Final Results

26 MAY 2004

                      THE EDINBURGH INVESTMENT TRUST plc                       

               PRELIMINARY RESULTS FOR THE YEAR TO 31 MARCH 2004               

The Edinburgh Investment Trust plc is one of the UK's largest investment trusts
focussed entirely on the UK. The long term objectives of The Edinburgh
Investment Trust plc are the achievement of capital growth at a higher rate
than the FTSE All-Share Index and dividend growth above the rate of UK
inflation.

Key points

  * A satisfactory first full year of performance by Fidelity Investments
   
  * Share price up by 30.1%
   
  * NAV per share (capital only basis) rose by 30.0% compared with an increase
    in the FTSE All-Share of 26.6% (3.4 percentage points ahead)
   
  * On a total return basis the NAV outperformed the FTSE All-Share Index by
    4.0 percentage points
   
  * Performance assisted by
   
-Positive stock selection

-Continuing overweight exposure to FTSE 250 securities

-Beneficial effect of gearing in rising markets

  * Final dividend of 8.95p per share maintained
   
For further information, please contact:

Fidelity Investments International

Anne Read 020 7961 4409

Jo Roddan/Niki Bolton 01737 837847

CHAIRMAN'S STATEMENT

I am pleased to report a much more satisfactory year in which both net asset
value and share price rose by more than the 26.6% growth in the benchmark FTSE
All-Share Index.

Company Performance

Capital

I reported at the interim stage sharp growth in the UK equity market. This
growth continued at a slower pace in the following three months, after which
the trend, although still positive, became very much weaker. For the year to 31
March 2004 the FTSE All-Share Index rose (capital only) by 26.6%.

Against this background, the Company performed well. Net asset value (`NAV')
increased by 30.0%, outperforming the benchmark index by 3.4 percentage points.
The total return on the net assets of the Company, being the combination of
capital performance and income, exceeded that of the equivalent benchmark by
some 4.0 percentage points. Both stock/sector selection and the Company's
borrowings contributed to a satisfactory result.

Income

Over the last few years dividends paid to shareholders have exceeded the
Company's net income, and I explained in October that the Board would not
recommend any further increase in dividend payments until the Company's
dividend cover had increased. Accordingly, the Board recommends that the final
dividend should remain at 8.95p per share: this will be paid on 22 July to
shareholders on the register at close of business on 4 June 2004. The
ex-dividend date will be 2 June 2004. If the final dividend is approved by
shareholders, the year's payment will total 13.15p per share. At the share
price current on 31 March 2004, this is equivalent to a yield of 4.4% - about
40% above the 3.1% yield of the FTSE All-Share Index on the same date.

The total dividend is not fully covered by this year's net income. The deficit
of approximately £2.16m is less than originally anticipated because two of our
large investments declared dividends, totalling about £1.1m, with an
ex-dividend date rather earlier than in previous years, hence falling into this
year's income. This benefit is a `one-off'. The shortfall of £2.16m will be met
by a transfer from the revenue reserve. This reserve, which after this transfer
will exceed £34m, will provide the means to sustain dividends in the short
term.

Share Price

The share price rose by 30.1% over the year to 31 March 2004 - 3.5 percentage
points more than the benchmark index and in line with the increase in the NAV.

Historically, the Company, in common with the investment trust sector as a
whole, has calculated the NAV after deducting its borrowings at par value -
i.e. the price at which these borrowings will be redeemed at maturity. On this
basis, the share price at 31 March 2004 stood at a discount of 17.0% to NAV. As
interest rates have fallen over the past few years, the market value of
debentures has risen, often substantially, and industry commentators have seen
benefit in additionally calculating the NAV after deducting the market values
of debentures. On this second basis, NAV at 31 March 2004 is 335.72p per share,
an increase of 33.6% for the year. The share price discount to NAV on this
basis is 10.5%.

Both measures of the NAV provide useful information to shareholders and
potential investors. From 30 June 2004 the statistics published by the
Association of Investment Trust Companies (AITC) will move to show net asset
values on the second basis, hence apparent valuations and the discount of share
price to NAV will fall. This will not reflect any change in the Company's
underlying investments, or indeed in the cost of redeeming the outstanding
debentures at maturity. The Company's published NAV will in future however be
dependent not only as it is now on the changing value of its assets, but also
on fluctuations in the market prices of its two debentures.

Over the last few months share price discounts to NAVs have generally widened
across the whole investment trust sector, reflecting weakening of investor
demand. The Board places great importance on Fidelity's role in building demand
for shares thus helping to reduce the share price discount to NAV. To this end,
Fidelity continues to promote the benefits of investment in the Company, both
directly to potential investors and through independent advisors. This
promotional activity apart, the Board will, when appropriate, buy back shares
for cancellation, thus reducing any over-supply and enhancing the NAV for
remaining shareholders. A special resolution to renew the Board's authority in
this regard, which was not utilised during the year under review, will be
proposed at the Annual General Meeting.

Shareholders may be aware that, since December, companies, including investment
trusts, have been able to repurchase shares to hold in treasury, for possible
reissue, rather than for cancellation. At this stage, it is not clear if this
facility will be of benefit to the Company. The Board will, however, monitor
the use of treasury shares by the investment trust sector and seek any
necessary shareholder approval if these new powers appear relevant to the
Company.

Investment and Risk Policies

The Board sees the Company's key purpose to be to provide an effective vehicle
for the investment of long-term savings in the UK equity market. The risk and
other policy parameters set by the Board, within which the Manager makes
investment decisions, relate principally to portfolio risk, the use of
borrowings (gearing) and the extent of decisions on liquidity - i.e. the degree
to which funds allocated for equity investment are, in anticipation of market
falls, allocated temporarily to cash.

The Company is emphatically not an index-tracker and in setting policy on
portfolio risk, the Board seeks to give the Manager sufficient scope to use its
research and other skills to out-perform the benchmark. Both Board and Manager
believe that the current risk limits - which have for most of the year under
review been at the low end of the prescribed range - are sufficient to provide
this scope. More sustained evidence of portfolio outperformance or changed
market conditions may well lead to some increase, over time, in the Board's
appetite for portfolio risk, and hence for the scale and volatility of return.

At the year end shareholders' funds were £883.6m and borrowings £200m, a
potential gearing ratio of 22.6%. The Manager's investment style is one of
stock selection rather than market timing and we would not normally expect
funds available for equity investment to be substantially liquid. However,
while 100% utilisation of the Company's gearing would be highly beneficial in a
rising market the impact in a falling market would be severe. To provide
clarity to both investors and to the Manager about the Company's appetite for
risk in the context of gearing, the Board has decided that in the present
market conditions it would not be appropriate to invest these borrowings
outside the range of £80-£120 million in the equity market. This position will
be reviewed regularly, but in the absence of unforeseen circumstances, is
likely to remain unchanged for the next year of so.

The Board's gearing decision means that, at least in the short-term, the
Company will not fully utilise its borrowings in the equity market and prompts
the question of whether one of the debenture stocks should be repaid, and if
not, whether the uninvested amount can be invested to yield more than cash.

Again, at the time of the Interim Report, I stated that the Board believed that
given our interest rate and equity market expectations, it was not an
appropriate time to redeem either debenture stock. We reviewed this question
again towards the end of the year under review and reached the same conclusion.
We will re-examine this matter regularly.

At the date of this statement, we are currently holding circa £80m in cash or
near cash, at rates well below the cost of the debentures. We may, in time,
decide to invest some of this cash in the equity market, but the potential
clearly exists meantime for some enhancement of income by investing in higher
coupon instruments but only in a point in the cycle when we believe the risk to
capital from firming bond yields does not offset the benefit of income gain.
This too is a matter of on-going review.

The Board

In the Interim Report, I announced the appointment of Nicola Ralston and Will
Samuel to the Board: both have already made a substantial contribution and they
stand for election at the Annual General Meeting with the strong endorsement of
their colleagues.

Roy Summers has decided to retire from the Board and accordingly will not stand
for re-election. Roy, who had a distinguished career in the brewing industry,
has played a significant role in the affairs of the Company since he became a
Director in 1994. We have benefited greatly from Roy's counsel and his wide
industry experience. I would like to thank him for all he has done for the
Company, for his personal support to my predecessor and me, and on behalf of
the Board to wish him well for the future.

Prospects

The markets in the year to March 2004 made good recovery from the oversold
position seen at the start of the year. This positive economic background is
counter-balanced by clear signals that trends in interest rates, both here and
in North America, are likely to be upwards.

The tension between these two forces is likely to lead to some short-term
uncertainty, but the Board remains cautiously optimistic in its outlook for UK
equities and for our portfolio. We believe that The Edinburgh Investment Trust
provides investors with an attractive vehicle for long-term investment in the
UK equity market.

Scott Dobbie

Chairman

25 May 2004

THE EDINBURGH INVESTMENT TRUST plc

Statement of Total Return (incorporating the revenue account1) of the Company

For the year ended 31 March:

                                  2004                       2003               
                                                                                
                          revenue  capital    total  revenue   capital     total
                                                                                
                   notes    £'000    £'000    £'000    £'000     £'000     £'000
                                                                                
Realised gains/                 -    3,550    3,550        - (171,217) (171,217)
(losses) on                                                                     
investments                                                                     
                                                                                
Increase/                       -  216,610  216,610        - (315,766) (315,766)
(decrease) in                                                                   
unrealised                                                                      
appreciation                                                                    
                                                                                
TOTAL CAPITAL                   -  220,160  220,160        - (486,983) (486,983)
GAINS/(LOSSES) ON                                                               
INVESTMENTS                                                                     
                                                                                
Currency losses                 -        -        -        -       (2)       (2)
                                                                                
Income from                                                                     
investments:                                                                    
                                                                                
- franked                  33,931        -   33,931   32,635         -    32,635
investment income                                                               
                                                                                
-other unfranked              150        -      150       37         -        37
investment                                                                      
  income                                                                        
                                                                                
Interest                      265        -      265    1,682         -     1,682
receivable on                                                                   
short term                                                                      
deposits                                                                        
                                                                                
Income from other      2    3,022        -    3,022      914         -       914
securities                                                                      
                                                                                
Underwriting                    5        -        5       43         -        43
commission                                                                      
                                                                                
Investment                  (870)  (2,030)  (2,900)  (1,174)   (2,738)   (3,912)
management fee                                                                  
                                                                                
Administrative              (872)        -    (872)  (1,222)         -   (1,222)
expenses                                                                        
                                                                                
NET RETURN/ (LOSS)         35,631  218,130  253,761   32,915 (489,723) (456,808)
BEFORE FINANCE                                                                  
COSTS AND TAXATION                                                              
                                                                                
Interest payable          (5,850) (13,651) (19,501)  (5,850)  (13,651)  (19,501)
and similar                                                                     
charges                                                                         
                                                                                
RETURN/(LOSS) ON       3   29,781  204,479  234,260   27,065 (503,374) (476,309)
ORDINARY                                                                        
ACTIVITIES BEFORE                                                               
TAX                                                                             
                                                                                
Tax on ordinary              (10)        -     (10)        -         -         -
activities                                                                      
                                                                                
RETURN/(LOSS) ON           29,771  204,479  234,250   27,065 (503,374) (476,309)
ORDINARY                                                                        
ACTIVITIES AFTER                                                                
TAX FOR THE YEAR                                                                
ATTRIBUTABLE TO                                                                 
EQUITY                                                                          
SHAREHOLDERS                                                                    
                                                                                
Dividends                (31,927)        - (31,927) (32,016)         -  (32,016)
                                                                                
TRANSFER (FROM)/TO        (2,156)  204,479  202,323  (4,951) (503,374) (508,325)
RESERVES                                                                        
                                                                                
RETURN/(LOSS) PER          12.26p   84.22p   96.48p   11.05p (205.49p) (194.44p)
ORDINARY SHARE                                                                  
                                                                                
TOTAL DIVIDEND PER         13.15p                     13.15p                    
ORDINARY SHARE                                                                  

1. The revenue column on this statement represents the profit and loss account
of the Company.

2. Income arising from the Fidelity Institutional Cash Fund.

3. Returns per ordinary share are based on the net revenue return on ordinary
activities after taxation of £29,771,000 (2003: £27,065,000), and the capital
appreciation in the year of £204,479,000 (2003: depreciation of £503,374,000)
and on 242,796,714 ordinary shares (2003: 244,959,865) being the weighted
average number of ordinary shares in issue during the year.

All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or discontinued in the year.

THE EDINBURGH INVESTMENT TRUST plc

Balance Sheet as at 31 March

                                                      2004         2003
                                                                       
                                                     £'000        £'000
                                                                       
FIXED ASSETS                                                           
                                                                       
Investments                                      1,015,783      806,197
                                                                       
CURRENT ASSETS                                                         
                                                                       
Debtors                                             12,170       12,380
                                                                       
Fidelity Institutional Cash Fund                    71,736       68,414
                                                                       
Amounts held at futures clearing                     1,394            -
houses and brokers                                                     
                                                                       
Cash and short term deposits                         6,122       14,808
                                                                       
                                                    91,422       95,602
                                                                       
CREDITORS - AMOUNTS FALLING DUE                   (28,212)     (25,380)
WITHIN ONE YEAR                                                        
                                                                       
NET CURRENT ASSETS                                  63,210       70,222
                                                                       
TOTAL ASSETS LESS CURRENT LIABILITIES            1,078,993      876,419
                                                                       
CREDITORS - AMOUNTS FALLING DUE AFTER            (195,352)    (195,101)
MORE THAN ONE YEAR                                                     
                                                                       
TOTAL NET ASSETS                                   883,641      681,318
                                                                       
CAPITAL AND RESERVES                                                   
                                                                       
Called up share capital - equity                    60,699       60,699
                                                                       
Share premium                                        6,639        6,639
                                                                       
Capital redemption reserve                          12,756       12,756
                                                                       
Capital reserve - realised                         666,475      685,793
                                                                       
Capital reserve - unrealised                       103,005    (120,792)
                                                                       
Revenue reserve                                     34,067       36,223
                                                                       
TOTAL EQUITY SHAREHOLDERS' FUNDS                   883,641      681,318
                                                                       
NET ASSET VALUE PER ORDINARY SHARE:                362.03p      278.59p

Cash Flow Statement

For the year ended 31 March 2004

                                                             2004          2003
                                                                               
                                                            £'000         £'000
                                                                               
NET CASH INFLOW FROM OPERATING ACTIVITIES                  32,704        33,393
                                                                               
RETURNS ON INVESTMENTS AND SERVICING OF FINANCE                                
                                                                               
Interest paid                                            (19,250)      (19,250)
                                                                               
NET CASH OUTFLOW FROM SERVICING OF FINANCE               (19,250)      (19,250)
                                                                               
FINANCIAL INVESTMENT                                                           
                                                                               
Purchase of investments                                 (411,769)     (722,771)
                                                                               
Exchange losses                                                 -           (2)
                                                                               
Realised losses on closed short futures positions         (3,452)             -
                                                                               
Disposal of investments                                   429,724       734,795
                                                                               
NET CASH INFLOW FROM FINANCIAL INVESTMENT                  14,503        12,022
                                                                               
EQUITY DIVIDENDS PAID                                    (31,927)      (31,636)
                                                                               
NET CASH OUTFLOW BEFORE USE OF LIQUID RESOURCES AND       (3,970)       (5,471)
FINANCING                                                                      
                                                                               
NET CASH (OUTFLOW)/INFLOW FROM MANAGEMENT OF LIQUID       (3,322)        29,417
RESOURCES                                                                      
                                                                               
NET CASH (OUTFLOW)/INFLOW BEFORE FINANCING                (7,292)        23,946
                                                                               
FINANCING                                                                      
                                                                               
Repurchase of ordinary shares                                   -      (11,935)
                                                                               
NET CASH OUTFLOW FROM FINANCING                                 -      (11,935)
                                                                               
(DECREASE)/INCREASE IN CASH                               (7,292)        12,011

Notes

 1. The Directors recommend that a final dividend of 8.95p (2003 - 8.95p) per
    ordinary share be paid. The final dividend will be paid on 22 July 2004 to
    shareholders on the register on 4 June 2004. The ex dividend date is 2 June
    2004.
   
 2. The financial information for the year ended 31 March 2003 has been
    extracted from the annual report and accounts of the Company which have
    been filed with the Registrar of Companies and on which the auditors'
    report was unqualified.
   
3. The statutory accounts for 2004 which contain an unqualified audit report
will be delivered to the Registrar of Companies following the Company's Annual
General Meeting which will be held at The Caledonian Hilton Hotel, Princes
Street, Edinburgh on Wednesday 21 July 2004 at 2.30 pm.

The accounts have been prepared under the same accounting policies used for the
year to 31 March 2003.

4. The statement of total return (incorporating the revenue account), balance
sheet and cashflow set out above do not represent full accounts in accordance
with Section 240 of the Companies Act 1985. The accounts have been prepared in
accordance with the Statement of Recommended Practice: `Financial Statements of
Investment Trust Companies' dated January 2003.

5. The annual report will be posted to shareholders on or about 11 June 2004
and copies will be available from the Secretary - Fidelity Investments
International, Oakhill House, 130 Tonbridge Road, Hildenborough, Tonbridge,
Kent, TN11 9DZ.