Interim Results

SVM UK EMERGING FUND plc                            

           Unaudited results for the six months to 30 September 2005           

KEY POINTS

  * Net asset value rose by 11.1% to 41.12p as at 30 September 2005, compared
    to an increase of 0.9% in the FTSE AIM Index, the company's new benchmark
    index.
   
  * Portfolio now has a 70% exposure to AIM stocks with a further 19% in OFEX
    companies.
   
  * Following a disappointing first three months of the period under review,
    the second three months saw positive moves as investor appetite for smaller
    companies increased.
   
  * Notable excellent performances from the portfolio included healthcare
    facility developer, Ashley House which secured additional funding and
    indicated a possible move onto to AIM. Gold explorer, Greystar Resources,
    continued to verify its gold resources in Latin America and the fund
    supported a pre-IPO funding in oil explorer Borders & Southern which
    subsequently listed on AIM.
   
  * Portfolio reconstruction is now virtually complete and is well positioned
    to generate attractive returns for shareholders.
   
                                   - Ends -                                    

For further information, please contact:

Donald Robertson SVM Asset Management 0131 226 6699

Roland Cross Broadgate 020 7726 6111

                           SVM UK EMERGING FUND PLC                            

                             Chairman's Statement                              

           Unaudited results for the six months to 30 September 2005           

Commenting on the results for the six months to 30 September, Chairman, Peter
Dicks, said:

'I am pleased to report a positive six months for the Company. At 30 September
2005, the asset value per share was 41.12 pence. This represents a rise of
11.1% which compares to an increase of 0.9% in the FTSE AIM Index, the
Company's new benchmark index. It is now just over a year since shareholders
voted in favour of the new investment objective for the Fund together with a
new name, SVM UK Emerging Fund plc.

The first six months of the year was a tale of two halves. Following a rather
disappointing first quarter, the three months to the end of September proved to
be more encouraging. Smaller companies in particular saw positive moves as
investor appetite for risk increased.

There were some excellent performances from portfolio companies during the
period. Healthcare facility developer, Ashley House, secured additional funding
for expansion and indicated that they were targeting an AIM listing. Gold
explorer, Greystar Resources, continues to prove up its gold resources in Latin
America and has attracted interest from a number of major resource companies.
We believe that it is unlikely to remain independent in the medium term. The
Fund supported a pre-IPO funding in oil explorer, Borders & Southern, which
subsequently listed on AIM. The company is well advanced in the exploration of
its large acreage in the South Atlantic. United Clearing, which provides
financial clearing services for the mobile telecom industry, continues to add
new clients and is similarly attracting interest from larger corporate
competitors. Indeed, it recently announced that it was in preliminary talks
which may lead to it being taken-over.

Most of the disappointments were in the Fund's longer held investments, where
liquidity remains poor and adverse news tends to be treated harshly by the
market. Degradable plastics company, Symphony Plastics, announced that a major
contract with its clients had been terminated and the share price halved.
Perversely both smoke alarm manufacturer, Sprue Aegis, and hospital equipment
manufacturer, Dawmed's share prices fell 30% while announcing positive results.

The portfolio has approximately 70% in AIM stocks. There is a further 19% in
OFEX companies, a number of which have indicated that they are looking to move
to the AIM Index in the near future. I am happy to report that the
restructuring to a more AIM orientated fund is now virtually complete and is
well positioned to generate attractive returns for shareholders.'

Peter Dicks

Chairman

28 November 2005

.

Summarised Unaudited Statement of Total Return                            
                                                                          
                    Six months to 30 September  Six months to 30 September
                               2005                        2004           
                                                                          
                     Revenue  Capital    Total   Revenue  Capital    Total
                                                                          
                       £'000    £'000    £'000     £'000    £'000    £'000
                                                                          
Losses on sale of          -    (340)    (340)         -     (19)     (19)
investments                                                               
                                                                          
Movement in                -      605      605         -    (225)    (225)
unrealised                                                                
depreciation                                                              
                                                                          
                    -------- -------- --------  -------- -------- --------
                                                                          
Gains / (losses) on        -      265      265         -    (244)    (244)
investments                                                               
                                                                          
Income                     -        -        -         1        -        1
                                                                          
Investment                 -        -        -         -        -        -
management fees                                                           
                                                                          
Other expenses          (29)        -     (29)      (29)        -     (29)
                                                                          
                    -------- -------- --------  -------- -------- --------
                                                                          
Return before           (29)      265      236      (28)    (244)    (272)
interest and                                                              
taxation                                                                  
                                                                          
Bank overdraft          (12)        -     (12)         -        -        -
interest                                                                  
                                                                          
                    -------- -------- --------  -------- -------- --------
                                                                          
Transfer from           (41)      265      224      (29)    (244)    (272)
reserves                                                                  
                                                                          
                    -------- -------- --------  -------- -------- --------
                                                                          
Return per ordinary  (0.75p)    4.85p    4.10p   (0.51p)  (4.46p)  (4.97p)
Share                                                                     

.

Unaudited Balance Sheet                     As at        As at
                                                              
                                     30 September 30 September
                                                              
                                             2005         2004
                                                              
                                            £'000        £'000
                                                              
Investments                                 2,157        1,706
                                                              
Net current assets                             88           50
                                                              
                                        ---------    ---------
                                                              
Ordinary shareholders' funds                2,245        1,756
                                                              
                                        ---------    ---------
                                                              
Net asset value per ordinary share         41.12p       32.17p
                                                              
.                                                             
                                                              
Summarised Unaudited Cash Flow      Six months to   Six months
Statement                                                   to
                                                              
                                     30 September 30 September
                                                              
                                             2005         2004
                                                              
                                            £'000        £'000
                                                              
Net cash flow from operating                 (51)         (38)
activities                                                    
                                                              
Capital expenditure and financial             281            2
investment                                                    
                                                              
Servicing of finance                         (12)            -
                                                              
                                         --------     --------
                                                              
Movement in cash                              218         (36)
                                                              
                                         --------     --------

Notes

1. The results reflect the adoption in the accounts of the 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
period (30 September 2004 - same). The number of shares in issue at 30
September 2005 was 5,460,000. (30 September 2004- 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 to 31 March 2005, which were
unqualified, have been lodged with the Registrar of Companies. The interim
report will be mailed to shareholders towards the end of November 2005. Copies
will be available for inspection at 7 Castle Street, Edinburgh, the registered
office of the Company.

ENDS