Pre Close Briefings

3i Group PLC
26 March 2003



3i Group plc - Pre Close Briefings 26 March 2003



3i Group plc ('3i'), Europe's leading venture capital company, will today start
its pre close period briefing of analysts ahead of the announcement of its
annual results on 15 May.



The topics that will be discussed during the briefings are:



1        Investment



3i has maintained a selective approach to investment and has made investments in
buy-outs, growth capital and technology through its international network.
Investment in the eleven months to 28 February 2003 was £867million (including
investment from co-investment funds of £206 million).  Investment has increased
in the second half as 3i took advantage of attractive investment opportunities.



In 2002, 3i extended its leadership of the European mid-market buy-out business,
investing €790 million in 16 transactions with a total transaction value of
€2.5bn.



2        Realisations



Notwithstanding the lower levels of activity in the mergers and acquisition
markets and the small number of IPOs, realisations have continued to be made at
good prices across the portfolio generating cash inflow of £934 million
(excluding co-investment funds) in the eleven months to 28 February 2003.
Realisation proceeds in the first half amounted to £619 million.



3        Portfolio



      The majority of the 3i portfolio continues to perform satisfactorily.



      The valuation of the portfolio at 31 March 2003 will be determined by
applying 3i's normal valuation methodology on a consistent and prudent basis and
will take into account current market conditions.



      Provisions for companies that may fail are likely to be higher in the
second half than in the six months to 30 September although provisions for the
year are likely to be no higher than for the year to 31 March 2002 of £400
million.  The charge for the write off of investments is likely to be less than
last year.



      In valuing investments in technology companies, account is taken of the
performance of the company against previously agreed milestones as well as
external valuation benchmarks.  A fall in the level of venture capital available
for technology companies has resulted in many companies only being able to raise
further capital on a deeply discounted basis.  As a result, value reductions
arising from down rounds(1) are likely to be around twice the level of the £180
million experienced last year.



4        Fund raising



      3i announced in May 2002 that it was raising a pan-European fund for
mid-market management buy-outs.  Despite the difficult fund raising environment,
3i expects the first closing will take place prior to the preliminary
announcement on 15 May.  It is likely the predecessor fund, Eurofund III, will
continue to make investments until around July, when it will be fully invested
and that the new fund will commence investment at that time.



5        Statement of Recommended Practice ('SORP'):  Financial statements of
Investment Trust Companies



3i will adopt the revised SORP in respect of the year to 31 March 2003.  In
preparation, a review of the allocation of expenses and interest charged against
revenue and capital profits has also been undertaken.  This review and adoption
of the SORP will have no impact on total return.  However, revenue profits after
tax will be higher by approximately £50 million and consequently capital profits
lower by a similar amount than under the prior approach.





Note

(1)A down round arises where an actual or potential further financing round is
or is likely to be raised at a capitalisation lower than that of the original
investment or previous financing round.





Ends



For information please contact:



Michael Queen - Finance Director - 3i Group plc - 020 7975 3400



Patrick Dunne - Group Communications Director - 3i - 020 7975 3566



Philip Gawith - The Maitland Consultancy - 020 7379 5151


                      This information is provided by RNS
            The company news service from the London Stock Exchange END

MSCUVUWROVROUAR