December Fact Sheet

Polar Capital Technology Trust PLC
16 January 2003

Polar Capital Technology Trust PLC

Monthly Fact Sheet -  December 2002

The fact sheet for the month of December has been posted to the company's
website.  As at 31 December 2002 the top ten equity holdings and the sector
breakdowns were as follows

      Top Ten Equity Holdings                                Sector Breakdown

IBM                            2.3%      Computing                                            8.5%
Microsoft                      2.2%      Semiconductor/SPE/EMS                               23.5%
Nokia                          2.0%      Software                                            17.1%
First Data                     1.8%      Services                                            11.1%
Johnson & Johnson              1.7%      Communication Equipment  ex wireless                 7.4%
Lockheed Martin                1.7%      Wireless                                             6.0%
Galen                          1.7%      Telecoms/Media                                       2.8%
Cisco Systems                  1.7%      Healthcare                                          10.7%
Amgen                          1.7%      Consumer                                             7.3%
Pfizer                         1.6%      Other                                                5.6%
                   Total      18.4%                                             Total       100.0%



The Manager commented as follows:

Amidst a welter of mixed economic data and discomforting developments on the
geopolitical front, most equity markets experienced heavy losses in December.
European shares, having rallied the furthest, were particularly hard hit and
only the Japanese market ran counter to the trend.  Technology shares tumbled
giving back a good part of their October and November outperformance.  Over the
month, the Dow Jones World Technology Index fell by almost 15%.

Initial optimism about healthy consumer spending over the holiday season has
been rapidly dispelled.  It now appears as if the year closed with disappointing
retail sales in both the USA and Europe.  In view of the importance of consumer
spending in buoying the global economy over the last few years, signs of
consumer retrenchment have been viewed with alarm.  Consequently, even a rate
cut from the hitherto recalcitrant ECB, failed to dispel the gathering gloom.

Technology news flow has also been mixed.  As we approach the earnings results
season, pre-announcements have been running at a modestly lower level than last
quarter.  However, there are clearly pockets of incremental weakness, notably
the gaming sector.  Any seasonal strength in enterprise spending looks to be
insufficient to generate earnings results much above the consensus.  Moreover,
both the PC and the wireless handset industries look likely to carry sub-optimal
inventories into 2003.

By early December, technology's seasonal rally had very largely fulfilled our
original price objectives.  Consequently, we began to raise liquidity, a process
that has continued, notwithstanding lower share prices, as the economic and
corporate data became more mixed.  In particular, we have cut back our European,
semiconductor and consumer weightings and, in doing so, have reduced the
portfolio's beta.

January is normally a seasonally good month for technology shares and we expect
to use any pronounced strength to add to our liquidity.  We remain concerned
about business conditions in the first half of 2003 as uncertainty on a number
of issues is likely to make both corporations and consumers reluctant to loosen
their purse strings.  Although markets have already moved to discount some of
this uncertainty, valuations for technology shares are not yet sufficiently
attractive for us to look through what could be a tough few quarters for the
global economy.

Brian Ashford-Russell, 7 January 2003

Company Website


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