Final Results

BioScience VCT plc
29 April 2005

BioScience VCT plc
29 April 2005


Preliminary Results for the year ended 31 December 2004


Financial highlights (figures as at 31 December 2004):


                                                     2004                  2003
Net assets                                           £6,299,000            £6,911,000
Net revenue before tax                               £(6,000)              £48,000
(Loss)/revenue return per share*                     (0.1)p                0.5p
Net asset value per share                            82.9p                 93.9p
Mid-market share price at end of year                80p                   70p


* based on weighted average of 7,535,445 shares in issue in 2004.

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


I am pleased to present my third annual report to shareholders in BioScience
VCT.


Investment policy

As I have stressed in my previous statements, we follow a rigorous investment
approach that is designed to identify companies that we believe combine a high
quality management team with a strong scientific heritage.  During 2004, we made
investments into several unquoted companies and one AIM-listed company, as well
as adding to our stake in one of our existing investments.



The fund did not make as many investments in 2004 as had been anticipated,
despite considering a large number of opportunities.  Our team met with the
management teams of 34 companies, of which we invested into 4 companies.  A
number of others are still under consideration for investment.  The principal
reason for the deliberately cautious approach to concluding investments was
that, whilst the UK stock market as a whole was buoyant in 2004, many unquoted
healthcare companies suffered from the dearth of institutional investor
interest, a situation which may not change in the near future.  The Board took
the view during 2004 that it was crucial when considering potential investments
that the future funding needs of potential investee companies formed an
important part of the assessment process.  The Board has therefore sought to
focus the fund in the following way:



•         Seek to ensure that potential investee companies are raising
sufficient funds to meet their needs for a reasonable period of time

•         Seek to invest alongside co-investors who have sufficient investable
funds to make a meaningful contribution to future potential funding rounds

•         Examine funding opportunities into companies that are at the pre-IPO
stage of development

•         Ensure that investee companies are being run from the outset of
investment by the fund with a specific focus on the likely exit for investors
through a trade sale of the company or an IPO.



Net Asset Value ('NAV')

The NAV at 31 December 2004 was 82.9p, a fall of 11p when compared with the
equivalent figure at the end of 2003.  The reduction in the NAV was caused
primarily by a revaluation of two of our unquoted investments.  One of the
revaluations was due to the impact of a follow-on round of financing that was
carried out at a valuation that was significantly lower than our previous
investment.  The other revaluation was made in order to take a prudent approach
given the poor funding environment for unquoted biotech companies.  Under
British Venture Capital Association rules for valuing investments into unquoted
companies, we are obliged to value the whole of our investment at the share
price used in the most recent third-party funding round.



The net revenue loss for 2004 was £6,000.  The reduction in the revenue return
compared with 2003 was driven by the fall in interest income that was earned as
funds continued to be moved out of the money markets into investments.  The
directors do not propose the payment of a dividend for 2004.   In the
short-term, it is likely that the availability of dividend payments will be
restricted by the limited income that is generated by the Company's portfolio of
investments.  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 will not have any impact on VCT status.



Share price

The company's mid-market share price stood at 80p at the end of 2004 and, as is
normal with a VCT in the first few years, there have been only a small number of
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.  This should assist the marketability of the shares and help
prevent the shares from trading at a wide discount to NAV.  During 2004, we
repurchased 3,000 shares for cancellation at a price of 75p and 3,000 shares at
a price of 70p.



The Board is also seeking your authority to renew the shareholder approval to
issue further shares up to 10% of the existing share capital.  However, we do
not anticipate any immediate use of this authority.



Share premium account

In addition, we are also asking shareholders to approve the cancellation of part
of the share premium account.  In order to do this, providing shareholders
approve the necessary resolution at the AGM, we will seek approval from the High
Court to make the change to our balance sheet structure.  The cancellation of
the share premium account will allow us to continue making share buybacks which
at present are restricted by the limited availability of distributable reserves.



VCT qualifying status

The company's compliance with the Inland Revenue's conditions for VCT approval
is monitored by the Board.  As a result of the limited availability of
investment opportunities during 2004 into companies that the Board believed had
the appropriate combination of attractive prospects, a sensible valuation, and a
suitable future funding profile, the company has placed a sum of money into a
non-interest bearing account in order to meet with those VCT regulations which
require that 70% of investments are in qualifying companies at the end of the
company's third accounting period.  (Money on non-interest bearing account is
not considered to be an investment for these purposes).  However, we have been
advised that as a result of this, the VCT could be infringing certain other VCT
regulations.  Your Board and our advisers are presently discussing the matter
with the Inland Revenue and we are confident that the current situation will be
rectified shortly.  We will provide shareholders with an update as soon as we
are in a position to do so.



Prospects

The general environment for investing in bioscience companies in the UK has been
characterised in recent months by a comparatively limited availability of
capital.  Despite the large number of early-stage bioscience companies, the
relatively small number of investors who are active at present in the bioscience
sector means that the ability for bioscience companies to secure access to
sufficient capital on reasonable terms to meet their ongoing needs is often
difficult.  As described above, the consequence of this is that when examining
investment opportunities for BioScience VCT, we have a particular focus on a
particular company's likely requirements for further investment in the future.



We are evaluating a number of potential investment opportunities and expect to
conclude several of these in the near future.





Dr Paul Nicholson

Chairman





Statement of Total Return (incorporating the Revenue Account)

For the period ended 31 December 2004


                                               Year ended 31 December 2004 Year ended 31 December 2003
                                             Revenue     Capital     Total       Revenue   Capital     Total
                                                £000        £000      £000          £000      £000      £000

Realised gains on investments                      -           -         -             -        35        35

Unrealised (loss)/gains on investments             -       (677)     (677)             -       117       117
Income                                           222           -       222           229         -       229
Investment management fee                       (52)       (157)     (209)          (50)     (150)     (200)
Other expenses                                 (176)           -     (176)         (131)         -     (131)
                                              ------       -----     -----         -----     -----     -----
Return on ordinary activities
before tax                                       (6)       (834)     (840)            48         2        50
Tax on ordinary activities                         -           -         -           (9)         9         -
                                              ------       -----     -----        ------     -----     -----
Return on ordinary activities
after tax                                        (6)       (834)     (840)            39        11        50
Dividends                                          -           -         -          (37)         -      (37)
                                              ------       -----     -----        ------     -----     -----
Transfer (from)/to reserves                      (6)       (834)     (840)             2        11        13
                                              ------       -----     -----        ------     -----     -----
Return per share                              (0.1)p     (11.1)p   (11.2)p          0.5p      0.2p      0.7p





Balance sheet
                                                 31 December 2004              31 December 2003
                                                       £000          £000          £000          £000
Fixed asset investments                                             1,387                         857
Current assets
  Investments                                             -                       5,969
  Debtors                                               210                           9
  Cash at bank                                        4,742                         243
                                                     ------                      ------
                                                      4,952                       6,221


Creditors (amounts falling due within one
year)                                                  (40)                       (167)
                                                     ------                      ------
                                                                                                6,054
Net current assets
                                                                    4,912                      ------
                                                                   ------
Net assets                                                          6,299                       6,911
                                                                  -------                     -------

Called-up equity share capital                                      3,798                       3,679
Share premium                                                       3,422                       3,312

Capital redemption reserve                                              5                           2
Capital reserve - realised                                          (365)                       (208)
                      - unrealised                                  (553)                         124
Revenue reserve                                                       (8)                           2

                                                                  -------                     -------
Total equity shareholders' funds                                    6,299                       6,911
                                                                  -------                     -------
Net asset value per share                                           82.9p                       93.9p



Cash flow statement
For the period ended 31 December 2004


                                                  31 December 2004        31 December 2003
                                              £000            £000        £000        £000
Net cash outflow from operating                              (454)                    (74)
activities
Financial investment:
Purchase of investments                    (1,207)                       (617)
Sale of investments                              -                          50
                                             -----                       -----

Net cash outflow from financial
investment
                                                           (1,207)                   (567)
Net cash inflow from management of
liquid resources:

Decrease in cash deposits                                    5,969                     565

Dividends paid - equity

                                                              (37)                    (54)
Net cash inflow/(outflow) before                             4,271                   (130)
financing
Financing:
Issue of ordinary shares                       244                         183
Share issue expenses                          (12)                         (9)

Repurchase of ordinary shares                  (4)                         (3)
                                             -----                      ------
Total financing                                                228                     171
                                                            ------                  ------
Increase in cash resources                                   4,499                      41
                                                            ------                  ------






Investment Portfolio Summary



As at 31 December 2004



Investments


                                                                          31 December 2004

                                                         Total cost         Carrying value
                                                                                    £000's
Unlisted investments
   Scancell Ltd                                                 500                    375
   Insense Technologies Ltd                                     100                    100
   Angel Biotechnology Ltd                                      450                    119
   DxS Ltd                                                      263                    263
   Purely Proteins Ltd                                          300                    300
AIM-listed investments
   Cobra Biomanufacturing plc                                   136                     64
   Dawmed Systems plc                                           101                     72
   Evolutec Group plc                                            75                     74
Listed investments
   GTC Biotherapeutics Inc                                       15                     20

                                                              1,940                  1,387



The above summary of results for the period ended 31 December 2004 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.



A copy of the full annual report and financial statements for the period ended
31 December 2004 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.


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