Interim Management Statement

Polar Capital Technology Trust PLC
03 September 2007


Polar Capital Technology Trust PLC

Interim Management Statement for the 3 months to 31 July 2007 (unaudited)

The investment objective of Polar Capital Technology Trust PLC is to maximise
capital growth for our shareholders through investing in a diversified portfolio
of technology companies around the world.

Review of Material Events in Period •The performance over the period from 30
April 2007 to 31 July 2007 is shown below.

•On 30 June 2007 a 4.01bn Japanese Yen loan matured and was rolled forward for 3
years at an all in rate of 1.98%. Total borrowings remain unchanged at JPY
9.01bn.

•1,035,907 shares have been purchased and cancelled during the period.

•Market performance The FTSE World Index fell 1.4% in Sterling terms over the
period with gains made during May more than outweighed by profit-taking
sustained in June and late July. Early gains were driven by a supportive
macroeconomic backdrop, positive earnings revisions and modest P/E expansion (a
result of a continued slew of M&A announcements and aggressive corporate
buybacks). Unfortunately, just as most equity markets were approaching or
beating all-time highs in early July, credit markets began to reflect a
significant change in liquidity / risk appetite. The initial widening of
corporate spreads was understandably ignored given the historically low levels
from which they were rising and the abundance of corporate balance sheet riches.
In other words, there was little reason not to believe that an orderly re-
pricing of risk could be contained. Unfortunately, a significant deterioration
in the US housing market, coupled with soaring energy prices (oil rising 19%
over the period), led to an almost complete loss of confidence in sub-prime debt
and a very disorderly re-pricing of risk. In the ensuing 'flight-to-quality'
demand for higher risk credits dried up. This made it almost impossible for
investment banks, which had hitherto underwritten most of the recent private-
equity transactions, to place the debt, further shaking confidence in the
financial system. By the middle of July, equity markets began to reflect this
significantly different backdrop with housing and financial stocks bearing the
brunt of the ensuing sell-off.

•Technology Performance The technology sector performed admirably with the Dow
Jones World Technology index rising 3.3% in Sterling terms. Simplistically,
outperformance was primarily a result of continued improvement in the sector's
lustre as a result of its relative lack of exposure to the issues that have
driven markets lower (access to and the price of credit). Furthermore, despite
some concerns heading into earnings season, second-quarter results from the
sector have been better than anticipated with many companies sufficiently
confident to offer optimistic Q3 guidance. Lastly, the sector has, thus far,
continued to enjoy a relatively healthy M&A backdrop despite the aforementioned
lack of LBO announcements as trade buyers continue to pick up attractive assets.

•Outlook Although we remain confident that the current credit issues will be
contained we are mindful that dislocations such as this often take longer to
play out than one initially hopes. Together with the recent rise in the price of
oil, it is fair to characterise our view of the world as slightly less sanguine
than at the last time of writing. As a result, we felt it prudent to unwind our
leverage (via index options) with a view to reducing market exposure. Whilst we
do not think the current corrective phase will develop into anything
significantly more sinister, our indicators do not suggest that sentiment has
sufficiently adjusted to the new (credit market) reality. Looking at our sector,
we are buoyed by its continued outperformance. We anticipate that (once the
current correction has played out) the sector will cement its leadership status
during the rebound that follows.

Ben Rogoff, Trust Manager
17th August 2007

                                 31 July 2007    30 April 2007           Change
Share Price (p)                        226.75           228.00             -0.5%
NAV per Share
(p)                                    243.54           239.70              1.6%
Discount (%)                            -7.40            -4.88             -2.52
Total Assets
(£m)                                      376              373              0.1%
Gearing (%)                            108.10           111.23             -3.13

Gearing is calculated by dividing the company's total assets by its net assets
and ignores the effect of any cash or fixed interest holdings.

Performance (%)                      3 Months            1Year           3 years
Share Price                             -0.55            10.61             50.66
NAV per Share                            1.71            12.72             36.63
Dow Jones
World
Technology
Index                                    3.45            17.38             26.99

Geographical Breakdown (%)           31 July 2007    30 April 2007
North America                              59.2             60.6
Europe                                     22.4             22.8
Japan                                      15.3              9.8
Asia                                        9.4             10.7
Cash                                       -6.3             -4.3



Sector Breakdown (%)                 31 July 2007    30 April 2007
Semiconductors                             20.5             24.6
Software                                   13.7             14.5
Other Sectors                              11.3             14.8
Clean Energy                                8.9                -
Healthcare                                  8.6              8.7
Coms.
Equipment (ex
Wireless)                                   7.2              7.5
Computing                                   6.9                -
Electronic
components                                  6.3              4.1
Services                                    5.8              7.5
Wireless                                    4.7              3.2
Defence                                     2.6              3.5
Consumer                                    2.5              2.3
Telecoms/Media                              1.0              1.0
Computing                                     -              8.3

Top Ten Holdings (%)                 31 July 2007    30 April 2007
Renesola                                    2.7              3.0
Tokyo Seimitsu                              2.6              2.4
Advantest                                   2.4              2.3
Ibiden                                      2.2                -
Nidec                                       2.2              1.6
Google                                      2.2              1.6
Apple Computers                             2.1              1.6
Motech                                      2.0              2.1
Nitto Denko                                 1.9              1.6
Union Tool                                  1.7                -
Network
Appliance                                     -              1.7
Zeon                                          -              1.6
Total                                      22.1             19.5

Shares in issue
As at 30 April
2007                                139,990,821
                                 ----------------
Share bought
back and
cancelled                             1,035,907
Shares held in
treasury                                      0
                                 ----------------
As at 31 July
2007                                138,954,914
                                 ================

General Information: For further information please visit the company's website:                                        
                     www.polarcapitaltechnologytrustplc.co.uk where a PDF version                        
                     of this announcement is available.

                     The company's Net Asset Value per share is calculated
                     daily and released to the London Stock Exchange



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