Interim Results

Murray VCT 4 PLC
16 October 2001


Murray VCT 4 PLC

Interim Results for the Six Months to 31 August 2001

The directors announce the unaudited interim results of Murray VCT 4 PLC for
the six months to 31 August 2001.

Highlights

  * Interim dividend of 1.0p per share, making total dividends paid since
    launch of 3.8p per share.


  * Three new investments in unlisted companies totalled £3.4 million.

  * Portfolio 28% invested in qualifying investments.

  * Net asset value, before payment of interim dividend, of 93.2p per share.

  * Deal flow is strong and there are good prospects of finding sound
    investment opportunities for the uninvested balance.



Investment activity

New investments during the six months to 31 August 2001 totalled £3.4 million
taking the portfolio to 18 investments at a total cost of £11.0 million. This
represented a qualifying investment level of 28% on the funds raised in March
2000.

The following new investments have been made since the publication of the
annual report:


  * Businesshealth Group PLC (May 2001) - £495,258


    Based in London, Businesshealth provide health management services to
    employers. The total fundraising was £0.8 million. Murray VCT, Murray VCT
    2, Murray VCT 3, Aberdeen Growth VCT 1 and South Yorkshire Pension
    Authority were co-investors.


  * Unique Communications Group Limited (June 2001) - £732,000


    Based in Manchester, Unique provides TV production and communications
    services. The total fundraising was £4.0 million. Murray VCT, Murray VCT
    2, Murray VCT 3, Ventures North West and Aberdeen Development Capital were
    co-investors.


  * Citel Technologies Limited (August 2001) - £130,000


    Based in Nottingham, Citel is a provider of Internet Protocol ('IP')
    telephony solution services. The total fundraising was £2.125 million.
    Murray VCT, Murray VCT 2, Murray VCT 3, Aberdeen Growth VCT 1, Aberdeen
    Development Capital and Aberdeen City Council Superannuation Fund were
    co-investors.

The Board is confident that Murray VCT 4 will achieve the target of having at
least 70% of its total investments in qualifying holdings, to comply with the
Venture Capital Trust legislation, within the three year qualifying period
which ends on 28 February 2003.



Market Conditions


Conditions in the UK economy, in particular for manufacturing industry, have
continued to be very difficult and the fall-out from the downturn in the
technology sector has also continued in the second half of the financial year.
The immediate impact of the terrorist attacks in the United States was
extremely negative on all markets and the US economy is in recession. Central
banks have responded by cutting interest rates and the oil price has been kept
low so far. Nevertheless, all businesses are affected and certain cost
increases such as insurance are inevitable. In taking account of these very
unusual conditions, the Board has taken a prudent approach to the valuations.


Portfolio Developments


Notwithstanding the difficult market conditions, most companies in the
portfolio are trading satisfactorily; however there is as yet only a short
trading history in most of the companies and it is still too early to judge
long term prospects. The majority of deals to date have been development
capital transactions. All investments have been valued at cost apart from
three, against which provisions have been made due to trading difficulties
being encountered by those companies.


Net Asset Value


The net asset value per share at 31 August 2001, before payment of interim
dividend, was 93.2p compared with 95.0p at 28 February 2001. Although the
basis of valuation is different, the 1.9% reduction in NAV compares with
reductions over the same period of 14% in the FTSE SmallCap Index, 23% in the
FTSE AIM Index and 37% in the FTSE techMARK 100 Index, all of which have seen
further falls since the period end.

Murray VCT 4's investments in unlisted companies are valued in accordance with
the British Venture Capital Association guidelines. Investments are normally
valued at cost or cost less a provision until they have been held for at least
one year. As a result, should performance be ahead of plan, which would imply
an increase in the value of the investment, this would not be reflected for at
least 12 months; on the other hand, any material underperformance would be
immediately reflected in a reduced valuation.


Dividends


In the annual report for the year ended 28 February 2001, the board proposed a
final dividend of 1.8p per share. The dividend was paid on 13 July 2001 to
shareholders on the register at close of business on 15 June 2001. The
directors declare an interim dividend of 1.0p per share in respect of the year
ending 28 February 2002. This dividend will be paid on 7 December 2001 to
shareholders on the register at close of business on 9 November 2001.

Since the company's launch, most shareholders will have received 3.8p in
tax-free dividends. To an investor who took advantage of all of the available
tax reliefs and deferrals, this represents a return of over 9% of the
effective initial investment cost of 40p per share and is equivalent to an
annual dividend yield of 8.9% from a conventional listed equity for a higher
rate taxpayer. This compares with the FTSE SmallCap yield of 2.6% and the FTSE
All-Share yield of 2.3%.

The timing of realisations and the resulting distributions of capital gains
will be unpredictable and the dividend stream is likely to vary from year to
year.

Dividend reinvestment

Shareholders may opt to reinvest their dividends in new Murray VCT 4 shares
and enjoy the same tax reliefs as were available on their initial investment.
Full details of the terms and conditions applicable to the reinvestment of
dividends are available from the manager.

Co-investment

Murray VCT 4 has co-invested with other clients of the Aberdeen Asset
Management group in a number of investments and is expected to continue to do
so. The advantages are that, together, the funds are able to underwrite a
wider range and size of transaction than would otherwise be the case.


The presence of parallel funds ensures that when one fund becomes fully
invested, adequate deal flow continues to be attracted by the others, thus
ensuring availability of opportunities for future investment when holdings are
realised.

Murray VCT, Murray VCT 2 and Murray VCT 3 have all passed the 70% qualifying
investment level and no longer have any prior right to investment
opportunities. Murray VCT 4 therefore has a prior right to investment
opportunities under £750,000 until the fund has reached the 70% investment
threshold.

Larger investment opportunities will be apportioned between the venture
capital trusts pro rata to the capital raised after expenses, as will all
investments after Murray VCT 4 has passed the 70% threshold. Participation in
each case is also dependent on the availability of funds and other portfolio
requirements.


The directors have approved these co-investment arrangements; their approval
is required to depart from these.


Outlook

The investment rate in the period since launch of Murray VCT 4 has been
encouraging; however these results have been achieved in a financial year in
which economic conditions have worsened steadily. Although the economic
downturn has been confined largely to the technology and manufacturing
sectors, the events of 11 September 2001 had a negative impact on all markets.
Whilst the portfolio contains a solid core of companies whose prospects should
be good, the immediate future will remain unclear until the political and
economic climate have stabilised.

Whilst deal flow remains strong throughout the Aberdeen Murray Johnstone
Private Equity network and the manager is confident of adequate opportunities
in which to invest the balance of the uninvested funds, the manager will be
exercising greater caution in the current climate in the pricing and selection
of new investment opportunities.




MURRAY VCT 4
SUMMARY OF INVESTMENT CHANGES
For the period ended 31 August 2001

                        Valuation
                       28 February  Net investment   Appreciation     Valuation
                          2001      (disinvestment) (depreciation)    31 August
                                                                           2001

                        £'000     %           £'000          £'000  £'000     %

Unlisted investments
Equities                2,303   6.3           1,597          (281)  3,619  10.2
Preference shares         950   2.6               4          (399)    555   1.5
Loan stock              4,108  11.3           1,813          (557)  5,364  15.1

                        7,361  20.2           3,414        (1,237)  9,538  26.8

Listed investments
Fixed income           28,703  78.8         (2,810)             34 25,927  73.1

Total investments      36,064  99.0             604        (1,203) 35,465  99.9

Other net assets          368   1.0           (343)              -     25   0.1

Equity shareholders'   36,432 100.0             261        (1,203) 35,490 100.0
funds





MURRAY VCT 4 PLC
INVESTMENT PORTFOLIO SUMMARY
As at 31 August 2001
                                                                           % of
                                                              Valuation   Total
                                 Nature of business               £'000  Assets
Unlisted Investments
Conveco                          Convenience store operator       1,000     2.8
Synexus                          Management of clinical             927     2.6
                                 trials
TLC (Tender Loving Childcare)    Operator of day care               832     2.3
                                 nurseries
CCM Motorcycles                  Motorcycle manufacturer            783     2.2
Unique Communications            Communications & media             732     2.1
                                 consultancy
ELE Advanced Technologies        Precision engineering              641     1.8
First Line                       Supplier and distributor of        641     1.8
                                 automotive parts to
                                 aftermarket
Visual Gold                      Creative design and                622     1.8
                                 animation services
Jupiter II                       Supplier to the                    600     1.6
                                 construction industry
Cool Beans Productions           Digital animation & design         550     1.6
                                 studio
Interak                          Import & distribution of           530     1.5
                                 small household items

Other Investments valued individually at less than £530,000       1,680     4.7
                                                                  9,538    26.8

Listed fixed income investments
Treasury 5% 07/06/2004                                            9,290    26.2
Treasury 8.5% 7/12/2005                                           5,312    15.0
Treasury 9.75% 27/8/2002                                          4,427    12.5
European Investment Bank 6% 26/11/2004                            3,562    10.0
Treasury 8% 10/6/2003                                             3,336     9.4
                                                                 25,927    73.1

Total investments                                                35,465    99.9


INDEPENDENT REVIEW REPORT TO MURRAY VCT 4 PLC

Introduction

We have been instructed by the company to review the financial information for
the six months ended 31 August 2001 which comprises the Statement of Total
Return, Balance Sheet, Cash Flow Statement and the related notes 1 to 3. We
have read the other information contained in the interim report and considered
whether it contains any apparent misstatements or material inconsistencies
with the financial information.

Directors' Responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the
Listing Rules of the Financial Services Authority which require that the
accounting policies and presentation applied to the interim figures should be
consistent with those applied in preparing the preceding annual accounts
except where any changes, and the reasons for them, are disclosed.

Review Work Performed

We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of management and applying
analytical procedures to the financial information and underlying financial
data and based thereon, assessing whether the accounting policies and
presentation have been consistently applied unless otherwise disclosed. A
review excludes audit procedures such as tests of controls and verification of
assets, liabilities and transactions. It is substantially less in scope than
an audit performed in accordance with United Kingdom Auditing Standards and
therefore provides a lower level of assurance than an audit. Accordingly we do
not express an audit opinion on the financial information.

Review Conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 August 2001.

Ernst & Young LLP

Glasgow

31 August 2001






MURRAY VCT 4 PLC
Statement of Total Return
(Incorporating the Revenue Account*)
For the six months ended 31 August 2001 (unaudited)

                                                   Six months to 31 August 2001
                                                    Revenue   Capital    Total
                                                      £'000     £'000    £'000

(Losses) gains on investments                             -   (1,203)   (1,203)
Income from investments                               1,033         -     1,033
Other income                                             13         -        13
Investment management fees                            (173)     (260)     (433)
Other expenses                                         (86)         -      (86)

Net return on ordinary activities before                787   (1,463)     (676)
taxation

Tax on ordinary activities                            (242)       242         -

Return attributable to equity shareholders              545   (1,221)     (676)

Ordinary dividends on equity shares                   (385)         -     (385)

Transfer to (from) reserves                             160   (1,221)   (1,061)

Returns per ordinary share (Note 3)                    1.4p    (3.2)p    (1.8)p





MURRAY VCT 4 PLC
Statement of Total Return
(Incorporating the Revenue Account*)
For the six months ended 31 August 2001 
(unaudited)
                                  33 weeks to 31 August      59 weeks to 28
                                           2000               February 2001
                                  Revenue  Capital Total Revenue Capital  Total
                                   £'000    £'000  £'000  £'000   £'000   £'000

(Losses) gains on investments            -      82    82       -     423     423
Income from investments                830       -   830   1,919       -   1,919
Other income                            25       -    25      34       -      34
Investment management fees           (106)   (159) (265)   (237)   (355)   (592)
Other expenses                        (77)       -  (77)   (177)       -   (177)

Net return on ordinary                 672    (77)   595   1,539      68   1,607
activities before taxation

Tax on ordinary activities           (202)      48 (154)   (455)    (96)   (551)

Return attributable to equity          470    (29)   441   1,084    (28)   1,056
shareholders

Ordinary dividends on equity         (383)       - (383) (1,073)       - (1,073)
shares

Transfer to (from) reserves             87    (29)    58      11    (28)      17
Returns per ordinary share (Note 3)   1.2p  (0.1)p  1.1p   2.83p (0.07)p   2.76p




MURRAY VCT 4 PLC
Balance Sheet
As at 31 August 2001 (unaudited)

                                       31 August      31 August      28 February
                                          2001           2000            2001
                                         £'000          £'000           £'000

Fixed assets
Investments                             35,465         35,982           36,064

Current assets
Debtors                                    798            552            1,058
Cash and overnight deposits                461            663              798
                                         1,259          1,215            1,856
Creditors
Amounts falling due within one year      1,234            756            1,488

Net current assets                          25            459              368
                                        35,490         36,441           36,432

Capital and reserves
Called up share capital                  3,849          3,830            3,837
Share premium                           32,718         32,553           32,612
Realised capital losses                  (329)           (85)            (180)
Unrealised capital (losses) gains        (919)             56              152
Revenue reserve                            171             87               11
Equity shareholders' funds              35,490         36,441           36,432

Net asset value per ordinary share       92.2p          95.2p            95.0p





MURRAY VCT 4 PLC
Cash Flow Statement
For the six months ended 31 August 2001 (unaudited)

                                                      Six        33          59 
                                                   months     weeks       Weeks
                                                    to 31     to 31       to 28
                                                   August    August    February
                                                     2001      2000        2001
                                                    £'000     £'000       £'000

Operating activities
Investment income received                            905       538       1,848
Deposit interest received                              15        24          32
Investment management fees paid                     (381)     (100)       (426)
Secretarial fees paid                                (30)       (9)        (39)
Cash paid to and on behalf of directors              (29)       (7)        (26)
Other cash payments                                  (41)       (8)        (31)
Net cash inflow from operating activities             439       438       1,358
Financial investment
Purchase of investments                           (2,883)  (40,371)    (50,886)
Sale of investments                                 2,679     4,252      14,260
Net cash outflow from financial investment          (204)  (36,119)    (36,626)
Equity dividends paid                               (690)         -       (383)
Net cash outflow before use of liquid resources     (455)  (35,681)    (35,651)
and financing
Issue of ordinary shares                              118    38,298      38,364
Expenses of share issue                                 -   (1,954)     (1,915)
Net cash inflow from financing                        118    36,344      36,449
(Decrease) increase in cash                         (337)       663         798



MURRAY VCT 4 PLC
Notes to the Financial Statements

1. Movement in reserves
                                    Share    Capital        Capital
                                   premium  reserve -     reserve -     Revenue
                                   account  realised     unrealised     reserve
                                    £'000     £'000         £'000        £'000
   As at 1 March 2001               32,612      (180)           152          11
   Issue of shares                     106          -             -           -
   Gains on sales of investments         -         47             -           -
   Decrease in unrealised                -          -       (1,249)           -
   appreciation
   Investment management fees            -      (260)             -           -
   Tax effect of capital items                     64           178           -
   Retained profit for the period        -          -             -         160
   As at 31 August 2001             32,718      (329)         (919)         171


2. Accounting policies

The financial information contained in this report has been prepared on the
basis of the accounting policies set out in the Annual Report for the year
ended 28 February 2001.The results for the year ended 28 February 2001 are
abridged from the full accounts for that year, which received an unqualified
report from the auditors and have been filed with the Registrar of Companies.

3.  Returns per share

The returns per ordinary share have been calculated using the average number
of shares in issue during the period of 38,398,921. The net asset value per
ordinary share has been calculated using the number of shares in issue at 31
August 2001 of 38,489,088.



A full copy of the interim report will be printed and issued to shareholders.

Copies of this announcement will be available at the registered office of the
Company, One Bow Churchyard, Cheapside, London EC4M 9HH and at Aberdeen's
office at 123 St Vincent Street, Glasgow G2 5EA.


By Order of the Board


MURRAY JOHNSTONE LIMITED
SECRETARY


16 October 2001