Interim Results

BioScience VCT plc
27 September 2005


BioScience VCT plc


27 September 2005


Unaudited interim results
for the six months ended 30 June 2005
                                                      6 months to             6 months to            12 months to
Financial highlights                                 30 June 2005           30 June 2004         31 December 2004

•       Net assets                                     £6,065,000              £6,822,000              £6,299,000
•       Net asset value per share                           79.8p                   89.9p                   82.9p
•       Revenue return per share*                          (0.9)p                  (0.1)p                  (0.1)p
•       Total return per share in period*                  (3.1)p                  (4.1)p                 (11.2)p

*Based on weighted average of 7,596,393 (30 June 2004 - 7,474,398) shares in
issue during the period


For further information please contact:


Chris Hulatt
Octopus Asset Management                                           0207 710 2804


Chairman's statement

I am pleased to present my first interim results since my appointment to the
position of Chairman following the resignation of Dr Paul Nicholson in August.
The board would like to extend its thanks to Dr Nicholson for his considerable
contribution over the last three years.

Market environment

The general environment for UK-based bioscience companies has continued to
remain difficult.  The larger UK-based venture capitalists have been very
selective in the type of investments that they have been prepared to consider,
and have been particularly wary of most drug development companies, which often
have long time-lines and high cash requirements.  As a result of this, companies
within the sector have had to ensure that they develop business models that
require less funding through having a swifter route to revenue generation.  In
recent months, the sector has also been characterised by a number of deals in
which foreign companies have acquired UK biotech companies, which appears to
demonstrate the inherent quality of the sector within the UK, despite the
difficulties the sector has experienced in accessing capital from VCs.

As outlined in the annual report, the BioScience VCT has responded to these
conditions by favouring companies which are already generating sales and are
unlikely to require significant further funding.

Existing investments

During 2005 we have invested further sums in several of our existing
investments.

Scancell, the biotechnology company that is developing a number of therapeutic
antibodies targeted at cancer, raised a further £1m, of which we contributed
£225,000.  The company has continued to make progress in developing its products
and recently entered into a collaboration with GTC Biotherapeutics (an existing
investee company of the fund), the US-based specialist in the production of
proteins in transgenic animals.   This will allow the evaluation of the
production of one of Scancell's antibodies using GTC's technology.

Angel Biotechnology Ltd, the Northumberland-based contract manufacturer in which
we had previously invested in 2004, has extended its range of customers and has
recently signed a number of significant contracts.  We have completed our
investment of a further £250,000 into Angel, as part of a larger round of £1m
which was carried out at a lower share price than our first investment into the
company.

We also invested a further £100,000 at a share price of 140p alongside other
investors in a £9.5m follow-on placing for Evolutec, the AIM-listed company in
which we first invested in 2004.  Since our investment, the share price has
risen to a level of approximately 180p.  Evolutec is developing a range of
compounds that may potentially have beneficial effects in treating certain
allergic, inflammatory and auto-immune diseases.  Evolutec announced in August
that Merial, a leading animal health company, has completed the initial testing
of Evolutec's anti-tick vaccine in cattle and obtained encouraging results.
Evolutec also recently announced positive results for its lead compound in a 112
patient phase II study in the area of hay fever.  The results show that the
compound has an effect within 45 minutes or less, which is quicker than steroid
nasal sprays which have an onset of action of approximately 8 hours.

During the period, we participated in a rights issue for Insense Ltd, the wound
healing company, and invested a further £48,000.  The Insense team is led by
Professor Paul Davis, a former senior scientist at Unilever's R&D laboratories
in Bedfordshire.  During his time at Unilever, Professor Davis was responsible
for discoveries that led to the granting of a number of patents, including
inventions that underpin the famous 'Clearblue' pregnancy test.  He is seeking
to bring a similar level of innovation to the wound healing market through the
technological discoveries that have been made by Insense.  The company announced
earlier this year that the first clinical trial for its Oxyzyme product,
conducted in Toronto by Professor Gary Sibbald, had shown encouraging results
and a further trial is now underway in the UK.

New investments

When evaluating new investment opportunities, we have continued to follow the
strategy that was outlined in the last Annual Report.  In particular, we have
sought to focus our attention on companies that are revenue generating, or which
have already made good progress in developing their businesses and are at a
pre-IPO stage.

During the period we completed an investment of £250,000 in BioAnaLab Ltd, an
Oxford-based contract research organisation, as part of a total round of
£440,000.  BioAnaLab is a leader in the provision of certain specialist
analytical services to pharmaceutical and biotechnology companies.  More than
30% of all pharmaceutical products in development are made from proteins, which
present particular analytical challenges in measuring drug levels, patient
responses, and product efficacy in order to provide product validation and
satisfy the requirements of the regulatory authorities.  BioAnaLab was founded
to provide pharmaceutical and biotechnology companies with contract analysis
services based on the substantial experience of its founders.  The CEO and
founder of BioAnaLab is Professor Geoff Hale, who has worked in the antibody
field for many years and is Professor of Therapeutic Immunology at the Sir
William Dunn School of Pathology, University of Oxford.

Since the period end, we have made a number of further investments.  In
particular, we have invested £500,000 in Hallmarq Veterinary Imaging Ltd, an
unquoted Guildford-based company that has developed a scanning system for use by
vets that is based on magnetic resonance imaging (MRI).  This technology allows
vets to diagnose problems that can cause lameness in horses that are not
identifiable by any other method.  Hallmarq has already installed a number of
units at leading equine veterinary practices and research centres around the
world, including the Department of Clinical Veterinary Medicine at the
University of Cambridge, and is in discussions with a number of other potential
users of the system.  Hallmarq's business model is based on the generation of
fees per scan, rather than only relying on the sale of the MRI equipment.

We have also invested just over £350,000 in NeutraHealth plc, an AIM-listed
company that was established to acquire businesses operating in the
neutraceutical sector.  Our investment in NeutraHealth was part of a £10m
fundraising that was carried out at a share price of 10.5p (compared with the
current share price of 15.75p) in order to finance the acquisition of Biocare
Ltd, an established business in the neutraceutical sector.  Biocare, which
employs almost 50 people, generated an operating profit of just over £2m on
turnover of approximately £7.5m in 2004.  The company has a range of more than
170 products, which are primarily sold to customers such as healthcare
practitioners and nutritionists.

In addition, we invested a sum of £150,000 in the AIM flotation of ReNeuron plc,
a leading company in the field of cell therapies derived from stem cells.  The
company's lead product, for use in treating patients with chronic stroke
disability, has moved into late stage pre-clinical development, and the company
aims to file for approval to start human clinical trials in the first half of
2006.  The company is also working on stem cell therapies to address other
conditions such as Huntington's disease, Parkinson's disease and diabetes.

Net asset value

As at 30 June 2005, the net asset value (NAV) per share was 79.8p, a reduction
of 3.1p compared with the figure at the end of December 2004.  The NAV does not
include the cumulative dividends paid since inception of 1.25p.  The reduction
in NAV in the first six months of this year was primarily caused by the
reduction in the carrying value of our holding in Purely Proteins Ltd and the
impact of the cost base of the VCT at a time when the fund's investments are not
generating a significant level of income.

Dividend

As in previous years, the directors do not propose to pay an interim dividend.
In the short-term, dividend payments will be restricted by the limited income
that is generated by the Company's portfolio of investments.  However, in due
course, we expect to realise capital gains on the disposal of successful
investments and distribute these to shareholders.

VCT status

I am pleased to be able to report that HM Revenue & Customs has confirmed that
the Company's provisional VCT approval has been maintained.

Prospects

We have now invested a total of approximately £4m into bioscience companies.  In
addition, we are in negotiations with a number of other companies and anticipate
investing significant further sums before the end of 2005.  Although it is clear
that the general funding environment for UK-based unquoted bioscience companies
is likely to remain challenging, we will continue to seek investment
opportunities into those businesses that we believe have the right
characteristics to deliver attractive returns for investors.  I look forward to
updating you on our progress in due course.


James Otter
Chairman



The unaudited interim financial statements for the period from 1 January 2005 to
30 June 2005 are set out below.

Statement of total return (incorporating the revenue account)

                                                 6 Months                  6 Months                    12 Months
                                          to 30 June 2005           to 30 June 2004          to 31 December 2004
                                  Revenue  Capital  Total     Revenue Capital Total      Revenue  Capital  Total
                                    £'000    £'000  £'000       £'000   £'000 £'000        £'000    £'000  £'000

Unrealised gain/(loss) on               -     (84)   (84)           -   (224) (224)            -    (677)  (677)
investments

Income                                 20        -     20         111       -   111          222        -    222

Investment management fees           (26)     (80)  (106)        (26)    (77) (103)         (52)    (157)  (209)
Other expenses                       (65)        -   (65)        (95)       -  (95)        (176)        -  (176)

Return on ordinary activities        (71)    (164)  (235)        (10)   (301) (311)          (6)    (834)  (840)
before tax

Tax                                     -        -      -           -       -     -           -         -      -

Return on ordinary activities        (71)    (164)  (235)        (10)   (301) (311)          (6)    (834)  (840)
after tax

Dividends                               -        -      -           -       -     -            -        -      -

Transfer to reserves                 (71)    (164)  (235)        (10)   (301) (311)          (6)    (834)  (840)



Return per share                    (0.9)p   (2.2)p (3.1)p      (0.1)p  (4.0)p (4.1)p      (0.1)p  (11.1)p (11.2)p



The revenue column above is the profit and loss account of the company.  All
revenue and capital items on the above statements derive from continuing
operations.



Balance sheet as at 30 June 2005


                                                     30 June 2005           30 June 2004        31 December 2004
                                                            £'000                  £'000                   £'000

Fixed asset investments                                     2,126                  1,415                   1,387

Net current assets                                          3,939                  5,407                   4,912

Net assets                                                  6,065                  6,822                   6,299

Capital and Reserves
Share capital                                               3,798                  3,795                   3,798
Share premium                                               3,422                  3,420                   3,422
Capital redemption reserve                                      5                      5                       5
Capital reserve                     realised                (444)                  (286)                   (365)
                                    unrealised              (637)                  (100)                   (553)
Revenue reserve                                              (79)                   (12)                     (8)

Total equity share holders' funds                           6,065                  6,822                   6,299

Net asset value per share                                   79.8p                  89.9p                   82.9p





Cash flow statement                              6 Months to          6 Months to                12 Months to
for the 6 months to 30 June 2005                30 June 2005         30 June 2004            31 December 2004
                                               £'000   £'000       £'000    £'000          £'000        £'000

Net cash inflow from operating activities                 49                (263)                       (454)

Financial investment :
Purchase of investments                        (823)               (782)                 (1,207)

Net cash outflow from financial investment             (823)                (782)                     (1,207)

Management of liquid resources :
(Purchase)/return of cash deposits                     (425)                  771                       5,969

Equity dividends paid                                      -                 (37)                        (37)

Financing :
Issue of own shares                                -                 227                     244
Share issue expenses                               -                   0                    (12)
Purchase of own shares                             -                 (4)                     (4)

Total financing                                             -                 223                         228

(Decrease)/increase in cash resources                 (1,199)                (88)                       4,499



Reconciliation of operating profit to net cash inflow from operating activities           6 Months to
                                                                                         30 June 2005
                                                                                                £'000
Loss on ordinary activities before Tax                                                           (71)
Decrease in debtors                                                                               200
Management fees charged to capital account                                                       (80)
Net cash inflow from operating activities                                                          49



Investment portfolio as at 30 June 2005

                                 Cost                      Valuation
                                £'000                          £'000

Unlisted Investments

Angel Biotechnology Ltd           650                            319

BioAnaLab Ltd                     250                            250

DxS Ltd                           263                            263

Insense Ltd                       149                            181

Purely Proteins Ltd               300                            150

Scancell Ltd                      725                            600

AIM listed investments

Cobra Biomanufacturing Plc        136                             79

Dawmed Systems Plc                101                             88

Evolutec Group Plc                175                            174

Listed investments

GTC Biotherapeutics Inc            14                             22

                             ========                       ========

TOTAL                           2,763                          2,126



NOTES

1.       The unaudited financial statements for the 6 months to 30 June 2005 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 2004.  The comparative figures for the financial
year ended 31 December 2004 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 7,596,393 (30
June 2004 - 7,474,398) ordinary shares, being the weighted average number of
shares in issue during the period from 1 January 2005 to 30 June 2005.  The
number of shares in issue at 30 June 2005 amounted to 7,596,393 (30 June 2004 -
7,590,393).

3.        Copies of the interim report are being sent to all shareholders.
Further copies are available free of charge from Octopus Asset Management Ltd at
8 Angel Court, London EC2R 7HP.


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