Interim Management Statement

RNS Number : 2630F

Herald Investment Trust PLC

07 October 2008

HERALD INVESTMENT TRUST plc

Interim Management Statement - 3 months to 30 September 2008

Herald’s objective is to achieve capital appreciation through investments in smaller quoted companies, in the areas of telecommunications, multi-media and technology (TMT). Investments may be made across the world. The business activities of investee companies will include information technology, broadcasting, printing and publishing and the supply of equipment and services to these companies.

Review of the Period

·	Over the period, the Company’s net asset value fell by 7.4% compared to a fall in the benchmark of 11.9% while the share price fell by 7.4%. All figures are total return.
·	In the three months to 30 September 2008, the Company made net investments totalling £15.5 million and realised profits of £13.2 million.
·	During the quarter, the Company bought back 1,355,000 of its own shares for cancellation at a cost of £3,975,000, creating an uplift of 0.25% in the net asset value per share.
·	At the end of September 2008, £50 million had been drawn under the £75 million multi-currency facility. The fair value of the liabilities in respect of the related interest rate swap contract at 30 September 2008 was a liability of £4,051,000 which was based on the marked to market value.
Geographic Analysis of Total Assets				Top Ten Equity Holdings
Name		% of total assets at 30/09/08	% of total assets at 30/06/08	Name	% of total assets at 30/09/08
UK		55.0	52.4	SDL	4.5
Americas		23.5	21.6	Imagination Technologies Group	3.2
Asia Pacific		5.7	6.3	Telecom Plus	2.9
Continental Europe		5.5	2.9	SQS Software Quality Systems	1.8
Emerging Markets		0.3	0.3	Websense	1.8
Net Liquid Assets		10.0	16.5	Diploma	1.6
				Group NBT	1.6
				Phoenix IT Group	1.4
				Alterian	1.4
				Wilmington Group	1.4

Total		100.0	100.0	Total	21.6

Performance

	%
Capital	3 Months	1 Year	3 Years	5 Years
Share Price^†	-7.4	-31.1	-28.0	-5.6
NAV^†	-7.4	-25.2	-17.0	-0.5
Benchmark*	-12.4	-29.0	-12.5	9.9
Total Return
Share Price^†	-7.4	-30.9	-27.6	-4.8
NAV^†	-7.4	-25.1	-16.5	0.2
Benchmark*	-11.9	-27.7	-8.6	19.2

^† Source: Thomson Financial Datastream

* Source: HSBC. The benchmark was changed on 1 January 2006 from 2/3 Hoare Govett Smaller Companies Index (extended capital gains ex. Investment companies) and 1/3 Russell 2000 (small cap) Technology Index (in sterling terms) to 2/3 Hoare Govett Smaller Companies Index plus AIM (capital gains ex. Investment companies) and 1/3 Russell 2000 (small cap) Technology Index (in sterling terms).

Past performance is not a guide to future performance

General Information
	30/09/08	30/06/08
Total assets (before deduction of bank loans)	£322.0m	£351.2m
Bank loans	£50.0m	£50.0m
Equity shareholders’ funds	£272.0m	£301.2m
Net asset value per ordinary share	325.8p	355.0p
Share Price	262.0p	283.0p
Discount	19.6%	20.3%
Net (Borrowings)/cash as a % of Shareholders’ Funds	(4.5%)	(0.2%)