio
within I&G.

I am also pleased to report that Chris Price of Foresight won the
award for Rising Star of the Year at the same awards ceremony.

This has been another busy year for the Board and the Managers. The
Board continues to be pleased with the progress that the overall portfolio has
made and we anticipate a number of profitable realisations over the
forthcoming twelve months. Once again I would like to take this opportunity to
thank Shareholders for their continued support.

Colin Hook

Chairman



PROFIT AND LOSS ACCOUNT
for the year ended 30 September 2007

                                       30 September 2007             30 September 2006
                             Revenue     Capital       Total   Revenue     Capital       Total

                                   £           £           £         £           £           £
 
Net unrealised
losses on
investments                        - (3,150,761) (3,150,761)         - (4,074,141) (4,074,141)
Net gains on
realisation of
investments                        -      85,906      85,906         -   1,556,784   1,556,784
Income                       981,124     432,488   1,413,612 1,135,895           -   1,135,895
Investment
management
fees                       (225,226)   (675,676)   (900,902) (233,097)   (699,292)   (932,389)
Other expenses             (495,435)           -   (495,435) (458,520)           -   (458,520)
Profit (loss) on
ordinary
activities before
taxation                     260,463 (3,308,043) (3,047,580)   444,278 (3,216,649) (2,772,371)
 
Tax on ordinary activities  (19,868)      19,868           - (101,347)     101,347           -
Profit/(losses) on
ordinary
activities after
taxation for the
financial year               240,595 (3,288,175) (3,047,580)   342,931 (3,115,302) (2,772,371)
 
Basic and diluted
earnings per
share:                         0.62p     (8.47)p     (7.85)p     0.86p     (7.84)p     (6.98)p
Dividends paid
and payable
Final dividend for
the year ended 30
September 2006               293,324                 293,324   301,156           -     301,156
Interim dividend
for the year ended
30 September
2007 (paid in
February 2007)                     -   1,173,297   1,173,297         -   1,003,852   1,003,852
Interim dividend
for the year ended
30 September
2007 (declared in
September 2007
and paid in
October 2007)                            731,790     731,790         -           -           -
Over provision re
prior year                                                 -     (376)                   (376)
Total declared in
year                         293,324   1,905,087   2,198,411   300,780   1,003,852   1,304,632
Proposed final
dividend                     365,895     365,895     731,790                           293,324
 

Any proposed final dividend is subject to approval by Shareholders at the
Annual General Meeting and has not been included as a liability in these
financial statements.

All revenue and capital items in the above statement derive from continuing
operations.

No operations were acquired or discontinued in the period.



STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the year ended 30 September 2007

                                      30 September  30 September
                                              2007          2006
                                             Total         Total

                                                 £             £

Loss on ordinary activities            (3,047,580)   (2,772,371)
after taxation
 
Effect of changes in accounting
policy arising from the introduction
of FRS 26                                        -     (483,352)
                                            ------       -------
Total recognised (losses) since
last annual report                     (3,047,580)   (3,255,723)
  
                                               ===          ====

                                             

NOTE OF HISTORICAL COST PROFITS AND LOSSES
for the year ended 30 September 2007

                                     30 September  30 September
                                             2007          2006
                                            Total         Total

                                                £             £
Loss on ordinary activities
before taxation                       (3,047,580)   (2,772,371)
Add unrealised gains on
investments                             3,150,761     4,074,141
Add/(less) realisation of
revaluation gains/(losses) of
previous years                          1,042,522   (4,059,632)
                                         --------       -------
 
Historical cost profit/(loss) on        1,145,703   (2,757,862)
ordinary activities before taxation
                                           ------       -------
                                      (1,052,708)   (4,062,494)
Historical cost (loss) for the year
after taxation and dividends                  ===           ===




BALANCE SHEET
as at 30 September 2007
                                      30 September 2007             30 September 2006

                                £           £          £         £         £          £
Non-current assets
Investments at fair
value                                         30,917,064                     35,405,032
 
Current assets
Debtors and
prepayments               718,787                          936,772
Current investments     6,581,497                        5,969,440
Cash at bank               46,862                        2,027,094
                                     --------                       --------
                                    7,347,146                      8,933,306
 
Creditors: amounts
falling due within one
year
Other creditors         1,337,587                           43,064
Accruals                  148,130                          144,996
                                     --------                       --------
                                  (1,485,717)                      (188,060)
                                     --------                       --------
Net current assets                             5,861,429                      8,745,246
                                                     ===                            ===
Net assets                                    36,778,493                     44,150,278
                                                     ===                            ===
 
Capital and reserves
Called up share capital                          365,895                        391,099
Share premium
account                                          136,594                         60,974
Capital redemption
reserve                                           53,334                         27,441
Special reserve                               21,508,270                     25,025,881
Capital reserve -
unrealised                                     8,425,545                     12,618,828
Profit and loss account                        6,288,855                      6,026,055
                                                     ===                            ===
                                              36,778,493                     44,150,278
                                                     ===                            ===
Net asset value per
Ordinary Share basic
and diluted                                      100.52p                        112.89p




RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
for the year ended 30 September 2007

                                     Year ended      Year ended
                                   30 September    30 September
                                           2007            2006

                                              £               £
 
Opening shareholders'
funds                                44,150,278      49,204,719
 
Net share capital bought
back in the year                    (2,202,103)     (1,038,937)
Net share capital subscribed
for in the year                          76,309          61,499
Loss for the year                   (3,047,580)     (2,772,371)
Dividends paid/payable
in the year                         (2,198,411)     (1,304,632)
                                       --------        --------
Closing shareholders'
funds                                36,778,493      44,150,278
                                       --------        --------



CASH FLOW STATEMENT
for the year ended 30 September 2007

                            Year ended 30 September 2007 Year ended 30 September 2006

Operating activities                  £           £           £           £
Investment income received    1,758,835                 972,767
Other income received            11,754                   7,812
Investment management
fees paid                   (1,026,861)               (932,389)
Other cash payments           (492,457)               (488,253)
                                           --------                --------
Net cash inflow/(outflow)
from operating activities                   251,271               (440,063)
 
Investing activities
Acquisition of investments  (3,544,272)             (2,410,773)
Disposal of investments       4,968,804               3,857,334
                                           --------                --------
                                          1,424,532               1,446,561
 
Equity Dividends
Payment of equity dividends             (1,466,621)             (1,304,632)
                                           --------                --------
Cash inflow (outflow)
before financing and
liquid resource
management                                  209,182               (298,134)
 
Management of liquid
resources
(Decrease)/increase in
monies held pending
investment                                (612,057)                 376,433
 
Financing
Issue of Ordinary shares         76,309                  61,499
Purchase of own shares      (1,653,666)             (1,038,937)
                                           --------                --------
                                        (1,577,357)               (977,438)
Decrease in cash for
the year                                (1,980,232)               (899,139)
                                                ===                     ===



RECONCILIATION OF PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION TO NET CASH
OUTFLOW FROM OPERATING ACTIVITIES
for the year ended 30 September 2007

                                              Year ended       Year ended
                                            30 September     30 September
                                                    2007             2006
 
                                                       £                £

Net Revenue before taxation                      260,463          444,278
Investment management fees charged             (675,676)        (699,292)
to capital
Transaction costs                                (1,419)         (27,071)
(Decrease)/increase in debtors                   217,985        (151,700)
Increase/(decrease) in creditors and              17,430          (6,278)
accruals
Capital dividend                                 432,488                -
Net cash inflow/ (outflow) from                  251,271        (440,063)
operating
activities



ANALYSIS OF CHANGES IN NET FUNDS
for the year ended 30 September 2007

                                Cash Liquid resources        Total
                                2007             2007         2007

                                   £                £            £

As at 30 September 2006    2,027,094        5,969,440    7,996,534
Cash flows               (1,980,232)          612,057  (1,368,175)
At 30 September 2007          46,862        6,581,497    6,628,359
                            --------         --------     --------



INVESTMENT PORTFOLIO SUMMARY
as at 30 September 2007

                                           Cost at   Valuation Valuation at % of portfolio
                                                            at
                                         30-Sep-07   30-Sep-07    30-Sep-06       by value
Foresight Group LLP
 
Oxonica plc                              2,136,763   1,944,060    7,245,512          6.29%
Specialist in the design,
manipulation and engineering
of properties of materials at
the nano-scale
Camwood Limited                          1,028,181   1,028,181    1,669,520          3.33%
Provider of software repackaging
services
Biomer Technology Limited1                 137,170     753,837      753,837          2.44%
Developer of biomaterials for
medical devices
NexxtDrive Limited1                        812,014     738,264      468,750          2.39%
Developer of transmissions
technologies for applications in
the automotive, construction and
industrial sectors
Aquasium Technology Limited                700,000     567,310    1,059,610          1.83%
Business engaged in the design,
manufacturing and marketing of
bespoke electron beam welding and
vacuum furnace equipment
Alaric Systems Limited                     595,803     446,822      595,763          1.45%
Software developer and provider
of support services in the credit/
debit card authorisation and
payments market
Sarantel plc                             1,881,251     408,465      798,621          1.32%
Developer and manufacturer of
antennae for mobile phones and
other wireless devices
DCG Datapoint Group Limited                312,074     376,283      311,853          1.22%
Design, supply and integration
of data storage solutions
Aigis Blast Protection Limited             272,120     249,990      333,320          0.81%
Specialist blast containment
materials company
Corero plc (formerly Mondas plc)           600,000     279,955      238,255          0.91%
Provider of e-business technologies
ANT plc                                    462,816     131,319      393,958          0.42%
Provider of embedded browser/
email software for consumer
electronics and Internet appliances
SmartFOCUS Group plc                             -           -    1,856,969           0.0%
Provider of analytic software to
support targeting and execution
of marketing campaigns
Rapide Communication Limited                     -           -       66,666          0.00%
Mobile phone software company
Monactive Limited                                -           -            -          0.00%
Provider of software management
tools that monitor usage of software
versus licences held
 
                                         8,938,192   6,924,486   15,792,634         22.41%
 
Matrix Private Equity
Partners LLP
 
HWA Limited (trading as                     69,105   4,691,649    3,348,323         15.17%
Holloway White Allom)
Refurbishment, restoration and
construction of notable public
buildings and top-end residential
dwellings in and around London
Youngman Group Limited                   1,000,052   2,930,234    2,368,418          9.47%
Manufacturer of ladders and
access towers
Image Source Group Limited                 305,000   2,850,171    3,232,667          9.22%
Royalty free picture library
Blaze Signs Holdings Limited             1,338,500   1,704,694      360,969          5.51%
Manufacturer and installer of signs
BBI Holdings plc                           496,119   1,430,231    1,227,231          4.63%
Manufacturer of gold conjugate
for the medical diagnostics industry
Tikit Group plc1                           500,000   1,304,346      960,868          4.22%
Provider of consultancy, services
and software solutions for law firms
Ministry of Cake Limited                   721,280   1,039,709      556,169          3.36%
Manufacturer of desserts and
cakes for the food service industry
Amaldis Limited (formerly                   80,313     967,438    3,127,944          3.13%
Original Additions)
Manufacturer and distributor of
beauty products
Tottel Publishing Limited                  514,800     809,221      759,048          2.62%
Publisher of specialist legal
and taxation titles
PXP Holdings Limited                       790,912     790,912            -          2.56%
(Pinewood Structures)
Designer, manufacturer and
supplier of timber frames for
buildings
I-DOX plc1                                 872,625     775,833      366,083          2.51%
Provider of document storage
systems
VSI Limited                                388,853     730,901      388,842          2.36%
Provider of software for CAD
and CAM vendors
DiGiCo Europe Limited                      656,900     656,900            -          2.12%
Design and manufacture of
audio mixing desks
PastaKing Holdings Limited                 292,405     611,778      292,405          1.98%
Manufacturer and supplier of
fresh pasta meals
British International Holdings             500,000     538,535      500,000          1.74%
Limited
Helicopter service operators
Brookerpaks Limited                         55,000     416,130      621,555          1.35%
Importer and distributor of garlic
and vacuum-packed vegetables to
supermarkets and the wholesale trade
Racoon International Holdings Limited      550,852     413,139            -          1.34%
Supplier of hair extensions, hair
care products and training
B G Consulting Group Limited/            1,153,976     332,212      128,344          1.07%
Duncary 4 Limited
Technical training business
Campden Media Limited                      334,880     326,842      334,880          1.06%
Magazine publisher and
conference organiser
Vectair Holdings Limited                   215,914     300,579      215,914          0.97%
Designer and distributor of
washroom products
Letraset Limited                           650,000     213,982      622,737          0.69%
Manufacturer and worldwide
distributor of graphic art products
SectorGuard plc                            150,000     107,142      150,000          0.35%
Provider of manned guarding,
mobile patrols and alarm response
services
Inca Interiors Limited                     350,000      50,000       50,000          0.16%
Design, supply and installation
of quality kitchens to house developers
Other investments in the portfolio 2     1,719,785           -            -          0.00%
 
                                        13,707,271  23,992,578   19,612,397         77.59%
 
Total                                   22,645,643  30,917,064   35,405,031        100.00%
 


1 Investments formerly managed by Nova Capital Management Limited up to 31
  August 2007.

2 Other investments in the portfolio managed by Matrix Private Equity Partners
  LLP comprises The Hunter Rubber Company Limited (in administration),
  Stortext-FM Limited/Stortext (DO) Limited and FH Ingredients Ltd (in
  administration).

The financial statements from which this preliminary announcement was prepared
were approved and authorised for issue by the Board of Directors on 30th
November 2007.

Notes

1. The audited results for the year ended 30 September 2007 have been prepared
under UK Generally Accepted Accounting Practice (UK GAAP) on a basis
consistent with the accounting policies followed for the year ended 30
September 2006 and, to the extent that it does not conflict with the Companies
Act 1985, the 2003 Statement of Recommended Practice, `Financial Statements of
Investment Trust Companies', revised December 2005.

2. In accordance with the policy statement published under
"Management and Administration" in the Company's Prospectus dated 13 October
2000, the Directors have charged 75% of the investment management expenses to
capital reserve.

3. The full provisions of the accounting requirements of FRS 20
(accounting for share based payments) do not apply, as the incentive agreement
with the Investment Managers existed before the date from which FRS 20 became
applicable.


4. The basic revenue return per Ordinary Share is based on the net
revenue from ordinary activities after taxation of £240,595 (2006: £342,931)
and on 38,802,180 (2006: 39,694,960) Ordinary Shares, being the weighted
average number of Ordinary Shares in issue during the year.

5. The basic capital return per Ordinary Share is based on net
realised and unrealised capital losses of £3,064,855 (2006: £2,517,357), net
capital costs (including investment management fees) of £655,808 (2006:
£597,945), capital dividend income of £432,488 (2006: Nil), and on 38,802,180
(2006: 39,694,960) Ordinary Shares, being the weighted average number of
Ordinary Shares in issue during the year.

6. These are not full accounts in terms of section 240 of the
Companies Act 1985. The Annual Report for the year to 30 September 2007 will
be sent to shareholders shortly and will then be available for inspection at
One Jermyn Street, London SW1Y 4UH, the registered office of the Company.
Statutory accounts will be delivered to the Registrar of Companies after the
Annual General Meeting. The audited accounts for the year ended 30 September
2007 contain an unqualified audit report.


7. The Company revoked its investment company status on 30 November
2005 which means that it is now able to make capital distributions from
realised profits when previously it could only pay dividends from income.

8. The Company proposes to pay a final dividend from income of 1
penny per share (2006: 0.75 pence) per share, and a final dividend from
capital of 1 penny per share (2006: Nil) in respect of the year ended 30
September 2007. The dividends will be paid on 15 February 2008 to Shareholders
on the Register on 18 January 2008.

9. The Annual General Meeting will be held at 11.00 am on 6
February 2008 at One Jermyn Street, London SW1Y 4UH.