Final Results

Herald Investment Trust PLC
22 February 2001

                      PRELIMINARY STOCK EXCHANGE ANNOUNCEMENT

                            HERALD INVESTMENT TRUST plc 

                    Results for the year to 31 December 2000 

                                22 February 2001  

                                BOARD STATEMENT 

This is Herald Investment Trust's seventh statement, and in a disappointing
and difficult year the fund delivered a creditable performance. Diluted net
asset value per share has only declined by 12.7% during the year, although
this was alleviated, in share price terms, to a lesser decline of 3.9%,
reflecting an increase in the share price premium to assets. In contrast the
most relevant index, the Hoare Govett Smaller Companies Index, declined 2.2%.
In comparison, in 1999 the Trust outperformed this benchmark by 93.3%, and
has cumulatively outperformed by nearly 300%. The 2000 decline reflected the
hangover following a period of wild speculative froth in certain stocks
within our chosen remit. On balance we were lucky to use that bubble as an
opportunity to realise some supernormal profits on valuations that
fundamentals did not justify. The market is becoming much more rational. The
US index, which is most relevant to our US portfolio, is the Russell 2000
Technology Index, which fell 40.4%, albeit only 35.8% in £ terms. Overall we
are only 0.7% behind our hybrid benchmark index (2/3 Hoare Govett Smaller
Companies Index (extended capital gains ex. investment companies and 1/3
Russell 2000 (small cap) Technology Index (in sterling terms)).

The dividend of 0.85p per share is maintained on slightly improved profits.
We have continued with our policy of expensing all costs, and not charging
any fees to capital.

For long periods of the year the Trust achieved the distinction of being the
best performing Trust over 5 years in published performance tables. The Trust
no longer features in these tables because the AITC thought it was
inappropriate to be classified as a UK smaller companies Investment Trust.
About 60% of the equities held are UK small companies, and there remains a
stronger overlap in stock terms with these funds than the global technology
funds with which we are sometimes compared. This is evidenced by a much
stronger performance than any of the technology indices (techMARK -32.2%,
FTSE IT Index -44.3%, NASDAQ -39.3%). We remain of the view that we are
primarily a UK smaller companies Investment Trust, albeit only investing in a
subset of that remit. We believe that there are still opportunities to
perform in our defined remit. Some tangible problems remain but we continue
to believe there are opportunities to invest in solid growing businesses -
many more now than a year ago.

Martin Boase     
Chairman
21 February 2001

Statistics and Performance Report

                                                                              
                          At         31         31       Capital       Capital
                   inception   December   December   Performance   Performance
                          16       1999       2000      since 31         since
                    February                            December     inception
                        1994                            1999 (%)           (%)

  Basic NAV           98.7p*     517.4p     447.5p         -13.5        +353.4
  Diluted NAV         98.7p*     494.2p     431.4p         -12.7        +337.1
  (FRS14)                                                                     
  Fully diluted       98.7p*     494.4p     432.0p         -12.6        +337.7
  NAV                                                                         
  FTSE 100           3,417.7    6,930.2    6,223.2         -10.2         +82.1
  FTSE All-share     1,717.8    3,242.1    2,983.8          -8.0         +73.7
  FTSE Small cap     2,076.1    3,097.8    3,183.3          +2.8         +53.3
  HGSC (ext.         1,750.0    2,762.9    2,702.2          -2.2         +54.4
  cap gains ex                                                                
  investment                                                                  
  co's)                                                                       
  Share price          90.9p     511.0p     491.0p          -3.9        +440.2
  Warrant price        45.5p     411.0p     382.5p          -6.9        +740.7

  Premium to diluted NAV (FRS14) per share as at 31 December 2000        13.8%
                                                                          
  Number of Equity Holdings at 31 December 2000                            249

  * 100p is shareholders' subscription price before launch                    
  costs of 1.3p                                                               

                                 - ends -

For further information please contact:

Ms Katie Potts, Manager
Herald Investment Trust plc                       020 7553 6300

Baillie Gifford & Co.
Secretaries                                       0131 222 4000
 
                       HERALD INVESTMENT TRUST plc 

The following is the unaudited preliminary statement for the year to 31
December 2000 which was approved by the Board on 21 February 2001. The
Directors of Herald Investment Trust plc are recommending to the Annual
General Meeting of the Company to be held on 18 April 2001 the payment of a
final dividend of 0.85p net (0.85p net last year) per ordinary share for the
year ended 31 December 2000.

                        STATEMENT OF TOTAL RETURN
           (unaudited and incorporating the revenue account*)

                                                                              
                         For the year ended                 For the year ended
                           31 December 2000                   31 December 1999

                 Revenue  Capital     Total      Revenue  Capital        Total
                   £'000    £'000     £'000  (restated)+    £'000  (restated)+
                                                   £'000                 £'000

  (Losses)/gains       -  (55,069) (55,069)            -  258,619      258,619
  on                                                                   
  investments                                                                 

  Unrealised           -      110       110            -    (343)        (343)
  gain/(loss)                                                                 
  on loan                                                                     

  Currency             -       79        79            -     (53)         (53)
  gains/(losses)                                                               
                                                                             
  Income (note 1)  6,508        -     6,508        3,658        -        3,658
                                                                           
  Investment     (5,230)        -   (5,230)      (2,580)        -      (2,580)
  management                                                                  
  fee                                                                         

  Other            (390)        -     (390)        (276)        -        (276)
  administrative                                                               
  expenses                                                                  

  Net return         888  (54,880) (53,992)          802  258,223      259,025
  before                                                                     
  finance                                                                     
  costs and                                                                   
  taxation                                                                    

  Finance           (84)        -      (84)         (74)        -         (74)
  costs of                                                                    
  borrowings                                                                  

  Return on          804  (54,880) (54,076)          728  258,223      258,951
  ordinary                                                                   
  activities                                                                  
  before                                                                      
  taxation                                                                    

  Tax on            (26)        -      (26)         (11)        -         (11)
  ordinary                                                                    
  activities                                                                  

  Return on          778  (54,880) (54,102)          717  258,223      258,940
  ordinary                                                                  
  activities                                                                  
  after                                                                       
  taxation                                                                    

  Ordinary         (713)        -     (713)        (705)        -        (705)
  dividend                                                                    
  payable                                                                     
  (note 2)                                                                    

  Transfer            65  (54,880) (54,815)           12  258,223      258,235
  to/(from)                                                                  
  reserves                                                                    

  Return per                                                                  
  Ordinary                                                                    
  share (note 3)                                                                
         
 
  Basic            0.93p  (65.67p) (64.74p)        0.86p  311.33p      312.19p
                                                                             
  Diluted          0.89p  (63.03p) (62.14p)        0.83p  300.53p      301.36p
                                                                            
  Dividend per     0.85p                           0.85p                      
  Ordinary                                                                    
  share   
                                                                    
* The revenue column of this statement is the revenue account of the Company. 

All revenue and capital items in the above statement derive from continuing
operations. 

+Restated to comply with FRS16 'Current Tax'. 


                           HERALD INVESTMENT TRUST plc 

                            SUMMARISED BALANCE SHEET

                              at 31 December 2000

                                 (unaudited)

                                                                              
                                                              
                                           31 December 2000   31 December 1999  
             
                                                      £'000              £'000
  NET ASSETS                                        
  Investments at market value                       365,575            405,301  
  Net liquid assets                                  13,032             27,319
  Total assets (before deduction of                 378,607            432,620
  bank loan)                                                                  
  Bank loan (note 4)                                (3,233)            (3,343)
                                                    375,374            429,277
  CAPITAL AND RESERVES                                                        
  Called-up share capital                            20,968             20,740
  Capital reserves                                  352,694            406,890
  Revenue reserve                                     1,712              1,647
  EQUITY SHAREHOLDERS' FUNDS                        375,374            429,277

  Net asset value per ordinary share                                          
  (note 5)                                                                    
  Basic                                             447.55p            517.44p
  Diluted (FRS14)                                   431.43p            494.22p
  Fully diluted                                     431.98p            494.40p

  Ordinary shares in issue                       83,873,599         82,961,686

 
                              DISTRIBUTION OF ASSETS

                                at 31 December 2000

                                     (unaudited)

                                                                              
                                           31 December 2000   31 December 1999
                                                          %                  %
  Equities: United Kingdom                             55.7               62.9
  Continental Europe                                    7.2                6.8
  Americas                                             16.6               16.1
  Japan                                                 0.6                0.3
  Asia Pacific                                          4.5                6.7
                                                       84.6               92.8
  UK bonds                                             12.0                0.9
  Net liquid assets                                     3.4                6.3
  Total assets (before deduction of                   100.0              100.0
  bank loan)                                                                  


                             HERALD INVESTMENT TRUST plc 

                           SUMMARISED CASH FLOW STATEMENT                       
                      
                                      (unaudited)                               
                                 
                                       Year to                         Year to
                              31 December 2000                31 December 1999
                              £'000      £'000                 £'000     £'000
  NET CASH INFLOW FROM                     348                           1,013
  OPERATING ACTIVITIES                                                        
  NET CASH OUTFLOW                        (83)                            (36)
  FROM SERVICING OF                                                           
  FINANCE                                                                     
  TOTAL TAX RECOVERED                        -                              66
  FINANCIAL INVESTMENT                                                        
  Purchase of             (212,244)                         (69,001)          
  investments                                                                 
  Sale of investments       196,392                           87,198          
  Currency movement              79                             (53)          
  NET CASH                            (15,773)                          18,144
  (OUTFLOW)/INFLOW                                                            
  FROM FINANCIAL                                                              
  INVESTMENT                                                                  
  EQUITY DIVIDEND PAID                   (705)                           (746)
  NET CASH                            (16,213)                          18,441
  (OUTFLOW)/INFLOW                                                            
  BEFORE USE OF LIQUID                                                        
  RESOURCES AND                                                               
  FINANCING                                                                   
  MANAGEMENT OF LIQUID                                                        
  RESOURCES                                                                   
  Increase in term                     (4,000)                               -
  deposits                                                                    
  FINANCING                                                                   
  Issue of Ordinary             912                               60          
  shares                                                                      
  Currency loan                   -                            3,000          
  
  NET CASH INFLOW FROM                     912                           3,060
  FINANCING                                                                   
  (DECREASE)/INCREASE                 (19,301)                          21,501
  IN CASH                                                                     
  RECONCILIATION OF                                                           
  NET CASH FLOW TO                                                            
  MOVEMENT IN NET FUNDS                                                       
  (Decrease)/increase                 (19,301)                          21,501
  in cash in period                                                           
  Increase in short                      4,000                               -
  term investments                                                            
  Increase in bank loan                      -                         (3,000)
  Exchange movement                        110                           (343)
  MOVEMENT IN NET                     (15,191)                          18,158
  FUNDS IN PERIOD                                                             
  NET FUNDS AT 1                        24,188                           6,030
  JANUARY 2000                                                                
  NET FUNDS AT 31                        8,997                          24,188
  DECEMBER 2000                                                               

                      HERALD INVESTMENT TRUST plc 
                                   NOTES

                                                            
                         31 December 2000   31 December 1999
                                    £'000              £'000
1. Income

                                                                        
        Income from investments and interest receivable    6,462    3,636
        Other income                                          46       22

2. The interim dividend will be paid on 20 April 2001 to all shareholders on the
register at the close of business on 23 March 2001.

3. Return per ordinary share

                                                          
        Revenue return                                       778      717
        Capital return                                  (54,880)  258,223

The basic return per ordinary share is based on the above totals of revenue
and capital and on 83,571,294 ordinary shares (1999 - 82,941,828) being the
weighted average number of ordinary shares in issue during the year.

The diluted returns per ordinary share are calculated on the above totals of
revenue and capital and the weighted average number of warrants in issue
during the year adjusted by the difference between the average price of the
ordinary shares during the year and the subscription price of 100p, giving a
weighted average of 87,065,313 (1999 - 85,921,489) shares.

4. A five year loan was arranged with The Royal Bank of Scotland plc in 1999.
The loan expires on 7 January 2004. At 31 December 2000 and 1999 there were
outstanding drawings of yen 551,550,000.

5. Net asset value per ordinary share is based on net assets of £375,374,000
(1999 - £429,277,000) and 83,873,599 (1999 - 82,961,686) ordinary shares,
being the number of ordinary shares in issue at each date.

The diluted net asset per ordinary share, calculated in accordance with
Financial Reporting Standard 14 (FRS 14) is 431.43p (1999 - 494.22p). This is
based on net assets of £375,374,000 (1999 - £429,277,000) and on 87,006,178
(1999 - 86,859,078) ordinary shares, being the number of ordinary shares in
issue at the year end plus the notional number of ordinary shares that would
have been issued for no consideration using a year end share price of 491.0p
(1999 - 511.0p).

The fully diluted net asset value per ordinary share has been calculated on
the assumption that the warrants in issue were fully exercised at the year
end at 100p each resulting in net assets of £379,308,000 (1999 -
£434,123,000) and 87,807,349 (1999 - 87,807,349) ordinary shares in issue.

During the year 911,913 warrants were exercised at 100p. The number of
outstanding warrants at 31 December 2000 was 3,933,750 (1999 - 4,845,663).

6. At the Annual General Meeting held in April 2000 the Company was granted
authority to purchase up to 12,435,956 ordinary shares (equivalent to 14.99%
of its then issued share capital). No Ordinary shares were bought back during
the year and therefore at 31 December 2000 the Company's authority to buy
back shares remained unchanged at 12,435,956.

                       HERALD INVESTMENT TRUST plc 
                               NOTES (Ctd)

7. Change in Accounting Policy

The financial statements for the year to 31 December 2000 have been prepared
on the basis of the accounting policies set out in the Company's financial
statements at 31 December 1999, except for the adoption of FRS16 'Current
Tax'.

The change introduced by FRS16 accounting for UK dividend income net of tax
has been reflected in the 2000 financial statements with corresponding
changes to the comparative figures. In the year to 31 December 2000 this
reduced gross income and taxation equally by £209,000 (1999 - £244,000); the
net effect has no impact on the revenue return attributable to equity
shareholders.

8. The financial information set out above does not constitute the Company's
statutory accounts for the year ended 31 December 2000. The financial
information for 1999, is derived from the statutory accounts for 1999 which
have been delivered to the Registrar of Companies. The Auditors have reported
on the 1999 accounts, their report was unqualified and did not contain a
statement under section 237(2) or (3) of the Companies Act 1985. The
statutory accounts for 2000 will be finalised on the basis of the financial
information presented in this preliminary announcement and will be delivered
to the Registrar of Companies following the Company's Annual General Meeting.