Offer Update

Elderstreet VCT PLC
16 March 2007

Elderstreet VCT plc
Offer Update
16 March 2007

                  NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN
               OR INTO THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN
                             FOR IMMEDIATE RELEASE

                               Recommended offer

                                       by

                              Elderstreet VCT plc

                                      for

                Elderstreet Millennium Venture Capital Trust plc



Compulsory Acquisition of Outstanding Millennium Shares

On 1 December 2006, Elderstreet VCT plc ('Elderstreet') made an offer for the
entire issued and to be issued ordinary share capital of Elderstreet Millennium
Venture Capital Trust plc ('Millennium') (the 'Offer').  Elderstreet announces
that as at 3pm on 15 March 2007, it had received valid acceptances in respect of
or had otherwise unconditionally contracted to acquire 14,676,340 Millennium
Shares (representing 90.92% in nominal value of the Millennium Shares to which
the Offer relates and 90.92% of the voting rights carried by the Millennium
Shares to which the Offer relates).

Accordingly, Elderstreet is today issuing compulsory acquisition notices under
The Takeovers Directive (Interim Implementation) Regulations 2006 (the '
Regulations') to Millennium Shareholders who have not yet accepted the Offer.
The transfer of the compulsorily acquired Millennium Shares to Elderstreet is
expected to take place on or about 27 April 2007.

The Offer remains open for acceptance until further notice.


Enquiries:

Elderstreet VCT plc
Grant Whitehouse                                 020 7416 7780

Smith & Williamson Corporate Finance Limited
David Jones                                      020 7131 4000


The availability of the Offer to persons outside the United Kingdom may be
affected by the laws of other jurisdictions.  Such persons should inform
themselves and observe any applicable requirements of those jurisdictions.  The
Offer is not being made directly or indirectly in, into or from the United
States, Canada, Australia or Japan and will not be capable of acceptance from
within the United States, Canada, Australia or Japan except pursuant to an
exemption from applicable securities laws.  Accordingly, copies of this
announcement and any offer documents are not being, and must not be, mailed or
otherwise forwarded, distributed or sent in, into or from, the United States,
Canada, Australia or Japan.

The New Elderstreet Shares to be issued to persons who validly accept the Offer
have not been, and will not be, registered under the United States Securities
Act 1933 (as amended) or under the securities legislation of any state of the
United States or the relevant securities laws of Canada, Australia or Japan.
Accordingly, unless an exemption under relevant securities laws is applicable,
the New Elderstreet Shares may not, directly or indirectly, be offered, sold,
renounced, taken up or delivered in or into the United States, Canada, Australia
or Japan or to, or for the account or benefit of, any US Persons or a resident
of Canada, Australia or Japan.

Smith & Williamson Corporate Finance Limited, which is authorised and regulated
in the United Kingdom by The Financial Services Authority, is acting for
Elderstreet in connection with the Offer and the procedures under Schedule 2 to
the Regulations and no one else and will not be responsible to anyone other than
Elderstreet for providing the protections afforded to customers of Smith &
Williamson Corporate Finance Limited nor for providing advice in relation to the
Offer or the procedures under Schedule 2 to the Regulations.




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