Interim Results

Herald Investment Trust PLC
25 July 2002



                     PRELIMINARY STOCK EXCHANGE ANNOUNCEMENT


                           HERALD INVESTMENT TRUST plc

                 Results for the six months ended 30 June 2002

                                  25 July 2002

                                 BOARD STATEMENT

                              CHAIRMAN'S STATEMENT

It is disappointing to report a further decline in the diluted net asset value
per share, of 21.0%, in my ninth interim statement. However, there are a number
of encouraging aspects. First, the decline in assets was modest compared to the
average decline in the target sector, reflecting the defensive approach to stock
selection by the Manager. Second, the capitalistic excesses, which had
increasingly emerged over the last few years, are rapidly being blown away so
that real value is emerging in the portfolio. These have been evident as a
result of speculative valuations in the Herald orbit in particular, and
increasingly evident as a result of creative accounting across the market. In
the experience of the Manager we cannot piously pretend that the excesses have
only been in the US. There have been examples in the UK and Europe, albeit more
modest in scale than the US, as everything is. When UK companies restate
earnings under US GAAP they are normally lower. Third, prospective p/e
valuations are as low as they have been in the history of the Trust. Combined
with the low level of interest rates this makes it appear superficially an
outstanding buying opportunity. However, the caveat is that earnings
expectations have been declining sharply. A continuation of this trend is
possible if economic conditions deteriorate further, particularly as it could
affect the highly leveraged corporates, which are more prevalent in Europe than
the US. Even in that scenario other sectors exposed to cyclical demand are
likely to be affected more.

We have urged caution on the major markets of mobile phones and pcs, and this
remains the same. Corporate capital expenditure has been severely depressed,
while consumer spending has been surprisingly robust in the Anglo-Saxon
economies. Although the speculative valuations for embryonic companies have
evaporated as fast as they came, the sounder long term technology businesses
have not in general seen the profits pressure experienced by media companies,
where downgrades have been brutal for advertising-led businesses. Many
technology valuations in the UK are now rather lower and more tempting than
those in the media sector.

Capital performance of the Trust from 31 December 2001 to 30 June 2002

UK Equities                                                   -19.2%
European Equities                                             -17.6%
US Equities                                                   -41.5%
Other Overseas Equities                                       -1.2%

The UK portfolio declined a further 20% and Europe nearly as much. In contrast
the Far East was flat, while the US was particularly difficult, falling more
than 40%, having held up so well last year. In contrast the Hoare Govett Smaller
Companies Index declined 7.4%.  The FTSE 100 declined 10.8%, but Techmark, the
Neuer Markt, the NASDAQ composite and the Russell 2000 small cap technology
indices fell 41.0%, 35.9%, 28.4% and 39.0% respectively. US declines in £ were
exaggerated by the weakness of the $.

The net cash raised principally in the first half of 2000 has been progressively
invested as value has been emerging. Net cash/gilt balances have declined from
£58m at the start of 2001 to £43m at the start of 2002, to £25m at the end of
June, albeit with nearly £5m to come from cash bids. This has led to a decline
in income albeit significantly offset by a decline in fees. The focus of the
fund remains on capital growth, and as in previous years an interim dividend
will not be paid.

While the volatility of markets is unnerving in many ways, in other ways it is
an exceptionally exciting environment where valuations are in some cases very
modest in terms of expectations of growth. This is throwing up real
opportunities, albeit selection remains the key. Although there are inevitably
concerns at the macro level, we are increasingly excited about prospects.


Martin Boase
24 July 2002


Statistics and Performance Report
                                                                              Performance
                                                                                    since
                             At inception             At               At                      Performance
                          16 February 1994    31December          30 June     31 December  since inception
                                                    2001             2002            2001
                                                                     
Basic NAV per share                  98.7p        322.9p           253.8p         (21.4%)          +157.1%
Diluted NAV (FRS14)                  98.7p        314.5p           248.5p         (21.0%)          +151.8%
Fully diluted NAV per                98.7p        314.4p           247.9p         (21.1%)          +151.2%
share
Share price                          90.9p        306.0p           214.5p         (29.9%)          +136.0%
Warrant price                        45.5p        212.5p           115.0p         (45.9%)          +152.7%
FTSE 100 Index                     3,417.7       5,217.4          4,656.4         (10.8%)           +36.2%
HGSC Index (ext. cap               1,750.0       2,283.4          2,113.8          (7.4%)           +20.8%
gains ex. investment
companies)
Russell 2000 (small                  83.2*         102.1             62.3         (39.0%)          (25.1%)
cap) Technology Index
(in sterling terms)

* 9 April 1996, being the date funds were first available for international investment.


                                    - ends -


For further information please contact:

Ms Katie Potts, Manager
Herald Investment Trust plc                       020 7553 6300

Baillie Gifford & Co.
Secretaries                                       0131 222 4000



                          HERALD INVESTMENT TRUST plc

The following is the unaudited preliminary statement for the six months to 30
June 2002 which has been neither reviewed nor audited by the auditors.  This
statement is being printed and will be sent to all shareholders on 2 August
2002.  Copies will be available for inspection at the Registered Office of the
Company or may be obtained on request from the Managers or Secretaries after
that date.

                            STATEMENT OF TOTAL RETURN
               (unaudited and incorporating the revenue account*)

                                 For the six months ended         For the six months ended           For the year ended
                              30 June 2002                     30 June 2001                     31 December 2001
                           Revenue   Capital    Total       Revenue   Capital    Total       Revenue   Capital   Total
                           £'000     £'000      £'000       £'000     £'000      £'000       £'000     £'000     £'000
(Losses) on investments        -    (58,491)  (58,491)          -    (84,324)  (84,324)          -  (103,929) (103,929)
Unrealised (losses)/gains on   -       (127)     (127)          -         88        88           -       341       341
loan
Currency (losses)/gains        -        (30)      (30)          -          2         2           -       (61)      (61)
Income                     1,884          -     1,884       2,957          -     2,957       4,728         -     4,728
Investment management fee (1,413)         -    (1,413)     (1,787)         -    (1,787)     (3,205)        -    (3,205)
Other administrative
 expenses                   (129)         -      (129)       (137)         -      (137)       (272)        -      (272)
Net return before finance    342    (58,648)  (58,306)      1,033    (84,234)  (83,201)      1,251  (103,649) (102,398)
costs and taxation
Finance costs of borrowings  (37)         -       (37)        (39)         -       (39)        (75)        -       (75)
Return on ordinary
 activities                  305    (58,648)  (58,343)        994    (84,234)  (83,240)      1,176  (103,649) (102,473)
before taxation
Tax on ordinary activities   (24)         -       (24)        (18)         -       (18)        (31)        -       (31)
Return on ordinary activities
after taxation               281    (58,648)  (58,367)        976    (84,234)  (83,258)      1,145  (103,649) (102,504)
Ordinary dividend payable     -           -         -          -           -         -        (718)        -      (718)
(note2)
Transfer to/(from) reserves  281    (58,648)  (58,367)        976    (84,234)  (83,258)        427  (103,649) (103,222)
Return per Ordinary share
(note 3)
Basic                       0.33p   (69.44p)  (69.11p)       1.16p  (100.20p)  (99.04p)       1.36p (123.01p) (121.65p)
Diluted (FRS14)             0.32p   (67.75p)  (67.43p)       1.12p   (96.77p)  (95.65p)       1.32p (119.45p) (118.13p)
Dividend per
 Ordinary Share                 -                                -                            0.85p

   * The revenue column of this statement is the profit and loss  account of the
Company.

All revenue and capital items in the above statement derive from continuing
operations.



                              HERALD INVESTMENT TRUST plc

                               SUMMARISED BALANCE SHEET
                                      (unaudited)


                                                          30 June               30 June       31 December 2001
                                                             2002                  2001
                                                            £'000                 £'000                  £'000
NET ASSETS
Investments at market value                               212,808               284,478                258,901
Net current assets                                          4,598                11,363                 16,723
Total assets (before deduction of bank loan)              217,406               295,841                275,624
Overseas currency loan (note 4)                            (3,019)               (3,145)                (2,892)
TOTAL NET ASSETS                                          214,387               292,696                272,732


CAPITAL AND RESERVES
Called-up share capital                                    21,119                21,113                 21,113
Share premium                                              69,723                69,698                 69,698
Warrant reserve                                             1,516                 1,525                  1,525
Capital reserve - realised                                203,571               219,652                204,113
Capital reserve - unrealised                              (83,962)              (21,980)               (25,856)
Revenue reserve                                             2,420                 2,688                  2,139
EQUITY SHAREHOLDERS' FUNDS                                214,387               292,696                272,732



Net asset value per ordinary share  (note 5)
Basic                                                      253.79p               346.58p                322.94p
Diluted (FRS14)                                            248.55p               337.31p                314.53p
Fully diluted                                              247.95p               337.16p                314.42p

Ordinary shares in issue (note 6)                       84,475,145            84,453,686             84,453,686




                             DISTRIBUTION OF ASSETS
                                  (unaudited)


                                                           30 June              30 June           31 December
                                                              2002                 2001                  2001
                                                                 %                    %                     %


Equities:         United Kingdom                              55.6                 47.4                  51.0
                       Continental Europe                      7.3                  6.7                   5.7
                       Americas                               17.4                 24.2                  21.7
                       Japan                                   0.6                  0.9                   0.2
                       Asia Pacific                            7.4                  4.3                   5.7
                                                              88.3                 83.5                  84.3
UK bonds                                                       9.6                 12.7                   9.6
Net liquid assets                                              2.1                  3.8                   6.1
Total assets (before deduction of bank loan)                 100.0                100.0                 100.0





                           HERALD INVESTMENT TRUST plc
                         SUMMARISED CASH FLOW STATEMENT
                                   (unaudited)


                                                      For the six       For the six        For the year
                                                      months ended      months ended       ended
                                                      30 June 2002      30 June 2001       31 December 2001
                                                      £'000             £'000              £'000

NET CASH INFLOW FROM OPERATING ACTIVITIES                      275                955             1,571
NET CASH OUTFLOW FROM SERVICING OF FINANCE                     (36)               (41)              (79)
FINANCIAL INVESTMENT
Purchase of investments                                    (56,046)           (40,689)         (124,980)
Sale of investments                                         42,733             39,681           130,695
Currency movement                                              (30)                 2               (61)

NET CASH (OUTFLOW) /INFLOW FROM FINANCIAL INVESTMENT       (13,343)            (1,006)            5,654

EQUITY DIVIDEND PAID                                          (718)              (713)             (713)

NET CASH (OUTFLOW)/INFLOW BEFORE USE OF LIQUID             (13,822)              (805)            6,433
RESOURCES AND FINANCING

MANAGEMENT OF LIQUID RESOURCES+
Decrease in term deposits                                        -              4,000             4,000

FINANCING
Issue of Ordinary shares                                        22                580               580

(DECREASE)/INCREASE IN CASH                                (13,800)             3,775            11,013

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET
FUNDS
(Decrease)/increase in cash in period                      (13,800)             3,775            11,013
(Decrease) in short term investments                             -             (4,000)           (4,000)
Exchange movement on loan                                     (127)                88               341
MOVEMENT IN NET FUNDS IN PERIOD                            (13,927)              (137)            7,354
NET FUNDS AT 1 JANUARY                                      16,351              8,997             8,997
NET FUNDS AT 30 JUNE/31 DECEMBER                             2,424              8,860            16,351



+ The Company includes as liquid resources term deposits of less than one year.

HERALD INVESTMENT TRUST plc


                                                         NOTES




 1.  The accounting policies applied in calculating the interim figures are consistent with those used in the
     Annual Financial Statements.  The Interim Report was approved by the Board on 24 July 2002.

 2.  No interim dividend will be declared.

 3.  The basic return per Ordinary share calculations are based on a weighted average number of shares in issue
     during each period.  For the period to 30 June 2002, the weighted average number of Ordinary shares was
     84,460,918 (30 June 2001 - 84,068,024, 31 December 2001 - 84,262,972).

     The diluted returns per Ordinary share have been calculated on the weighted average warrants in issue
     during the period adjusted by the difference between the average price of the Ordinary shares during the
     period and the Subscription price of 100p, giving a weighted average of 86,563,625 (30 June 2001 -
     87,045,021, 31 December 2001 - 86,769,677) shares.  The unadjusted fully-diluted number of shares at 30
     June 2002 was 87,807,349 compared to 87,807,349 at 30 June 2001 and 31 December 2001.

 4.  The overseas currency loan of yen 551,550,000 becomes due for repayment on 7 January 2004.

 5.  The diluted net asset value per Ordinary share has been calculated in accordance with FRS 14 'Earnings per
     share'.  The calculation determines the potential number of dilutive shares which would be issued on the
     exercise of warrants by reference to the share price (fair value) at each period end.

     The fully diluted net asset value per Ordinary share has been calculated on the assumption that the
     3,332,204 warrants in issue at 30 June 2002 (30 June 2001 and 31 December 2001 - 3,353,663) were fully
     exercised at 100p at each period end.

 6.  During the period 21,459 Ordinary shares were issued in respect of warrants exercised on 30 April 2002.
     Each warrant entitles the holder to subscribe for one ordinary share at 100p on 30 April 2003, which is
     the final subscription date.

     At the AGM on 17 April 2002 the Company's authority to buy back shares was renewed in respect of
     12,659,607 Ordinary shares.  No shares have been bought back during the period.

     There were 3,332,204 warrants in issue at 30 June 2002 (30 June 2001 and 31 December 2001 - 3,353,663).

 7.  The financial information for the year ended 31 December 2001 has been extracted from the full accounts,
     which have been filed with the Registrar of Companies and which contain an unqualified Auditors' Report.




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