Management arrangements

FINSBURY EMERGING BIOTECHNOLOGY TRUST PLC

INVESTMENT MANAGEMENT AND ADMINISTRATIVE ARRANGEMENTS

10 April 2007

The Board of Finsbury Emerging Biotechnology Trust PLC (the "Company")
announces the following changes to the Company's investment management and
administration arrangements.

Termination Agreement with Close Investments Limited

The Company has entered into a termination agreement with Close Investments
Limited ("Close") and OrbiMed Capital LLC ("OrbiMed") pursuant to which the
current management, administration and company secretarial agreement will
terminate and the current investment advisory agreement shall be amended so
that it will continue in force as though Close were no longer a party (the
"Termination Agreement").

The Company has entered into an amended investment management agreement (the
"New Investment Management Agreement") with OrbiMed under which OrbiMed will
continue to provide discretionary investment management services to the Company
under the same terms.

New Management, Administration and Company Secretarial Agreement

The Company has entered into a new management, administration and company
secretarial agreement (the "New Management, Administration and Company
Secretarial Agreement") with Frostrow Capital LLP ("Frostrow"). Frostrow is a
new firm established and staffed by former Close executives to provide
specialist management, administration, company secretarial and marketing
services to investment companies. Frostrow is authorised and regulated in the
UK by the Financial Services Authority.

Under the New Management, Administration and Company Secretarial Agreement,
Frostrow will receive with effect from 1 July 2007:

  * a periodic fee equal to 0.30% per annum of the Company's market
    capitalisation plus a fixed amount equal to £50,000 per annum.
   
  * a performance fee amounting to 1.5% of any cumulative out-performance of
    the net asset value over the benchmark index (OrbiMed to receive the
    balance up to 16.5% of the cumulative out-performance of the Company's
    investment portfolio over the Company's benchmark, the NASDAQ Biotechnology
    Index (sterling adjusted), since 30 June 2005).
   
The notice period on the New Management, Administration and Company Secretarial
Agreement will be 12 months.

Comparison with current fee arrangements

The Company's current periodic fee is equal to 1% per annum of the Company's
net assets plus a fixed fee of £50,000 to Close. Assuming the market
capitalisation equates to NAV, the above new fee arrangements will equate to an
aggregate fee equivalent to 0.95% per annum of the Company's net assets (0.3%
payable to Frostrow and 0.65% payable to OrbiMed) plus an additional fixed fee
of £50,000 per annum.

The calculation basis and cost of the performance fee under the New Investment
Management Agreement and the New Management, Administration and Company
Secretarial Agreement, is unchanged from the current arrangements.

Timetable and Costs

It is intended that the Termination Agreement and the New Investment Management
Agreement and the New Management, Administration and Company Secretarial
Agreement will come into effect from 10 April 2007.

The Company and Close have agreed that Close will continue to receive the fees
payable under the current management, administration and company secretarial
agreement up to and including 30 June 2007. Fees payable under the New
Management, Administration and Company Secretarial Agreement will apply from 1
July 2007. There will be no other material costs of termination.

Enquiries

Alastair Smith

Frostrow Capital LLP

Tel. [phone]

Nathan Brown/Jane Lewis

Winterflood Investment Trusts

Tel. [phone]

Notes to Editors:

Frostrow Capital is an independent boutique provider of management services to
investment companies. It is unique in being exclusively dedicated to performing
the entire executive function for investment companies, with the exception of
portfolio management.

Headed by Alastair Smith, formerly Managing Director of Close Finsbury Asset
Management and previously Head of Investment Trust Operations at Schroders,
Frostrow Capital is majority owned by its executive team including Grant
Challis, Mark Pope and Tracy Arthur. All four were previously part of the
Investment Trust team within the Close Investments subsidiary of Close Brothers
Group PLC.

Frostrow Capital aims to win mandates from investment companies that require a
quality service and will also be actively seeking to launch new investment
companies. Frostrow Capital has been appointed as the manager of three trusts
from 10 April 2007: Finsbury Growth & Income Trust PLC, Finsbury Emerging
Biotechnology Trust PLC and Finsbury Worldwide Pharmaceutical Trust PLC.