Further re Final Results

FIDELITY SPECIAL VALUES PLC                          

                            ADDITIONAL DISCLOSURES                             

           TO THE PRELIMINARY RESULTS FOR THE YEAR TO 31 AUGUST 2008           

Further to the voluntary disclosure of the Company's annual results for the
year ended 31 August 2008 by way of a preliminary announcement dated 30 October
2008, in accordance with the Disclosure and Transparency Rules ("the Rules")
4.1.3 and 6.3.5(2) this announcement contains the text of the preliminary
announcement dated 30 October 2008 together with the additional text in
compliance with the Rules.

The Company's annual report and financial statements for the year ended 31
August 2008 have been filed with the UK Listing Authority Document Disclosure
team and are available on the Company's website at www.fidelity.co.uk/its

CHAIRMAN'S STATEMENT

The Financial Crisis:

This year's statement is rather like describing the scene of a hurricane while
it is still blowing but before it has blown out; something else seems to get
blown over every passing moment. The course of events over the past few weeks
has been unfolding with new drama almost on a day to day basis. It has made
reporting on last year's results seem almost irrelevant. I will comment on them
below but suffice it to say that, at the time of writing, the UK stockmarket
has quite literally collapsed; it, as measured by the FTSE All-Share Index, our
benchmark, has declined by circa 26% in just under 9 weeks since our year end
and represents a stockmarket crash not experienced by many people working in
the investment business today.

It would be pointless of me to go into the detail of the events or indeed of
the underlying causes of them as more than enough has been written about them
in our newspapers and spoken about them on our television sets. The fact that
it is ending up with the effective nationalisation of a number of our banks
underlines how very serious a state of affairs it is; at times it has been a
very frightening one too. Our financial system, which thrives and survives on
trust and confidence, has been abused and discredited and has flirted with
complete destruction. Hardly anyone involved in it can escape some sort of
blame - whether it be large in the case of the Government, the banks,
consultants and professional investors - or even the consumers who have
increased their debts to unsustainable levels. Meanwhile, the stockmarket is
being used by a number of professional investors, including many hedge fund
managers, as a casino, forgetting the important concepts of prudence and
preservation of capital and gambling with other people's money on short term
share price movements for the sake of their performance fees. The consequence
of enormous greed and some dishonesty within the financial sector is this
horrendous financial hurricane.

Before commenting on the results for the year below, which, I am afraid, are
now of rather academic interest, I think it would be appropriate to bring
shareholders up to date with the net asset value at the time of writing this
statement on 29 October 2008. As I mentioned above the market, as measured by
our benchmark, has declined by 26% since our year end; our own net asset value
has fallen by 28.5% to 402.1p per share and our share price by 24% to 367.0p
(where it stands on a discount of 8.7%).

I should also make an important observation about very severe bear markets. The
share prices of good, well managed, financially sound companies can fall just
as far as those of bad companies because those investors needing to raise cash
in such circumstances may have little other option but to sell their
shareholdings in these companies. So the short term net asset value of a
portfolio of good companies may not reflect the underlying performance of the
companies invested in. In time however the good companies' share prices will
reflect their quality and then outperform the market.

The Results Summary and the Long Term Record contain the bare facts.

The Year's Results: NAV: 562.1p - 10.9%;

Share price: 481.5p - 18.7%;

Benchmark: - 12.0%;

Dividends: 17.0p (2007:7.5p)

The net asset value declined by 68.6p from 630.7p to 562.1p per share, a fall
of 10.9%. The causes behind it were, in summary, the fall in the UK stockmarket
- it declined 12.0% - and our modest gearing; the combined effect of these were
offset by the buying back of our own shares and our own portfolio management.

In that respect shareholders will be aware that we have hedged the portfolio
against stockmarket declines in the past. In recent times we have extended our
hedging activity to include selling shares short and making other derivative
investments. It should be noted that this has and continues to be on a
relatively small scale.

These portfolio activities, which added to our net asset value (+11.5p per
share), have offset the effect of the bear market on our own net asset value.
The selection of individual stocks and shares in the portfolio, however,
detracted very slightly from our returns (-7.0p per share); we benefited from
our exposure to oil and gas producers but our exposure to holdings in the
banking and media more than offset such gains. The numerical details,
reflecting all these factors, are contained in this Annual Report.

The share price fared rather worse, declining by 110.5p or 18.7% from 592.0p to
481.5p. The uncertainties concerning the stockmarket meant that the discount of
investment trust shares in general (to their underlying net asset value)
widened and that of our own proved to be no exception; that normally happens
during bear markets. Thus our discount at the end of our financial year had
risen from 6.1% to 14.3%. During the last few weeks of ultra turbulent
stockmarkets the discount has been very volatile and, as noted earlier, it
stood at 8.7% at 29 October. Your Directors are keeping a close watch on it and
maintain a policy of trying to keep a low discount during normal and stable
times.

The income earned from the portfolio continues to remain at a high level, in
large part because we have had a large commitment to the shares of higher
yielding, large capitalisation companies. Our net income amounted to £9.9
million (17.2p per share), a very large increase on the £4.4 million (6.9p per
share) earned the year before; circa £2 million arose from much higher levels
of income earned from the portfolio, while the management fee fell by
approximately £1 million; £2.3 million of the increase is accounted for by the
accrual for the recovery of VAT. The Directors are recommending to you the
payment of a dividend of 17.0p per share payable on 18 December 2008, to
shareholders on the share register on 14 November 2008. The ex dividend date is
12 November 2008.

It is important to remember that the portfolio is managed for capital growth,
so that the income earned each year will vary according to its make up. There
will be years when the dividend rises and others when it falls.

The Long Term Returns (over five years): NAV: + 97.0%

Share price: + 60.2%

Benchmark: + 38.9%

Time and again we have made the point that we are in business to make money for
shareholders over the longer term which we regard as being at least five years.
Given the state of stockmarkets that hasn't been easy in recent times. However
over the last five years to 31 August 2008 the net asset value has increased by
97.0%, the share price by 60.2% and the stockmarket by 38.9%, so at least that
goal has been achieved. It is an important assessment that your Directors make
each year because it is this record that we use in our annual assessment of our
manager, Fidelity International. Both because of the long term record and
because of the other aspects of its performance, the Board had no difficulty in
concluding that Fidelity should remain as the manager of the Company.

Outlook and Prospects: Uncertain in the shorter term;

Optimistic in the longer term.

There can be little doubt that we are at an historical watershed and that the
future course of the global economy and of its stockmarkets will be quite
different from that experienced in the last fifteen or so years. The economic
fall-out from years of overindulgence is what we will have to live with; in the
first instance it will be one of recession, possibly quite severe and on a
world wide basis - most notably in the United States and in Europe, quite
probably in Japan and just possibly in China and India. Thereafter there is
likely to be an era rather similar to that experienced by Japan in the fifteen
or so years following its financial collapse at the beginning of the 1990s -
one of low economic growth, of deflation and low interest rates, of reduced
company profits and cut dividends. We should be able to solve our own problems
rather more quickly than the Japanese did but we do not have the benefit of the
huge savings rate that they had and have.

It will be a brave new world but, having said all of that, I believe there are
reasons to be quite optimistic in the longer term - two important reasons in
particular. Firstly - recessions are unfortunately a necessary evil in that,
while they are unpleasant experiences, they clean up the economic system,
causing poorly managed companies and businesses either to go out of business or
to change their ways. From recessions emerge financially sounder and better
managed companies and thence a much more sound economy with good growth
potential. Secondly - crises are times of both great risk and great
opportunity. The likely longer term consequences of our current financial
crisis and its attendant recession include:

  * better economic and corporate management,
   
  * sounder banking practices, accompanied by much more regulation,
   
  * greater levels of personal savings and lower levels of consumer debt,
   
  * longer term horizons for business decisions, particularly investment
    decisions,
   
  * some very good investment opportunities.
   
Tomorrow's investment world is likely to be very different from the past,
focusing on longer term returns. Because economic growth is also likely to be
low and slow and because valuations will be suppressed, investors will focus on
growth companies (whether large, medium sized or small), investing will be
about choosing the right sector by economic assessment (not from index
weightings); because times will be tough it will also be about investing in
companies with good management and sound finances, not about business models.
The UK's economy is likely to be one of the less robust and so investment will
have to focus increasingly on companies with significant overseas business,
particularly on those exposed to the growth economies of the emerging market
countries.


Ultimately our prospects depend on ourselves. In that respect we have one of
the leading investment management companies of the world, Fidelity, looking
after our affairs; it has huge and talented resources; our portfolio manager
Sanjeev Shah has made a good start relative to our benchmark and your Board is
impressed with his calm and his confidence. Tracey Cousins, who acts as the
Company Secretary, and her colleagues do a good job in supporting your Company.
If I may be allowed to say so, I believe that you have an excellent Board of
Directors with a good blend of experience - experience of your Company, of
Fidelity, of sound investing and of stockmarkets, including crashes; experience
is certainly the most important attribute of any board of directors at this
time. Your Company is in good hands.

Your Directors are of the view that, over the next five years, which is - to
repeat - the time scale we use, the net asset value is likely to rise and, in
turn, shareholders are likely to make money from this point in time. Share
prices generally may not have reached lows in the stockmarket but excellent
money making opportunities are being thrown up - once a long term time scale is
taken into account. It is difficult to see opportunities during times of crisis
but they are always there. I am sure that five years from now we will have
identified them and, more importantly, profited from them.

The Annual General Meeting: Thursday 11December at 11.30 am

The Annual General Meeting will be held at Fidelity's offices at 25 Cannon
Street (St Paul's or Mansion House tube stations) at 11.30am. It is the most
important meeting that we, the Directors of your Company have each year and we
do urge as many of you as possible to come and join us for the occasion. With
stockmarkets in such a state of chaos, Sanjeev Shah's presentation to
shareholders will be of particular interest. He took over the management of the
portfolio from Anthony Bolton at the beginning of January and he has so far
made a good start - relative to the performance of the market. In the eight
months up until our year end the net asset value under his stewardship fell by
7.2% against a fall in the market of 12.7% - an outperformance of 6.3%.

As shareholders know, each Director puts his or her name up for re-election
each year. This year shareholders will be asked to approve for the first time
the appointment of Ben Thomson who joined the Board earlier in the year. Ben is
chairman of Noble Group, an Edinburgh based investment bank and is also a
director of a number of other organisations, including other investment trust
companies. He has already made a good and thought provoking contribution to the
Board's governance and we are confident that he will make a considerable
difference to the Company over the years.

Alex Hammond-Chambers

Chairman

30 October 2008

Manager's Review

MANAGER'S REVIEW

UK MARKET REVIEW

• GDP growth decelerated during the second quarter of 2008, and the annual
growth of 1.4% was the weakest since 1992.

• Inflation rose to more than double the Bank of England's ("BoE") target,
reaching 4.4% in July 2008.

• The BoE reduced the base rate of interest three times by a quarter of a
percentage point each to 5.00%.

• The UK market declined over the review period, as the financial crisis
deepened.

The outlook for GDP growth deteriorated over the 12-month period; the Office
for National Statistics revised downwards its second-quarter economic growth
estimates from 0.2% to 0.0%, following a reassessment of activity in the
production, construction and services industries. Indeed, the economy declined
in the third quarter to the end of September.

The UK stock market returned -8.7% during the year to 31 August 2008, as
concerns about the wider impact of the financial market turmoil persisted. The
fallout of the credit crisis prompted global central banks, including the BoE,
to reduce interest rates and announce several measures to increase banking
liquidity. Against a backdrop of tightening lending conditions, there were
signs of deceleration in the housing market and consumer-related sectors, which
held back returns from financial, property and retail stocks. Rising oil prices
led to heightened inflationary pressures. On a positive note, takeover activity
continued to support some stocks.

Oil equipment services firms were the best performers, as they benefited from
buoyant demand from the energy sector. Mining stocks also advanced due to
persistent merger and acquisition speculation, notably BHP Billiton's
unsolicited bid for Rio Tinto. During the period, sterling weakened against the
dollar from $2.02 to $1.83. This improved the prospects for those companies
with significant sales in the US.

Since the year end the market has continued to decline, falling a further 26%
at the time of writing. The main contributors to this decline have been the
mining and bank shares.

PORTFOLIO MANAGER'S REVIEW

During the 12 months to 31 August 2008, the Company's portfolio returned -9.8%
(total return basis), underperforming the FTSE All-Share Index at -8.7%.

Since the start of the calendar year, I have had a relatively cautious view on
the prospects for the stock market given the evolving financial crisis and the
earnings risk to many global cyclical sectors. In early 2008 we hedged the
value of approximately 20% of the Company's portfolio against market declines
through investments in appropriate derivatives. This protection was closed
during March after the market had declined by approximately 15%. The cautious
view has also resulted in having a large exposure to defensive areas such as
pharmaceuticals which has contributed positively to performance. The overall
exposure to large capitalisation companies, at over 60%, has been the highest
over a 14 year history, as I have been concerned that smaller companies in
general would be less able to weather an economic downturn.

Areas of the market where I saw a significant risk to earnings and valuations
have been the global cyclical sectors, such as mining, energy and capital
goods. As a result of the past strong economic growth and trend to
globalisation, these sectors reached historic high earnings and valuations.
Although this position hurt portfolio performance during the early part of the
year, mining shares have now declined close to 70% from their peak.

A key exposure since the start of the year has been to structural growth
companies which are less impacted by the economic cycle. Companies in the media
sector, such as Reed Elsevier and Pearson, have exhibited strong growth and
have contributed positively to performance. Reed operates in more defensive
areas such as healthcare and legal and has benefited from the shift to digital
content. I have also had large exposure to stocks in the support service and
leisure area which exhibit solid growth, such as XChanging and Compass. Both of
these companies have been top 20 holdings and have added to performance. I have
also been increasing my exposure to companies which are benefiting from the
shift to online in their business model. Examples include gaming stocks and
electrical distributors, such as Premier Farnell.

As the financial crisis has evolved through the year, I have been increasing my
exposure to both banks and non-bank financials, as several stocks were trading
at less than their book value and they were under-owned by other investors.
However, this proved to be too early in the case of banks, such as HBOS and
RBOS which have detracted from performance HSBC, which remains the largest bank
in the Company's portfolio, continues to fare relatively well. Longer term I
believe the combined Lloyds-HBOS franchise will do well given its strengthened
market position. Non bank financials such as Provident Financial and commercial
property stocks have added to performance.

Over the last 6 months I have started to increase my exposure gradually to some
of the domestic cyclical sectors, such as housebuilders and general retail,
given their derating. I have paid close attention to companies with strong
balance sheets and sustainable long term franchises.

OUTLOOK

Given my relatively cautious view, the net borrowings have been kept at a low
level for a large part of the year, however after the market decline since the
Company's year end, I have decided to increase gearing marginally. I continue
to have little exposure to global cyclical companies including miners and
producers of capital goods. I do want to continue holding HSBC and the
potential new Lloyds-HBOS merged company. In this environment of slowing
economic growth, I continue to have exposure to structural growth companies.
Interest rate sensitive stocks have already discounted much of the downside and
some interesting opportunities are now appearing in the domestic cyclicals. The
spread of valuations in the market has widened significantly and this should
provide a better environment for picking mis-valued stocks. Overall as a
contrarian investor I am beginning to find an increasing number of longer term
investment opportunities.

FIL Investments International

31 October 2008

Principal risks and uncertainties and risk management

When considering the risks and uncertainties faced by shareholders it is
important to remember that the Board regards the timescale to achieve the
overriding objective as the long term. The longer the timescale the greater the
influence of the underlying profits and dividends and the less the influence of
valuations on share prices. It is why equities generally are likely to provide
positive returns for investors over the longer term but not necessarily over
the short term and why therefore the Board assumes a long term perspective in
determining the objective, strategy, risks and KPIs.

Subsidiary to the primary risk that shareholder value will not be enhanced, the
Board has identified secondary risks, external and internal, that could impact
this primary objective, as follows:

External risks

1 Stockmarket

Stockmarket risks include (i) the risk to profits when the economy performs
poorly, corporate profits do not prosper and so share prices suffer for
economic reasons and (ii) valuation risks, particularly during periods of
excessive stockmarket speculation and gains. Markets may go down - even over
extended periods of time.

2 Share price

Although it is usually the case that the longer a share is owned the less the
risk of losing money, share prices are volatile and for the short term
shareholder, likely to want to sell in the near future, volatility is a risk.
The Board does not regard volatility as a risk for the long term shareholder.

3 Discount

The Board cannot control the discount at which the Company's share price trades
to net asset value. However, it can influence this through its share buyback
policy and through creating demand for shares through an active investor
relations programme.

Internal risks

The internal risks that a shareholder assumes are the risks of mismanagement,
whether in the form of poor portfolio management, poor governance, poor
operations, poor financial management, poor compliance, poor administration
etc.

1 Portfolio

The risks of poor asset management are those of mismanaging the portfolio. The
risks include poor stock selection, speculation in the shares of companies,
speculation in derivatives, excessive concentration in any individual
stockmarket, individual sector of the stockmarket or individual stock;
investment in companies operating, wholly or in part, in a country whose
currency declines severely; mismatching the currencies behind the assets and
liabilities and/or borrowing at rates of interest higher than are likely to be
earned by the underlying portfolio of assets.

The Board of Directors does not believe that it is in shareholders' interests
to manage the portfolio through formulaic volatility risk control constraints
as it does not regard volatility as a risk for long term shareholders. The
Board believes that most of the risks that might result in long term
shareholder value not being enhanced are unquantifiable. The reduction of risk
is best achieved by having appropriate diversification within the portfolio and
to that end your Board reviews the portfolio with the Portfolio Manager on a
regular basis.

2 Governance, operational, financial, compliance, administration etc

While we believe that the likelihood of poor governance, operations, financial
management, compliance, administration etc by other third party service
providers is low, the financial consequences could be serious, including the
loss of Section 842 status which allows the portfolio to be managed without
incurring capital gains tax and any associated reputational damage to the
Company and thence to the discount/premium at which its shares sell. Your Board
is responsible for the Company's system of internal control and for reviewing
its effectiveness. Details of this process are provided in the Corporate
Governance Statement within this Annual Report.

The financial instruments risks faced by the Company are shown in Note 18 to
the financial statements on pages 49 to 53 of the annual report.

Related parties

Ms Nicky McCabe is an Executive Director of Moonray Investors, a division of
FIL Investments International, a member of the FIL Limited Group of Companies.
FIL Limited is the ultimate holding company of FIL Investments International.
Ms McCabe has waived her entitlement to Director's fees.

No Director has a contract of service with the Company and no contracts existed
during or at the end of the financial period in which any Director was
materially interested and which were significant in relation to the Company's
business, except as disclosed above in relation to Ms McCabe's interests in the
Management Agreement. There have been no other related party transactions
requiring disclosure under Financial Reporting Standard ("FRS") 8.

Statement of Directors' responsibilities

The Directors are responsible for preparing the annual report and the financial
statements in accordance with applicable law and regulations. Company law
requires the Directors to prepare financial statements for each financial
period. Under the law they have elected to prepare the financial statements in
accordance with UK Generally Accepted Accounting Practice.

The financial statements are required by law to give a true and fair view of
the state of affairs of the Company and of the profit or loss for the period.

In preparing these financial statements the Directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject
to any material departures disclosed and explained in the financial statements;
and

• prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Company will continue in business.

The Directors are responsible for ensuring that proper accounting records are
kept which disclose with reasonable accuracy at any time the financial position
of the Company and to enable them to ensure that the financial statements
comply with the Companies Act 1985. They are also responsible for safeguarding
the assets of the Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.

Under applicable law and regulations the Directors are also responsible for
preparing a Directors' Report, including a Business Review, a Directors'
Remuneration Report and a Corporation Governance Statement that comply with
that law and those regulations.

The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company's pages of the
Manager's website www.fidelity.co.uk/its. Visitors to the website need to be
aware that legislation in the United Kingdom governing the preparation and
dissemination of the financial statements may differ from legislation in their
jurisdictions.

We confirm that to the best of our knowledge the financial statements, prepared
in accordance with the applicable set of accounting standards, give a true and
fair view of the assets, liabilities, financial position and profit or loss of
the Company; and the Directors' Report includes a fair review of the
development and performance of the business and the position of the Company
together with a description of the principal risks and uncertainties it faces.

Approved by the Board on 30 October 2008 and signed on its behalf.

Alex Hammond-Chambers

Chairman

30 October 2008

Proposed changes to the Company's Articles of Association

An Extraordinary General Meeting was held in July to make various changes, in
light of the Companies Act 2006, to the Company's Articles of Association. One
of those changes provided a procedure for dispute resolution and limited any
arbitration to the UK. It had come to the Board's attention that some
shareholders regarded this provision as a dilution of shareholders' rights and
therefore the Board had decided to remove this particular provision at the next
shareholder meeting.

Resolution 15 is a special resolution amending the Company's Articles of
Association to remove the articles relating to dispute resolution, articles 142
to 144 inclusive.

The full text of the resolutions is set out in the Notice of Meeting contained
on pages 54 to 56 of the annual report and also set out below:

Resolution 15 is a special resolution which relates to the amendments to the
Articles of Association and to consider and, if thought fit, to pass the
following resolution as a special resolution.

15. THAT Articles 142 to 144, inclusive, of the Company's Articles of
Association be and are hereby removed and the subsequent revised Articles of
Association of the Company, produced to the meeting and initialled by the
Chairman of the meeting for the purposes of identification, be adopted in
substitution for, and to the exclusion of, the existing Articles of
Association.

Independent Auditor's Report to the Members of Fidelity Special Values PLC

We have audited the financial statements (the `'financial statements'') of
Fidelity Special Values PLC for the year ended 31 August 2008 which comprise
the income statement, the balance sheet, the reconciliation of movements in
shareholders' funds, the cash flow statement, and Notes 1 to 20. These
financial statements have been prepared under the accounting policies set out
therein. We have also audited the information in the Directors' Remuneration
Report that is described as having been audited.

This report is made solely to the Company's members, as a body, in accordance
with Section 235 of the Companies Act 1985. Our audit work has been undertaken
so that we might state to the Company's members those matters we are required
to state to them in an auditor's report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the Company and the Company's members as a body, for our
audit work, for this report, or for the opinions we have formed.

RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITOR

The Directors' responsibilities for preparing the Annual Report, the Directors'
Remuneration Report and the financial statements in accordance with United
Kingdom law and Accounting Standards (United Kingdom Generally Accepted
Accounting Practice) are set out in the Statement of Directors'
Responsibilities.

Our responsibility is to audit the financial statements and the part of the
Directors' Remuneration Report to be audited in accordance with relevant legal
and regulatory requirements and International Standards on Auditing (UK and
Ireland).

We report to you our opinion as to whether the financial statements give a true
and fair view and whether the financial statements and the part of the
Directors' Remuneration Report to be audited have been properly prepared in
accordance with the Companies Act 1985. We also report to you whether in our
opinion the information given in the Directors' Report is consistent with the
financial statements. The information given in the Directors' Report includes
that specific information presented in the Chairman's Statement and Manager's
Review that is cross-referenced from the Activities and Status section of the
Directors' Report.

In addition we report to you if, in our opinion, the Company has not kept
proper accounting records, if we have not received all the information and
explanations we require for our audit, or if information specified by law
regarding directors' remuneration and other transactions is not disclosed.

We review whether the Corporate Governance Statement reflects the Company's
compliance with the nine provisions of the 2006 Combined Code specified for our
review by the Listing Rules of the Financial Services Authority, and we report
if it does not. We are not required to consider whether the Board's statements
on internal control cover all risks and controls, or form an opinion on the
effectiveness of the Company's corporate governance procedures or its risk and
control procedures.

We read other information contained in the Annual Report and consider whether
it is consistent with the audited financial statements. The other information
comprises only the Objective and Financial Calendar, Financial Summary,
Chairman's Statement, Manager's Review, Forty Largest Investments, Distribution
of the Portfolio, Summary of Performance, Attribution Analysis, Directors'
Report, Corporate Governance Statement, and the unaudited part of the
Directors' Remuneration Report. We consider the implications for our report if
we become aware of any apparent misstatements or material inconsistencies with
the financial statements. Our responsibilities do not extend to any other
information.

BASIS OF AUDIT OPINION

We conducted our audit in accordance with International Standards on Auditing
(UK and Ireland) issued by the Auditing Practices Board. An audit includes
examination, on a test basis, of evidence relevant to the amounts and
disclosures in the Company's financial statements and the part of the
Directors' Remuneration Report to be audited. It also includes an assessment of
the significant estimates and judgments made by the Directors in the
preparation of the Company's financial statements, and of whether the
accounting policies are appropriate to the Company's circumstances,
consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and
explanations which we considered necessary in order to provide us with
sufficient evidence to give reasonable assurance that the Company's financial
statements and the part of the Directors' Remuneration Report to be audited are
free from material misstatement, whether caused by fraud or other irregularity
or error. In forming our opinion we also evaluated the overall adequacy of the
presentation of information in the Company's financial statements and the part
of the Directors' Remuneration Report to be audited.

OPINION

In our opinion:

• the financial statements give a true and fair view, in accordance with United
Kingdom Generally Accepted Accounting Practice, of the state of the Company's
affairs as at 31 August 2008 and of its loss for the year then ended;

• the financial statements and the part of the Directors' Remuneration Report
to be audited have been properly prepared in accordance with the Companies Act
1985; and

• the information given in the Directors' Report is consistent with the
financial statements.

Grant Thornton UK LLP

Registered Auditor

Chartered Accountants

London

30 October 2008

Enquiries:

Mrs Tracey Cousins - FIL Investments International, Company Secretary

01737 836 883

Anne Read - FIL Investments International

020 7961 4409

CB35070

FIDELITY SPECIAL VALUES PLC

Income Statement - audited - for the year ended 31 August 2008

                                       2008                        2007         
                                                                                
                           revenue  capital    total  revenue   capital    total
                                                                                
                             £'000    £'000    £'000    £'000     £'000    £'000
                                                                                
(Losses)/gains on                - (46,807) (46,807)        -    49,999   49,999
investments                                                                     
                                                                                
Income                                                                          
                                                                                
- Franked investment         5,051        -    5,051    3,403         -    3,403
income                                                                          
                                                                                
- UK unfranked investment       60        -       60        8         -        8
income                                                                          
                                                                                
- UK scrip dividends         6,009        -    6,009    4,922         -    4,922
                                                                                
- Overseas scrip               275        -      275        -         -        -
dividends                                                                       
                                                                                
- Overseas dividends         1,144        -    1,144    1,787         -    1,787
                                                                                
- Property income              197        -      197        -         -        -
distribution                                                                    
                                                                                
- Deposit interest             632        -      632    1,301         -    1,301
                                                                                
- Income from Fidelity         352        -      352      342         -      342
Institutional Cash Fund                                                         
plc                                                                             
                                                                                
- Other income                  38        -       38        -         -        -
                                                                                
Investment management fee  (3,507)        -  (3,507)  (4,577)         -  (4,577)
                                                                                
VAT on investment            2,300        -    2,300        -         -        -
management fee                                                                  
recoverable                                                                     
                                                                                
Other expenses               (490)        -    (490)    (461)         -    (461)
                                                                                
Exchange (losses)/gains          -     (46)     (46)        3         -        3
                                                                                
Net return/(loss) before    12,061 (46,853) (34,792)    6,728    49,999   56,727
finance costs and                                                               
taxation                                                                        
                                                                                
Interest payable           (2,033)        -  (2,033)  (2,165)         -  (2,165)
                                                                                
Net return/(loss) on        10,028 (46,853) (36,825)    4,563    49,999   54,562
ordinary activities                                                             
before taxation                                                                 
                                                                                
Taxation on (loss)/return    (121)        -    (121)    (188)         -    (188)
on ordinary activities*                                                         
                                                                                
Net return/(loss) on         9,907 (46,853) (36,946)    4,375    49,999   54,374
ordinary activities after                                                       
taxation for the year                                                           
                                                                                
Return/(loss) per                                                               
ordinary share                                                                  
                                                                                
Basic (1)                   17.13p (81.03p) (63.90p)    6.91p    78.94p   85.85p

A Statement of Total Recognised Gains and Losses has not been prepared as there
are no gains and losses other than those reported in this Income Statement. The
total column of the Income Statement is the profit and loss account of the
Company. All revenue and capital items in the above statement derive from
continuing operations. No operations were acquired or discontinued in the year.

* This relates to overseas taxation only.

FIDELITY SPECIAL VALUES PLC

Balance Sheet - audited - as at 31 August 2008

                                                             2008          2007
                                                                               
                                                            £'000         £'000
                                                                               
Fixed assets                                                                   
                                                                               
Investments at fair value through profit or loss          331,312       383,826
                                                                               
Current assets                                                                 
                                                                               
Debtors                                                     6,994         4,303
                                                                               
Amounts held at futures clearing houses and                 1,573         2,018
brokers                                                                        
                                                                               
Fidelity Institutional Cash Fund plc                        9,091        10,342
                                                                               
Cash at bank                                               14,994        19,269
                                                                               
                                                           32,652        35,932
                                                                               
Creditors - amounts falling due within one year                                
                                                                               
Fixed rate unsecured loan                                 (8,000)       (5,000)
                                                                               
Other creditors                                           (9,707)       (3,168)
                                                                               
                                                         (17,707)       (8,168)
                                                                               
Net current assets                                         14,945        27,764
                                                                               
Total assets less current liabilities                     346,257       411,590
                                                                               
Creditors - amounts falling due after more than                                
one year                                                                       
                                                                               
Fixed rate unsecured loans                               (27,000)      (35,000)
                                                                               
Total net assets                                          319,257       376,590
                                                                               
Capital and reserves                                                           
                                                                               
Called up share capital                                    14,198        14,926
                                                                               
Share premium account                                      95,058        95,058
                                                                               
Capital redemption reserve                                  2,545         1,817
                                                                               
Other non-distributable reserve                             5,152         5,152
                                                                               
Capital reserve - realised                                225,470       232,390
                                                                               
Capital reserve - unrealised                             (34,161)        21,733
                                                                               
Revenue reserve                                            10,995         5,514
                                                                               
Total equity shareholders' funds                          319,257       376,590
                                                                               
Net asset value per ordinary share                                             
                                                                               
Basic                                                     562.13p       630.75p

FIDELITY SPECIAL VALUES PLC

Reconciliation of Movements in Shareholders' Funds - audited - for the year
ended 31 August 2008

                        called   share    capital             other  capital    capital revenue    total
                            up premium redemption non-distributable  reserve    reserve reserve   equity
                         share account    reserve           reserve realised unrealised                 
                       capital                                                                          
                                                                                                        
                         £'000   £'000      £'000             £'000    £'000      £'000   £'000    £'000
                                                                                                        
Opening shareholders'   16,339  95,058        404             5,152  193,393     44,001   3,576  357,923
funds:                                                                                                  
                                                                                                        
1 September 2006                                                                                        
                                                                                                        
Net recognised capital       -       -          -                 -   72,267   (22,268)       -   49,999
gains/(losses) for the                                                                                  
year                                                                                                    
                                                                                                        
Repurchase of ordinary (1,413)       -      1,413                 - (33,270)          -       - (33,270)
shares                                                                                                  
                                                                                                        
Revenue after taxation       -       -          -                 -        -          -   4,375    4,375
                                                                                                        
Dividend paid                -       -          -                 -        -          - (2,437)  (2,437)
                                                                                                        
Closing shareholders'   14,926  95,058      1,817             5,152  232,390     21,733   5,514  376,590
funds:                                                                                                  
                                                                                                        
31 August 2007                                                                                          
                                                                                                        
Net recognised capital       -       -          -                 -    9,041   (55,894)       - (46,853)
gains/(losses) for the                                                                                  
year                                                                                                    
                                                                                                        
Repurchase of ordinary   (728)       -        728                 - (15,961)          -       - (15,961)
shares                                                                                                  
                                                                                                        
Revenue after taxation       -       -          -                 -        -          -   9,907    9,907
                                                                                                        
Dividend paid                -       -          -                 -        -          - (4,426)  (4,426)
                                                                                                        
Closing shareholders'   14,198  95,058      2,545             5,152  225,470   (34,161)  10,995  319,257
funds:                                                                                                  
                                                                                                        
31 August 2008                                                                                          

FIDELITY SPECIAL VALUES PLC

Cash Flow Statement - audited - for the year ended 31 August 2008

                                                               2008        2007
                                                                               
                                                              £'000       £'000
                                                                               
Operating activities                                                           
                                                                               
Investment income received                                    5,639       5,355
                                                                               
Deposit interest received                                       947       1,630
                                                                               
Investment management fee paid                              (3,704)     (4,594)
                                                                               
Directors' fees paid                                          (108)        (88)
                                                                               
Other cash payments                                           (620)       (321)
                                                                               
Net cash inflow from operating activities                     2,154       1,982
                                                                               
Returns on investments and servicing of finance                                
                                                                               
Interest paid                                               (2,057)     (2,165)
                                                                               
Net cash outflow from returns on investments and            (2,057)     (2,165)
servicing of finance                                                           
                                                                               
Taxation                                                                       
                                                                               
Overseas taxation recovered                                      13          71
                                                                               
Net cash inflow from taxation                                    13          71
                                                                               
Financial investment                                                           
                                                                               
Purchase of investments                                   (318,920)   (384,743)
                                                                               
Disposal of investments                                     338,703     428,928
                                                                               
Net cash inflow from financial investment                    19,783      44,185
                                                                               
Equity dividend paid                                        (4,426)     (2,437)
                                                                               
Net cash inflow before use of liquid resources and           15,467      41,636
financing                                                                      
                                                                               
Net cash inflow/(outflow) from management of liquid           1,251    (10,342)
resources                                                                      
                                                                               
Net cash inflow before financing                             16,718      31,294
                                                                               
Financing                                                                      
                                                                               
Repurchase of ordinary shares                              (16,442)    (32,788)
                                                                               
4.91% fixed rate unsecured loan repaid                      (5,000)           -
                                                                               
Net cash outflow from financing                            (21,442)    (32,788)
                                                                               
Decrease in cash                                            (4,724)     (1,494)

1. Return/(loss) per ordinary share

                           2008                              2007           
                                                                            
             revenue    capital      total     revenue    capital      total
                                                                            
Basic         17.13p   (81.03p)   (63.90p)       6.91p     78.94p     85.85p

Returns per ordinary share are based on the net revenue return on ordinary
activities after taxation of £9,907,000 (2007: £4,375,000), the capital loss in
the year of £46,853,000 (2007: return £49,999,000) and the total loss in the
year of £36,946,000 (2007: return £54,374,000) and on 57,823,165 ordinary
shares (2007: 63,335,764) being the weighted average number of ordinary shares
in issue during the year.

The above statements have been prepared on the basis of the accounting policies
as set out in the annual financial statements to 31 August 2008. This
preliminary statement, which has been agreed with the auditor, was approved by
the Board on 30 October 2008. It is not the Company's statutory financial
statements.  The statutory financial statements for the financial year ended 31
August 2007 have been delivered to the Registrar of Companies. The statutory
financial statements for the financial year ended 31 August 2008 have been
approved and audited but have not yet been filed. The statutory financial
statements for the financial years ended 31 August 2007 and 31 August 2008
received unqualified audit reports, did not include a reference to any matters
to which the auditor drew attention by way of emphasis without qualifying the
report and did not contain statements under section 237(2) and (3) of the
Companies Act 1985.

 
The annual report and financial statements will be posted to shareholders as
soon as is practicable and in any event no later than 13 November 2008 and will
be made available on www.fidelity.co.uk/its at that time.