Proposals for future of Co.

Deutsche Latin American Cos Tst PLC
05 November 2004







Deutsche Latin American Companies Trust PLC ('the Company')





Proposals for the future of the Company



The Board has reached agreement with Aberdeen Asset Managers Limited ('Aberdeen
') on proposals for the future of the Company.





Background



Since shareholders voted against the continuation of the Company as an
investment trust on 9th August 2004, the Board has carried out a review of
various proposals for the Company's future.  In the course of reviewing these
proposals, the Board and its advisers consulted with shareholders representing a
majority of the Company's issued share capital to ascertain their views and to
receive an indication of any proposals shareholders might support.  During the
course of these consultations, it became apparent that shareholders would
support proposals for a continuation of the Company, albeit with a different
investment remit, particularly if the proposals produced improved marketability
for the Company's shares and, for those shareholders seeking an exit, an
improvement on a voluntary liquidation of the Company.



Following discussions with Aberdeen and its financial adviser, Intelli Corporate
Finance Limited, the Board has concluded that proposals put forward by them will
meet these objectives.  An extraordinary general meeting of the Company (the '
EGM') will be convened in the near future to seek approval for the necessary
changes.



The continuation proposals



The new investment objective of the Company will be to achieve long-term capital
appreciation by investing in companies which are incorporated in India or which
derive significant revenue or profit from India, with dividend yield from the
Company being of secondary importance.  The Company's net asset performance will
be benchmarked against the MSCI India Index (in sterling terms).



Aberdeen Asset Management Asia Limited ('Aberdeen Asia') will be appointed as
investment manager of the Company in place of DWS Investment Trust Managers
Limited. Aberdeen Asia has a strong record of investing in Indian equities over
the last 10 years and is a highly regarded fund manager.



Under the new management arrangements which will become effective immediately
following the EGM, Aberdeen Asia will be entitled to receive a basic management
fee of 1 per cent. per annum of the value of the consolidated net assets of the
Company and its subsidiaries (the 'Group'), together with, if applicable, a
performance fee.  The aggregate of the basic and performance fees in any year
will not exceed 1.75 per cent. of the Group's consolidated gross assets.



The Group will be permitted to borrow up to 25 per cent of its net assets
(measured when new borrowings are incurred) by flexible means.  The Group will
not have any fixed, long-term borrowings.



If the proposals are approved the name of the Company will be changed to 'New
India Investment Trust PLC'. Richard Watkins and Baroness Hooper will resign as
Directors and William Salomon and Sarah Bates will be appointed to the Board,
with William Salomon becoming Chairman.



The obligation to propose an annual continuation vote will resume at the AGM to
be held in 2006.





Benefits of the proposals



The Board believes that the proposals have the following benefits:


1.    the proposals are a cost effective alternative to liquidation, as they:


      a.    can be implemented more cheaply and more quickly than a liquidation; and


      b.    avoid the dilutive impact of the warrants which would arise on liquidation of the Company;


2.    the Company's new mandate will offer exposure to an emerging market where performance has
      historically been strong and where, in the opinion of Aberdeen, valuations remain attractive;


3.    the prospect of fresh demand for and improved liquidity in and as a result significantly
      enhanced rating for the Shares; and


4.    the potential time value of the warrants would be restored, unlike in a liquidation.





Consequence of shareholders not approving the proposals



In the event that shareholders do not approve the proposals, the Directors
intend to propose that the Company is wound up shortly thereafter.



Transition arrangements and costs



DWS Investment Trust Managers Limited has been co-operative in implementing the
proposed changes and will continue to manage the Company until such time as the
proposals are approved.  The costs of the changes are expected to be less than
those associated with liquidating the Company. With support from the majority of
shareholders, the Company has already realised a substantial proportion of the
portfolio in anticipation of the changes being approved. The daily announcement
of the net asset value will include details of the level of liquidity within the
portfolio.



Enquiries:



Richard Watkins

Deutsche Latin American

Tel: [phone]



Robin Archibald/David Benda

Close Brothers Securities

Tel: [phone]



William Hemmings

Aberdeen Asset Managers Limited

Tel: [phone]



Gordon Neilly/Sue Inglis/Darren Willis

Intelli Corporate Finance

Tel: [phone]/6308


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