Statement re Company Update

STRATEGIC EQUITY CAPITAL PLC                          

                                COMPANY UPDATE                                 

Since the announcement of the annual results, the Board of Strategic Equity
Capital plc (the `Company') has consulted with shareholders in the Company to
elicit their views on the Company's future. The consultation process followed
the Board recently being made aware that a minority group of shareholders had a
preference for realising their investment over the medium term. Accordingly,
the Board has now obtained the views of shareholders representing over 90 per
cent. of the issued share capital.

The strong view from the majority of shareholders is that the Company should
continue to pursue its investment strategy, namely to achieve absolute return
by investing where the Manager believes the securities are undervalued and
could benefit from strategic, operational or management initiatives. The
Company's investment horizon is typically three to five years. Shareholders
recognise that markets have been difficult in the last twelve months and that
the Company has not had sufficient time since its launch in July 2005 to prove
the viability of its investment strategy.

The Board has also re-examined its buyback policy in light of market
conditions. Whilst it will continue to use its share buy back authority where
it can be applied for the benefit of all shareholders, it believes it is
impractical to seek to reduce the discount to 10 per cent. or less during the
current market conditions. However, the Board is giving a commitment to
shareholders that it will present an ordinary resolution at the annual general
meeting of the Company in November 2010 where shareholders will vote on the
continuation of the Company.

The Board and the Manager remain of the view that the Company's investment
rationale is sound and that the Company remains well positioned to deliver
growth from its portfolio and the application of its investment strategy.

Enquiries:

John Hodson

Chairman

Strategic Equity Capital plc

07770 394 098

James Moseley

Winterflood Investment Trusts

020 3100 0250