Merger Update

Elderstreet VCT PLC
22 January 2007



Not for release, distribution or publication, in whole or in part, in or into
the United States, Canada, Australia or Japan

22 January 2007

                                     Merger

                         by way of recommended offer by

              Elderstreet VCT plc ('Elderstreet' or the 'Company')

                                      for

        Elderstreet Millennium Venture Capital Trust plc ('Millennium')


                  OFFER DECLARED UNCONDITIONAL IN ALL RESPECTS

Elderstreet announces that, following Admission becoming effective earlier
today, the Offer is unconditional in all respects.

Consideration payable under the Offer will be paid (in the manner set out in the
Offer Document) by 5 February 2007 to those Millennium Shareholders in respect
of whom valid acceptances have been received by today. Consideration in respect
of valid acceptances of the Offer received after today will be paid to accepting
Millennium Shareholders within 14 days of such receipt. The Offer remains open
until further notice.

The Special Dividend described in the Offer Document will be paid on 5 February
2007 to Millennium Shareholders on the Millennium register of members at the
close of business today (the record date).

As a result of the Offer being declared unconditional in all respects,
applications will be made to the UKLA for the cancellation of the listing of
Millennium Shares on the Official List and to the London Stock Exchange for the
cancellation of trading of Millennium Shares on its market for listed
securities. It is expected that such cancellations will take effect from 30
April 2007.

Enquiries:

Smith & Williamson
Tel: [phone]
Dr A Basirov
David Jones


Terms used in this announcement shall have the same meaning as those in the
offer document and prospectus equivalent published by Elderstreet VCT plc on 1
December 2006.

This announcement does not constitute an offer or an invitation to purchase or
subscribe for any securities. The Offer is being made solely by the Offer
Document and the Form of Acceptance, which contain the full terms and conditions
of the Offer, including details of how the Offer may be accepted.

Smith & Williamson Corporate Finance Limited, which is authorised and regulated
in the United Kingdom by the Financial Services Authority, is acting exclusively
for Elderstreet VCT plc and no one else in connection with the Offer and will
not be responsible to anyone other than Elderstreet VCT plc for providing the
protections afforded to customers of Smith & Williamson Corporate Finance
Limited nor for providing advice in relation to the Offer or any other matter
referred to herein.

The Offer is not being made, directly or indirectly, in or into the United
States, Canada, Australia or Japan and the Offer Document and the Form of
Acceptance are not being, and should not be, mailed or otherwise distributed or
sent in or into the United States, Canada, Australia or Japan or any other
jurisdiction if, in the latter case, to do so would constitute a violation of
the relevant laws in such jurisdiction.

The New Elderstreet Shares have not been, and will not be, registered under the
United States Securities Act of 1933 (as amended) or under any relevant
securities laws of any state or jurisdiction of the United States, Canada,
Australia or Japan and no regulatory clearances in respect of the New
Elderstreet Shares have been, or will be, applied for in any jurisdiction.
Accordingly, unless an exemption under the United States Securities Act of 1933
(as amended) or other relevant securities laws is applicable, the New
Elderstreet Shares will not be, and may not be, offered, sold, resold, delivered
or distributed, directly or indirectly, in or into the United States, Canada,
Australia or Japan or to, or for the account or benefit of, any United States
person or person resident in Canada, Australia or Japan.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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