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 2004 as follows:

CONSOLIDATED STATEMENT OF TOTAL RETURN
(incorporating the revenue account*) of the Group

                               1st July                      1st July          
                         to 31st December 2004        to 31st December 2003    
                                                                               
                     Revenue    Capital     Total  Revenue   Capital     Total  
                       £'000      £'000     £'000    £'000     £'000     £'000 
                                                                               
Gains on investments       -      5,577     5,577        -     8,493     8,493 
                                                                               
Dividend and             349          -       349      587         -       587 
interest income                                                                
                                                                               
Gains on index                                                                 
futures                                                                        
                                                                               
contracts                  -        136       136        -       207       207 
                                                                               
Investment               (71)         -       (71)     (74)        -       (74)
management fee                                                                 
                                                                               
Other expenses          (127)         -      (127)    (141)        -      (141)
                                                                               
Other exchange gains       -        167       167        -        (2)       (2)
/(losses)                                                                      
                                                                               
Return on ordinary                                                             
activities                                                                     
                                                                               
before finance costs                                                           
and                                                                            
                                                                               
taxation                 151      5,880     6,031      372     8,698     9,070 
                                                                               
Interest payable and                                                           
similar                                                                        
                                                                               
charges                    -          -         -       (6)        -        (6)
                                                                               
Return on ordinary                                                             
activities                                                                     
                                                                               
before taxation          151      5,880     6,031      366     8,698     9,064 
                                                                               
Taxation on ordinary     (19)         -       (19)     (46)        -       (46)
activities                                                                     
                                                                               
Return on ordinary                                                             
activities                                                                     
                                                                               
after taxation           132      5,880     6,012      320     8,698     9,018 
                                                                               
Dividends                  -          -         -        -         -         - 
                                                                               
Transfer to reserves     132      5,880     6,012      320     8,698     9,018 

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

                      pence      Pence      Pence   pence     pence     pence 
                                                                              
Return per Ordinary    0.19       8.28        8.47   0.45     12.25     12.70 
share                                                                         
                                                                              

CONSOLIDATED BALANCE SHEET

                                    As at            As at               As at 
                             31st December  30th June 2004  31st December 2003 
                                     2004                                      
                                                                               
                        (unaudited) £'000  (audited) £'000   (unaudited) £'000 
                                                                               
Fixed assets                                                                   
                                                                               
Investments                        69,578           65,662              61,887 
                                                                               
Current assets                                                                 
                                                                               
Debtors                               534              118               1,941 
                                                                               
Cash at bank                        3,183            1,615                 424 
                                                                               
                                    3,717            1,733               2,365 
                                                                               
Creditors: amounts                                                             
falling                                                                        
                                                                               
due within one year                                                            
                                                                               
Creditors                            (161)             (96)                (98)
                                                                               
Dividend payable                        -             (177)                  - 
                                                                               
Net current assets                  3,556            1,460               2,267 
                                                                               
Total assets less                                                              
current                                                                        
                                                                               
liabilities                        73,134           67,122              64,154 
                                                                               
Capital and reserves:                                                          
                                                                               
Called up share capital               710              710                 710 
                                                                               
Share premium account              21,573           21,573              21,573 
                                                                               
Capital reserve                    (6,418)         (12,298)            (15,496)
                                                                               
Special reserve                    56,908           56,908              56,908 
                                                                               
Revenue reserve                       361              229                 459 
                                                                               
Equity shareholders'               73,134           67,122              64,154 
funds                                                                          
                                                                               
Net asset value per                                                            
                                                                               
Ordinary share                     102.97p           94.51p              90.33p
                                                                               

CONSOLIDATED STATEMENT OF CASHFLOWS

                                             1st July to            1st July to 
                                      31st December 2004     31st December 2003  
                                                   £'000                  £'000 
                                                                               
Net cash outflow from operating                    (253)                   (99)
activities                                                                     
                                                                               
Servicing of finance                                                           
                                                                               
Interest paid                                         -                     (6)
                                                                               
Taxation                                                                       
                                                                               
Taxation paid                                         -                    (21)
                                                                               
Capital expenditure and financial                                              
investment                                                                     
                                                                               
Purchase of investments                          (6,254)                (2,971)
                                                                               
Disposal of investments                           8,175                  2,690 
                                                                               
Gains on index futures contracts                    136                    207 
                                                                               
Revaluation of foreign currency                     (59)                    (2)
balances                                                                       
                                                                               
Net cash inflow/(outflow)from                                                  
capital                                                                        
                                                                               
expenditure and financial                         1,998                    (76)
investment                                                                     
                                                                               
Equity dividends paid                              (177)                  (121)
                                                                               
Net cash inflow/(outflow) before                   1,568                  (323)
and after financing                                                            
                                                                               
Increase/(decrease) in cash                       1,568                   (323)
                                                                               

Returns per share

The Group net revenue on ordinary activities after taxation amounted to £
132,000 (2003: £320,000). The basic revenue return per Ordinary share is based
on this figure and a total of 71,023,695 (2003: 71,023,695) 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 £5,880,000 (2003: £8,698,000) and on 71,023,695 (2003: 71,023,695)
shares, being the weighted average number of Ordinary shares in issue during
the period.

Net asset value

The net asset value per share of 102.97p (31st December 2003: 90.33p) has been
calculated by reference to net assets of £73,134,000 (31st December 2003: £
64,154,000) and 71,023,695 (31st December 2003 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
2004 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 2004. 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 2004
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

Your Company's total assets rose 9.0% during the six months to 31st December
2004 to £73.1 million. This compares with an 8.2% rise in the FTSE All-Share
Index. This rise, I am happy to report, took the net asset value per Ordinary
share to 102.97p and compares with the launch price of 100p in April 2000. The
FTSE All-Share Index over the same period fell by 18.2%. This is a good
performance and your Directors congratulate your Manager.

Net revenue after tax for the period was £132,000. As in previous years, your
Directors are not recommending the payment of an interim dividend to
shareholders.

The oil price had a significant influence on markets during the period under
review. Brent Crude rose from $33.45 to $51.38 at its October peak on fears
that increased Saudi Arabian terrorism might affect the security of supply at a
time of increasing demand. Such price changes were mirrored in equity prices,
with shares falling in response to oil price rises and strengthening when the
oil price stabilised or fell.

There was, however, a shift in sentiment in November and December, with shares
breaking out of their trading range. There were three reasons for this. The oil
price fell sharply, George Bush was convincingly re-elected and confidence
about economic growth prospects increased. Third quarter US GDP growth was 4.0%
while third quarter UK GDP growth was 3.1%.

The US Federal Reserve began to tighten monetary policy in June and lifted
interest rates in a 'measured' sequence of quarter point rises to 2.25%. The
Bank of England raised base rates by a quarter point in August to 4.75% but
left them on hold for the rest of the period while the European Central Bank
repo rate remained at 2%.

During the period under review, your Company sold its holdings in Crosby
Capital, EMI, ITV and Jarvis and took advantage of the winding up of Jupiter
Split Trust to sell its shares at net asset value. The proceeds were reinvested
in four New Star funds, the Hidden Value Fund, the UK Special Situations Fund,
the UK Leaders Hedge Fund and the Financials Hedge Fund.

As a result, your Company ended the period with 60% of its invested assets in
retail funds, 25% in hedge funds and the remaining 15% in its holding in New
Star Asset Management Group, direct equities, investment trust shares and fixed
income securities.

Economic growth is expected to accelerate in early 2005 although tighter US
monetary and fiscal policy may produce a growth slowdown later in the year. The
momentum of corporate profits growth is likely to slow, with margins under
threat from rising unit labour costs. Analysts expect greater profits growth in
energy and industrial materials but are more pessimistic about non-cyclical
consumer areas and information technology.

Economic surveys show strong price-raising intentions from businesses but
moderate Group of Seven money supply growth figures suggest inflationary
pressures remain modest. The Fed is likely to continue its gradual programme of
taking its monetary stance towards neutral but it may pause in the summer if,
as expected, economic growth slows. UK base rates may also rise further, with
the economy running at close to capacity and pressures building in the labour
market.

A change in the United Kingdom Listing Authority's Listing Rules, regarding the
independence of the Chairman, means that Mr Duffield can no longer be Chairman
of your Company if your Company is to retain its listing on the London Stock
Exchange. This is because Mr Duffield is also Chairman of New Star Asset
Management, your Company's Investment Manager, and under the new Listing Rules,
whilst he is able to be a Director of your Company, he is not able to be
Chairman. He has, therefore, stood down and your Directors have appointed me as
Chairman, with effect from today. Mr Duffield has become Deputy Chairman.

The unaudited net asset value at 28th February 2005 was 107.97p per Ordinary
share.

J E Craig CBE
Chairman

9 March 2005