Interim Results

FIDELITY SPECIAL VALUES PLC

Preliminary Announcement of Unaudited Interim Results

for the six months ended 29 February 2004

INTERIM REPORT

Performance - During the six month review period, the net asset value of our
ordinary shares has risen by 15.4% to 344.50p per share, outpacing the
benchmark (the FTSE All Share Index), which rose by 9.8%. The share price rose
by 20.5%. (All figures are on a total return basis.)

The Company issued 12.1 million shares in the period in exchange for assets of
£39 million as a result of the reconstructions of Govett Strategic Trust and
The Derby Trust. These transactions resulted in an uplift to net asset value of
approximately 1.4 pence per share after expenses (including estimated
reinvestment costs).

In January 2004, the remaining warrants were exercised at a price of £1.00 each
resulting in additional funding of £3.3 million for the Company.

Following these two events we increased our borrowings by £8 million during
January 2004.

Market Review - Reflecting stronger global economic activity and improving UK
corporate profits performance, the UK equity market made good progress. The
UK's economic recovery also strengthened, with growth in the services and
construction sectors accelerating in the third quarter. Expansion in
manufacturing was more muted, but industry surveys suggested that companies
were becoming more confident. In November, the Bank of England increased
interest rates by one quarter of a percentage point to 3.75%, its first rate
rise since 2000 and the reversal of a cut in July. The Bank of England cited
concerns over consumer debt levels and the strength of the housing market as
reasons behind the move. Rates were raised again in February to 4.00%.

Portfolio Manager's Report - The Company's principal sector positions remained
broadly unchanged during the period. Media and entertainment was the largest
sector position followed by non-life insurance, general retailers and leisure &
hotels.

During the period, the Manager reduced exposure to consumer spending
beneficiaries including house builders and increased exposure to companies
likely to benefit from a recovery in corporate spending. Elsewhere, the Manager
introduced a small allocation to investments in China and companies listed in
Hong Kong with an exposure to the mainland. Small and medium-sized companies
have shown exceptional relative strength since March 2003 and as a result, the
attractiveness of larger companies has increased. In this respect, the Manager
identified an increasing number of opportunities in this segment of the market.

Stock selection in the media & entertainment and telecommunication services
sectors enhanced performance. Individual holdings that contributed to relative
returns included Granada and Carlton Communications. These received UK
government approval for their merger which created a single majority owner of
ITV, the UK's biggest commercial television network, and the Company's largest
individual holding at the end of the period. Meanwhile, the share price of the
mm02, the mobile telecommunications company and top-ten holding, rose to a
21-month high in November after the company posted its first profit since being
spun off from BT Group and had its credit rating raised by Standard & Poor's.
The holding in Cairn Energy was also a strong contributor to performance after
the oil and natural gas exploration company announced that it had struck oil in
India in January, making its biggest ever oil discovery.

Outlook - The outlook for the UK stockmarket appears positive. UK equities look
attractively valued compared with other assets. Furthermore, the UK economy
seems to be improving as the global recovery gathers momentum, led by the US,
where capital spending and employment are showing signs of improvement.
Therefore profits for UK listed companies are widely expected to increase by
around 14% in 2004. The government now expects the UK's GDP to expand by
between 3.0% and 3.5% this year. Although interest rates are likely to rise in
2004, few observers believe that the Bank of England will tighten monetary
policy aggressively. However, equities could slow in the face of further rate
rises, dampening the performance of the equity market.

The last year has been an excellent period for equity markets and, in
particular, medium and smaller-sized companies. Although the bull market has
probably further to run, the current consolidation phase may continue in the
short term.

By order of the Board

Fidelity Investments International

5 May 2004

Enquiries: Barbara Powley - Fidelity Investments International 01737 836883  

FIDELITY SPECIAL VALUES PLC

Statement of Total Return (incorporating the revenue account)

                     for the six months       for the year ended     for the six months ended 
                            ended                                                             
                                                                                              
                          29.02.04                 31.08.03                  28.02.03         
                                                                                              
                          unaudited                 audited                  unaudited        
                                                                                              
                   revenue capital  total  revenue  capital   total  revenue  capital   total 
                                                                                              
                    £'000    £'000  £'000    £'000    £'000   £'000   £'000    £'000    £'000 
                                                                                              
Gains/(losses) on        -   32,560 32,560        -   23,027  23,027       - (15,912) (15,912)
investments                                                                                   
                                                                                              
Dividend income      1,402        -  1,402    3,766        -   3,766   1,282        -    1,282
                                                                                              
Interest income        108        -    108       81        -      81      35        -       35
                                                                                              
Underwriting            17        -     17        9        -       9       7        -        7
commission income                                                                             
                                                                                              
Investment           (816)        -  (816)  (1,458)        - (1,458)   (623)        -    (623)
management fee                                                                                
                                                                                              
Other expenses       (698)        -  (698)    (408)        -   (408)   (200)        -    (200)
                                                                                              
Exchange (losses)/       -     (36)   (36)        -       48      48       -       61       61
gains                                                                                         
                                                                                              
Net return/(loss)       13   32,524 32,537    1,990   23,075  25,065     501 (15,851) (15,350)
before finance                                                                                
costs and taxation                                                                            
                                                                                              
Interest payable     (894)        -  (894)  (1,560)        - (1,560)   (715)        -    (715)
                                                                                              
(Loss)/return on     (881)   32,524 31,643      430   23,075  23,505   (214) (15,851) (16,065)
ordinary                                                                                      
activities before                                                                             
tax                                                                                           
                                                                                              
Tax on ordinary        (7)        -    (7)     (31)        -    (31)    (10)        -     (10)
activities                                                                                    
                                                                                              
(Loss)/return on     (888)   32,524 31,636      399   23,075  23,474   (224) (15,851) (16,075)
ordinary                                                                                      
activities after                                                                              
tax for the period                                                                            
attributable to                                                                               
equity                                                                                        
shareholders                                                                                  
                                                                                              
Dividend               (2)        -    (2)    (466)        -   (466)    (11)        -     (11)
                                                                                              
Transfer (from)/to   (890)   32,524 31,634     (67)   23,075  23,008   (235) (15,851) (16,086)
reserves                                                                                      
                                                                                              
Return per                                                                                    
ordinary share                                                                                
                                                                                              
Basic              (1.98)p   72.34p 70.36p    0.91p   52.64p  53.55p (0.52)p (36.87)p (37.39)p
                                                                                              
Fully-diluted            -        -      -    0.85p   48.79p  49.64p       -        -        -

These accounts have been prepared in accordance with the AITC Statement of
Recommended Practice ('SORP') issued in January 2003.

FIDELITY SPECIAL VALUES PLC

Balance Sheet

                                        29.02.04    31.08.03       28.02.03
                                                                           
                                       unaudited     audited      unaudited
                                                                           
                                          £'000       £'000          £'000 
                                                                           
Fixed assets                                                               
                                                                           
Investments                              244,034     160,678        117,616
                                                                           
Current assets                                                             
                                                                           
Debtors - amounts falling due              4,267       2,060            369
within one year                                                            
                                                                           
Cash at bank                               5,496       1,677            947
                                                                           
                                           9,763       3,737          1,316
                                                                           
Creditors - amounts falling due                                            
within one year                                                            
                                                                           
Fixed rate unsecured loans              (20,000)           -              -
                                                                           
Other creditors                          (6,068)     (3,191)        (1,273)
                                                                           
                                        (26,068)     (3,191)        (1,273)
                                                                           
Net current (liabilities)/assets        (16,305)         546             43
                                                                           
Total assets less current                227,729     161,224        117,659
liabilities                                                                
                                                                           
Creditors - amounts falling due                                            
after more than one year                                                   
                                                                           
Fixed rate unsecured loans              (13,000)    (25,000)       (25,000)
                                                                           
Total net assets                         214,729     136,224         92,659
                                                                           
Capital and reserves                                                       
                                                                           
Called up share capital                   15,583      11,373         10,919
                                                                           
Share premium account                     84,790      44,611         40,595
                                                                           
Capital redemption reserve                   404         404            404
                                                                           
Other reserves                                                             
                                                                           
Other non-distributable reserve            5,152       1,742          1,741
                                                                           
Warrant reserve                                -         928            928
                                                                           
Capital reserve - realised                70,552      62,519         66,803
                                                                           
Capital reserve - unrealised              37,924      13,433       (29,777)
                                                                           
Revenue reserve                              324       1,214          1,046
                                                                           
Total equity shareholders' funds         214,729     136,224         92,659
                                                                           
Net asset value per ordinary share:                                        
                                                                           
Basic                                    344.50p     299.46p        212.15p
                                                                           
Fully-diluted                                  -     285.93p        204.26p

 

FIDELITY SPECIAL VALUES PLC

Cash Flow Statement

                                     29.02.04     31.08.03     28.02.03
                                                                       
                                    unaudited      audited    unaudited
                                                                       
                                        £'000        £'000        £'000
                                                                       
Operating activities                                                   
                                                                       
Investment income received               943       2,387          937  
                                                                       
Underwriting commission                   17           9            7  
received                                                               
                                                                       
Interest received                         70          57           23  
                                                                       
Investment management fee paid         (680)     (1,382)        (651)  
                                                                       
Directors' fees paid                    (31)        (61)         (34)  
                                                                       
Other cash payments                    (506)       (256)        (178)  
                                                                       
Net cash (outflow)/inflow from         (187)         754          104  
operating activities                                                   
                                                                       
Returns on investments and                                             
servicing of finance                                                   
                                                                       
Interest paid                          (846)     (1,544)        (714)  
                                                                       
Net cash outflow from returns          (846)     (1,544)        (714)  
on investments and servicing of                                        
finance                                                                
                                                                       
Financial investment                                                   
                                                                       
Purchases of investments           (135,234)    (90,221)     (41,184)  
                                                                       
Exchange (losses)/gains                 (46)          48           59  
                                                                       
Disposals of investments              85,709      78,514       32,965  
                                                                       
Net cash outflow from financial     (49,571)    (11,659)      (8,160)  
investment                                                             
                                                                       
Equity dividend paid                   (457)       (600)        (600)  
                                                                       
Net cash outflow before             (51,061)    (13,049)      (9,370)  
financing                                                              
                                                                       
Financing                                                              
                                                                       
Exercise of warrants                   3,309         151          151  
                                                                       
4.91% fixed rate unsecured loan            -       5,000        5,000  
drawn down                                                             
                                                                       
5.655% fixed rate unsecured            8,000           -            -  
loan drawn down                                                        
                                                                       
Issue of ordinary shares              43,561       7,658        3,249  
                                                                       
Net cash inflow from financing        54,870      12,809        8,400  
                                                                       
Increase/(decrease) in cash            3,809       (240)        (970)  

The figures and financial information for the year ended 31 August 2003 have
been extracted from the latest published accounts of the Company and do not
constitute the statutory accounts for that year. Those accounts have been
delivered to the Registrar of Companies and included the report of the
auditors, which was unqualified and did not contain a statement under either
section 237(2) or 237(3) of the Companies Act 1985.

Copies of the interim report will be posted to shareholders as soon as
practicable. Copies will also be available to the public at the Company's
registered office, Beech Gate, Millfield Lane, Lower Kingswood, Tadworth,
Surrey KT20 6RP.