Interim Management Statement

FIDELITY EUROPEAN VALUES PLC - INTERIM MANAGEMENT STATEMENT FOR THE QUARTER       
ENDED 30 SEPTEMBER 2008                                                           
                                                                                  
Objective                                                                         
                                                                                  
To achieve long-term capital growth from the stock markets of Continental         
Europe.                                                                           
                                                                                  
Benchmark                                                                         
                                                                                  
FTSE World Europe (ex UK) Index                                                   
                                                                                  
Review of Period (total return)                                                   
                                                                                  
During the period:                                                                
                                                                                  
- the NAV decreased by 13.3% (debt at par) and 12.8% (debt at market value)       
against a decrease of 11.3% for the benchmark.                                    
                                                                                  
- the share price decreased by 16.3%                                              
                                                                                  
- the Board and Managers continue to believe that investment in equities will     
produce strong returns for shareholders over the long term.                       
                                                                                  
- 253,500 shares were repurchased for cancellation.                               
                                                                                  
Since the quarter end: a further 92,441 shares have been repurchased for          
cancellation.                                                                     
                                                                                  
Details of the company's portfolio are shown below.                               
                                                                                  
Material Events                                                                   
                                                                                  
Half-yearly results published and half-yearly report sent to shareholders for     
the six months ended 30 June 2008.                                                
                                                                                  
EGM held and new Articles of Association adopted 22 September 2008.               
                                                                                  
Additional Information                                                            
                                                                                  
Details of the Company            Dealing Information                             
                                                                                  
Fund Manager: Sudipto Banerji     Listed:         London Stock Exchange           
                                                                                  
Enquiries:    08457 100 456       Broker:         Winterflood Investment trust    
                                                                                  
WWW Address:  http:/              Price Quoted:   Financial Times                 
              www.fidelity.co.uk                                                  
                                                  The Times                       
                                                                                  
                                                  The Daily Telegraph             
                                                                                  
                                                  The Independent                 
                                                                                  
Launch Date:  5 November 1991     Reuters Code:   FEV.L                           
                                                                                  
Ordinary      55,101,351          SEAQ Code:      51034                           
Shares In                                                                         
Issue:                                                                            
                                                                                  
Share price   12.1%               ISIN:           GB0003375820                    
discount to                                                                       
Undiluted                                                                         
NAV:                                                                              
                                                                                  
Total Assets: £767.6 m                                                            
                                                                                  
Loan:         £110.7 m                                                            
                                                                                  
Total Net     £656.8 m                                                            
Assets:                                                                           
                                                                                  
Gross Gearing 16.9%                                                               
:                                                                                 
                                                                                  
Net Gearing:  -1.0 %                                                              
                                                                                  
                             Portfolio Breakdowns                                 
                                                                                  
Country     As at 30    As at 30    Largest 10     As at 30 September  As at 30   
Analysis (% September   June 2008   Holdings (%    2008                June 2008  
total       2008                    total assets)                                 
assets)                                                                           
                                                                                  
France      20.4        11.7        Roche Holdings 4.9                 4.3        
                                    Genussscheine                                 
                                                                                  
Germany     16.2        18.2        Telefonia      3.9                 3.5        
                                                                                  
Switzerland 14.1        8.7         Koninklike KPN 3.1                 **         
                                                                                  
United      8.8         7.7         Nestle (Regd)  2.7                 **         
Kingdom                                                                           
                                                                                  
Italy       7.8         7.1         GDF Suez       2.6                 2.7        
                                                                                  
Netherlands 7.5         4.4         Allianz        2.5                 2.2        
                                                                                  
Spain       6.2         9.0         Novartis       2.5                 **         
                                    (Regd)                                        
                                                                                  
Finland     2.5         3.5         BNP Paribas    2.4                 **         
                                                                                  
Sweden      2.0         2.7         Intesa         2.3                 **         
                                    Sanpaolo                                      
                                                                                  
Greece      2.0         2.5         E.On           2.3                 4.7        
                                                                                  
Norway      1.5         1.9         KPN            *                   3.2        
                                                                                  
Belgium     1.3         2.5         Grifols        *                   2.5        
                                                                                  
Portugal    1.1         -           Gazprom O A O  *                   2.4        
                                    Adr (UK)                                      
                                                                                  
Russia      -           3.9         ENI            *                   2.0        
                                                                                  
Austria     -           2.9         Repsol         *                   1.9        
                                                                                  
Luxembourg  -           1.6         Total          29.2                29.4       
                                                                                  
Other       1.3         5.8                                                       
                                                                                  
Cash        7.3         5.9                                                       
                                                                                  
Total       100.0       100.0                                                     
                                                                                  
* No longer in top 10 as at 30 September 2008 ** Not in top 10 as at 30 June      
2008                                                                              
                                                                                  
                      Performance Record (total return %)                         
                                                                                  
              Price (p) Quarter to  Quarter to 30  1 Year to 3 Years   5 Years to 
                        30 June     September 2008 30        to 30     30         
                        2008                       September September September  
                                                   2008      2008      2008       
                                                                                  
NAV (debt at  1192.06      +3.4         -13.3        -15.8     +15.3     +110.1   
par)                                                                              
                                                                                  
NAV (debt at  1195.02      +2.9         -12.8        -15.8     +16.1        -     
market value)                                                                     
                                                                                  
Ordinary      1048.00      -0.6         -16.3        -21.9     +3.4      +112.7   
Share price                                                                       
                                                                                  
Benchmark                  -5.7         -11.3        -20.3     +13.0      +67.8   
Index                                                                             
                                                                                  

                   Standardised Performance (total return %)                   
                                                                               
               30/09/2003   30/09/2004   30/09/2005   30/09/2006   30/09/2007  
                                                                               
               30/09/2004   30/09/2005   30/09/2006   30/09/2007   30/09/2008  
                                                                               
NAV            25.6         45.0         13.7         20.5         -15.8       
                                                                               
Ordinary Share 36.3         50.9         9.5          20.9         -21.9       
price                                                                          
                                                                               

Past performance is not a guide to future returns. The value of investments can
go down as well as up. For funds that invest in overseas markets, changes in
currency exchange rates may affect the value of an investment. Investments in
small and emerging markets can be more volatile than other more developed
markets. Source of performance: Fidelity and Datastream as at 30 September
2008. Basis: bid-bid with net income reinvested. Fidelity only gives
information about its own products and services and does not provide investment
advice based on individual circumstances

CB32662/NA