Exercise of Warrants

Herald Investment Trust PLC
3 May 2001

                         Herald Investment Trust plc

                             Exercise of warrants

Herald Investment Trust plc ('the Company') announces the issue of 580,087 new
ordinary shares of 25p each ('the Shares') on the exercise of the same number
of the Company's warrants. These shares are fully paid and rank pari passu
with the existing ordinary shares in issue.

Application is being made for the Shares to be admitted to the Official List
of the London Stock Exchange. Subsequent to this allotment there will be
84,453,686 Shares in issue and 3,353,663 warrants.



                                                         Baillie Gifford & Co.

                                                           Company Secretaries