Re Agreement

Keydata Income VCT 1
                  KEYDATA INCOME VCT 1 PLC

VCT to invest in Renewable Energy Projects

The Board of Keydata Income VCT 1 plc ('the Company') is pleased to announce it
has signed agreements to invest in a series of renewable energy power generation
projects based on the technology of the gasification of recycled wood. The
Company's principal partners in these projects are Biomass Engineering Limited
('Biomass') a leading company in the field of sustainable energy (see
www.biomass-uk.com) and Centralgrange Environmental Waste Limited ('CEW') a
business based in St Helens, Lancashire specialising in waste reclamation.

On 15 June 2007, the Company entered into investment commitments in respect of
£6,227,000 the principal terms of which are as follows:

1. The Company will be investing an aggregate of £4,248,000 in five newly formed
    renewable energy companies (RECs). It is intended that each REC will build,
    own and operate either a 1 megawatt (MW) or 0.5 MW Gasification Unit in St
    Helens, Merseyside, to be fuelled by clean recycled wood provided by CEW
    which operates a waste reclamation station on the site. The total annual
    operating capacity of the 5 RECs will be 4.5 MW of electricity, four
    companies producing 1MW and one company producing 0.5MW. Biomass will
    provide the Gasification Units and construction start dates are currently
    targeted for July 2007 with completion and grid connection scheduled for
    October 2008 although it is anticipated that completion and grid connection
    could occur earlier in June 2008. Planning permission has been granted in
    respect of the Gasification Units.

2. The site where the Gasification Units are intended to be constructed is
    leased to CEW by St Helens Council. It is intended that CEW will grant an
    underlease to the Distributor (a new company 85% owned by CEW and 5% by
    Credinvest International LLP, a corporate finance firm specialising in
    renewable energy) with sub-underleases being granted by the Distributor to
    the RECs. The Council, as head landlord, has given outline approval to the
    underlease. As part of CEWs business of operating a waste reclamation
    station on the site, it receives a gate fee for receipt of waste wood from
    various local customers; and CEW will be entering into a long term contract
    to supply clean recycled wood to the Distributor for gasification at the
    Gasification Units. The resultant gas will be used to generate electricity
    and heat, which will be sold back to the Distributor by the RECs under a 20
    year Tolling agreement.

3. The Company will also be investing an aggregate of £1,979,000 in two newly
    formed RECs set up to supply various support services (eg fuel feed system,
    condensate filter and cooling tower and the plant required to connect to
    grid) to the five operating companies detailed above.

4. The company also proposes to invest a further £2,500 for a 5% equity interest
    in the Distributor which will give it exposure to increasing electricity
    prices.

5. Subject to tax approval from HMRC and the satisfaction of other conditions
    set out in the relevant funding agreement, the Company will provide funding
    to each of the 7 RECs to enable it to fund the construction and operation of
    the Gasification Units and related facilities. The VCT will invest 30% in
    each REC by way of subscription for shares and 70% in loan notes. The
    precise amount of the investments will depend on the final project costs.
    The Company will be providing only a proportion of the total funding
    required by each of the renewable energy companies and the distributor, any
    shortfall to be sourced from third parties.

6. Completion of the investment in each REC will only proceed once that company
    has acquired all the necessary rights to enable it to design, construct, own
    and operate the relevant gasification unit or common facilities (as the case
    may be). Biomass will provide services for the technical and commercial
    operation and maintenance of the Gasification Units on behalf of each
    company and the Distributor will sell the electrical output and associated
    renewable benefits.

7. Keydata Investment Services Limited will provide all required company
    secretarial, administrative and accountancy services for each of the 7
    investee companies and the Distributor under the terms of the funding
    agreement for which it will receive an annual fee of £5,000 from each REC
    and £10,000 from the Distributor (escalating at UK CPI).

Stephen Oxenbridge, the Chairman of Keydata Income VCT 1 plc commented:

'I am delighted to announce this series of investments and believe they meet our
strict criteria of balancing relatively low commercial risk with an ability to
deliver the income returns outlined in the Company's flotation prospectus.'

19 June 2007

For further information please contact:

Craig McNeil
Company Secretary
Keydata Income VCT 1 plc
0141 572 2300