Interim Results

Alliance Trust PLC
19 August 2002

INTERIM REPORT OF THE ALLIANCE TRUST PLC FOR THE HALF YEAR ENDED

31 JULY 2002 (UNAUDITED)

This interim report will be posted to stockholders on Monday, 26 August 2002 and
will also be made available to the public at the Company's registered office,
Meadow House, 64 Reform Street, Dundee DD1 1TJ and at the offices of the
Company's paying agents, Computershare Investor Services PLC, Owen House, 8
Bankhead Crossway North, Edinburgh EH11 4BR.

This interim report was approved by the Board on 19 August 2002. It brings
stockholders up to date about the performance of the Alliance Trust over the six
months to 31 July 2002, the environment in which we have been operating over
this period, and how we see the outlook over the next six months, before we
report to them again with the final results for the year to 31 January 2002.

The figures we report are unaudited. The last audited figures are in the 2002
annual report which was sent to stockholders in March 2002.

FINANCIAL HIGHLIGHTS

Income
31 July                                                                               2002                       Change

interim dividend (1)                                                                 29.0p                         3.6%
gross dividend yield (2)                                                              3.1%                        24.0%

Capital
six months to 31 July                                                                 2002                       Change

net asset value                                                                      2739p                       -17.3%
stock price                                                                          2455p                       -16.0%
FTSE All-Share Index                                                                  2051                       -17.8%

Savings business
six months to 31 July                                                                 2002                       Change

net inflows (3)                                                                       £89m                        15.6%
total investor numbers                                                              35,344                         4.6%
total valuation                                                                      £959m                        -8.8%
Alliance Trust holding (4)                                                           13.9%                        10.3%

(1)                     Amount payable 4 October 2002 per ordinary stock unit.

                        Ex dividend 18 September 2002.

(2)                     Annual dividend (including tax credit) expressed as a % of stock price at 31 July.

(3)                     Receipts of cash, securities and dividends less withdrawals. Change compares 6 months to 31
                        July 2001.

(4)                     % of ordinary capital of the Alliance Trust held for individual investors through Alliance
                        Trust Savings Limited.

RESULTS FOR THE HALF YEAR

Income and dividend

We are pleased to announce a 3.6% increase in the interim dividend to 29p per
ordinary stock unit payable on 4th October. The Board expects to be able to
recommend at least a maintained final dividend payable in early May 2003.

Income and income growth remain the most important components of long term
investment returns and a steady dividend growth provides critical stability for
stockholders in these times of falling interest rates and capital values. Our
portfolio has had to weather some dividend cuts but it is well diversified and
underlying increases still predominate. This strength together with accounting
policies which do not depend on capital gains to pay interest and management
costs give us some confidence that our progressive dividend policy remains
robust.

Net asset value

Valuations of most equity markets dropped sharply in June and July and our own
asset value declined by 17.3% to £1,380m over the six month period. This
compares with falls of 17.8% and 27% respectively for the FTSE All-Share Index
and for the sterling-adjusted US S&P 500 index. Damage to the portfolio was
limited by our cash, fixed interest and Far Eastern investments and in the UK
our stocks outperformed the FTSE All-Share Index by 1.8% over the period.

Savings business

Alliance Trust Savings (ATS), our savings and pension subsidiary, continued to
expand its business and profits despite the pervading gloom in the industry.
Over our half year investor numbers increased by 4.6% and, compared with the
equivalent period last year, revenue and net inflows were up by 6.4% and 15.6%
respectively.

The first half of the year is always the most active as it includes the fiscal
year end ISA and pension deadlines. 2002 was no exception: ISA investor numbers
increased by 9% and pension members by 30%. Pensions fit well with our value for
money and long term investment objectives and our products are clearly
attractive in these times of falling investment returns and rising pension
concerns. We are currently recruiting, training and increasing capacity in all
IT and ATS service departments to meet the growing demands of this business.

INVESTMENT REPORT

Economic and market background

Following 11 September, the Federal Reserve and other central banks made
aggressive cuts in interest rates in an effort to avoid a deep recession in the
US and elsewhere and, at the start of our financial year, we were beginning to
see early signs that this policy had been successful. Low interest rates and
fiscal easing promoted an upward trend in household spending, and firms began to
boost production levels once inventories had stabilised. However, because excess
capacity has not been removed, companies have been left with little pricing
power and the outlook for corporate profits remains uncertain. This has
restrained capital spending and raised doubts about the sustainability of the
recovery.

The deterioration we have seen in stock prices from peak levels has been the
worst for several decades as investors' confidence has been steadily eroded by
continued profit warnings and a series of corporate and accounting scandals,
mainly in the US. This has especially affected 'new economy' companies but even
the established stocks have also now weakened.

Geographical distribution of assets

                                                                                        %

UK                                                                                     50
USA                                                                                    23
Europe                                                                                 11
Japan                                                                                   6
Rest of World                                                                           6
Cash & Fixed Interest                                                                   4

Source: Internal

Investment activity

Throughout, we have remained ungeared with an element of cash and a small
position in bonds. Our long term perspective and the availability of suitable
stocks has encouraged us to use the opportunity of weak phases in markets to
invest a net £23m over the last six months. On a geographical basis we have
reduced our exposure to the US by almost £18m while adding £15m to the UK, £3m
in Europe and £23m in the Far East (excluding Japan).

Outlook

The US continues to hold the key to any global economic upswing and an uplift in
capital spending is much needed. This is unlikely to occur until businesses have
confirmation of improved sales and profits. Further economic deterioration is
possible, but central banks stand ready to loosen policy further if required. We
therefore expect, at this time, that growth will return to sustainable levels
although this could take longer than many had hoped.

In addition to economic concerns, investors are having to cope with other
uncertainties, including the war against terrorism, the effect of high levels of
debt and the questionable validity of some company accounting. We expect to see
a comparative improvement in corporate profitability towards the end of this
year which, together with better corporate structures and accounting practices,
should provide the market with a more secure base. Valuations are now more
reasonable, but we shall continue to be cautious, maintaining a wide diversity
of investments and aiming to hold companies with strong market positions which
can thrive in a difficult environment and which are willing and able to pay
growing dividends.

CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

returns £000                                             6 months to   6 months to            year to
                                                        31 July 2002  31 July 2001    31 January 2002

revenue return
dividends and interest                                        25,947        26,858             47,815
other income                                                   1,521         1,685              2,102
total income                                                  27,468        28,543             49,917
expenses                                                     (3,597)       (3,531)            (6,142)
net revenue before interest payable and taxation              23,871        25,012             43,775
interest payable                                               (528)         (786)            (1,428)
revenue before taxation                                       23,343        24,226             42,347
taxation                                                     (2,536)       (2,707)            (4,419)
revenue after taxation                                        20,807        21,519             37,928
minority interest - equity                                     (187)         (154)              (352)
                                                              20,620        21,365             37,576
dividend on preference stock - non-equity                       (49)          (49)               (97)
revenue return attributable to ordinary stockholders          20,571        21,316             37,479
revenue return per ordinary stock unit                        40.82p        42.29p             74.36p

capital return
realised gains on investments                                  3,551        41,290             22,559
unrealised depreciation                                    (292,769)     (242,200)          (325,726)
foreign exchange losses                                        (414)         (783)            (1,399)
                                                           (289,632)     (201,693)          (304,566)
minority interest - equity                                         -            35                  4
capital return attributable to ordinary stockholders       (289,632)     (201,658)          (304,562)
capital return per ordinary stock unit                     (574.66p)     (400.12p)          (604.29p)

total return
total return attributable to ordinary stockholders         (269,061)     (180,342)          (267,083)
total return per ordinary stock unit                       (533.84p)     (357.83p)          (529.93p)

summarised balance sheet £000                           31 July 2002  31 July 2001    31 January 2002

investments at valuation                                   1,347,680     1,714,826          1,614,344
net current assets                                            46,298        69,024             69,292
total assets less current liabilities                      1,393,978     1,783,850          1,683,636
long term liabilities and prior charges                     (13,491)      (13,501)           (13,517)
ordinary stockholders' funds                               1,380,487     1,770,349          1,670,119
net asset value per ordinary stock unit                       £27.39        £35.13             £33.14

cashflow statement £000                                6 months to    6 months to              year to
                                                      31 July 2002   31 July 2001      31 January 2002

net cash inflow from operating activities                   32,879         36,333               54,045
servicing of finance                                         (789)        (1,048)              (1,950)
taxation paid                                              (1,992)        (1,010)              (3,665)
investment purchases settled                             (103,279)       (98,943)            (177,324)
investment sales settled                                    79,118        135,747              213,549
equity dividends paid                                     (20,412)       (20,412)             (34,524)
(decrease)increase in cash                                (14,475)         50,667               50,131

Notes to Financial Statements

 1 These results should not be taken as a guide to the full year and do not constitute the statutory
   accounts.

 2 The revenue return statement is the profit and loss account of the Group.

 3 Expenses include £1,673,000 (£1,703,000) incurred by subsidiary companies.

 4 The accounting policies are consistent with those applied in the preparation of the annual statutory
   accounts. In the interim statements, net current assets are stated after the provision of
   £14,616,000 (£14,112,000) for payment of the interim dividend and £5,955,000 (£7,204,000) being the
   balance of revenue attributable to ordinary stockholders.

 5 The figures for 31 January 2002 are extracted from the full accounts which have been filed with the
   registrar of companies and which contain an unqualified report from the auditor.

Dividend

Interim dividend of 29.0p per ordinary stock unit.

The interim dividend on the Company's ordinary stock and half year dividends on
its preference stocks are payable on Friday, 4 October 2002 to holders on the
register on 20 September 2002 and the ex dividend date is 18 September 2002.

The press release summarising these interim results follows and questions should
be addressed to Mr. Gavin Suggett or Mr. Alan Young (Tel. [phone]).

Press Release

              INTERIM REPORT FOR THE HALF YEAR ENDED 31 JULY 2002

                                  (UNAUDITED)

  •          Interim Dividend raised 3.6%. Stock now yielding 3.1% gross.


  •          UK portfolio outperformed FTSE All-Share by 1.8% in the six months.


  •          Savings net inflow up 15.6%.


  •          ISA and Pension clients increase by 9% and 30% respectively.



The Alliance Trust PLC today (Monday, 19 August) announced its interim results
for the half-year to July 31 2002.

Commenting on the results Gavin Suggett, Chief Executive, said:

'For long term investors the importance of a progressive dividend policy cannot
be underestimated, particularly when valuations are down, and we are pleased to
announce another increase in the interim dividend. Our ability to do this is
thanks once again to a well-balanced portfolio, no significant interest
liabilities and a cost base which is appropriate in such times of low inflation
and low returns.

'Alliance Trust Savings continues to be a success story with particularly strong
growth in its pensions business and we are pleased to welcome the many new
stockholders who have joined us through ATS.'

Alan Young, Investment Director, added:

'We avoided the worst effects of the collapse of the telecommunications, media
and technology sectors of the market. We remain well-diversified and ungeared
which has helped us outperform the main indices. It is in markets like these
that the Alliance style shows its strength. We concentrate on owning the better
companies and have cash resources to take opportunities when they arise.'





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