Interim Results

HERALD INVESTMENT TRUST PLC
5 August 1999

                           HERALD INVESTMENT TRUST PLC
       Preliminary Results (Unaudited) for the six months to 30 June 1999

The  Board of Herald Investment Trust plc is pleased to announce the
results for the six months to 30 June 1999.

The  formal results which follow at the end of this Announcement are
presented  in  the  format recommended in the  AITC's  Statement  of
Recommended  Practice for Accounts of Investment Trust companies  as
utilised  in  preparing  the Annual Report for  the  year  ended  31
December 1998.

BOARD STATEMENT

Investment Performance
The  Board  is delighted to be able to report the highest percentage
increase in assets in any six month period since inception, with  an
overall  capital increase of 32.6%. However, this has been  achieved
against  a  more  sympathetic background for valuations  of  smaller
companies.   In  general,  business  conditions  in  the  underlying
investments have been sound, and the manager believes that  the  re-
rating  in the first half is fully justified, and reflects a partial
catch-up  with the revaluation previously seen in larger  companies.
It  is also pleasing to be able to report strong contributions  from
Europe  and  the  Far East, although the exposure to  these  markets
remains  small.  The  inclusion of the Norwegian  software  company,
Avenir, and the Malaysian newspaper, the Star, in the list of top 20
holdings  reflects  particularly  useful  contributions  from  these
investments.  These  along with the returns on  most  of  the  other
holdings  in  the  top  20  were  the more  rewarding  because  they
significantly  reflected  the benefits  of  a  readjustment  to  the
portfolio  last  year away from software service  companies.  It  is
notable  that  over this period the FTSE-IT index has, in  contrast,
been  relatively lacklustre. The performance was more broadly  based
than last year, with 23 stocks appreciating by in excess of £1m, and
in  aggregate  contributing to a rise in assets of  £40m,  across  a
diverse range of companies and sectors.

For  most  of  1997 and 1998 the performance of the  Trust  led  the
tables for Smaller and International Smaller companies. In the first
half  of  1999,  although the Trust outperformed its  most  relevant
benchmark, the HGSCI by over 4%, it did not head the tables  in  the
first  half,  as performance from other sectors picked up.  However,
the  record  has been sufficient to make the Trust one  of  the  top
performers,  in any market, over the last five years. And  it  is  a
steady long-term record that the manager seeks above all.

Capital Performance of the Trust from 31 December 1998 to 30 June 1999

UK Equities                  +34.3%
European Equities            +49.6%
US Equities                  +19.2%
Other Overseas Equities      +39.2%
Total Portfolio              +32.6%

Summary of Performance

                   At        At         At      Performance   Performance
                Inception    31       30 June     since          since  
                   16      December     1999        31         inception
                 February   1998                 December
                  1994                             1998

Basic NAV per    98.7p     206.25p    273.54p*   +32.6%       +177.1%
share
Fully diluted    98.9p     200.31p    263.96p*   +31.8%       +166.9%
NAV per share
Share price      90.9p     161.5p     241.0p     +49.2%       +165.1%
Warrant price    45.5p     77.5p      140.5p     +81.3%       +208.8%
FT-SE 100 Index  3,417.7   5,882.60   6,318.5    +7.4%        +84.9%
Hoare Govett     1,750.0   1,818.72   2,330.18   +28.1%       +33.2%
Smaller
Companies Index
Russell 2000        -      157.04     184.71     +17.6%       -
Technology
Index

*   The  NAV figures are stated on a capital only basis, and do  not
    include  any income retention at that date. This is because  the
    Company  only  pays one dividend per year and no  provision  has
    been  made  at this stage. However, the NAV figures given  after
    the  Balance Sheet do include the Revenue Reserve uplift for the
    period.  The  fully diluted NAV figures given after the  Balance
    Sheet take into account the price of the ordinary shares at  the
    period ends, as required by FRS14.

Outlook
Last  year  the  market  was  unnerved  in  the  third  quarter   by
instability  in Asian economies, and by excessively leveraged  hedge
funds  threatening  to  destabilise financial  institutions.  Whilst
these  fears  have  receded,  the  recent  strong  performance   and
historically high overall market valuations inevitably make us  look
for  the next storm. The two outstanding positives are the low level
of interest rates, and the increasing appetite for equity savings in
the  developed  world. The greatest risk to equities would  seem  to
come  from a reversal of the decline in interest rates reflecting  a
robust  US economy and the recent sharp rise in the price of certain
commodities, albeit offset by the deflationary effects of  the  ever
increasing  efficiency  of  world  communications.  On  balance   we
continue  to  believe  that the case for investing  in  a  portfolio
focussing  on  the  growth markets of technology and  media  remains
firmly intact, whatever the macro background.

Dividend
Herald  Investment  Trust is continuing its  policy  to  pay  annual
dividends  only,  reflecting the emphasis  on  capital  growth.  The
Trust's  income  has declined this year in spite of  the  fact  that
dividends have almost invariably risen. This reflects the number  of
acquisitions last year of higher yielding stocks, the reduced levels
of  interest  income due to lower interest rates, and a  more  fully
invested  position. The modest interest charge reflects the interest
payable  on  a Yen loan equivalent to £3 million put in place at the 
start of this  year, however  the rate  of interest payable is lower 
than  the  interest received  on  sterling deposits, so this has not 
adversely  affected returns.  Second  half profits  should be higher  
on  current  income  projections. The Company  pays a final dividend 
in April of each year and  the rate of the  dividend for the year to 
31 December 1999  will be announced in February 2000.

RESULTS (Unaudited)
                                                          
                   Six months to 30 June       Six months to 30 June
                            1999                        1998
                  Revenue   Capital  Total    Revenue  Capital  Total
                  £'000     £'000    £'000    £'000    £'000    £'000
                                                                
Gains on          -         55,796   55,796   -        39,963   39,963
investments                
Currency gain/    -         93       93       -        (61)     (61)
(loss)
Loss on warrant   -         -        -        -        (850)    (850)
Repurchase
Income            1,866     -        1,866    1,957    -        1,957
Investment                                                      
Management fee    (1,206)   -        (1,206)  (1,037)  -        (1,037)
Loan interest     (36)      -        (36)     -        -        -             

Other expenses    (95)      -        (95)     (83)     -        (83)
                                                                
Net return        529       55,889   56,418   837      39,052   39,889
before tax     
                                                                
Tax               (139)     -        (139)    (285)    -        (285)
                                                                
Return on                                                       
ordinary
activities        390       55,889   56,279   552      39,052   39,604
after tax      
                                                                
Return per                                              
Ordinary share
                                                  
-  Basic          0.47p     67.40p   67.87p   0.67p    47.11p   47.78p
          
-  Fully-diluted  0.46p     65.37p   65.83p   0.63p    44.85p   45.48p

The  basic  return  per Ordinary share calculations  are  based  on  a
weighted  average number of shares in issue during each  period.   For
the  period  to 30 June 1999, the weighted average number of  Ordinary
shares was 82.9 million (1998: 82.9 million).

The  fully-diluted returns per Ordinary share have been calculated  on
the  weighted  average  share  warrants in  issue  during  the  period
adjusted  by the difference between the average price of the  Ordinary
shares during the period and the Subscription price of £1.00, giving a
weighted  average  of  85.5 million (1998: 87.1 million)  shares.  The
unadjusted  fully-diluted number of shares at 30 June  1999  was  87.8
million compared to 91.9 million at 30 June 1998.


                            SUMMARISED BALANCE SHEET
                           At 30 June 1999 (Unaudited)
                                        
                                        
                               30 June      31 December
                                1999           1998
                                £'000          £'000
                                                    
Investments                    217,519        165,677
Net current assets             12,694         5,305
Currency Loan                  (2,891)        -
Shareholders' funds            227,322        170,982
                          
Capital and reserves:                               
Share capital                  20,740         20,725
Share premium account          67,900         67,827
Warrant reserve                2,205          2,232
Capital reserve                               
- Realised                     64,012         50,836
- Unrealised                   70,440         27,727
Revenue Reserve                2,025          1,635
                               227,322        170,982
                                                                
Net Asset Value per                                 
Ordinary share
- Basic                        274.01p        206.25p
- Fully diluted                264.95p        201.70p

The Balance Sheet at 31 December 1998 is an abridged version
of  that contained in the full Accounts for that year, which
received  an  unqualified audit report and which  have  been
filed with the Registrar of Companies. 

ENQUIRIES

Katie Potts                    James Ayling
Herald Investment Management   Stewart Ivory & Company Limited -
Limited                        Secretaries
Tel: [phone]             Tel: [phone]
                                                                              
 
4 August 1999