Final Results

BioScience VCT plc
27 February 2004


BioScience VCT plc


Preliminary Results for the year ended 31 December 2003

BioScience VCT Plc is a Venture Capital Trust.  The investment manager is
Octopus Asset Management Limited ('Octopus') and the technology adviser is
Medical Marketing International Group plc ('MMI').  The Trust was launched in
October 2001 and raised over £7m (£6.8m net of expenses) through an offer for
subscription.  The Trust invests in unquoted and quoted bioscience companies and
aims to provide attractive long-term returns to shareholders.


Financial highlights (figures as at 31 December 2003):

•  Net assets                                   £6,911,000
•  Net revenue before tax                       £48,000
•  Revenue return per share*                    0.5p
•  Net asset value per share                    93.9p
•  Mid-market share price at end of year        70p
•  Dividend per share                           0.5p


* based on weighted average of 7,255,252 shares in issue in the year.



For further information please contact:

Chris Hulatt
Octopus Asset Management Ltd                                         020 7255 7962
David Best
Medical Marketing International Group plc                            01223 477677



Management Commentary

The Chairman of BioScience VCT plc, Dr Paul Nicholson, included the following
points in his statement to shareholders:

I am delighted to present my second annual report to shareholders in BioScience
VCT.


Background

We continue to believe that companies in the bioscience sector are well-placed
to benefit from the attractive industry back-drop.  A combination of the
demographic profile of the Western world and the increasing reliance of large
pharmaceutical companies on bioscience companies for new products means that
there is likely to be a buoyant market for the products and technologies
emerging from such companies.

In the first half of 2003, the Iraq crisis had an adverse impact upon global
financial markets.  This had a knock-on effect on bioscience companies, with
many proposed funding rounds not being completed.  However, following the end of
the Iraq war, a renewed sense of confidence came back to the sector.  Valuations
remained at fairly low levels leading to an increase in the number of deals that
happened in the sector.


Investment Policy

As described in my statement last year, we place a particular emphasis on
companies that combine a strong scientific heritage with a high quality
management team.  During 2003, we identified a number of companies that met our
requirements.  I am pleased to be able to report that we had completed two
investments in unquoted companies and two investments in AIM-quoted companies by
the end of 2003.  We also took advantage of the sharp rise in the share price of
GTC Biotherapeutics to dispose of half of our holding.


Net Asset Value ('NAV')

After providing for a dividend of 0.5p, the NAV at 31 December 2003 was 93.9p,
compared with a launch figure of 95p (after deducting issue expenses).  When the
dividend of 0.75p, paid on 6 May 2003, is taken into account, this means that
the total of the current net asset value and cumulative dividends is 95.15p, a
slight premium to the initial net asset value of 95p.  The net return for 2003
was £50,000, equivalent to a return per share of 0.7p, based on the weighted
average of 7,255,252 shares in issue throughout the period.  The amount
available for distribution to shareholders equates to approximately 0.5p per
share in issue at the year-end.  Therefore, the directors recommend a dividend
of 0.5p per share, to be paid on 7th May 2004, to shareholders on the register
on 2nd April 2004.  The size of the proposed dividend has been affected by the
low level of interest that has been earned by the Company's cash deposits during
the year.  As funds continue to be moved from money market securities into
investments, it is likely that dividends paid out of the Company's income will
remain small.  However, in the medium-term, we will seek to realise capital
gains from investment disposals for distribution to shareholders. In order to
allow the Company to distribute capital gains to shareholders, the directors
will dispense with the Company's investment company status at the appropriate
time.  This does not have any impact on VCT status.


Share price

The company's mid-market share price stood at 70p at the end of 2003, and, as is
normal with a VCT in the first few years, there have been few transactions in
the shares.  We will be asking shareholders at the annual general meeting to
renew the board's powers to purchase shares in the market for cancellation or
purchase into treasury.  This should assist the marketability of the shares and
help prevent the shares from trading at a wide discount to NAV. During 2003, we
repurchased 3,000 shares for cancellation at a price of 85p.

The Board is seeking your authority to renew the shareholder approval to issue
further shares up to 10% of the existing share capital.  If any shareholder
would like to increase their shareholding by applying for new shares in the VCT,
they should contact our investment managers, Octopus.


VCT Qualifying Status

Your board has retained KPMG LLP to monitor and report on the company's progress
towards meeting the qualifying investment requirements as set out in the VCT
legislation.  As a result of the progress made in 2003 and the high level of
dealflow, both in terms of quantity and quality, that is being experienced at
present, we believe that we will meet the requirement to invest at least 70% of
the VCT's funds in qualifying investments by 31 December 2004.


Prospects

The improvement in the environment for investing in bioscience companies which
was experienced in the latter part of 2003 has continued into early 2004.  We
are evaluating a number of potential investments and I look forward to updating
you on our progress throughout this year.


Dr Paul Nicholson
Chairman




Statement of Total Return (incorporating the Revenue Account)
For the period ended 31 December 2003

                                                    Year ended 31 December 2003     Year ended 31 December 2002
                                                    Revenue   Capital     Total     Revenue   Capital     Total
                                                       £000      £000      £000        £000      £000      £000

Realised gains on investments                             -        35        35           -         -         -

Unrealised gains on investments

                                                          -       117       117           -         7         7
Income                                                  229         -       229         196         -       196
Investment management fee                              (50)     (150)     (200)        (34)     (102)     (136)
Other expenses                                        (131)         -     (131)       (105)         -     (105)
                                                     ------     -----     -----       -----     -----     -----
Return on ordinary activities
before tax                                               48         2        50          57      (95)      (38)
Tax on ordinary activities                              (9)         9         -           -         -         -
                                                     ------     -----     -----      ------     -----     -----
Return on ordinary activities
after tax                                                39        11        50          57      (95)      (38)
Dividends                                              (37)         -      (37)        (54)         -      (54)
                                                     ------     -----     -----      ------     -----     -----
Transfer to reserves                                      2        11        13           3      (95)      (92)
                                                     ------     -----     -----      ------     -----     -----
Return per share                                       0.5p      0.2p      0.7p        1.0p    (1.6p)    (0.6p)





Balance sheet
                                                      31 December 2003              31 December 2002
                                                            £000          £000          £000          £000
Fixed asset investments                                                    857                          37
Current assets
  Investments                                              5,969                       6,534
  Debtors                                                      9                          40
  Cash at bank                                               243                         202
                                                          ------                      ------

                                                           6,221                       6,776


Creditors (amounts falling due within one
year)                                                      (167)                        (86)
                                                          ------                      ------
                                                                                                     
Net current assets                                                       6,054                       6,690
                                                                        ------                      ------
Net assets                                                               6,911                       6,727
                                                                       -------                     -------

Called-up equity share capital                                           3,679                       3,589
Share premium                                                            3,312                       3,230

Capital redemption reserve                                                   2                           -
Capital reserve - realised                                               (208)                       (102)
                - unrealised                                               124                           7
Revenue reserve                                                              2                           3

                                                                       -------                     -------
Total equity shareholders' funds                                         6,911                       6,727
                                                                       -------                     -------
Net asset value per share                                                93.9p                       93.7p




Cash flow statement
For the period ended 31 December 2003


                                                        31 December 2003        31 December 2002
                                                     £000           £000        £000        £000
Net cash outflow from operating                                     (74)                    (53)
activities
Financial investment:
Purchase of investments                             (617)                       (29)
Sale of investments                                    50                          -
                                                    -----                      -----

Net cash outflow from financial
investment                                                         (567)                    (29)
Equity dividends paid                                               (54)                       -
Management of liquid resources                                       565                 (6,534)

Net cash outflow before financing                                  (130)                 (6,616)
Financing:
Issue of ordinary shares                              183                      7,100
Share issue expenses                                  (9)                      (282)

Repurchase of ordinary shares                         (3)                          -
                                                    -----                     ------
Net cash inflow from financing                                       171                   6,818
                                                                  ------                  ------
Increase in cash at bank                                              41                     202
                                                                  ------                  ------



Investment Portfolio Summary

As at 31 December 2003

Investments

                                                           Valuation
                                                              £000's
Unlisted investments
   Scancell Ltd                                                  400
   Insense Technologies Ltd                                      100
AIM-listed investments
   Cobra Biomanufacturing plc                                    187
   Dawmed plc                                                    128
Listed
   GTC Biotherapeutics Inc                                        42
Total                                                            857



The above summary of results for the period ended 31 December 2003 does not
constitute statutory financial statements within the meaning of Section 240 of
the Companies Act 1985 and has not been delivered to the Registrar of Companies.
Statutory financial statements will be filed with the Registrar of Companies
in due course; the auditors' report on those financial statements under S235 of
the Companies Act 1985 is unqualified and does not contain a statement under
S237(2) or (3) of the Companies Act 1985.

The proposed final dividend for the period ended 31 December 2003, if approved
by shareholders, will be paid on 7 May 2004 to shareholders on the register at
the close of business on 2 April 2004.

A copy of the full annual report and financial statements for the period ended
31 December 2003 is expected to be posted to shareholders shortly and will be
available to the public at the registered office of the company at Kett House,
Station Road, Cambridge, CB1 2JY.  The annual general meeting will be held at
the offices of Eversheds at Kett House, Station Road, Cambridge, CB1 2JY on 24
March 2004 at 3:00pm.


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