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 2003 as follows:

CONSOLIDATED STATEMENT OF TOTAL RETURN

(incorporating the revenue account*) of the Group

                               1st July                      1st July          
                                                                               
                         to 31st December 2003        to 31st December 2002    
                                                                               
                     Revenue    Capital     Total  Revenue   Capital     Total 
                                                                               
                       £'000      £'000     £'000    £'000     £'000     £'000 
                                                                               
Gains/(losses) on          -      8,493     8,493        -   (10,005)  (10,005)
investments                                                                    
                                                                               
Dividend and             587          -       587      589         -       589 
interest income                                                                
                                                                               
Gains/(losses) on                                                              
index futures                                                                  
                                                                               
contracts                  -        207       207        -      (971)     (971)
                                                                               
Investment               (74)         -       (74)    (114)        -      (114)
management fee                                                                 
                                                                               
Other expenses          (141)         -      (141)    (190)        -      (190)
                                                                               
Other exchange             -         (2)       (2)       -        (8)       (8)
losses                                                                         
                                                                               
Return on ordinary                                                             
activities                                                                     
                                                                               
before finance costs                                                           
and                                                                            
                                                                               
taxation                 372      8,698     9,070      285   (10,984)  (10,699)
                                                                               
Interest payable and                                                           
similar                                                                        
                                                                               
charges                   (6)         -        (6)       -         -         - 
                                                                               
Return on ordinary                                                             
activities                                                                     
                                                                               
before taxation          366      8,698     9,064      285   (10,984)  (10,699)
                                                                               
Taxation on ordinary     (46)         -       (46)     (57)        -       (57)
activities                                                                     
                                                                               
Return on ordinary                                                             
activities                                                                     
                                                                               
after taxation           320      8,698     9,018      228   (10,984)  (10,756)
                                                                               
Dividends                  -          -         -        -         -         - 
                                                                               
Transfer to/(from)       320      8,698     9,018      228   (10,984)  (10,756)
reserves                                                                       

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

                      pence      Pence      pence   pence     pence     pence 
                                                                              
Return per Ordinary    0.45      12.25      12.70    0.26    (12.32)   (12.06)
share                                                                         
                                                                              

CONSOLIDATED BALANCE SHEET

                                    As at            As at               As at 
                                                                               
                             31st December  30th June 2003  31st December 2002 
                                     2003                                      
                                                                               
                        (unaudited) £'000  (audited) £'000   (unaudited) £'000 
                                                                               
Fixed assets                                                                   
                                                                               
Investments                        61,887           54,363              48,492 
                                                                               
Current assets                                                                 
                                                                               
Debtors                             1,941              269                 269 
                                                                               
Cash at bank                          424              747               1,545 
                                                                               
                                    2,365            1,016               1,814 
                                                                               
Creditors: amounts                                                             
falling                                                                        
                                                                               
due within one year                                                            
                                                                               
Creditors                             (98)            (122)               (119)
                                                                               
Dividend payable                        -             (121)                  - 
                                                                               
Net current assets                  2,267              773               1,695 
                                                                               
Total assets less                                                              
current                                                                        
                                                                               
liabilities                        64,154           55,136              50,187 
                                                                               
Capital and reserves:                                                          
                                                                               
Called up share capital               710              710                 710 
                                                                               
Share premium account              21,573           21,573              21,573 
                                                                               
Capital reserve                   (15,496)         (24,194)            (29,318)
                                                                               
Special reserve                    56,908           56,908              56,908 
                                                                               
Revenue reserve                       459              139                 314 
                                                                               
Equity shareholders'               64,154           55,136              50,187 
funds                                                                          
                                                                               
Net asset value per                                                            
                                                                               
Ordinary share                      90.33p           77.63p              70.66p
                                                                               

CONSOLIDATED STATEMENT OF CASHFLOWS

                                            1st July to            1st July to 
                                                                               
                                     31st December 2003     31st December 2002 
                                                                               
                                                   £'000                 £'000 
                                                                               
Net cash (outflow)/inflow from                      (99)                 1,934 
operating activities                                                           
                                                                               
Servicing of finance                                                           
                                                                               
Interest paid                                        (6)                     - 
                                                                               
Taxation                                                                       
                                                                               
Taxation paid                                       (21)                  (583)
                                                                               
Capital expenditure and financial                                              
investment                                                                     
                                                                               
Purchase of investments                          (2,971)                (2,359)
                                                                               
Disposal of investments                           2,690                 33,305 
                                                                               
Gains/(losses) on index futures                     207                   (971)
contracts                                                                      
                                                                               
Exchange losses on settlements                        -                    (11)
                                                                               
Revaluation of foreign currency                      (2)                    (8)
balances                                                                       
                                                                               
Net cash (outflow)/inflow from                                                 
capital                                                                        
                                                                               
expenditure and financial                           (76)                29,956 
investment                                                                     
                                                                               
Equity dividends paid                              (121)                (1,977)
                                                                               
Net cash (outflow)/inflow before                   (323)                29,330 
financing                                                                      
                                                                               
Financing                                                                      
                                                                               
Redemption of share capital                           -                (30,770)
                                                                               
Net cash outflow from financing                       -                (30,770)
                                                                               
Decrease in cash                                   (323)                (1,440)
                                                                               

Returns per share

The Group net revenue on ordinary activities after taxation amounted to £
320,000 (2002: £228,000). The basic revenue return per Ordinary share is based
on this figure and a total of 71,023,695 (2002: 89,156,763) 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 gains for the
period of £8,698,000 (2002: losses of £10,984,000) and on 71,023,695 (2002:
89,156,763) shares, being the weighted average number of Ordinary shares in
issue during the period.

Net asset value

The net asset value per share of 90.33p (31st December 2002: 70.66p) has been
calculated by reference to net assets of £64,154,000 (31st December 2002: £
50,187,000) and 71,023,695 (31st December 2002: 71,023,695) 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
2003 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 2003, save that the Company has adopted the 2003 Statement of Recommended
Practice, regarding the Financial Statements of Investment Trust Companies. 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 30th June 2003 have been
delivered to the Registrar of Companies.

Copies of the interim report will be sent to shareholders later this month 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 your Company rose 16.4%, to £64.1 million during the six
months to 31st December 2003. This compares with a 13.7% rise in the FTSE
All-Share Total Return Index over the same period.

Net revenue before tax for the six-month period was £320,000. Your Directors
are not recommending the payment of an interim dividend to shareholders.

The major influences on equities during the six months under review were the
growing evidence of a synchronised improvement in global economic activity and
investors' increased appetites for risk, with small companies outperforming big
companies. In the US, third quarter gross domestic product growth was revised
up to 8.2% and the initial estimate for the fourth quarter was 4%. This was
also reflected in an improvement in UK activity levels. Building on the revival
in confidence following the US-led coalition's Iraq War victory, shares made
progress in the summer, ran into profit taking in September on fears that the
US economic revival was failing to create sufficient jobs and rose again in the
closing quarter of the year.

The US Federal Reserve kept interest rates on hold at 1%, indicating that
monetary policy would only be tightened once it became clear the growth in
activity levels was sustainable, while the European Central Bank held its rates
at 2%. The Bank of England cut base rates by a quarter percentage point to 3.5%
in July, their lowest level since 1955, but the cut was reversed in November on
signs that economic growth was improving from the depressed levels of early
2003.

During the period under review, your Company reduced or sold a number of
equities. The proceeds were invested in a holding in the New Star UK Leaders
Hedge Fund and in shares issued during the flotation of Immedia Broadcasting,
an in-store satellite radio station company. The holding in New Star Asset
Management Group (NSAMG), the parent company of your manager, was increased.
The valuation of your Company's holding in NSAMG was raised to £110 per share
to reflect the latest price of shares issued by NSAMG. This valuation is
reflected in the interim figures.

At 31st December 2003, your Company was approximately 66% invested in shares or
units in investment companies managed by associates of NSAMG.

Global short-term economic prospects look positive, with Group of Seven
industrial production growth expected to reach 5%-6% in early 2004. This
expansion has yet to create many jobs but business surveys suggest 
improvements by the spring. Labour market doubts and benign inflation data
should mean the US Federal Reserve holds US interest rates at least for a time. 
The liquidity environment is, however, less favourable than last year, with
the gap between G7 real money supply growth and industrial output growth
narrowing.

Analysts are raising their profits growth expectations, particularly in energy,
telecommunications, financial services and information technology. The euro's
strength may affect European basic industries but those in dollar-linked Asia
and the emerging markets should do well.

The unaudited net asset value at 29th February 2004 was 94.85p per Ordinary
share.

J L Duffield

Chairman

9th March 2004