1st October 2009

Albion Ventures launches new D Share offer for Albion Development VCT PLC

Albion Ventures, one of the UK’s leading venture capital investors, is pleased to announce the launch today of a new D Share offer for one of their most successful and established VCTs, the award winning Albion Development VCT PLC.*

The VCT’s aim is to provide investors with a regular and predictable source of income, combined with the prospect of long term capital growth. Albion Ventures intends to achieve this by enabling investors to participate in a balanced portfolio of lower-risk, often asset-backed investments that provide a strong income stream combined with investment in a smaller number of higher-risk companies with greater growth prospects.

Investments are structured in such a way as to reduce the risks normally associated with investment in small companies. This is achieved by a large allocation to secured loan stock investments capable of providing a stable and predictable income stream as well as capital protection. Albion Ventures does not use bank finance in most of their deals.

Patrick Reeve, Managing Partner, Albion Ventures said: “We believe that the combination of VCT tax benefits are particularly attractive at a time when the higher rate of income tax is set to increase, and when recent legislation has diminished the attractions of pension investment for high earners. Smaller companies can create excellent returns at this point in the economic cycle and investing through private equity ensures investors can capture the growth. We believe that our investment policy is particularly effective at a time when banks are reluctant to lend to smaller unquoted UK companies.”

The new D Shares issued through this offer are expected to merge with the existing Ordinary Shares after five years. To date, the Ordinary Shares have paid average annual tax-free dividends over the 10 years since launch of 4.6 pence per share. It is intended that, once fully invested and assuming the Offer is subscribed for in full, the Company will generate revenue dividends in the region of two to three pence per D Share per annum. It is hoped that in due course these revenue dividends will be supplemented by dividends from capital profits. However, this should not be regarded as a forecast of dividends or profits.

*Albion Ventures has just been awarded VCT of the Year at the 2009 Investor All Stars Venture Capital Awards for this fund.