Interim Results

BioScience VCT plc
28 September 2004

BioScience VCT plc
28 September 2004

Unaudited Interim Results for the six months ended 30 June 2004

Financial highlights                30 June 2004        30 June 2003
• Net assets                        • £6,822,000        • £6,829,000
• Net asset value per share         • 89.9p             • 94.3p
• Revenue return after tax          • £(10,000)         • £36,000
• Revenue return per share*         • (0.1)p            • 0.5p
• Total return per share*           • (4.1)p            • 0.6p

*Based on weighted average of 7,474,398 (30 June 2003 - 7,209,926) shares in
issue during the period


For further information, please contact:

Chris Hulatt
Octopus Asset Management                                 020 7255 7962

David Best
Medical Marketing International Group plc                01223 477677


Chairman's Statement

I am pleased to report that we have made good progress over the six months to 30
June 2004.  We completed a number of investments and also identified several
companies into which we have invested since the period end.

The biotech sector has to some extent suffered from the general lack of
confidence in financial markets that has been caused by the turmoil in the
Middle East, the rising oil price, the impending US presidential elections and
the general environment of rising interest rates.  In addition, a number of
biotech companies which had announced their plans to float on the UK stock
market were unable to achieve this, providing a high-profile knock to investor
confidence throughout the UK biotech sector.


Investments

During the period, we invested £763,500 in aggregate in qualifying companies.
This included £400,000 in Angel Biotechnology Ltd, a Northumberland-based
company that provides research and development and manufacturing services to
pharmaceutical and biotechnology companies.  Through use of a variety of
sophisticated techniques, Angel is able to improve the quality and efficiency of
the cultures of organisms that are used to produce certain types of drugs.  At
present, Angel is constructing a new GMP manufacturing facility that will allow
it to offer a broader range of services to its clients.

We also completed an investment of £262,500 in DxS Ltd, a clinical genomics
specialist based in Manchester.  This investment was made as part of a larger
round alongside several other venture capitalists.  DxS, which was established
by ex-Astra Zeneca managers, is a leading provider of genetic analysis services
to pharmaceutical companies and contract research organisations.  The company's
services include the provision of single nucleotide polymorphism (SNP) testing
and DNA extraction and banking.  SNPs are the individual points of variation in
DNA that, as well as creating the differences between every individual, are
often responsible for causing certain diseases.  DxS's services are of
particular use to pharmaceutical companies when they are conducting clinical
trials as the genomic tests can be used to help identify groups of patients that
are most likely to benefit from a particular therapy.

Since the period end, we have completed an investment of £300,000 in Purely
Proteins Ltd, a Cambridge-based specialist in the expression and purification of
proteins for use in drug research.  We have the option to invest a further
£200,000 into Purely Proteins if the company achieves certain milestones in the
development of its business.

We have also invested £75,000 in the flotation on AIM of Evolutec plc, a biotech
company that was established in 1998 and which has recently raised approximately
£6m to fund the next stage of its development of a range of compounds that may
potentially have beneficial effects in treating certain allergic, inflammatory
and auto-immune diseases.

In addition to the investments described above, we are also conducting due
diligence on a number of other investments which we anticipate will close in the
near future.

Other than Cobra Biomanufacturing, our existing investments are performing
satisfactorily.  After we made our investment in Cobra, its share price
increased following the publication of good financial results.  However, during
early 2004, the company surprised the stock market when it announced that
several of its customers had postponed orders, causing Cobra to slip into a
loss-making position.  This led to a sharp fall in the company's share price.
However, despite the specific problems that have been experienced by Cobra, the
continuing trend within the healthcare industry to focus on biological products
leads us to believe that the biological manufacturing sector as a whole remains
an attractive segment within the healthcare industry.


Net asset value

As at 30 June 2004, the net asset value (NAV) per share was 89.9p, a reduction
of 4p from 31 December 2003.  The NAV is net of cumulative dividends paid since
inception of 1.25p.  The reduction in the NAV was primarily driven by the
falling rate of interest income that is earned as the VCT's assets are
progressively moved into investments that tend to not generate any income
initially and by the fall in the value of the VCT's investment in Cobra
Biomanufacturing plc.  Under the British Venture Capital Association rules and
our own accounting policies, it is inappropriate at this stage to consider any
increase in the value of our unquoted investments.


Dividend

As in previous years, the directors do not propose to pay an interim dividend
and intend to assess the potential for paying a dividend to shareholders on the
basis of the full year results, bearing in mind that interest income will fall
as the Company continues to make further investments.


Prospects

Although the funding environment for biotechnology companies in the UK is
difficult at present, companies with the right combination of strong management
team and a clear focus on high quality products are generally able to attract
funding.  We continue to focus on building a diversified portfolio of
investments in high quality companies with strong management teams across a
range of activities within the bioscience sector.   I look forward to updating
you on our continued progress.



Dr P A Nicholson
Chairman





The unaudited interim financial statements for the period from 1 January 2004 to
                        30 June 2004 are set out below.


STATEMENT OF TOTAL RETURN (INCORPORATING THE REVENUE ACCOUNT)

For the 6 months to 30 June 2004
                                                   6 Months                  6 Months                     Year to
                                            To 30 June 2004           To 30 June 2003            31 December 2003
                                      Revenue Capital Total     Revenue Capital Total      Revenue  Capital Total
                                        £'000   £'000 £'000       £'000   £'000 £'000        £'000    £'000 £'000

Realised Gain on Investments                -      -     -            -      35    35            -       35    35

Unrealised (Loss)/Gains on                  -  (224)  (224)           -      48    48            -      117   117
Investments

Income                                    111      -    111         113       -   113          229        -   229

Investment Management Fees               (26)   (77)  (103)        (25)    (74)  (99)         (50)    (150) (200)
Other Expenses                           (95)      -   (95)        (52)       -  (52)        (131)        - (131)

Return on Ordinary activities before     (10)  (301)  (311)          36       9    45           48        2    50
tax

Tax                                         -      -     -           -       -     -           (9)        9     -

Return on Ordinary activities after      (10)  (301)  (311)          36       9    45           39       11    50
tax

Dividends                                   -      -     -           -       -     -           (37)        -  (37)

Transfer to reserves                     (10)  (301)  (311)          36       9    45            2       11    13

Return Per Share                       (0.1)p  (4.0)p (4.1)p        0.5p    0.1p  0.6p         0.5p     0.2p  0.7p
                                                          

The revenue columns above are the profit and loss accounts of the company.  All
revenue and capital items on the above statements derive from continuing
operations.



BALANCE SHEET AS AT 30 JUNE 2004
                                                       30 June 2004          30 June 2003      31 December 2003
                                                              £'000                 £'000                 £'000

FIXED ASSET INVESTMENTS                                       1,415                   150                   857

NET CURRENT ASSETS                                            5,407                 6,679                 6,054

NET ASSETS                                                    6,822                 6,829                 6,911

CAPITAL AND RESERVES
Share Capital                                                 3,795                 3,619                  3679
Share Premium                                                 3,420                 3,257                  3312
Capital Redemption Reserve                                        5                     -                     2
Capital Reserve               Realised                        (286)                 (141)                 (208)
                              Unrealised                      (100)                    55                   124
Revenue Reserve                                                (12)                    39                     2

TOTAL EQUITY SHAREHOLDERS' FUNDS                              6,822                 6,829                 6,911


Net Asset Value Per Share                                     89.9p                 94.3p                 93.9p




CASH FLOW STATEMENT
                                                            6 Months to        6 Months to         12 Months to
for the 6 months to 30 June 2004                           30 June 2004       30 June 2003     31 December 2003
                                                       £'000      £'000     £'000    £'000     £'000      £'000

Net cash outflow from operating activities                        (263)              (131)                 (74)

Financial Investment :
Purchase of Investments                                (782)                 (80)              (617)
Sale of Investments                                        0                   50                 50
Net Cash Outflow from Financial Investment                        (782)               (30)                (567)

Management of Liquid Resources :
Decrease in Cash Deposits                                           771                287                  565

Equity Dividends Paid                                              (37)               (54)                 (54)

Financing :
Issue of own Shares                                      227                   61                183
Share Issue Expenses                                       0                  (3)                (9)
Purchase of own Shares                                   (4)                    0                (3)                    
  
Total Financing                                                     223                 58                  171

(Decrease)/Increase in Cash Resources                              (88)                130                   41


Reconciliation of operating profit to net cash inflow from operating activities            6 Months to
                                                                                          30 June 2004
                                                                                                 £'000
Loss on ordinary activities before Tax                                                            (10)
Increase in Debtors                                                                               (62)
Decrease in Creditors                                                                            (113)
Management Fees Charged to Capital Account                                                        (78)
Net cash outflow from operating activities                                                       (263)


Investment Portfolio as at 30 June 2004                                               Cost        Valuation
                                                                                         £                £
AIM Quoted Investment
Cobra Biomanufacturing Plc                                                         117,296           38,250
Dawmed Systems Plc                                                                 101,250           90,000

Quoted Investments
GTC Biotherapeutics Inc                                                             14,691           24,457

Unquoted Investments
Insense Ltd                                                                        100,000          100,000
Scancell Ltd                                                                       500,000          500,000
Angel Biotechnology Ltd                                                            400,000          400,000
DxS Ltd                                                                            262,500          262,500
                                                                                  ========         ========
TOTAL                                                                            1,495,737        1,415,207




NOTES

1.   The unaudited financial statements for the period ended 30 June 2004 do
     not constitute statutory accounts within the meaning of Section 240 of the
     Companies Act 1985 and have not been delivered to the Registrar of 
     Companies. The results have been drawn up in accordance with applicable 
     accounting standards and adopting the accounting policies set out in the 
     statutory accounts for the year ended 31 December 2003.  The comparative 
     figures for the financial year ended 31 December 2003 are not the Company's 
     statutory accounts for that financial year.  Those accounts have been 
     reported on by the Company's auditors and delivered to the Registrar of 
     Companies.  The report of the auditor was unqualified and did not contain a 
     statement under section 257(2) or (3) of the Companies Act 1985.

2.   The calculation of the revenue and capital return per share is based on
     the return on ordinary activities after tax for the period and on 7,474,398 
     (30 June 2003 - 7,209,926) ordinary shares, being the weighted average 
     number of shares in issue during the period from 1 January 2004 to 30 June 
     2004.  The number of shares in issue at 30 June 2004 was 7,590,393 (30 June 
     2003 - 7,238,175).

3.   Copies of the interim report are being sent to all shareholders. Further 
     copies are available free of charge from Octopus Asset Management at 14
     Dover Street, London, W1S 4LW.


                      This information is provided by RNS
            The company news service from the London Stock Exchange