Transaction in Own Shares

Herald Investment Trust PLC
25 August 2004

                          Herald Investment Trust plc

                           Purchase of Own Securities



On 24 August 2004, the Company purchased for cancellation 38,838 ordinary shares
at a price of 289.63p, bringing the total number of ordinary shares bought back
to 116,338.

There remain 87,691,010 ordinary shares in issue.

                                                           Baillie Gifford & Co.

                                                             Company Secretaries

                                                                  25 August 2004






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