Interim Management Statement

Polar Capital Technology Trust PLC
22 February 2008



Polar Capital Technology Trust Plc

Interim Management Statement for the 3 months to 31 January 2008 (unaudited)


The investment objective of Polar Capital Technology Trust PLC is to maximise
capital growth for our shareholders through investing in a diversified portfolio
of technology companies around the world.


Review of Material Events in period


• The performance over the period 1 November 2007 to 31 January 2008 is given 
  below. NAV per share fell by 16.4% from 253.27p to 211.68p, while the Dow
  Jones World Technology Index (£) fell 15.0%.


• 5.1m shares have been repurchased and cancelled in the period resulting
  in an uplift in NAV per share of just over 1.0p. There were 133,818,914 shares
  in issue as at 31 January.


• Yen 4.0bn has been repaid leaving Yen borrowings of Yen 5.01bn. A short term 
  multicurrency facility for £20m has been put in place but as at 31 January
  no borrowings have been made.


Manager's Comments:


Market Performance


Equity markets fell sharply over the three month reporting period, the FTSE
World Index falling 9.2% in Sterling terms. Investor sentiment that had already
been negatively impacted by the ongoing credit crisis deteriorated meaningfully
by period end following a raft of disappointing US macroeconomic data in early
January. In addition, rising energy prices and fears of debt-downgrades of
mono-line bond insurers resulted in plunging Treasury yields and US stocks
making their worst start to a calendar year since 1990. Whilst the 0.25% US
interest rate cut in December did little to allay concerns that the US central
bank was 'behind the curve', more decisive Fed action in January (as they cut
rates by 1.25%) helped stocks rebound from their intra-month lows.


Technology Performance


After a weak relative start, technology stocks regained lost ground in December
before being hit particularly hard in January, the Dow Jones World Technology
Index falling 15.1% in Sterling terms over the period. A solid third-quarter
earnings season was overshadowed by evidence of weakening demand from US
financials. The sector sell-off that followed was exacerbated by generalist
investors being significantly overweight in technology due to its perceived
'safe-haven' status. Whilst better than expected earnings from Oracle and
Accenture in December ameliorated investor concerns, the distinct change in
'top-down' sentiment that accompanied weaker macroeconomic data in January
resulted in heavy selling of sectors with perceived economic sensitivity,
including technology.


Outlook


We began the period hopeful that a US recession would be averted, but shifted
our base case in early January and now believe that a shallow US recession is
the most likely outcome. That said, we are encouraged by recent US monetary
actions and believe that as inflation trends lower (as growth decelerates) there
will be scope to cut interest rates further. While we cannot exclude the
possibility of a deeper/darker downturn, we believe that accommodative monetary
and fiscal policy should be sufficient to avoid the worst of outcomes. Despite
this relatively sanguine view, we recognise that many of these efforts will take
time to stimulate the US economy and as such, both consumer and corporate
spending are likely to be back-end loaded. As a result, we expect the next few
months to remain challenging for equity and technology investors alike.


Ben Rogoff, Manager



                          31 January 2008       31 October 2007     Change (%)
Share Price (p)                    177.75                230.75          -23.0
NAV per Share (p)                  211.68                253.27          -16.4
Discount (%)                       -19.09                 -9.76          -95.6
Total Investments (£m)                262                   342          -23.4
Borrowing (£m)                        -24                   -38           36.8
Net Assets (£m)                       286                   380          -24.7
Gearing (%)*                        91.69                 90.09           1.78


*The gearing ratio is calculated by dividing total assets by net assets. The
calculation ignores the effect of cash or fixed interest holdings.

Performance                               3 Months          1Year      5 years
Share price                                 -22.97         -26.01        59.78
NAV per share                               -16.46         -13.40        64.16**
Dow Jones World Technology Index            -15.00          -3.10        51.93


**Not adjusted for warrant exercise in September 2005. NAV per share performance
is calculated on the basis of diluted NAV for the entire period.

Geographical Breakdown                31 January 2008          31 October 2007
US                                               60.4                     61.5
Europe                                           17.9                     23.3
Japan                                             4.7                      7.2
Asia                                              9.0                      5.1
Cash & Equivalents                                8.0                      2.8

Sector Breakdown                      31 January 2008          31 October 2007
Software                                         18.3                     16.9
Semiconductors                                   16.3                     16.7
Computing                                        12.3                      9.8
Healthcare                                       10.2                     10.2
Comms Eq (Ex Wireless)                            9.6                      7.7
Wireless                                          8.3                      6.0
Consumer                                          7.6                      6.5
Clean Energy                                      5.5                      5.0
Services                                          3.8                      5.6
Electronic Components                             3.2                      3.3
Telecoms / Media                                  1.9                      3.0
Other Sectors                                     1.6                      5.5
Defence                                           1.4                      3.8

Top Ten Holdings                         31 January 2008      31 October 2007
Cisco Systems                                        3.2                  2.3
Qualcomm                                             3.0                  2.0
Oracle                                               2.7                    -
Apple                                                2.6                  3.4
Google                                               2.3                  2.8
Samsung Electronics                                  2.2                    -
Nokia                                                2.1                    -
International Business Machines                      1.9                  1.5
Microsoft                                            1.9                    -
Canon                                                1.8                    -
Applied Materials                                      -                  2.0
Adobe Systems                                          -                  1.9
Nuance Communications                                  -                  1.6
Texas Instruments                                      -                  1.6
Renesola                                               -                  1.5
                              Total                 23.8                 20.7

Shares in issue
As at 31 October 2007                        138,954,914
Share bought back and cancelled                5,136,000
Shares held in treasury                                0
As at 31 January 2008                        133,818,914


General       For further information please visit the company's website where a
Information:  PDF version of this announcement is available.
              www.polarcapitaltechnologytrustplc.co.uk
              --------------------------------------------


This interim management statement has been produced solely to provide additional
information to shareholders as a body to meet the relevant requirements of the
UK Listing Authority's Disclosure and Transparency Rules. It should not be
relied upon by any other party for any other purpose.







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