Corporate Update

For Immediate Release
                                        7.00am 17 November 2009


                            Hygea VCT plc
                     ("Hygea" or "the Company")

                          Corporate Update

Hygea VCT has sent the following corporate update letter to its
Shareholders today:

                 'CHAIRMAN'S LETTER TO SHAREHOLDERS

                            NOVEMBER 2009

I am  pleased to  enclose a  copy of  our recent  Interim  Management
Statement for the three months ended September 2009, which shows that
your company's financial  position has been  transformed in the  last
three months due to our successful exit from two of our  investments.
Our net asset value has risen from 75.3p at 30 June 2009 to 91.7p  at
30 September  2009 and  at the  present time  59% of  our assets  are
represented by cash.

            As I indicated in  the half yearly report, BioAnaLab  was
sold to Millipore  realising £944,000 for  our investment  (initially
made  in  2005)  which  cost  £276,000.  In  September,  as   already
announced, DxS was sold to Qiagen. We have already received over £3.5
million for our investment (initially made in 2004) which we acquired
for £325,000 and we may receive up  to a further £2.5 million in  the
future subject to the achievement  by DxS of certain objectives.  The
press release  issued  by  the  purchaser of  DxS  is  accessible  by
clicking on www.dxsdiagnostics.com.

            In the light of these events, your Board has reflected on
the future  strategy  for the  company  in the  knowledge  that  most
shareholders invested  in 2001/2  and have  had to  exercise  greater
patience than originally anticipated.  We considered that there  were
two options, namely either wind the portfolio down and repay cash  to
shareholders or develop the portfolio and improve share liquidity  so
that those shareholders wishing to exit are better able to do so.

            Against  the background  of shareholder  approval to  the
strategy and timetable outlined in  the shareholder circular dated  9
July 2007,  and the  continuing attractive  tax breaks  available  to
investors in VCTs, we have selected the latter option.  Therefore we
are putting in place  the following key steps  with the objective  of
improving shareholders' ability to exit:

a)      establish a dividend policy,
b)      enable the shares to be tradable on Sharemark and  the London
Stock Exchange,
c)   improved communication
d)   proactive  marketing  of  the  fund  to  new  investors  in  the
secondary market.

a) Dividend Policy

            As shareholders  are aware,  the company  is required  to
maintain 70% of its investments  in VCT qualifying holdings. We  have
six months from the exit of DxS to reinstate this requirement and  we
expect to declare an interim dividend in early 2010, the distribution
of which will assist us to achieve this. It is then our intention  to
implement a  sustainable  annual  distribution of  5p  following  the
annual general  meeting, that  allows investors  a steady  return  of
cash, even though liquidity events within the portfolio are likely to
be difficult to  predict .  Those shareholders who  would like  their
dividends paid by BACS should  contact Capita Registrars on 0871  664
0300.

b) Sharemark

            In an attempt  to increase liquidity,  we have agreed  to
join Sharemark. Currently  on the  Main Market,  Hygea shares,  which
stand at a  significant discount to  net asset value,  are bought  by
market makers at 53p and sold at 61p. Sharemark is an online  matched
order driven market providing  a straightforward solution to  smaller
quoted  companies  at  a  single  price.   A  letter  from  Sharemark
explaining this market and how it operates is enclosed.

c) Improved Investor Communication

Because of the successful realizations referred to above and the  use
of the Sharemark trading facility, we are arranging for LCF Research,
an online  information  provider, to  make  research notes  on  Hygea
available.  This  will make  it easier  for new  investors to  become
familiar with the company's strategy and its portfolio. In  addition,
working with LCF  Research will also  facilitate the use  of two  way
communication  tools  such  as   webcons  between  the  company   and
investors.

d) New Investors

The fund has already started to attract the interest of new investors
in the secondary market.  We believe that  the steps outlined  above,
and the commencement of  a dividend flow, will  assist us in  finding
further  new  investors  and  allow  existing  shareholders   greater
opportunity to sell their shares.

            We believe that Hygea retains a good portfolio of MedTech
companies and that we should  continue to support the best  companies
in our portfolio in  order to achieve maximum  returns.  The sale  of
DxS shows how much can be achieved if the investee plans their exit.
Not surprisingly, many  new investment opportunities  are finding  us
proactively; a  number  of  these companies  provide  better  patient
outcomes at lower total cost and conform to our investment  template.
However this will be done  selectively through sources well known  to
us and we do not intend to let our cost base exceed our  longstanding
target of 3% of net assets per annum. This will be a challenge, given
the distributions we are contemplating,  the cost involved in  making
new investments,  such as  appropriate due  diligence, and  the  poor
returns we are able to achieve on cash due to low interest rates.

            Your  Board  firmly  believes  that it  is  in  the  best
interests of  shareholders to  maintain and  develop this  specialist
MedTech fund as a long term investment vehicle particularly if we are
able to fulfil  our aim of  paying a good  dividend, which of  course
will be free of higher rate tax (50% in the next tax year).

We trust you will share our positive view for the future of Hygea VCT
plc.

Yours sincerely,

James Otter
Chairman'
                                                     1280 703482 or
[e-mail]

Roland Cornish, Beaumont Cornish Limited on 020 7628 3396

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