Interim Results

Close Brothers Dev VCT PLC
28 September 2000


                      Close Brothers Development VCT PLC                      

                             Chairman's Statement
                                       
Introduction

The investment strategy of the Company is to establish a diversified portfolio
of holdings in smaller, unquoted companies whilst at the same time selecting
and structuring investments in such a way as to reduce the risk normally
associated with investment in such companies.  It is intended that this will
be achieved as follows:

Qualifying Investments will represent in excess of 80 per cent. of net funds
raised and will comprise investments in established businesses across a
broad spread of industries.

Approximately two thirds of Qualifying Investments will comprise debt
secured on 'bankable' assets.  This debt will generate a significant
proportion of the total anticipated return from individual investments.

Up to 20 per cent. of net funds raised will be in Non-Qualifying Investments
comprising fixed and floating interest rate securities, financial
instruments and short term money market deposits all issued by or with major
banks with a Moody's credit rating of at least A.

Investment Progress

I am pleased to announce that since my last report a total of £4 million has
been invested or reserved for investment in three new companies, of which £1.5
million relates to the period subsequent to the half year.  This takes the
total since the launch of the VCT to £4.75 million, or 35% of net assets and
means that we are on target to reach the 70% investment level required by the
Inland Revenue within three years of launch, although in reality we expect to
reach that level considerably sooner.

The following is a summary of the qualifying unquoted investments made to
date.

Company                           Invested  Reserved for  Unrealised     Total
                                  to date   investment  appreciation
                                    £'000        £'000         £'000     £'000

Swetenhams Marketing Services Ltd                                             
                                                                              
This provides data-related 
marketing services to the 
direct marketing industry.  
Progress to date has been 
encouraging, and following 
the successful development and          
implementation of a new marketing
automation system, your VCT is 
likely to invest further funds 
to finance a roll-out of the 
product.                              750            -             23      773
                                                                              
 
Odyssey Healthclubs Group Ltd                                                 
                                                                     
Odyssey has acquired a 30,000 sq.ft.                                          
health and fitness club on an 11 
acre site outside Stevenage, and
has a 50% stake in a company 
developing a 30,000 sq.ft. 
club on a 6 acre site outside 
Beaconsfield in Buckinghamshire.  
In addition, the group has an     
option over a further site outside 
Stratford-upon-Avon.  Current 
trading is strong with performance 
ahead of budget.                    1,000          500              1    1,501


First Start Children's Nurseries Ltd                                          

First Start is a newly-formed 
company incorporating an 
experienced management team 
who will be building a group of                                          
private children's day nurseries 
in and around Greater London.         100          900              -    1,000
                                   ______        _____             __    _____
                                            
Total investments 
made by 30 June 2000                1,850        1,400             24    3,274
                                    =====        =====             ==    =====
                                           
Careforce Staffing Ltd                                                        
 
Careforce Staffing was established 
in 1999 to build, both 
organically and through 
acquisition, a group providing                                         
home care services to the elderly,                                            
principally on behalf of local       
authorities.  Careforce currently
operates two units, in Essex and
Hertfordshire.                        250        1,250              -    1,500
                                    _____        _____             __    _____
                                       
Total investments made to date      2,100        2,650             24    4,775
                                    =====        =====            ===    =====


The flow of new investment opportunities is exceptionally strong and we look
forward to further successful investments during the remainder of the year.

Results and Dividend

As at 30 June 2000 the net asset value of the company was £13.7 million,
(1999: £13.2 million), equivalent to 93.4 pence per share, (1999: 94.5 pence).
Net income after taxation was £264,000 in the period, (1999: £111,000)
enabling the board to declare a net interim dividend of 1.4 pence per share,
(1999: pre first closing 1.0 pence, post first closing 0.6 pence), payable on
16 October 2000 to those shareholders registered on 2 October 2000.

R M Davidson                                                                  
Chairman                                               28 September 2000 


                      Unaudited Statement of Total Return
                      (incorporating the revenue account)
                      for the six months to 30 June 2000

                    Six months to       Six months to        21 Oct. 1998 to 
                    30 June 2000         30 June 1999        to 31 Dec. 1999
        
                Rev.    Cap.   Tot.   Rev.   Cap.   Tot.  Rev.   Cap.     Tot.
               £'000   £'000  £'000  £'000  £'000  £'000 £'000  £'000    £'000
        
Gains/(losses)
investments        -       4      4      -      -      -     -     (7)     (7)
      
Income           441       -    441    222      -    222   586      -     586
        
Investment       
mgt fees         (40)   (121)  (161)   (33)   (99)  (132)  (73)  (218)   (291)
                                                                              
        
Other expenses   (55)    (15)   (70)   (50)    (8)   (58) (103)   (23)   (126)
                 ___    ____   _____   ____   ____   ____  ___    ____    ____

Return on 
ordinary                                                             
activities
before tax       346    (132)   214    139   (107)    32   410   (248)    162 
       
Tax on 
ordinary                  
activities       (82)     32    (50)   (28)    21     (7)  (83)    49     (34)
                 ___    ____    ___   ____    ___    ___   ___    ___     ___ 

Return 
attributable to                                                               
shareholders     264    (100)   164    111    (86)    25   327   (199)    128
         
Dividends       (205)      -   (205)  (100)     -   (100) (320)     -    (320)

Transfer 
to/(from)            
reserves           59    (100)  (41)    11    (86)   (75)    7   (199)   (192)
                 =====    ====   ====   ====   ====   ====  ====  ====    ====
         
Return per share 1.8p  (0.7)p   1.1p  1.8p  (1.4)p   0.4p  2.7p  (1.6)p   1.1p


All revenue and capital items in the above statement derive from continuing
operations.


                                   Unaudited Summary Balance Sheet
                                          at 30 June 2000
                                       
                             30 June 2000   30 June 1999     31 December 1999
                                    £'000          £'000                £'000
Fixed asset investments                                               
Qualifying
  Reserved for investment           3,274              -                  756
  Less: uninvested to date         (1,400)             -                    -
                                    _____          _____                _____
  Total Qualifying                  1,874              -                  756
    
Non-Qualifying                     10,480              -                5,981
                                   ______          _____                _____
                                   12,354              -                6,737
Current assets                                                                
Debtors                                84             66                  101
Short term money market deposits    1,708         13,434                7,270
                                   ______         ______                _____
                                    1,792         13,500                7,371
    
Creditors: due within one year       (458)          (325)                (371)
                                   ______         ______                _____ 
                                                            
Net current assets                  1,334         13,175                7,000
                                   ______         ______                _____ 
                                              
Net assets                         13,688         13,175               13,737
                                   ======         ======               ====== 
Represented by:                                                               
    
 Called up share capital            7,331          6,974                7,331
 Share premium account                  -          6,276                6,598
 Special Reserve                    6,590              -                    -
 Capital reserve                     
  realised                           (296)           (86)                (192)
  unrealised                           (3)             -                   (7)
 Profit and loss account               66             11                    7
                                   ______          _____               ______ 
                                              
Total shareholders' funds          13,688         13,175               13,737
                                   ======         ======               ====== 
                                              
Net asset value per share           93.4p          94.5p                93.7p
                                                                              
This interim report was approved by the Board of Directors on 28 September
2000.

Signed on behalf of the Board of Directors

R M Davidson                                                          Chairman