Exercise of Warrants

Herald Investment Trust PLC
01 May 2003

                          Herald Investment Trust plc

                              Exercise of Warrants

The Board of Herald Investment Trust plc (the 'Company') announces that,
following the final warrant exercise date on 30 April 2003, 3,093,157 new
ordinary shares of £0.25 each were allotted on 30 April 2003 as a result of the
exercise of 3,093,157 warrants to subscribe for ordinary shares at 100p per
share. Pursuant to the terms of the warrant particulars, a trustee has been
appointed and has exercised the remaining 239,046 warrants. The total issued
share capital has therefore increased to 87,807,348 ordinary shares and there
are no longer any warrants in issue.

Application has been made for 3,332,203 ordinary shares to be admitted to the
Official List in due course and dealings on the London Stock Exchange are
expected to commence on 8 May 2003. Application has also been made to delist the
warrants from the Official List.

                                                           Baillie Gifford & Co.
                                                             Company Secretaries
                                                                      1 May 2003


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