Shareholder Update

Foresight Technology VCT PLC
30 October 2001

Foresight Technology VCT Plc


Shareholder Update


Your board is conscious that our last report was for the interim period to 31
March 2001 and that there have been a number of developments since then. I am
therefore writing to shareholders and warrantholders in advance of the
announcement of the results for the year ended 30 September 2001 to provide an
update on the current status of the Company's investments. Shareholders should
be aware that the annual financial statements are currently being prepared and
will be subject to audit which may result in adjustments to the information on
current valuations set out below.


For the future it is the intention of your board to release quarterly
unaudited net asset values for both the Ordinary Shares and the 'C' Shares in
addition to the interim and annual reports.


Set out below are brief details of further investments and valuation changes
within the Ordinary Shares fund and the 'C' Shares fund between 31 March 2001
and 30 September 2001. The deal flow pipeline at the time of writing is strong
and the Investment Advisers, VCF Partners, have evaluated over 250 investment
proposals in the last six months and are confident that a number of these will
result in new investments for the 'C' Shares fund.


Ordinary Shares fund


Over the six months to 30 September there were changes in the valuations of
four of the portfolio companies. One follow-on investment was also made.


e-district.net plc - as shareholders will be aware from the circular dated 14
March 2001, trading in e-district.net plc's shares on AIM was suspended
pending investigation into certain financial irregularities. This investment
was valued at nil as at 31 March 2001. The shares have since resumed trading
and at close of business on 30 September 2001 the mid market price was 6.5p
resulting in a valuation of approximately £926,000.


Telecom Plus plc, listed on the London Stock Exchange and Clarity Commerce
Solutions plc, AIM listed, have both seen their share prices decline in line
with the market. The mid-market prices at close of business on 30 September
2001 were 71.5p and 86.5p respectively resulting in an aggregate reduction of
£983,750 in valuation since 31 March 2001.


The valuation of the investment in Advanced Composites Group Limited has
increased from £2,372,978 to £6,805,754. After two years of growing profits,
the company has now been valued on a PE basis, using an index of comparable
companies after an appropriate discount. This valuation is in accordance with
BVCA guidelines.


Two further follow-on investments totalling £200,000 in loan stock were
completed in April and June 2001 in Survey and Development Services Limited.


The unaudited net asset value was 98.4p per Ordinary Share as at 30 September
2001 compared to 66p as at 31 March 2001.


'C' Shares fund


As at 30 September a total of approximately £10.8 million, had been invested
from the 'C' Shares fund. Since 31 March there were changes in the valuation
of six portfolio companies, a further advance of funds to an existing
investment and one new investment.


UK Directory (Holdings) Limited, themutual.net plc, FfastFill plc and Mondas
plc are all listed shares and have each seen their share prices fall in line
with the market, resulting in an aggregate reduction of approximately £922,900
in valuation since 31 March 2001.


The valuations of both Travelstore.com plc and iDesk plc have been reduced by
50 per cent. reflecting difficult trading conditions in their respective
markets resulting in an aggregate reduction of approximately £676,500 in
valuation since 31 March 2001.


A further £500,000 was invested in Sarantel Limited in two tranches of loan
stock in April and June, representing funds committed at the time of the
initial investment.


In July, the Company invested £1,000,000 in ANT Limited, a software company
that develops embedded browsers that allows interactive communication with
digital TV sets and hand held devices.


The 'C' shareholders on the register at close of business on 6 July received a
dividend payment on 26 July of 2p per 'C' Share for the six month period ended
31 March 2001.


The unaudited net asset value was 83.3p per 'C' Share as at 30 September 2001
compared to 87.5p as at 31 March 2001.


I look forward to providing you with a full update on both the Ordinary Shares
fund and the 'C' Shares fund for the year ended 30 September 2001 which will
include audited net asset values for both funds. I anticipate that the audited
results will be announced and the audited financial statements will be posted
to shareholders in mid-December.


I take this opportunity to thank you for your continuing support of the
Company.


Yours faithfully




Peter Dicks

Chairman