Interim Management Statement

Herald Investment Trust PLC
04 April 2008

                          HERALD INVESTMENT TRUST plc

            Interim Management Statement - 3 months to 31 March 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 11.8% compared to a fall in the benchmark of
     11.0% while the share price fell by 11.2%  All figures are total return.

•    During the period 934,487 shares were repurchased at a cost of £2.7million.

•    A final dividend of 0.50p per share is proposed and, subject to approval at the Annual General
     Meeting on 22 April 2008, will be paid on 1 May 2008.

•    Following the onset of the credit crunch in September 2007 the Manager repositioned the portfolio to
     eliminate borrowings and accumulate cash. Cash and Government securities peaked at £41m towards the
     end of January, since when there has been modest net purchases of c£12m as compelling valuations have
     more than offset macro concerns. There has been a continuous stream of takeover bids the most
     significant of which has been Icos Vision in Belgium. This will realise a further £4m  in cash in due
     course.

•    There were no borrowings drawn down at the end of March 2008. A facility of £50 million remains
     available.


        Geographic Analysis of Total Assets                           Top Ten Equity Holdings

Name                            % of     % of total      Name                                % of
                               total     assets at                                          total
                             assets at    31/12/07                                        assets at
                              31/03/08                                                     31/03/08
UK                              60.2        62.3         SDL                                 4.5
Americas                        18.4        19.0         Detica Group                        3.0
Asia Pacific                    8.6         7.8          Imagination Technologies Group      2.7
Continental Europe              7.9         7.2          Telecom plus                        2.3
Net Liquid Assets               4.9         3.7          Phoenix IT Group                    2.1
                                                         Diploma                             1.7
                                                         SQS Software Quality Systems        1.6
                                                         Wilmington Group                    1.6
                                                         IBS OPENSystems                     1.5
                                                         Euromoney Institutional             1.5
                                                         Investor
Total                          100.0           100.0     Total                               22.5

                                                                                                 Performance
                                                                       %
Capital                                3 Months           1 Year              3 Years            5 Years
Share Price+                             -11.2             -30.4               -18.2              71.5
NAV+                                     -11.8             -22.6                -9.3              80.5
Benchmark*                               -11.2             -19.1                15.0              84.9
Total Return
Share Price+                             -11.2             -30.2               -17.8              72.6
NAV+                                     -11.8             -22.4                -8.9              84.9
Benchmark*                               -11.0             -18.1                20.0              100.8

+   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


                                                            31/03/08                    31/12/07
Total assets (before deduction of  bank loans)              £299.4m                     £343.5m
Bank loans                                                     -                           -
Equity shareholders' funds                                  £299.4m                     £343.5m
Net asset value per ordinary share                           348.0p                      395.0p
Share Price                                                  277.0p                      312.0p
Discount                                                     20.4%                       21.0%
Net (Borrowings)/cash as a % of Shareholders Funds            9.5%                        7.3%


The Company's Net Asset Value is calculated daily and can be viewed on the
London Stock Exchange website at www.londonstockexchange.com

The Share Price is published daily in the Financial Times.

The interim management statement is available on the Companys' website
www.heralduk.com

For further information contact:-  Katie Potts on 020 7553 6300


                      This information is provided by RNS
            The company news service from the London Stock Exchange