Stmnt re e-district.net PLC

Foresight Technology VCT PLC
13 March 2001


The  Board of Foresight Technology VCT plc (Foresight) has 
noted the following  announcement made today by  the  board  
of  e-district.net plc which is reproduced below:

'e-district  announced on 19 February 2001  that  it  was
undertaking  a  full  investigation,  together  with  its
external  advisers, into what appeared  to  be  financial
irregularities.

The Company has now received preliminary reports from Cap
Gemini  Ernst & Young and PricewaterhouseCoopers Forensic
Services.

The  Company  previously announced that it had  suspended
Steven  Laitman,  Chief Executive, with  effect  from  18
February  2001 and subsequently, on 23 February 2001,  an
injunction  was  served on him freezing  his  assets  and
proceedings  were commenced against him for damages.  The
freezing  order  has  also  been  served  on  Clearsearch
Limited, a company that holds certain assets belonging to
a  trust connected with Mr Laitman and of which he is one
of  the  beneficiaries. Mr Laitman has indicated  through
his   solicitors  that  the  freezing   order   and   the
proceedings  will be contested at a hearing  at  a  later
date. On 26 February 2001 Mr Laitman was given notice  of
summary  termination of his employment contract with  the
Company. Mr Laitman has also been dismissed as a director
of  the  Company. Additionally, e-district has  suspended
two  senior managers within the technical department with
effect  from  27  February 2001,  one  of  whom  has  now
resigned.

The  Fraud  Squad  of the Metropolitan  Police  has  been
notified.

Preliminary findings

Although   the   investigations   are   continuing,   the
preliminary reports have established what appears  to  be
the  substantial overstatement of registered users,  page
impressions  and  revenues. The  investigations  have  also
identified  evidence  of  collusion  within  the  Company
connected with the overstatement of registered users and
page impressions.

A  substantial  proportion of the Company's  revenue  was
expected  to be generated through the receipt  of  income
from sales agencies retained on its behalf to sell banner
and   other   advertising   on  the   Company's   various
interactive sites.

The  investigations have established that  revenues  were
overstated by manipulating the Company's internal monthly
reports which showed the level of business conducted with
the  Company's  sales  agencies. In addition,  supporting
documentation,  both written and electronic,  appears  to
have been fabricated and manipulated.

Furthermore,  a  substantial  majority  of   the   monies
received  by  the Company's bankers and recorded  in  the
Company's  records as being received from sales  agencies
was  in  fact  received from bank accounts linked  to  Mr
Laitman    with   fabricated   supporting   documentation
indicating  that such receipts were from sales  agencies.
It  appears that in total approximately £1.0 million  has
been   received  in  this  way  between  (and  including)
November  1999  and  February 2001 and  credited  against
false trade debtors.

The  results of the preliminary investigations show  that
the reported numbers for revenues have been substantially
overstated.  The  revenues  reported  in  the   financial
statements for the 17 months ended 31 December 1999  were
£781,571. Based solely on information obtained  from  the
sales  agencies during the investigation, these  revenues
were approximately £98,000. The revenues reported in  the
unaudited  half year report for the six months  ended  30
June  2000  were £1,038,069. Based solely on  information
obtained    from   the   sales   agencies   during    the
investigation, these revenues were approximately £32,000.
The Company has not yet reported its results for the year
ended  31 December 2000 but now expects revenues in  the,
as yet unaudited, six month period to 31 December 2000 to
be negligible.

Cap  Gemini  Ernst  & Young has been engaged  to  examine
details of current and historic registered users and page
impressions. Historic data on the Company's databases  is
only available back to February 2000. Cap Gemini Ernst  &
Young  carried out a comparative analysis of data on  the
Company's databases against the published traffic details
in  respect of registered users and page impressions. Its
preliminary findings are that data contained  within  the
Company's  systems  do not reconcile with  the  published
traffic  details. Cap Gemini Ernst & Young have not  been
able  to verify the accuracy of the data upon which  they
relied.

Cap Gemini Ernst & Young have examined the Company system
containing traffic details for the period to 26  February
2001. This system suggests the following figures for  the
last four months:

                         Active unique     Page impressions
                             users                                       

November 2000               29,818              46.9m
December 2000               35,736              46.6m
January 2001                52,768              54.4m
February 2001(to 26)        89,429              56.8m

A  review of the figures within the Company's system also
appears to show a reduction in registered traffic between
May   and  June  2000,  falling  from  150  million  page
impressions  in  May  to under 9  million  in  June.  The
reasons for this are still being investigated.

The  integrity  of the base data and the processes  which
recorded   these  figures,  and  therefore  the   figures
themselves,  cannot  be guaranteed. The  results  of  any
review  are  necessarily subject to the accuracy  of  the
underlying  data. There is no agreed standard methodology
for measuring traffic data.

Current position

The   board   is   continuing  its   investigations   and
considering its current options with its advisers in order
to maximise shareholder value.

The  Company  has  agreements  with  a  number  of  major
platform   suppliers,  including  Telewest,   NTL,   Bush
Internet,   Worldgate   Communications   and   Planetweb.
Approximately  two-thirds of the Company's  users  access
its services via interactive television.

e-district  has a cash balance in excess of £12  million.
It  has  a  cash  burn rate in respect  of  its  ordinary
operational  activities  of  approximately  £200,000  per
month (excluding investment income).

The   Company   will   make  further   announcements   as
appropriate.'

The  Board  of Foresight will make a further announcement
as soon as additional information is available.