Interim Results

Alliance Trust PLC
14 August 2000


THE ALLIANCE TRUST PLC
INTERIM REPORT FOR THE HALF YEAR ENDED 31 JULY 2000 (UNAUDITED)
---------------------------------------------------------------

THIS INTERIM REPORT WILL BE POSTED TO STOCKHOLDERS ON MONDAY, 21
AUGUST 2000 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 SERVICES PLC, OWEN HOUSE, 8 BANKHEAD CROSSWAY NORTH,
EDINBURGH EH11 4BR.

THIS REPORT COVERS THE SIX MONTHS TO 31 JULY 2000 AND BRINGS
STOCKHOLDERS UP TO DATE WITH DEVELOPMENTS AT THE ALLIANCE TRUST SINCE
THE ISSUE OF THE 2000 ANNUAL REPORT.  THE ANNUAL REPORT INCLUDES
FINANCIAL AND INVESTMENT REVIEWS, DETAILS OF HOW THE COMPANY WORKS
AND THE LATEST AUDITED ACCOUNTS.  A COPY MAY BE OBTAINED FROM MEADOW
HOUSE, 64 REFORM STREET, DUNDEE DD1 1TJ.

THE ALLIANCE TRUST PLC, WHICH IS ONE OF THE OLDEST AND LARGEST UK
INVESTMENT TRUSTS, EMPLOYS ITS OWN STAFF TO MANAGE ITS ACTIVITIES. 
IT HAS ACCUMULATED CAPITAL OF £1.99BN, INVESTED PRIMARILY IN QUOTED
EQUITY SECURITIES, DIVERSIFIED WORLD-WIDE AND ACROSS MANY INDUSTRIES.

THE COMPANY AIMS TO ACHIEVE ITS OBJECTIVE - TO PROVIDE THE CORE
INVESTMENT FOR THOSE WHO WISH TO BUILD UP A LONG TERM STORE OF
INCREASING VALUE FOR THE FUTURE - THROUGH INCOME AND CAPITAL RETURNS
ON ITS PORTFOLIO, WHICH IS RUN AT A VERY LOW COST (0.13% OF ASSETS
DURING THE YEAR TO 31 JANUARY 2000) AND THROUGH THE PROVISION OF COST
EFFECTIVE RETAIL SAVINGS AND INVESTMENT PLANS.  THESE PLANS COMPRISE
ISAS, PEPS, INVESTMENT AND PENSION PLANS, WHICH ENABLE STOCKHOLDERS
TO ENHANCE THEIR OWN LONG TERM RETURNS.

FINANCIAL HIGHLIGHTS (UNAUDITED)
--------------------------------

     STOCK UNIT DATA
     ---------------

     INTERIM DIVIDEND PAYABLE
     29 SEPTEMBER 2000             26.0P   +8.3%   (INTERIM 1999)

     NET ASSET VALUE AT
     31 JULY 2000                  £39.65  +6.0%   (HALF YEAR)

     RETURN
     ------

     TOTAL RETURN ON COMPANY'S     
     ASSETS                                +6.9%   (HALF YEAR)

RESULTS
-------

ECONOMIES AND MARKETS
---------------------

MOST ADVANCED ECONOMIES CONTINUED THEIR GROWTH OVER THE LAST
HALF-YEAR DRIVEN BY STRONG PRIVATE SECTOR DEMAND AND LARGE AMOUNTS OF
ADDITIONAL LIQUIDITY PROVIDED BY CENTRAL BANKS LATE LAST YEAR.  THIS
LATTER STIMULUS HAS SINCE BEEN REVERSED AS INTEREST RATES WERE RAISED
IN THE US, UK AND EUROPE AND THE FIRST SIGNS OF MODERATION HAVE
STARTED TO APPEAR.  SIGNIFICANT OIL PRICE RISES HAVE TO SOME EXTENT
BEEN NEUTRALISED BY CONTINUING PRODUCTIVITY GAINS AND INFLATION HAS
NOT YET APPEARED AS A MAJOR THREAT.

STOCK MARKETS HAVE BEEN DOMINATED BY MERGERS, RECONSTRUCTIONS AND THE
VOLATILITY OF THE TECHNOLOGY, TELECOMMUNICATIONS AND MEDIA STOCKS
WHERE INTENSE INTEREST HAD, AT THE START OF THE YEAR, DRIVEN PRICES
TO UNREALISTIC HEIGHTS.  IN THE EVENT THE MAJOR MARKET GAINS WERE IN
EUROPE (+9.6%).  THERE WAS LITTLE CHANGE IN THE UK (+2.9%) AND US
(+2.6%) AND THE FAR EAST FALTERED WHERE JAPAN FELL 15%.  STERLING
BEGAN TO WEAKEN AGAINST THE EURO AND FELL 7.6% AND 5.4% AGAINST THE
US DOLLAR AND YEN RESPECTIVELY.

CAPITAL PERFORMANCE
-------------------

THE FIRST SIX MONTHS PRODUCED A 6% INCREASE IN THE NET ASSET VALUE AS
MANY OF THE FACTORS WHICH HAD HELD US BACK DURING THE PREVIOUS SIX
MONTHS REVERSED.  AN ABSENCE FROM THE SPECULATIVE END OF THE
TECHNOLOGY MARKET, AN UNDERWEIGHT POSITION IN MOBILE
TELECOMMUNICATIONS AND A LIMITED EXPOSURE TO THE FAR EAST ALL HELPED
TOWARDS THE INCREASE.  COMPARED TO THE UK MARKET OUR OVERSEAS
EXPOSURE ADDED 2.1% TO PERFORMANCE, WITH STOCK SELECTION AND ACTIVITY
ADDING A FURTHER 1%.

EARNINGS AND DIVIDEND
---------------------

THE LAST FEW YEARS HAVE BEEN CHARACTERISED BY WIDESPREAD CORPORATE
RESTRUCTURING AND TAX CHANGES WHICH HAVE MADE INCOME FLOWS ERRATIC. 
A COMPARISON OF THE HALF-YEAR'S EARNINGS, EXCLUDING THE 'SPECIALS'
RECEIVED IN 1999, SHOW SOME STABILITY WITH A STRONG DOLLAR AND
HEALTHY CORPORATE RESULTS COMPENSATING FOR THE TENDENCY OF MANY
COMPANIES TO ESCHEW DIVIDENDS IN THE QUEST FOR GROWTH.

TO PROVIDE STOCKHOLDERS WITH SOME GROWTH OF INCOME IN THIS CLIMATE
THE BOARD PROPOSES TO CONTINUE ITS PROGRESSIVE DIVIDEND POLICY.  AN
INTERIM DIVIDEND OF 26P (24P) WILL BE PAID IN SEPTEMBER, FURTHER
REDUCING THE DISPARITY BETWEEN INTERIM AND FINAL DIVIDENDS.  THE
BOARD EXPECTS TO MAINTAIN THE FINAL DIVIDEND OF 40.5P PAYABLE IN MAY
2001.

ACTIVITY
--------

INVESTMENT CHANGES (COMPANY ONLY) (£M)
--------------------------------------

             VALUATION                                  
             31 JAN.                         APPRCN     VALUATION
             2000        PURCHASES   SALES   (DEPRCN)   31 JULY 2000
             ---------   ---------   -----   --------   ------------

RESOURCES
AND BASIC
INDUSTRIES       230         23       (25)       22         250

GENERAL
INDUSTRIALS
AND
TECHNOLOGY       320         64       (30)       12         366

CONSUMER
GOODS            289          8       (16)       56         337

SERVICES         678         33       (74)      (22)        615

FINANCIALS       355         24       (25)       45         399
             ---------   ---------   -----   --------   ---------
               1,872        152      (170)      113       1,967
             ---------   ---------   -----   --------   ---------

INVESTMENT
----------

WE RAISED A NET £18M FROM THE PORTFOLIO DURING THE SIX MONTHS UNDER
REVIEW, TAKING ADVANTAGE OF VALUATIONS WHEN THEY WERE HIGH IN
INDIVIDUAL STOCKS OR SECTORS IN ORDER TO PROVIDE FUNDS FOR FUTURE
OPPORTUNITIES. 

FOR EXAMPLE, WE RAISED £15M FROM MEDIA STOCKS AFTER THEY HAD BEEN
DRIVEN UP BY THE INTERNET EUPHORIA.  OUR FOCUS REMAINED, HOWEVER, ON
ADDING STOCKS WHERE GROWTH PROSPECTS WERE CLEAR, BUT AT TOLERABLE
PRICES, AND THE STRONG SECTOR ROTATION GAVE US SOME REASONABLE
OPPORTUNITIES TO ADD TO GOOD QUALITY TECHNOLOGY STOCKS WHOSE
FUNDAMENTALS REMAINED POSITIVE.  SIMILARLY, WE WERE ABLE TO REDUCE
EXPOSURE TO AREAS STILL AT RISK OF EROSION IN PROFIT MARGINS, SUCH AS
THE RETAILING SECTORS FROM WHICH WE RAISED £23M FOLLOWING THE
RECOVERY IN THEIR RELATIVE VALUATIONS.

PORTFOLIO TURNOVER HAS INEVITABLY RISEN, PARTLY DUE TO A HIGH LEVEL
OF TAKEOVERS, ALTHOUGH THE GEOGRAPHICAL MOVES WITHIN THE PORTFOLIO
HAVE ONLY BEEN MINOR.

INVESTMENT OUTLOOK
-------------------

THE STATE OF THE GLOBAL ECONOMY AND STOCK MARKETS ARE HIGHLY
DEPENDENT ON US ECONOMIC PROSPECTS WHERE A GENTLE COOLING OF GROWTH
IS REQUIRED.  ALTHOUGH WE BELIEVE THE  FEDERAL RESERVE HAS PROVED
ABLE TO MANAGE THE US ECONOMY WELL, SUCH A 'SOFT LANDING' IS BY NO
MEANS CERTAIN AND THE RISKS ASSOCIATED WITH TOO SHARP A SLOWDOWN WILL
CONTINUE TO UNSETTLE MARKETS WORLD-WIDE.

THE RECENT RETURN BY STOCK MARKETS TO A MORE OBJECTIVE VALUATION OF
COMPANIES GENERALLY IS WELCOME.  IT HELPS US  MAINTAIN A BALANCED
PORTFOLIO, THE DISTRIBUTION OF WHICH IS DETERMINED BY THE STOCKS WE
WISH TO HOLD FOR THE LONG TERM WITH LESS EMPHASIS ON WHERE THEY
HAPPEN TO BE QUOTED.  NEW AND ADAPTIVE INDUSTRIES ABOUND IN THE US
AND INCREASINGLY IN THE UK WHERE STRINGENT POLICIES HAVE ALREADY
ACHIEVED A 'SOFT LANDING' OF THE ECONOMY.  WE ARE THEREFORE
COMFORTABLE WITH THE 75% PROPORTION OF OUR PORTFOLIO HELD IN THESE
TWO MARKETS DESPITE RELATIVELY STRONG CURRENCIES AND SOME
INDIVIDUALLY HIGH VALUATIONS.

THE ECONOMIES OF JAPAN AND OTHER EASTERN COUNTRIES ARE STILL FRAGILE
BUT WE SEE INTERESTING AND POSITIVE CHANGES HAPPENING IN EUROPE WHERE
CROSS-BORDER MERGER ACTIVITY, TAX CHANGES AND MORE
SHAREHOLDER-FRIENDLY POLICIES MAKE EQUITY INVESTMENT MORE ATTRACTIVE.
 ALTHOUGH THE EURO MAY REMAIN WEAK AS EUROPEAN PORTFOLIO MANAGERS AND
COMPANIES DIVERSIFY AND EXPAND OVERSEAS, WE ARE LOOKING FOR SUITABLE
OPPORTUNITIES HERE, ESPECIALLY IN THE MEDIUM TERM AS ECONOMIC GROWTH
CATCHES UP.

GEOGRAPHICAL SPREAD AT 31 JULY 2000
-----------------------------------

             UK                    52%
             USA                   23%
             EUROPE                12%
             JAPAN                  7%
             REST OF WORLD          4%
             CASH                   2%

SAVINGS PRODUCTS DEMAND
-----------------------

ALLIANCE TRUST SAVINGS LIMITED (ATS) CONTINUED TO EXPAND ITS
BUSINESS.  A SUCCESSFUL 'TAX SEASON' SAW, IN THE SIX MONTH PERIOD,
INCREASES IN INVESTOR NUMBERS OF 5.5% TO OVER 30,000, IN ASSETS HELD
OF 13% TO OVER £1BN AND IN THE PROPORTION OF ALLIANCE TRUST ORDINARY
STOCK HELD THROUGH ATS TO OVER 10% FOR THE FIRST TIME.  THE PEP, ISA
AND INVESTMENT PLAN ALL CONTRIBUTED TO THE GROWTH AS DID THE PENSION
PLAN.  THE LATTER, WHICH WAS EXTENDED TO THE EMPLOYED IN MARCH, IS A
CHALLENGING MARKET INVOLVING FEE-BASED PROFESSIONAL ADVISORS AND VERY
LONG TERM RELATIONSHIPS.  WITH 2 YEARS' PENSION PROVISION EXPERIENCE
AND OVER £30M INVESTED BY MORE THAN 1,000 MEMBERS, ATS'S PRESENCE IS
NOW ESTABLISH AND THE PENSION PLAN PROMISES TO BE A VERY IMPORTANT
PART OF THE PRODUCT RANGE IN THE FUTURE.

WE EXPECT GROWTH TO CONTINUE, STIMULATED BY INVESTORS AND THEIR
ADVISORS HAVING WEB-BASED ACCESS TO THEIR PLANS LATER IN THE YEAR AND
BY THE NEW OPPORTUNITIES WHICH WILL BE AVAILABLE TO MANY ALLIANCE
INVESTORS WHEN THE PENSION REGIME CHANGES IN APRIL 2001.


CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
----------------------------------------------

                          SIX MONTHS     SIX MONTHS     YEAR TO
                          31 JULY        31 JULY        31 JANUARY
                          2000           1999           2000
                          ----------     ----------     -----------
£000
----

REVENUE RETURN
--------------

INCOME

DIVIDENDS AND INTEREST     22,835         25,325         43,563

OTHER INCOME                1,553          1,420          2,488
                          --------       --------       --------
TOTAL INCOME               24,388         26,745         46,051

EXPENSES                   (2,678)        (2,429)        (4,974)
                          --------       --------       --------
NET RETURN BEFORE
INTEREST PAYABLE AND
TAXATION                   21,710         24,316         41,077

INTEREST PAYABLE             (639)          (704)        (1,164)
                          --------       --------       --------
RETURN BEFORE TAXATION     21,071         23,612         39,913

TAXATION                   (3,180)        (3,005)        (4,682)
                          --------       --------       --------
                           17,891         20,607         35,231
MINORITY INTEREST -
EQUITY                       (260)          (245)          (426)
                          --------       --------       --------
REVENUE AFTER TAXATION     17,631         20,362         34,805

DIVIDEND ON PREFERENCE
STOCK - NON-EQUITY            (49)           (49)           (97)
                          --------       --------       --------
REVENUE RETURN
ATTRIBUTABLE TO EQUITY
STOCKHOLDERS               17,582         20,313         34,708
                          ========       ========       ========
REVENUE RETURN PER
ORDINARY STOCK UNIT        34.88P         40.30P         68.87P

CAPITAL RETURN
--------------

REALISED GAINS ON 
INVESTMENTS                85,992         25,712        100,618

INCREASE IN UNREALISED
APPRECIATION               26,796         49,701         56,375

FOREIGN EXCHANGE
GAINS(LOSSES)               1,007           (749)          (983)
                          --------       --------       --------
                          113,795         74,664        156,010

MINORITY INTEREST -
EQUITY                        (51)           173            258
                          --------       --------       --------
CAPITAL RETURN
ATTRIBUTABLE TO
ORDINARY
STOCKHOLDERS              113,744         74,837        156,268
                          ========       ========       ========

CAPITAL RETURN PER
ORDINARY STOCK UNIT       225.68P        148.49P        310.05P

TOTAL RETURN
------------

TOTAL RETURN
ATTRIBUTABLE TO
ORDINARY
STOCKHOLDERS              131,326         95,150        190,976
                          ========       ========       ========

TOTAL RETURN PER
ORDINARY STOCK UNIT       260.56P        188.79P        378.92P


SUMMARISED BALANCE SHEET
------------------------
                          31 JULY        31 JULY        31 JANUARY
£000                      2000           1999           2000
                          -------        -------        ----------

INVESTMENTS AT
VALUATION                 1,956,977      1,776,808      1,864,182

NET CURRENT ASSETS           54,798         37,607         33,747
                          ---------      ---------      ---------
TOTAL ASSETS LESS
CURRENT LIABILITIES       2,011,775      1,814,415      1,897,929

LONG TERM LIABILITIES
AND PRIOR CHARGES           (13,525)       (13,541)       (13,424)
                          ---------      ---------      ---------
ORDINARY STOCKHOLDERS'
FUNDS                     1,998,250      1,800,874      1,884,505
                          =========      =========      =========
NET ASSET VALUE PER
ORDINARY STOCK UNIT       £39.65         £35.73         £37.39


CASHFLOW STATEMENT
------------------
                          SIX MONTHS     SIX MONTHS     YEAR TO
                          TO 31 JULY     TO 31 JULY     31 JANUARY
£000                      2000           1999           2000
                          ----------     ----------     ----------

NET CASH INFLOW FROM
OPERATING ACTIVITIES        23,216         30,570         47,001

SERVICING OF FINANCE          (899)          (964)        (1,686)

TAXATION PAID               (1,797)        (2,242)        (3,246)

INVESTMENT PURCHASES
SETTLED                   (158,447)      (127,831)      (278,607)

INVESTMENT SALES
SETTLED                    190,528         76,015        211,133

EQUITY DIVIDENDS
PAID                       (20,412)       (20,412)       (32,508)

CAPITAL SUBSCRIBED
BY MINORITY INTEREST          -             2,500          2,500
                          ----------     ----------     ----------
INCREASE IN CASH             32,189        (42,364)      (55,413)
                          ==========     ==========     ==========

NOTES TO FINANCIAL STATEMENTS
-----------------------------

1.    THE REVENUE RETURN STATEMENT IS THE PROFIT AND LOSS ACCOUNT OF
      THE GROUP.

2.    OTHER INCOME INCLUDES INCOME ARISING IN SUBSIDIARY COMPANIES OF
      £1,344,000 (£1,329,000).  EXPENSES INCLUDE £1,235,000
      (£1,083,000) INCURRED BY THE SUBSIDIARY COMPANIES.

3.    THESE RESULTS SHOULD NOT BE TAKEN AS A GUIDE TO THE FULL YEAR
      AND DO NOT CONSTITUTE THE GROUP'S STATUTORY ACCOUNTS.

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 £13,104,000 (£12,096,000) FOR PAYMENT OF THE
      INTERIM DIVIDEND AND £4,478,000 (£8,217,000) BEING THE
      BALANCE OF REVENUE ATTRIBUTABLE TO ORDINARY STOCKHOLDERS.

5.    THE FIGURES FOR 31 JANUARY 2000 ARE EXTRACTED FROM THE FULL
      ACCOUNTS WHICH HAVE BEEN FILED WITH THE REGISTRAR OF
      COMPANIES AND WHICH CONTAINS AN UNQUALIFIED REPORT FROM THE
      AUDITOR.

THE DIVIDENDS ON THE COMPANY'S ORDINARY STOCK AND PREFERENCE STOCKS
ARE PAYABLE ON 29 SEPTEMBER 2000 TO HOLDERS ON THE REGISTER ON 4
SEPTEMBER 2000.

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 DIVIDEND UP 8.3% TO 26P PER ORDINARY STOCK UNIT

     NET ASSET VALUE INCREASED BY 6.0%

     6.9% TOTAL RETURN ON COMPANY'S ASSETS (HALF YEAR)

     ALLIANCE TRUST SAVINGS GROWS TO OVER £1 BN OF INVESTORS' ASSETS


COMMENTING ON THE RESULTS, MR. GAVIN SUGGETT, CHIEF EXECUTIVE, SAID:

'THERE ARE THREE STRONG POSITIVE MESSAGES IN OUR RESULTS:

 1.  A RETURN TO OUR SUCCESSFUL PERFORMANCE RECORD

 2.  AN 8.3% INCREASE IN THE INTERIM DIVIDEND, AND

 3.  STRONG DEMAND FOR ISAS, INVESTMENT AND PENSION PLANS PROVIDED
     BY ALLIANCE TRUST SAVINGS.'

 
MR. ALAN YOUNG, INVESTMENT DIRECTOR, COMMENTING ON THE INVESTMENT
OUTOOOK, ADDED:

'1.  STOCK MARKET VALUATIONS ARE BECOMING MORE RATIONAL AND FOCUSING
     ON PROFITS GROWTH, WHICH SUITS OUR STYLE.

 2.  A US SOFT LANDING IS NOT GUARANTEED BUT THE RISKS OF OVERHEATING
     AND ITS KNOCK-ON EFFECTS ARE REDUCING.
  
 3.  OUR INTENTION IS TO REMAIN FULLY INVESTED, IN A WIDE RANGE OF
     EQUITY ASSETS GLOBALLY.'