Final Results

SVM OFEX FUND PLC                               

                             Chairman's Statement                              

                     Results for the year to 31 March 2004                     

Commenting on the results for the year ended 31 March 2004, Chairman, Peter
Dicks, said:

'The year under review has been a disappointing one for the Fund. As at 31
March 2004 the net asset value fell to 36.0p. This result follows a poor
outcome for the investment made in train operator Flying Scotsman, but also
reflects an ongoing issue of limited investor interest in the OFEX market.

Whilst institutional appetite for early stage companies has returned to more
senior markets such as AIM, it remains absent from OFEX. A number of important
initiatives were announced by OFEX plc during the year, including the
introduction of new market makers, but this has had little impact on share
trading volumes. The absence of adequate institutional liquidity remains a key
barrier to the market's progress, with small trades continuing to have a
disproportionate effect on share prices.

Portfolio

The biggest impact on performance was a writedown in the value of the Fund's
largest investment, Flying Scotsman. After encountering severe delays in
gaining landowner approval for its proposed visitor site at Waverley station in
Edinburgh, the management made significant efforts to both refinance and
relocate the company. Having examined all possibilities, it was decided that
the train should be put up for sale by tender. A transaction was completed in
early April 2004 with the National Railway Museum, at a price of £2.3 million.
This sum leaves the company with a small cash surplus, and it also retains
trade marks and other intellectual property subject to a licence agreement with
the new owner. The company's future strategy has not yet been decided, but in
the meantime it has delisted from OFEX. The Fund suffered a substantial
reduction in the value of its investment, which has been written down at the
year end to the estimated residual value for the remaining cash shell.

Other key investments in the portfolio have achieved good business progress
during the period, contrasting with a lack of share price performance. Of the
top twenty investments, ten are now reporting sustained sales growth, and
amongst these, three have achieved material profitability. Altogether these ten
companies represent 55% of the portfolio, but the Fund enjoyed share price
gains from only three of them over the year.

From the outset the Fund's objective has been to identify companies on OFEX
which are capable of promotion to more senior markets. In this regard some
positive news can be reported. To add to three holdings already on AIM at the
period end, a further three companies achieved listings by the date of this
report. In addition, another five companies have stated their intention to move
to AIM in the near term. If all of these were successful, approaching 50% of
the portfolio would be AIM listed. The Board considers such moves to be a
strong indicator of management confidence in the prospects for their
businesses. Where further funding is raised at the time of listing or
subsequent to this, it is also evidence of widening institutional interest in
these portfolio companies.

Another positive development during the period saw bid approaches being made
for two of the Fund's investments. While in both cases these talks ended
without resulting in a transaction, this again indicates the growing maturity
of the portfolio.

The Fund maintained sufficient cash resources during the period to make
selective follow-on investments, as well as taking a new position in car
finance company Britannia. A small holding in unquoted software company
Eurobenefits was realised, when the company bought in shares after selling off
some product rights.

Strategic Review

When the Company was launched in October 2000, it was in a different investment
environment. The OFEX market was attracting a wide range of growing businesses,
and institutional investor interest appeared to be increasing. For the first
three years after listing, the Fund was bound by the Investment Objective and
Policy set out in the Prospectus.

It is clear now that the OFEX market has not developed as anticipated. Share
prices have not benefited from the recovery of interest in smaller companies
over the past twelve months. For some time, your Board has been examining ways
in which prospects for the Fund might be improved. To this end, a resolution
will be put to shareholders at the Company's Annual General Meeting to change
the Investment Objective to allow the Company to hold investments in unquoted,
OFEX and Alternative Investment Market (AIM) companies, and up to 20 % of the
Fund (calculated by cost of the investment) may be invested in other securities
and instruments. Previous restrictions regarding portfolio percentage limits
will be removed, with the intention that the focus of investment activity will
be on AIM. If this change is approved then the Board intends to grant to the
Managers a limited authority to invest up to 20% of the Fund in other
securities and instruments, including hedging instruments to assist risk
management of the portfolio. As a consequence of the proposed changes, the
benchmark index for the Company will be changed to the AIM Index. In addition,
to reflect these proposals, shareholders will be asked to approve a resolution
to change the name of the Company to 'SVM UK Emerging Fund plc'.

AGM

The Company's Annual General Meeting will be held in London on 3 September 2004
and details of the resolutions to be proposed will be given in the Notice of
Meeting. The AGM will be at 11.30 a.m. and will be preceded at 11.00 a.m. by a
presentation from the Managers, who will review the portfolio and investment
policy and answer any questions from shareholders. Copies of the presentation
will be available upon request to all shareholders and will be put on the
Managers' website.

Peter Dicks

Chairman

29 July 2004


Summarised Statement of Total Return                                  
                                                                      
                    Year to 31 March 2004      Year to 31 March 2003  
                         (unaudited)                 (audited)        
                  Revenue  Capital    Total  Revenue  Capital    Total
                    £'000    £'000    £'000    £'000    £'000    £'000
                                                                      
(Losses)/Gains on       -    (305)    (305)        -       12       12
sale of                                                               
investments                                                           
                                                                      
Movement in             -    (657)    (657)        -  (1,498)  (1,498)
unrealised                                                            
depreciation                                                          
                                                                      
                  -------  -------  -------  -------  -------  -------
                                                                      
Losses on               -    (962)    (962)        -  (1,486)  (1,486)
investments                                                           
                                                                      
Income                  3        -        3       12        -       12
                                                                      
Investment              -     (22)     (22)        -     (32)     (32)
management fees                                                       
                                                                      
Other expenses       (89)        -     (89)     (79)        -     (79)
                                                                      
                  -------  -------  -------  -------  -------  -------
                                                                      
Return on            (86)    (984)  (1,070)     (67)  (1,518)  (1,585)
ordinary                                                              
activities before                                                     
taxation                                                              
                                                                      
Taxation                -        -        -        -      (8)      (8)
                                                                      
                  -------  -------  -------  -------  -------  -------
                                                                      
Transfer from        (86)    (984)  (1,070)     (67)  (1,526)  (1,593)
reserves                                                              
                                                                      
                   ------  -------  -------  ------- --------  -------
                                                                      
Return per        (1.58p) (18.03p) (19.61p)  (1.22p) (27.94p) (29.16p)
ordinary share                                                        

                                          As at         As at
                                       31 March      31 March
                                           2004          2003
                                    (unaudited)     (audited)
                                          £'000         £'000
                                                             
Balance Sheet                                                
                                                             
Investments                               1,944         2,696
                                                             
Net current assets                           24           342
                                                             
                                        -------       -------
                                                             
Ordinary shareholders' funds              1,968         3,038
                                                             
                                        -------       -------
                                                             
Net asset value per ordinary             36.04p        55.65p
share                                                        
                                                             
Summarised Cash Flow Statement                               
                                                             
Net cash outflow from operating            (92)         (102)
activities                                                   
                                                             
Taxation                                      -          (14)
                                                             
Capital expenditure and                   (210)        ( 211)
financial investment                                         
                                                             
                                        -------       -------
                                                             
Decrease in cash                          (302)         (327)
                                                             
                                        -------       -------

Notes

1. The results reflect the adoption in the Accounts of the 2003 Statement of
Recommended Practice (SORP) issued by the Association of Investment Trust
Companies.

2. Returns per Ordinary Share are based on 5,460,000 shares in issue during the
year (31 March 2003 - same). The number of shares in issue at 31 March 2004 was
5,460,000. (31 March 2003 - same).

3. The above figures do not constitute full accounts in terms of Section 240 of
the Companies Act 1985. The |Accounts for the year ending 31 March 2004, which
were unqualified, will be lodged with the Registrar of Companies. The report
will be mailed to shareholders in due course. Copies will be available for
inspection at 7 Castle Street, Edinburgh, the registered office of the Company.

For further information, please contact:

David Stevenson SVM Asset Management 0131 226 6699

Roland Cross Broadgate 020 7726 6111

ENDS