Final Results

Polar Capital Technology Trust PLC
14 June 2001


14 JUNE 2001


HIGHLIGHTS


*   Net assets fall 40% as Dow Jones Global Technology Index  drops 47% over 
    the year.

*   Capital growth since inception remains over 26% pa.

*   Continuing poor corporate news flow and limited visibility on recovery
    constrains technology sector share price performance over the near term.



FINANCIAL                    30 April 2001         30 April 2000       Change %

Total net assets              £401,337,000          £668,727,000         -40.0%

Net assets per share
Undiluted                           270.2p                452.8p         -40.3%
Fully diluted                       243.7p                395.8p         -38.4%

Price
per ordinary share                  281.5p                436.0p         -35.4%
per warrant                         182.5p                334.0p         -45.4%


For further information please contact:



Brian Ashford-Russell
Polar Capital Technology Trust Plc
Tel: [phone]
Website: www.polarcapital.co.uk


Or


Simon Ellis/Peter Binns
Binns & Co
Tel: [phone]
Mobile: [phone]



Extracts from the Chairman's Statement:


After enjoying our most successful year ever in the twelve months to 30 April
2000, the omens were not perhaps propitious for the year just ended.  In a
period of just seven months, the Dow Jones Global Technology index fell by
65%.  Over the year it fell by 47.2% in sterling terms.  Your Company's assets
fared little better, falling by 40.0% to £401.3m at 30 April 2001.  In view of
the caution with which we entered the year and our strong relative performance
during the first half year, the results for the full period are very
disappointing.  Nevertheless over the four and half years since the Company's
launch, assets have risen by 178%.



The bubble in technology share prices during the first quarter of 2000 reached
such epic proportions that an orderly deflation became increasingly difficult
to envisage.  At one point last summer, the unlikely seemed still possible but
it was not to be.  What began as a compression in valuations became
fundamentally driven when the scale of the slowdown in the wireless, PC and '
dot com' markets became fully apparent.  Already in disorderly retreat, the
sector was then trounced by the sheer speed with which the US economy
decelerated.  The confluence of positive forces which had unleashed a period
of quite extraordinarily strong growth in technology spending reversed
direction.  By the end of our financial year, the critical question to be
answered was whether the slowdown in technology spending represented the end
of a major cycle or simply a temporary interruption to growth.



Our belief is that much of the blame for the sector's slowdown can be
attributed to the economy but that a resumption of economic growth will be
insufficient to restore technology spending growth to the levels of the last
five years.  The collapse of the 'dot com' sector and its knock on effect on
on-line spending by traditional businesses removes a significant source of
incremental demand.  More importantly, the funding crisis in the
communications industry will necessitate substantial rationalisation within
the sector.  This is likely to be accompanied by very modest rates of growth
in overall telecommunications capital spending over the next few years.



Capital in general has been far too widely and cheaply available to the
technology industry over recent years.  The result has been that far too many
companies have been financed and that the industry as a whole has become
profligate and undisciplined in its spending.  In order to resolve the
problems that this has generated, we need to see a period of capital
starvation or at least deprivation. We expect banks to be a good deal warier
over the next few years in their lending policies to the technology industry.



We also believe that venture capital returns will collapse and that funding
from this source will be far less plentiful over the medium term.  The absence
of cheap capital should be a beneficial discipline on the industry but its
impact will only be felt gradually.



Within the stock market, the collapse of the technology bubble may have longer
lasting effects.  Confidence has been dealt a serious blow particularly in
markets such as Germany which have far less experience of technology share
price volatility than the USA.  Moreover, in all these markets there exists a
massive over-supply of technology companies, many of which have little
potential of ever achieving credible levels of profitability.  Valuations for
many companies are by no means inexpensive and sentiment can be expected to
remain impaired by a steady flow of bankruptcies and poor earnings
announcements amongst the generation of companies that came public over the
last three years.  As with all bubbles, the problems that ensue cannot be
resolved by share price declines alone; time is also a critical healer and a
year in stock market terms may not go far enough.



There are analogies to be drawn with the period that followed the early 1980s
PC based boom.  As was the case then, we expect the technology industry to
gradually work its way out of the problems created by the recent boom.  As
then recovery should be helped by economic expansion but another period of
exceptional growth will await the emergence of a major new driver for spending
which as yet is not evident.  We anticipate a period of below trend technology
spending growth during which there will be a tremendous polarisation between
those companies well positioned for the new environment and the vast morass of
indifferent and ill-conceived businesses that represent the residue of a
highly speculative new issue boom.



There are risks to this relatively benign scenario and most are skewed to the
downside.  By far the greatest concern would be a further and prolonged lurch
downwards in the global economy.  Such a development would delay any recovery
in the communications market and make it very difficult for the industry to
match its inventories to business conditions.  It would also result in a much
more dramatic and less manageable wave of bankruptcies. For the moment, these
risks appear contained by the new found willingness of the US Federal Reserve
Bank to move real interest rates towards zero.



Contrary to the view of some of the industry's detractors, we do believe that
the heavy burst of technology spending over the last five years has already
and will continue to deliver significant productivity benefits to the global
economy.  As economic recovery begins, technology spending that delivers a
high return on investment will recover rapidly.  Although the stock market
performance of the industry as a whole may moderate over the next five years,
we expect outstanding returns still to be available from many of the new
generation companies.  However, we are in a different market from that of
1998-2000, one that represents a healthy return to normality albeit a
normality that is accompanied by considerable opportunity.



GROUP STATEMENT OF TOTAL RETURN for the year ended 30 April 2001
(INCORPORATING THE REVENUE ACCOUNT)

                                   Unaudited                    Audited
                             Year ended 30 April          Year ended 30 April
                                      2001                        2000
                           Revenue  Capital   Total   Revenue   Capital   Total
                             £'000    £'000   £'000     £'000     £'000   £'000

Total capital (losses)/ 
 gains from investments          - (261,400)( 261,400)     -     429,750 429,750
Repurchase of warrants           -        -        -       -         (85)   (85)
Income from fixed asset
 investments                 2,972        -      2,972  2,073          -   2,073
Other interest receivable 
 and similar income          2,667        -      2,667  6,516          -   6,516
                          -------- --------  -------- -------   --------  ------
Gross revenue and capital 
(losses)/gains               5,639  (261,400)(255,761)   8,589   429,665 438,254
Management fee             (11,116)        -  (11,116)(48,627)         -(48,627)
Other administrative 
expenses                      (890)        -     (890)   (636)         -   (636)
                          -------- --------  -------- -------   --------  ------
Net (loss)/return 
 on ordinary activities 
 before interest payable
 and taxation               (6,367) (261,400)(267,767)(40,674)   429,665 388,991
Interest payable and similar
charges                       (393)        -     (393)   (593)         -   (593)
                          -------- --------  -------- -------   --------  ------
Net (loss)/return 
 on ordinary activities 
 before taxation            (6,760) (261,400)(268,160)(41,267)   429,665 388,398
Taxation on ordinary 
 activities                    (47)        -      (47)    (53)       -      (53)
                          -------- --------  -------- -------   --------  ------
Net (loss)/return 
 on ordinary activities 
 after taxation             (6,807) (261,400) (268,207)(41,320)  429,665 388,345
                             ======  ========  ======== =======  ======= =======
                                                     
(Loss)/return per ordinary 
 share
Basic                       (4.59p) (176.41p) (181.00p) (28.02p) 291.32p 263.30p
                             =====   =======   =======   ======  ======  ======
Diluted                          -  (154.56p) (158.58p)       -  260.42p 235.38p
                             =====   =======   =======   ======  ======  ======

The revenue columns of this statement represent the revenue accounts of the
Group.



GROUP BALANCE SHEET at 30 April 2001

                                                         Unaudited       Audited
                                                     30 April 2001 30 April 2000
                                                             £'000         £'000
Fixed asset investments
Listed at market value:
United Kingdom (excluding fixed interest)                    45,889     113,252
Investment in TR Technology PLC
 (liquidated)                                                     -       3,043
United Kingdom fixed interest                                24,409      72,290
Overseas                                                    315,903     505,655
                                                      ------------- -----------
                                                            386,201     694,240


Unlisted at Directors' valuation:
Other United Kingdom                                            328       1,724
Overseas                                                        298         427
                                                      ------------- -----------
                                                            386,827     696,391
                                                      ------------- -----------
Current assets
Debtors                                                       4,718       1,670
Cash                                                         39,471      46,806
                                                      ------------- -----------
                                                             44,189      48,476


Creditors: amounts falling due within one                  (29,679)    (61,357)
year
                                                      ------------- -----------
Net current assets/(liabilities)                             14,510    (12,881)
                                                      ------------- -----------
Total assets less current liabilities                       401,337     683,510
Creditors: amounts falling due after more
than one year                                                     -    (14,783)
                                                                  
                                                      ------------- -----------
Total net assets                                            401,337     668,727
                                                            =======     =======
Capital and reserves
Called up share capital                                      37,130      36,926
Share premium                                                87,599      86,986
Warrant reserve                                               8,709       8,967
Warrant exercise reserve                                        417         159
Other capital reserves                                      320,606     582,006
Revenue reserve                                            (53,124)    (46,317)
                                                       ------------ -----------
Equity shareholders' funds                                  401,337     668,727
                                                            =======     =======
Net asset value per ordinary share
Undiluted                                                   270.22p     452.75p
                                                            =======     =======
Diluted                                                     243.72p     395.80p
                                                            =======     =======



GROUP CASH FLOW STATEMENTS for the year ended 30 April 2001

                                  Unaudited   Unaudited     Audited     Audited
                                       2001        2001        2000        2000
                                      £'000       £'000       £'000       £'000
Net cash outflow from operating
activities
                                                (53,149)                  (212)
Servicing of finance

Bank and loan interest paid             (331)                 (582)
                                  -------------            ------------
Net cash outflow from servicing
of finance                                         (331)                  (582)
                                                   

Taxation
UK tax recovered                           16                    22
Overseas withholding tax                   11                     1
recovered
                                  -------------            ------------
Net tax recovered                                     27                     23

Financial investment
Purchase of investments             (751,980)             (544,799)
Sale of investments                   780,979               586,445
                                  -------------            ------------
Net cash inflow from financial
investment                                        28,999                 41,646
                                              -----------            -----------
                                                  
Net cash (outflow)/inflow before
financing                                       (24,454)                 40,875
                                                

Financing
Proceeds from exercise of                 817                   483
warrants
Repurchase of warrants                      -                 (132)
                                            
New loans                              14,955                    -              
                                -------------            ------------
Net cash inflow from financing                    15,772                    351
                                              ------------         -------------
(Decrease)/increase in cash                      (8,682)                 41,226
                                                 =======                =======



Reconciliation of net cash flow to movement in net funds

(Decrease)/increase in cash as above                  (8,682)            41,226
Movement in long term loans                            14,783                 -
                                                 ------------       -----------
Change in net funds resulting from cash
flows
                                                        6,101            41,226
Exchange movements                                      1,347           (2,139)
                                                 ------------       -----------
Net movement in the year                                7,448            39,087
Net funds/(debt) at 1 May                              32,023           (7,064)
                                                 ------------       -----------
Net funds at 30 April                                  39,471            32,023

                                                      =======           =======


Notes:



1.                   (Loss)/return per ordinary share

Revenue loss per ordinary share is based on the net loss after taxation
attributable to the ordinary shares of £6,807,000 (2000: net loss of £
41,320,000) and on 148,179,591 (2000: 147,489,961) ordinary shares, being the
weighted average number of shares in issue during the year.



Basic capital loss per ordinary share is based on net capital losses of £
261,400,000 (2000: £429,665,000) and on 148,179,591 (2000: 147,489,961)
ordinary shares, being the weighted average number of shares in issue during
the year.



The calculation of the fully diluted revenue and capital returns per ordinary
share are carried out in accordance with Financial Reporting Standard No.14,
Earnings per Share.  For the purposes of calculating diluted revenue and
capital returns per share, the number of shares is the weighted average used
in the basic calculation plus the number of shares deemed to be issued for no
consideration on exercise of all warrants, by reference to the average price
of the ordinary shares during the year.  The calculations indicate that the
exercise of warrants would result in a weighted average number of shares of
169,128,234 (2000: 164,986,341).



2.                   2000 Accounts

The figures and financial information for the period ended 30 April 2000 are
an extract of the latest published accounts of the Group and do not constitute
the statutory accounts for that year.  Those accounts have been delivered to
the Registrar of Companies and included the report of the auditors which was
unqualified and did not contain a statement under either section 237(2) or
section 237(3) of the Companies Act 1985.



3.                   2001 Accounts

The preliminary figures for the year ended 30 April 2000 are an extract from
the Group's accounts for that period and do not constitute the statutory
accounts for that year. These accounts have not yet been delivered to the
Registrar of Companies, nor have the Auditors yet reported on them.



4.                   Basis of consolidation

The Group accounts consolidate the accounts of the Company and its wholly
owned subsidiary undertaking, PCT Finance Limited.



5.                   Reconciliation of Group operating revenue to net cash
outflow from operating

activities


                                                  30 April 2001  30 April 2000
                                                          £'000          £'000

Net loss before interest payable and taxation           (6,367)       (40,674)
Decrease/(increase) in accrued income                        91          (179)
Increase in other debtors                               (1,066)           (38)
(Decrease)/ increase in other creditors                (45,748)         40,772
UK income tax deducted at source                              6           (18)
Overseas withholding tax suffered                          (53)           (56)
Script dividends included in investment income             (12)           (19)
                                                  -------------  -------------
Net cash outflow from operating activities             (53,149)          (212)
                                                        =======        =======



6.                   Annual General Meeting

The full annual report and accounts will be posted to shareholders in late
June 2001 and copies will be available thereafter from the Company Secretary
at the Company's Registered Office, Cayzer House, 30 Buckingham Gate, London
SW1E 6NN.  The Annual General Meeting will be held at 12.00 noon on Thursday
26 July 2001 at The Gibson Hall, Bishopsgate, London.