New Accounting Ref Date

Foresight Technology VCT PLC
23 August 2002


Foresight Technology VCT Plc


New Accounting reference date


Foresight Technology has issued a circular to shareholders and warrantholders
containing proposals to be put to shareholders at an Extraordinary General
Meeting to be held on 20 September 2002.  Details of these proposals are as
follows:


Cancellation of the Share Premium Account


In January 2001 Shareholders and Warrantholders approved a £10 million reduction
of the share premium account of the Company.  A special reserve, the cancelled
share premium account, was created for a number of uses.  The Company has been
able to pay dividends in both 2001 and 2002, even though it became obliged to
take into account capital losses in determining its ability to distribute
revenue reserves when it revoked its status as an investment company, because
losses can be written off to its cancelled share premium account.  The cancelled
share premium account can also be used to fund buy backs of the Company's own
shares where the Board consider it in the best interests of the shareholders and
the Company as a whole.


In common with many other VCTs who have cancelled their entire share premium
accounts, the Board are now seeking the approval of shareholders and
warrantholders to cancel the remainder of the share premium account, which as at
31 March 2002 stood at £31,590,456, to continue with the above policies.


Changing the Accounting Reference Date


The Board are also seeking approval to effect a change to the accounting
reference date of the Company to 31 December by creating a short accounting
period from 1 October 2002 to 31 December 2002.  There are two benefits of
moving the accounting reference date.


Firstly, the Board's main priority is to protect and enhance shareholder
investment and an important part of this is to preserve the attractive tax
arrangements which apply to VCTs by complying at all times with the Inland
Revenue requirements.  A substantial amount of the funds raised pursuant to the
'C' Shares public offer were raised after 31 December 1999, and although
generally the Inland Revenue allows three years before which these monies need
to be invested in order to meet certain VCT requirements, the current accounting
date of 30 September means your investment managers, VCF Partners, will only
have had two and a half years to invest the funds in what has recently been a
difficult economic climate.  Moving the accounting reference date will give VCF
Partners an additional three months in which to make approximately £4 million of
qualifying investments from the 'C' Shares fund £1.75 million of which is
expected to be completed shortly.  Assuming the current outlook for existing
investment remains unchanged, this additional time is expected to be sufficient
to meet VCT requirements.  VCF Partners are confident that given the current
level of new investment opportunities this will be achieved.


Secondly, the current accounting reference period of 30 September results in the
preparation of audited accounts for the Company during the Christmas period.  By
changing the accounting reference period to 31 December the Company anticipates
being able to prepare audited accounts in a more efficient manner by avoiding
the holiday season.


If this change is approved Shareholders and warrantholders will receive
financial statements for the year ending 30 September 2002 and for the three
month period ending 31 December 2002.



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