Prior Notice of Merger

JOINT ANNOUNCEMENT                               

UNICORN AIM VCT PLC ("VCT I") AND UNICORN AIM VCT II PLC ("VCT II")

Possible Merger pursuant to a s.110 scheme of reconstruction under the
Insolvency Act 1986

The boards of VCT I and VCT II, which are both managed by Unicorn Asset
Management Limited, are pleased to announce that they have reached agreement in
principle on terms to merge the companies, subject to approval by shareholders
of both companies, to achieve cost savings for the benefit of all shareholders.

The intention is that this proposed merger will be completed pursuant to a
s.110 scheme of reconstruction under the Insolvency Act 1986 by transferring
the assets and liabilities of VCT II to VCT I in consideration for new VCT I
shares to be issued to VCT II shareholders on a relative net asset value basis.
A merger on this basis will be outside the provisions of The City Code on
Takeovers and Mergers.

Formal proposals will be forwarded to shareholders of both VCT I and VCT II
shortly.

Enquiries:

Rob Brittain/Ross Lacey
Matrix-Securities Limited (Company Secretary)
Tel [phone]

Chris Hutchinson
Unicorn Asset Management Limited (Investment Manager)
Tel [phone]

4 December 2009