Management & Performance Fee

Polar Capital Technology Trust PLC
14 June 2007


Polar Capital Technology Trust PLC

Management and Performance Fee


14 June 2007



Polar Capital Technology Trust plc (the 'Company') announces that over the last
year, the Board has renegotiated the management agreement. After consulting the
Company's Corporate Advisor, Cenkos Securities, and carrying out an extensive
review, the Board has decided to abandon the old performance fee arrangements in
favour of something more in line with current market practice.  The Board's
objective in establishing a new fee basis has been to provide a real incentive
to the new management team to outperform the benchmark while limiting the
potential cost for shareholders.  Consequently, the old high water mark set at
the equivalent of 395.8p near the peak of the technology cycle in 2000 will no
longer apply and a new high water mark will be established as at 30 April 2006,
the date when the new management team took over.  This new high water mark is
255.9p per share.  Although this change will increase the likelihood of a
performance fee becoming payable, the Board has taken steps to limit the
potential amount payable in any one year.  This has been achieved by introducing
a cap for the first time which will limit the amount of the performance fee
payable to 2% of net assets in any one year.  Furthermore, both the absolute
element of the old performance fee and also the potential to carry forward any
fees from one year to the next have been removed.  As part of the changeover to
the new fee arrangements, the managers have agreed to the cancellation of all
performance fee entitlements under the old arrangements as a result of the
Company's relative outperformance since 2000.

Management Fee arrangement

For the financial year ended 30 April 2007 the management fee was 1% of the
aggregate of the value of the Company's net assets plus borrowings incurred for
investment purposes, paid quarterly in arrears. The fees are subject to VAT as
applicable. In the year to 30 April 2007 the annual management charge amounted
to £3,793,000 (2006: £3,465,000)

With effect from 1 May 2007 the management fee rate has not changed and will
remain at 1% based on net asset value plus borrowings, but will be calculated on
a per share basis, payable quarterly in arrears.  The fees are subject to VAT as
applicable.

Performance Fee arrangements

The performance fee arrangements which were applicable up to 30 April 2007 had
been established in May 2000

The previous performance fee applicable up to 30 April 2007 was a total of 15%
split into two parts; 10% of the amount, if any, by which the increase in the
net assets over the financial year exceeded the increase in the benchmark over
the year ('the relative performance fee') subject to a high water mark: and 5%
of the amount, if any, by which the increase in the net assets over each three
year period exceeds LIBOR plus 5% over the same period ('the absolute
performance fee'). Each three year period is discrete and the last period ended
on 30 April 2006. No performance fee has been paid in the year to 30 April 2007.

The arrangements for the new performance fee, effective from 1 May 2007 are as
follows:

•        Initial performance period reset to the 12 month period commencing 1
May 2007 and thereafter performance periods will coincide with the Company's
accounting periods.

•        Annual performance fee equal to 15% of the amount by which the increase
in the adjusted net asset value per ordinary share exceeds the total return on
the Dow Jones World Technology Index (total return, sterling adjusted)
multiplied by the time weighted average of the total number of ordinary shares
in issue during that period, subject to a high water mark (see below). For these
purposes adjusted net asset value per ordinary share is the net asset value per
ordinary share adjusted by adding back any accruals for unpaid performance fees,
dividends paid or payable for the relevant performance period and the removal of
any benefit of share buy backs.

•        High water mark - the performance fee will only be payable if, and to
the extent that, the adjusted net asset value per ordinary share exceeds the
highest of:

         • the net asset value per ordinary share on the last day of the
previous performance period;

         • the adjusted net asset value per ordinary share on the last day of a
performance period in respect of which a performance fee was last paid

         • 255.88 pence per ordinary share, this being the revised high
watermark which is based on the net asset value per ordinary share as at 30
April 2006.

•        Any performance fee accrual will be calculated monthly and included in
the month end net asset value calculated in accordance with the AIC guidelines.

•        Any performance fee which can be paid by the Company in any one
performance period will be capped at 2% of net assets.



For further information, please contact:

Cenkos Securities plc
Charlie Ricketts/Will Rogers
020 7397 8900

Richard Wakeling
Polar Capital Technology Trust Plc
020 7227 2700




                      This information is provided by RNS
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