Statement re Possible Merger

Possible Merger pursuant to a s.110 scheme of reconstruction under the
Insolvency Act 1986.

The boards of Kings Arms Yard VCT PLC and Kings Arms Yard VCT 2 PLC today
announce, as part of their continuing effort to cut costs, that they have
entered talks to explore a merger of the Companies. Any merger would be subject
to approval by Shareholders of both Companies.

The current view is that a proposed merger will be completed pursuant to a s.110
scheme of reconstruction under the Insolvency Act 1986 by transferring the
assets and liabilities of Kings Arms Yard VCT 2 PLC to Kings Arms Yard VCT PLC
in consideration for new Kings Arms Yard VCT PLC shares to be issued to Kings
Arms Yard VCT 2 PLC shareholders on a relative net asset value basis, based on
net asset values as at 30(th) September 2011. A merger on this basis will be
outside the provisions of The City Code on Takeovers and Mergers.

A further announcement will be made in due course.






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Source: Kings Arms Yard VCT PLC via Thomson Reuters ONE

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