Offer for Subscription

Elderstreet VCT plc
25 January 2008

Top-up offer of new shares to raise up to £10 million

Elderstreet VCT plc ("Elderstreet"  or the "Company") announces  that
it intends to launch a top-up offer for subscription of new  ordinary
shares (the "Offer") to raise up to £10 million (before expenses).

Reasons for the Offer
Elderstreet intends to raise  funds by way of  the Offer for the  tax
years 2007/2008 and 2008/2009 to fund another phase of investment, as
a result of the Company being almost fully invested.  The Offer  will
be available both  to existing investors  in the Company  and to  new
investors and will be open until the earlier of 30 May 2008 (or later
at the discretion of the Directors) and the date on which the maximum
subscription is reached.   The funds raised under  the Offer will  be
managed in the existing ordinary share pool.  The subscription  price
of  the  ordinary  shares  issued  pursuant  to  the  Offer  will  be
calculated by dividing the most recently announced net asset value of
the ordinary shares prior to allotment  by 0.945 (to allow for  issue
costs of 5.5%).

Given the Company's  proven track record  and experienced  management
team together  with the  benefits of  VCT tax  status, the  directors
believe that  the Offer  may provide  investors with  a more  certain
opportunity for dividends and growth  compared to investing in a  new
VCT which may not reach its minimum subscription and has yet to  make
any investments.

The directors  believe that  the  proposed fundraising  will  benefit
existing shareholders in a number of ways.  The running costs of  the
Company will be spread over a larger combined asset base as a  result
of the  issue of  Offer shares,  thereby reducing  the level  of  the
running costs attributable to each existing holder of ordinary shares
and C  shares  and therefore  providing  the potential  for  enhanced
dividends to  both ordinary  and C  shareholders.   In addition,  the
proceeds of  the Offer  will increase  the capital  available to  the
Company which may  be invested  alongside capital  from the  existing
ordinary and C  share pools.   This affords existing  ordinary and  C
shareholders investment opportunities they might not otherwise have.

The new ordinary shares to be issued pursuant to the Offer will  rank
pari passu in all respects  with the existing ordinary shares  (other
than in respect of any dividend declared before 30 June 2008 to which
new shareholders will not be entitled).  Application will be made  to
the UK Listing Authority for the  Offer shares to be admitted to  the
Official List  and to  the  London Stock  Exchange for  admission  to
trading on its market for listed  securities.  The Company will  seek
shareholder approval of proposals  giving the directors authority  to
allot new shares at an extraordinary general meeting of the Company.
A circular  will be  sent to  shareholders convening  the EGM  and  a
prospectus will be published in relation to the Offer in due course.

---END OF MESSAGE---