Correction: Final Results

CORRECTION The following Preliminary announcement of annual results was incorrectly released under the name of New Star Asset Management Limited on 20th October 2005: NEW STAR INVESTMENT TRUST PLC PRELIMINARY ANNOUNCEMENT OF ANNUAL RESULTS The Directors announce the unaudited statement of consolidated results for the year ended 30 June 2005 as follows: CONSOLIDATED STATEMENT OF TOTAL RETURN (INCORPORATING THE REVENUE ACCOUNT) for the year ended 30th June 2005 Year Year ended ended 30th 30th June June 2005 2004 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Gain on - 13,686 13,686 - 11,698 11,698 investments Income 445 - 445 707 - 707 Gains on index - 271 271 - 198 198 futures contracts Losses on forward currency - (518) (518) - - - purchases Investment Management fees (140) - (140) (150) - (150) Other expenses (217) - (217) (247) - (247) RETURN ON ORDINARY ACTIVITIES BEFORE INTEREST PAYABLE AND TAXATION 88 13,439 13,527 310 11,896 12,206 Interest payable - - - (6) - (6) and similar charges RETURN ON ORDINARY ACTIVITIES BEFORE TAXATION 88 13,439 13,527 304 11,896 12,200 Taxation on (19) - (19) (37) - (37) ordinary activities RETURN ON ORDINARY ACTIVITIES AFTER TAXATION 69 13,439 13,508 267 11,896 12,163 Dividends (71) - (71) (177) - (177) proposed Transfer (from)/ (2) 13,439 13,437 90 11,896 11,986 to reserves pence pence pence pence pence pence RETURN PER 0.10 18.92 19.02 0.38 16.75 17.13 ORDINARY SHARE The revenue column of this statement is the Revenue Account of the Group. CONSOLIDATED BALANCE SHEET as at 30th June 2005 30th June 30th June 2005 2004 £'000 £'000 FIXED ASSETS Investments 78,119 65,662 CURRENT ASSETS Debtors 1,196 118 Cash at bank 1,928 1,615 3,124 1,733 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Creditors (613) (96) Dividend payable (71) (177) Net current assets 2,440 1,460 Total assets less current liabilities 80,559 67,122 CAPITAL AND RESERVES Called up share capital 710 710 Share premium 21,573 21,573 Capital reserve - realised (14,694) (16,609) Capital reserve - unrealised 15,835 4,311 Special reserve 56,908 56,908 Revenue reserve 227 229 EQUITY SHAREHOLDERS' FUNDS 80,559 67,122 pence pence Net Asset Value per Ordinary share 113.43 94.51 CONSOLIDATED CASH FLOW STATEMENT for the year ended 30th June 2005 Year ended Year ended 30th June 30th June 2005 2004 £'000 £'000 OPERATING ACTIVITIES Net cash outflow from operating activities (541) (40) SERVICING OF FINANCE Interest paid - (6) Net cash outflow from servicing of finance - (6) TAXATION Taxation paid - (28) - (28) CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT Purchase of fixed asset investments (9,807) (5,061) Proceeds from the sale of fixed asset 10,621 5,976 investments Gains on index futures contracts 271 198 Other exchange losses (54) (50) Net cash inflow from capital expenditure and 1,031 1,063 financial investment Equity dividends paid (177) (121) Net cash inflow before financing 313 868 FINANCING Increase in cash 313 868 Returns per share Revenue Return per Ordinary share is based on the Group revenue return on ordinary activities after taxation of £69,000 (2004: £267,000) and on 71,023,695 (2004: 71,023,695) Ordinary shares, being the weighted average number of Ordinary shares in issue during the year. Capital return per Ordinary share is based on net capital gains for the year of £13,439,000 (2004: capital gains of £11,896,000) and on 71,023,695 (2004: 71,023,695) Ordinary shares, being the weighted average number of Ordinary shares in issue during the year. Dividend The Directors have declared a final dividend of 0.1p net (2004: 0.25p) per Ordinary share payable on 28 November 2005 to shareholders on the register at the close of business on 28 October 2005. The ex-dividend date is 26 October 2005. Net Asset Value per Ordinary Share The net asset value per Ordinary share of 113.43p (2004: 94.51p) is based on net assets of £80,559,000 (2004: £67,122,000) and on 71,023,695 (2004: 71,023,695) Ordinary shares, being the number of shares in issue at the year end. The above financial information for the year ended 30 June 2005 does not constitute statutory accounts as defined in section 240 of the Companies Act 1985 and has been prepared on the basis of the accounting policies set out in the statutory accounts of the Group for the year ended 30 June 2004. This preliminary statement of results has been agreed with our auditors, Ernst & Young LLP. The comparative financial information is based on the statutory financial statements for the year ended 30 June 2004. Those financial statements, upon which the auditors issued an unqualified opinion, have been delivered to the Registrar of Companies. Statutory financial statements for the year ended 30 June 2005 will be delivered to the Registrar of Companies. The annual report will be sent to shareholders in October and will be available to members of the public from the registered office at 1 Knightsbridge Green, London SW1X 7NE. The Annual General Meeting of the Company will be held on 23 November 2005 at 12 noon at 1 Knightsbridge Green, London SW1X 7NE. CHAIRMAN'S STATEMENT Your Company's total assets rose by 20.0% to £80.6 million over the year to 30th June 2005. This compares with a 14.9% rise in the FTSE All-Share Index. From inception in May 2000 to 30th June 2005, the net asset value per share rose 13.9% against a 15.4% fall in the FTSE All-Share Index, with your Company outperforming in each of its five reporting periods. Initially this outperformance reflected the portfolio's high weighting of gilts and hedge funds. Over the last four years, the portfolio's exposure to equity markets has been increased through investments in retail funds. Net revenue for the year under review was £69,000, which compares with £267,000 during the previous year. Your Directors recommend the payment of a final dividend of 0.1p net per Ordinary share (annual dividend of 0.25p in 2004). Global equities traded within a narrow range during the summer and autumn of 2004, affected by rising US interest rates, terrorism and the rising oil price. This lull gave way to a rebound in the late autumn as strong corporate earnings, a rise in takeover activity and relief that the US presidential election had a decisive outcome drove equity valuations higher. Further oil price gains, exchange rate instability and tighter US monetary policy combined to cap investor confidence in early 2005, with equities falling during the early spring. Equities revived during the closing weeks of the year under review, however, with investors confident that the US monetary tightening cycle would come to an end sooner than expected and at a lower level. In the bond markets, investors' appetite for risk remained strong, with corporate bonds and emerging market sovereign debt outperforming Group of Seven government bonds. The picture was more mixed, however, in the UK equity market, with big companies underperforming medium-sized companies but outperforming small stocks. Buoyant bond markets caused some consternation among central bankers aiming to restrict consumer demand and inflation through tighter monetary policy, with Mr Greenspan, the Federal Reserve Chairman, describing the fall in long-term US bond yields as a 'conundrum'. One explanation was abundant liquidity, with G7 money supply growth in real terms running in excess of industrial output growth, increasing the cash available for financial investment. The US monetary policy cycle turned in June 2004 and over the subsequent months the Fed raised rates in a 'measured' programme of quarter point rises, taking the Fed Funds rate to 3.25% by the end of the year under review. In the UK, the Bank of England raised rates just once to 4.75% in August 2004 but then pegged rates in response to evidence that UK inflationary pressures were declining. At the end of the year under review, investors were expecting modest, yet non-inflationary economic growth to continue during the closing months of 2005. There were, however, expectations of a stronger pick-up in 2006 fuelled by an investment spending recovery in the US. Such economic growth, if it emerged, would follow a period of strong monetary expansion and a rise in capacity utilisation. As a result, producers could gain more pricing power and central banks might need to act quickly to forestall more generalised inflation. This suggests that bond investors may be more cautious over the coming months, waiting for renewed economic vigour to be reflected in bond yields. In the equity markets, there may be sector rotation from more interest rate sensitive areas to industries with the best long term growth prospects. In such an environment, careful stock selection will remain important. This Annual Report will be the last for which Financial Statements are prepared on the basis of UK Generally Accepted Accounting Principles. For the financial year to 30th June 2006 our Financial Statements will be prepared under the requirements of IFRS in accordance with the listing rules. The main difference resulting from this change will be that the portfolio will be valued at bid prices rather than the current mid-market prices. The resulting reduction in value of the portfolio on the new basis as at 30th June 2005 would be equivalent to 0.1p per Ordinary share. Mr John Craig resigned as Chairman and director of your Company on 31st August 2005. Your directors thank him for his service to your Company over the past four years. I was elected following Mr Craig's retirement as a director and Chairman in his place. Your Company's unaudited net asset value at 30th September 2005 was 121.23p. James Roe Chairman 20th October 2005

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