Interim Results

NEW STAR INVESTMENT TRUST PLC

PRELIMINARY ANNOUNCEMENT OF UNAUDITED INTERIM RESULTS

The Directors announce the unaudited statement of consolidated results for the
six months ended 31st December 2002 as follows:

CONSOLIDATED STATEMENT OF TOTAL RETURN

(incorporating the revenue account*) of the Group

                                1st July                      1st July          
                                                                                
                         to 31st December 2002         to 31st December 2001    
                                                                                
                     Revenue    Capital      Total  Revenue   Capital     Total 
                                                                                
                       £'000      £'000      £'000    £'000     £'000     £'000 
                                                                                
Losses on                  -    (10,005)   (10,005)       -    (3,494)   (3,494)
investments                                                                     
                                                                                
Dividend and             589          -        589    1,463         -     1,463 
interest income                                                                 
                                                                                
Losses on index                                                                 
futures                                                                         
                                                                                
contracts                  -       (971)      (971)       -      (242)     (242)
                                                                                
Investment              (114)         -       (114)    (271)        -      (271)
management fee                                                                  
                                                                                
Other expenses          (190)         -       (190)    (184)        -      (184)
                                                                                
Other exchange             -         (8)        (8)       -       (25)      (25)
losses                                                                          
                                                                                
Return on ordinary                                                              
activities                                                                      
                                                                                
before finance costs                                                            
and                                                                             
                                                                                
taxation                 285    (10,984)   (10,699)   1,008    (3,761)   (2,753)
                                                                                
Interest payable and                                                            
similar                                                                         
                                                                                
charges                    -          -          -        -         -         - 
                                                                                
Return on ordinary                                                              
activities                                                                      
                                                                                
before taxation          285    (10,984)   (10,699)   1,008    (3,761)   (2,753)
                                                                                
Taxation on ordinary     (57)         -        (57)    (251)        -      (251)
activities                                                                      
                                                                                
Return on ordinary                                                              
activities                                                                      
                                                                                
after taxation           228    (10,984)   (10,756)     757    (3,761)   (3,004)
                                                                                
Dividends                  -          -          -        -         -         - 
                                                                                
Transfer to/(from)       228    (10,984)   (10,756)     757    (3,761)   (3,004)
reserves                                                                        

* The revenue column of this statement is the consolidated revenue account of
the Group.

                      pence      pence      pence   pence     pence     pence 
                                                                              
Return per Ordinary    0.26     (12.32)    (12.06)   0.69     (3.42)    (2.73)
share                                                                         
                                                                              

CONSOLIDATED BALANCE SHEET

                                    As at            As at               As at 
                                                                               
                             31st December  30th June 2002   31st December 2001
                                     2002                                      
                                                                               
                        (unaudited) £'000  (audited) £'000   (unaudited) £'000 
                                                                               
Fixed assets                                                                   
                                                                               
Investments                        48,492           89,210              99,702 
                                                                               
Current assets                                                                 
                                                                               
Debtors                               269            2,266               1,455 
                                                                               
Cash at bank                        1,545            2,985               4,269 
                                                                               
                                    1,814            5,251               5,724 
                                                                               
Creditors: amounts                                                             
falling                                                                        
                                                                               
due within one year                                                            
                                                                               
Creditors                            (119)            (770)               (731)
                                                                               
Dividend payable                        -           (1,977)                  - 
                                                                               
Net current assets                  1,695            2,504               4,993 
                                                                               
Total assets less                                                              
current                                                                        
                                                                               
liabilities                        50,187           91,714             104,695 
                                                                               
Capital and reserves:                                                          
                                                                               
Called up share capital               710            1,098               1,098 
                                                                               
Share premium account              21,573           21,573              21,573 
                                                                               
Capital reserve                   (29,317)         (18,333)             (6,785)
                                                                               
Special reserve                    56,908           87,290              87,290 
                                                                               
Revenue reserve                       313               86               1,519 
                                                                               
Equity shareholders'               50,187           91,714             104,695 
funds                                                                          
                                                                               
Net asset value per                                                            
share                                                                          
                                                                               
Ordinary shares                     70.66p           83.51p              95.33p
                                                                               

CONSOLIDATED STATEMENT OF CASHFLOWS

                                            1st July to            1st July to 
                                                                               
                                     31st December 2002     31st December 2001 
                                                                               
                                                  £'000                  £'000 
                                                                               
Net cash inflow from operating                    1,934                    645 
activities                                                                     
                                                                               
Servicing of finance                                                           
                                                                               
Interest paid                                         -                      - 
                                                                               
Taxation                                                                       
                                                                               
Taxation paid                                      (583)                  (141)
                                                                               
Capital expenditure and financial                                              
investment                                                                     
                                                                               
Purchase of investments                          (2,359)               (36,915)
                                                                               
Disposal of investments                          33,305                 42,716 
                                                                               
Losses on index futures contracts                  (971)                  (242)
                                                                               
Exchange losses on settlements                      (11)                   (63)
                                                                               
Revaluation of foreign currency                      (8)                   (25)
balances                                                                       
                                                                               
Net cash inflow from capital                     29,956                  5,471 
expenditure and                                                                
                                                                               
financial investment                                                           
                                                                               
Equity dividends paid                            (1,977)                (2,416)
                                                                               
Net cash inflow before financing                 29,330                  3,559 
                                                                               
Financing                                                                      
                                                                               
Redemption of share capital                     (30,770)                     - 
                                                                               
Net cash outflow from financing                 (30,770)                     - 
                                                                               
(Decrease)/increase in cash                      (1,440)                 3,559 
                                                                               

Returns per share

The Group net revenue on ordinary activities after taxation amounted to £
228,000 (2001: £757,000). The basic revenue return per Ordinary share is based
on this figure and a total of 89,156,763 (2001: 109,820,026) shares, being the
weighted average number of Ordinary shares in issue during the period.

The capital return per Ordinary share is based on net capital losses for the
period of £10,984,000 (2001: losses of £3,761,000) and on 89,156,763 (2001:
109,820,026) shares, being the weighted average number of Ordinary shares in
issue during the period.

Net asset value

The net asset value per share of 70.66p (31st December 2001: 95.33p) has been
calculated by reference to net assets of £50,187,000 (31st December 2001: £
104,695,000) and 71,023,695 (31st December 2001: 109,820,026) Ordinary shares,
being the number of shares in issue at the end of the period.

The above unaudited financial information for the period ended 31st December
2002 which does not constitute statutory accounts as defined in Section 240 of
the Companies Act 1985 has been prepared on the basis of the accounting
policies set out in the statutory accounts of the Group for the year ended 30th
June 2002. The auditors have reported on those accounts; their reports were
unqualified and did not contain a statement under section 237(2) or (3) of the
Companies Act 1985. The statutory accounts for the year ended 30 June 2002 have
been delivered to the Registrar of Companies.

Copies of the interim report will be sent to shareholders in February and will
be available to members of the public from the Registered Office at 23
Cathedral Yard, Exeter EX1 1HB.

CHAIRMAN'S STATEMENT

The total assets of the Company, after taking account of the reconstruction in
September, fell by 15.4% over the six months to 31st December 2002. This
compares to a fall in the FTSE All-Share Index of 16.3% over the same period.

Net revenue before tax for the six month period was £285,000. The Directors are
not recommending the payment of an interim dividend to shareholders.

The biggest influences on the stock market during the six months under review
were the accountancy scandals that occurred over the spring and summer in the
US, the growing fears that the US economy faced a double-dip recession and
concerns about the economic and financial impact of a US-led attack on Iraq.
The London market's low point in the period was reached on 24th September, with
the FTSE All-Share Index standing 42% below its September 2000 peak. Shares
rallied during October then fell again in the final two months of the year.

In response to patchy US economic growth and subdued inflationary pressures,
the US Federal Reserve made a half a percentage point cut in the Federal Funds
rate in early November, taking it down to 1.25%. This was the first move in 11
months. UK base rates were left unchanged at 4%, a reflection of the housing
boom and the strength of consumer demand, but the European Central Bank
followed the US lead, cutting its main rate from 3.25% to 2.75%.

The reconstruction of the Company finally took place on 26th September 2002
following the approval of the Court. The result of this reconstruction was
that, following the predicted scaling, shareholders holding approximately 35%
of the Company's shares elected for the Jupiter unit trust option. This led to
the Company's assets being reduced by £31 million. The reconstruction was
achieved at no cost to the Company, Jupiter International Group having finally
agreed to pay all expenses. This is, obviously, a good outcome for shareholders
and exactly as we originally suggested.

The most significant change in the portfolio during the period was the sale of
the Company's FTSE 100 Index futures coinciding with the capital
reorganisation. This had the effect of increasing the portfolio's focus on the
individual stocks and pooled investments within it. As a result, the portfolio
has become more exposed to the stock-picking abilities of the Company's
investment manager and the managers of the pooled vehicles.

At 31st December 2002, the Company was approximately 64% invested in shares or
units in other investment companies managed by associates of New Star Asset
Management Group (NSAMG), the parent company of the manager. The unweighted
performance of these funds, that were held over the period under review, was a
fall of 10.8%, outperforming the benchmark of the FTSE All-Share Index. These
funds give the Company an exposure to European and Asian stock markets as well
as the UK. It is worth mentioning that the manager does not charge fees from
the Company where investment is in other funds managed by associates of NSAMG.

The Company's holding in NSAMG was re-stated to the original cost price of £80
per share following a fund raising by NSAMG as part of its recent new
financing. This is reflected in the interim figures.

Following one of the worst bear markets in recent history the valuations of
many companies now look attractive on a medium and long-term basis. In
particular, the UK market, where the majority of the Company's assets are
invested, seems undervalued in absolute terms and relative to other major
markets. There has recently been an increase in share buying by directors,
which is often a reflection of relatively modest price earnings ratios.

The unaudited net asset value at 31st January 2003 was 67.2p per Ordinary
share.

J L Duffield

Chairman

21st February 2003