Final Results - Year Ended 31 December 1999

Herald Investment Trust PLC
24 February 2000



                    HERALD INVESTMENT TRUST PLC
 Preliminary Results (audited) for the year ended 31 December 1999


The  Board of Herald Investment Trust plc is pleased to announce the
results for the year ended 31 December 1999.

BOARD STATEMENT

Investment Performance
The  chosen  remit  of  the  Company, including  media,  information          
technology  and communications has continued to prove an interesting          
area for investment opportunities in 1999. The net assets and share price     
increases (151% and 216% respectively) have far exceeded the returns of any   
 previous year. In contrast  the  most  relevant  indices,  the  Hoare  Govett
 Smaller Companies Index in the UK and the Russell 2000 Technology  Index  in 

the  US,  grew by 51.9% and 104.8% respectively. The growth  in  net          
assets   of  £258m  in  1999  is  broadly  based  with  71  holdings          
contributing in excess of £1m each to this growth.                            

Dividend
The Directors recommend a final dividend of 0.85p per Ordinary share
for  the  year  ended 31 December 1999 payable on 28 April  2000  to
holders  registered  on  24  March 2000.  The  dividend  income  has
declined by 3.3%. This reflects a sharp decline in the average yield
on the portfolio. At the end of 1997 the portfolio yielded 2.32%, at
the  end  of 1998 it yielded 2.16% and at the end of 1999 it yielded
only  1%.  The move into lower yielding growth stocks has  benefited
the  capital  return but the income has declined and the  management
fee  has  risen,  this unfortunately means that  we  are  unable  to
maintain  the  dividend  this year. We have  decided  that  retained
reserves  will not be used to maintain the dividend, and next  year,
if  as  seems  probable,  the income from  the  portfolio  does  not
sufficiently  exceed  the costs the dividend is  likely  to  be  cut
further.

Outlook
Sentiment  towards the sector has transformed over the last  quarter          
of 1999. While new markets are undoubtedly emerging, and outstanding          
opportunities  exist for certain companies to grow, some  valuations          
in  the UK in particular, have become over optimistic. Investors who          
buy  into embryonic companies with minimal sales, operating losses and 
exotic valuations  are  taking  a  great  risk.  We  continue   to   
prefer established  businesses, which may not offer quite the  upside,  
but significantly  reduce  the risk. Progress this  year  will  be  
more challenging,  but  there  are  still opportunities  to  find  value.
Avoiding  the 'blow ups'  remains the  objective  and  the  sector          
continues  to be relatively attractive. Although some valuations  in          
the sector are too high we remain confident long term.                        

Statistics and Performance Report

              At inception At          At          Capital        Capital
              16 February  31 December 31 December Performance    Performance   
                1994         1998        1999        since 31 Dec   since 
                                                   1998 (%)       inception(%)  

          
Basic NAV(p)      98.7p*        206.3p      517.4p**    +150.9     +424.3
Diluted NAV(p)    98.9p*        201.7p      494.2p**    +145.0     +399.7 
FTSE-100       3,417.70       5,882.6     6,930.2        +17.8     +102.8
FTSE-All-Share 1,717.78       2,673.92    3,242.1        +21.2      +88.7
FTSE-Smallcap  2,076.05       2,070.90    3,097.8        +49.6      +49.2
HGSC (ext cap
gains ex IT)   1,750.00       1,818.72    2,762.9        +51.9      +57.9
Share price       90.9p         161.5p      511.0p      +216.4     +462.2
Warrant price     45.5p          77.5p      411.0p      +430.3     +803.3
                                                          
Premium to diluted NAV/per share as at 31 December 1999               3.3%
UK Equity Portfolio as a %of Shareholders' Funds at 31 December 1999 63.6%
Overseas Equity Portfolio as % of Shareholders' Funds at             29.9%
at 31 December 1999
Gilts and cash net of loan and other net assets as a % of             6.5%
Shareholders' Funds at 31 December 1999
Number of Equity Holdings at 31 December 1999                         199

* 100p is shareholders' subscription price before launch costs of 1.3p
**Excluding income retention for the year to 31 December 1999

                         STATEMENT OF TOTAL RETURN
                    FOR THE YEAR ENDED 31 DECEMBER 1999

                                     
                            1999                          1998
                Revenue    Capital    Total    Revenue   Capital      Total
                 £'000      £'000     £'000     £'000     £'000       £'000
Gains on                                                            
Investments        -         258,619  258,619     -         27,877     27,877 

Unrealised loss                                                  
on loan            -            (343)    (343)    -            -          -
Currency losses    -             (53)     (53)    -            (86)       (86)
Loss on warrant                                                     
repurchase         -          -         -        -         (1,852)    (1,852)
Income*          3,902        -         3,902     3,845        -        3,845
Investment                                                          
management fee**(2,580)       -        (2,580)   (1,998)       -       (1,998)

Other expenses    (276)       -          (276)     (173)       -         (173)
Net Return before
Finance costs and 
taxation         1,046       258,223  259,269     1,674     25,939     27,613
Loan Interest      (74)       -           (74)     -            -          -
Taxation          (255)       -          (255)     (540)        -        (540)
Return on ordinary                                                        
activities after    
taxation           717       258,223  258,940    1,134     25,939     27,073  

Ordinary                                                            
dividend payable  (705)       -          (705)    (746)        -        (746)
Transfer to reserve 12       258,223  258,235      388     25,939     26,327
                                                                    
Return per                                                     
Ordinary share 
Basic             0.86p       311.33p  312.19p    1.37p     31.29p     32.66p
Diluted           0.83p       300.53p  301.36p    1.31p     30.05p     31.36p
                                                                    
Dividend per                                                        
Ordinary share    0.85p        -         0.85p    0.90p        -        0.90p
  

Note    

(1)  The  preliminary  statement  is  not  the  Company's  statutory
     accounts.   The  statutory  accounts  for  the  year  ended  31
     December   1998  have  been  delivered  to  the  Registrar   of
     Companies  and contained an audit report which was  unqualified
     and  did not contain statements under Section 237(2) or (3)  of
     the  Companies Act 1985.  The statutory accounts for  the  year
     ended  31  December  1999, which contain an  unqualified  audit
     report, will be filed following the Annual General Meeting.
*    Inclusive of the following exceptional item: - special non-recurring
     dividend of £183,563. 
**   Inclusive of an exceptional VAT repayment of £333,560  received
     (of which £194,535 related to previous years).
                                    
              Summary Balance Sheet as at 31 December 1999
                                                         
                                             1999          1998
                                             £'000         £'000
                                                             
Total Investments                          405,301       165,677
Net Current Assets                          27,319         5,305
Creditors due after one year                (3,343)          -
Total Net Assets                           429,277       170,982

                                 
                                    
     Summary Cash Flow Statement for the year ended 31 December 1999

                                             1999          1998
                                             £'000        £'000
                                                        
Net cash inflow from operating activities      757          953
Taxation                                       360          290
Servicing of Finance                           (74)         -
Net Cash inflow from capital                18,144          473
expenditure and financial investment
Equity dividends paid                         (746)        (705)
Financing                                    3,060       (4,621)
Increase/(Decrease) in cash and deposits    21,501       (3,610)




  Reconciliation of Operating Profit to Net Cash Inflow from Operating
                               Activities

                                             1999          1998
                                             £'000        £'000
                                                        
Operating profit                             1,046        1,674
Tax on investment income                      (614)        (604)
Decrease/(increase) in debtors                  23         (144)
Increase in creditors                          302           27
Net cash inflow from operating                 757          953
activities



ENQUIRIES

Katie Potts                      James Ayling
Herald Investment Management     Stewart Ivory & Company Limited -
Limited                          Secretaries
Tel: [phone]               Tel: [phone]