Kings Arms Yard Regulatory News (KAY)

31 Jan 2005 08:00

QUESTER VCT PLCQUESTER VCT 2 PLCQUESTER VCT 3 PLC(together "Quester VCTs 1, 2 and 3")POSSIBLE MERGER31 January 2005The boards of Quester VCTs 1, 2 and 3 (the "Boards") announce that, followingthe introduction of VCT tax regulations in September 2004 permitting VCTmergers, they are in discussions regarding the possible merger of Quester VCTs1, 2 and 3.The Boards believe that a merger would achieve a number of benefits includingcost savings, enhanced operational efficiency and an increase in the range anddiversity of the investment portfolio and hence an improved spread of risk.The Net Asset Values of Quester VCTs 1, 2 and 3 at their respective year ends,subject to any appropriate subsequent adjustments, will be used as the basisfor merger discussions. Publication of the Annual Reports of Quester VCTs 1, 2and 3 is expected to be in May 2005.The Boards announce that Andrew Holmes and John Spooner, directors of QuesterVCTs 1, 2 and 3 and also of Quester Capital Management Limited, the Manager toQuester VCTs 1, 2 and 3, will resign as directors of Quester VCTs 1, 2 and 3with immediate effect, to assist independent evaluation of the merger proposalsby the Boards.At this stage, there can be no certainty that a merger of any of Quester VCTs1, 2 and 3 will be effected nor as to the terms on which any merger might beeffected. A further announcement will be made when appropriate.For further information please contact:Tom Scruby, Chairman, Quester VCT PLC, 020 7437 3305Jock Birney, Chairman, Quester VCT 2 PLC 0870 839 1644David Quysner, Chairman, Quester VCT 3 PLC 020 7534 1500John Spooner, Director, Quester Capital Management Limited 020 7222 5472END