Interim Results

Northern 3 VCT PLC
20 June 2002

20 JUNE 2002

NORTHERN 3 VCT PLC

UNAUDITED INTERIM RESULTS
FOR THE PERIOD ENDED 31 MARCH 2002

Northern 3 VCT PLC is a Venture Capital Trust (VCT) managed by Northern Venture
Managers.  The trust was launched in September 2001 and its public share offers
raised a total of £13.9 million, of which £8.7 million was subscribed up to 31
March 2002.  The trust intends to invest mainly in unquoted venture capital
situations and aims to provide high long-term returns to shareholders through a
combination of dividend yield and capital growth.

Financial highlights (figures as at 31 March 2002):

•  Net assets                                   £8,215,000
•  Net asset value per share                    94.6p
•  Share price                                  95.0p
•  Revenue return before tax                    £(18,000) loss
•  Revenue return per share*                    (0.7)p loss

*Based on weighted average of 2,775,344 shares in issue during the period

For further information, please contact:

Alastair Conn, Managing Director
Northern Venture Managers                    0191 244 6000
Lucy Copeman/Louise Johnstone
Polhill Communications                       020 7655 0540

The Chairman of Northern 3 VCT PLC, John Hustler, included the following points
in his interim statement to shareholders:

I am delighted to present my first report to shareholders since Northern 3 VCT's
public share issue was launched in September 2001.  The issue closed on 19 June
2002, having raised a total of £13.9 million before expenses.  This is a
satisfactory outcome given the adverse stock market conditions prevailing
throughout the offer period, which have inevitably affected investor confidence
in equity investment opportunities and have also reduced the number of investors
able to take advantage of VCTs' particular attraction as a means of deferring
capital gains tax.  I would like to take this opportunity to welcome all of our
shareholders and thank them for their support.

The unaudited interim financial statements cover the period from 3 September
2001 (the date of incorporation of the company) to 31 March 2002, although the
company has only been fully operational since 17 December 2001 when its listing
on the London Stock Exchange became effective.  The financial statements include
the proceeds of shares allotted up to and including 31 March 2002, a total of
£8.25 million net of issue expenses.

Net asset value

The unaudited net asset value per share at 31 March 2002 was 94.6p per share, a
slight fall from the opening value (net of issue expenses) of 95.0p.  This
decrease reflects a small excess of operating expenses over income in the
period.  There was no capital gain or loss on investments, as almost all of the
share issue proceeds were still held on interest-earning bank deposit at the
period end.

Investments

The company's first VCT qualifying investment was completed during March when we
invested £280,000 in the buy-out of Keith Prowse, the UK's leading provider of
corporate hospitality services, from Wembley plc.  Since 31 March additional
investments have been completed in PM Group, an AiM-listed manufacturer of
on-board vehicle weighing systems, and Oxonica, an early-stage venture in the
emerging field of nanotechnology.

With net proceeds of over £13 million available for investment following the
share issue, our primary target is to invest at least £9 million (ie 70% of the
total) in VCT qualifying investments by the deadline of 30 September 2004.
Northern Venture Managers are continuing to see a good flow of potential venture
capital investments through their offices in Newcastle upon Tyne, Edinburgh and
Reading.

As indicated in the share issue prospectus, the company's liquid funds will,
pending investment in VCT qualifying companies, be held in a portfolio of listed
fixed-interest securities managed by Edinburgh Fund Managers with the objectives
of preserving capital value and generating an acceptable income yield.

Revenue and dividend

The statement of total return for the period to 31 March 2002 includes the
investment income derived from the proceeds of share allotments, which took
place on various dates from October 2001 onwards, and consequently does not
reflect a normal half year's ongoing activities.  After deducting expenses, the
revenue loss for the period before tax was £18,000 - equivalent to a revenue
loss per share of 0.7p (based on the weighted average of 2,775,344 shares in
issue during the period).

As stated in the prospectus, it is intended that the company's first dividend
will be paid in February 2003 as a final dividend in respect of the accounting
period ending 30 September 2002, but this will of course be subject to the
availability of a distributable surplus for the period as a whole.  With
interest rates at an historically low level, and bearing in mind that funds will
be moved progressively from the listed fixed-interest portfolio into venture
capital investments, it is likely in the short to medium term that any dividends
paid will be relatively low.  In the longer term our managers will seek to
realise capital gains from investment disposals, with a view to distribution to
shareholders by way of tax-free dividend under the VCT rules.

Prospects

The outcome of the public share offer has given us a sound financial base for
the commencement of operations, and our managers have begun the process of
building the VCT qualifying portfolio.  Although there is still considerable
uncertainty in the financial markets, we believe that the next two to three
years will prove to be a good time to be investing in unquoted companies in the
UK.

Over the next few months we intend to consider the possibility of launching a
further share issue with a view to enlarging the company's capital base.  This
would allow a broader range and a larger average size of investment in the
venture capital portfolio, spread the company's fixed costs over a wider base
and help improve the prospects for market liquidity in the company's shares in
the longer term.  However any such move will be subject to the board's view of
market conditions at the relevant time.

The unaudited interim financial statements for the period from 3 September 2001
to 31 March 2002 are set out below.


STATEMENT OF TOTAL RETURN (INCORPORATING THE REVENUE ACCOUNT)
for the period ended 31 March 2002

                                             Revenue           Capital           Total
                                             £000              £000              £000
Gains on investments                         -                 -                 -
Income                                       41                -                 41
Investment management fee                    (7)               (20)              (27)
Other expenses                               (52)              -                 (52)
                                             ------            ------            ------
Return on ordinary activities
before tax                                   (18)              (20)              (38)
Tax on ordinary activities                   -                 -                 -
                                             ------            ------            ------
Return on ordinary activities
after tax                                    (18)              (20)              (38)
Dividends                                    -                 -                 -
                                             ------            ------            ------
Transfer to reserves                         (18)              (20)              (38)
                                             ------            ------            ------
Return per share                             (0.7)p            (0.7)p            (1.4)p



BALANCE SHEET
as at 31 March 2002


                                                                                £000
Fixed asset investments                                                         280
Net current assets                                                              7,935
                                                                                -------
Net assets                                                                      8,215
                                                                                -------

Called-up equity share capital                                                  434
Share premium                                                                   7,819
Capital reserve - realised                                                      (20)
                - unrealised                                                    -
Revenue reserve                                                                 (18)
                                                                                -------
Total equity shareholders' funds                                                8,215
                                                                                -------
Net asset value per share                                                       94.6p


CASH FLOW STATEMENT
for the period ended 31 March 2002


                                                                     £000             £000
Reconciliation of net revenue before taxation to net cash flow from
operating activities

Net revenue before taxation                                                           (18)
Increase in debtors                                                                   (35)
Increase in creditors                                                                 223
Management fees charged to capital reserve                                            (20)
                                                                                      ------
Net cash inflow from operating activities                                             150
                                                                                      ------
Cash flow statement
Net cash inflow from operating activities                                             150

Taxation:
Corporation tax paid                                                                  -

Financial investment:
Purchase of investments                                              (280)
Sale of investments                                                  -
                                                                     ------
Net cash outflow from financial investment                                            (280)

Equity dividends paid                                                                 -
                                                                                      ------
Net cash outflow before financing                                                     (130)

Financing:
Issue of ordinary shares                                             8,687
Share issue expenses                                                 (434)
                                                                     ------
Net cash inflow from financing                                                        8,253
                                                                                      ------
Increase in cash at bank                                                              8,123
                                                                                      ------
Analysis of cash balance
At start of period                                                                    -
Net cash inflow for the period                                                        8,123
                                                                                      ------
At end of period                                                                      8,123
                                                                                      ------



The above summary of results for the period ended 31 March 2002 does not
constitute statutory financial statements within the meaning of Section 240 of
the Companies Act 1985 and has not been delivered to the Registrar of Companies.

A copy of the interim report is expected to be posted to shareholders on 28 June
2002 and will be available to the public at the registered office of the company
at Northumberland House, Princess Square, Newcastle upon Tyne NE1 8ER.

ENDS

END



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