Preliminary interim results, 3 February 2000 to 30 September 2000

"Early months encouraging and satisfying"
Hon. Barbara Thomas, Chairman, Net Investor plc

Joins 18 United States venture capital partnerships

9 Initial Public Offerings and 1 trade sale to date

Net Asset Value rises from 193.73p at flotation to 215.83p with current period revenue net of expenses included (212.06p without current period revenue)

Net Investor plc today published preliminary interim results for the period from its initial public offering on 3 February 2000 to 30 September 2000.

Net Investor is an investment trust designed to achieve outstanding long-term capital growth for shareholders through investment in a diversified portfolio of US Information Technology companies at the venture stage. It invests indirectly through United States limited partnerships managed by established and successful venture capitalists specialising in the information technology sector.

During February, Net Investor converted the placing proceeds into approximately US$154 million. Since then it has joined 18 United States venture capital partnerships managed by established and successful venture capitalists specialising in the information technology sector. These managers have in turn been investing its resources in individual businesses. By 30 September $56.1 million had been drawn down for investment in 255 companies.

Hon. Barbara Thomas, Chairman of Net Investor comments: "The early months of Net Investor's life have been satisfying and encouraging. We are confident of the long-term prospects for the IT industry and in particular the US venture funds in which we are investing.

"Through the Board's network of contacts and relationships we have secured positions in limited partnerships managed by some of the world's most sought after venture fund managers, including New Enterprise Associates and Draper Fisher Jurvetson.

"Having raised our funds in February, we are benefiting from the correction in the quoted IT sector which has occurred since March 2000. Companies seeking to raise venture funding have had to lower their valuation expectations and therefore we are achieving better value than was previously available.

"The quality of the funds in which we have invested is evidenced by the fact that, in the current, highly volatile public market, nine portfolio companies have made Initial Public Offerings and there has been one trade sale. In addition a number of portfolio companies have completed further financing rounds at a price per share in excess of that at which we invested."

The full text of the interim announcement follows.

Chairman's Statement

The Hon. Barbara Thomas, Chairman of the Company, today commented:

We are pleased with the progress of Net Investor from its flotation on 3 February 2000 to 30 September 2000. Our objective is to achieve outstanding long-term capital growth for shareholders and the first step in this process was to allocate the placing proceeds.

During February we converted the placing proceeds into approximately US$154 million. In the period to 30 September we became limited partners in 13 United States venture capital partnerships managed by established and successful venture capitalists specialising in the information technology sector. These managers have in turn been investing our resources in individual businesses. By 30 September $56.1 million had been drawn down for investment in 255 companies.

Through the Board's network of contacts and relationships we have secured positions in limited partnerships managed by some of the world's most sought after venture fund managers, including New Enterprise Associates and Draper Fisher Jurvetson.

Historically the expertise of the managers of these partnerships has been demonstrated by the fact that many of their investee companies have become leaders in the IT sector, generating substantial long term capital growth for venture stage investors. We have selected partnerships specialising in start-up, expansion and late stage venture businesses to achieve a balanced private equity portfolio and a consistent flow of capital realisation. We intend to reinvest the proceeds of all realisations to achieve further capital growth.

In the period to 30 September net assets attributable to ordinary shareholders rose from £97 million at flotation to £106 million or £108 million when current period revenue net of expenses is included. The undiluted Net Asset Value per share at flotation was 193.73p and at 30 September was 212.06p or alternatively 215.83p if current period revenue net of expenses is included.

Since the period end the Board has committed a further $40 million to an additional 5 limited partnership funds. As of the date of this statement Net Investor has committed a total of $198.5 million, which represents a commitment of $44.5 million above the net proceeds of $154 million raised at flotation. In reaching this decision the Board has considered the historic rate at which monies are drawn down by limited partnership funds, normally up to four years following commitment, and the historic rate at which realisations by trade sale or flotation are received, and has had access to sophisticated financial modelling techniques provided by a triple-A rated insurance company. Accordingly the Board believes that this policy is prudent and is likely to produce enhanced returns for shareholders.

As of today, Net Investor has liquid resources of $91.8 million, invested in cash and a portfolio of high quality, dollar denominated, investment grade bonds.

Having raised our funds in February, we are benefiting from the correction in the quoted IT sector which has occurred since March 2000. Companies seeking to raise venture funding have subsequently had to lower their valuation expectations and therefore we, through our limited partnerships, are achieving better value than was previously available. In the reporting period under review seven of Net Investor's portfolio companies made Initial Public Offerings. Since the period ended an additional two portfolio companies have made Initial Public Offerings and there has been one trade sale which, given the highly volatile public market, is an indication of the quality of the funds in which we have invested. In addition a number of portfolio companies have completed further financing rounds at a price per share in excess of that at which we invested.

The early months of Net Investor's life have been satisfying and encouraging. We are confident of the long-term prospects for the IT industry and in particular the US venture funds in which we are investing.

BARBARA S. THOMAS Executive Chairman
5 December 2000