Exercise of Warrants

EDINBURGH DRAGON TRUST PLC

EXERCISE OF WARRANTS

8 February 2005


Edinburgh  Dragon  Trust PLC (the "Company") announces  that  8,082,977  of  the
Company's  Warrants  were  exercised by holders on 31 January  2005,  the  final
exercise  date.  It is expected the Ordinary shares resulting from the  exercise
will be credited to CREST accounts or issued in certificated form on 14 February
2005.

In  accordance  with the terms of Warrants, The Law Debenture Trust  Corporation
p.l.c  was  appointed to act as trustee (the "Trustee") for the holders  of  the
2,425,926  Warrants  which  were  not  exercised.   The  Trustee  exercised  the
outstanding  subscription  rights on behalf of the  holders  and  the  resulting
Ordinary  shares  were sold in the market at a price of 84p per Ordinary  share.
Holders  of  the unexercised Warrants will therefore be entitled to receive  24p
per  unexercised  Warrant  (being the proceeds of  the  sale  of  the  resulting
Ordinary shares less the 60p Warrant exercise price), save that entitlements  of
less  than  £2 shall be retained for the benefit of the  Company.   It  is
expected  that the distributable entitlements will be dispatched to  holders  by
cheque by 18 February 2005.

Applications  have  been made for the 10,508,903 new Ordinary  shares  resulting
from  the  exercise of Warrants to be admitted to trading on  the  London  Stock
Exchange  and to the Official List of the UK Listing Authority.  It is  expected
that  dealings will commence and admission will become effective on 10  February
2005.   The  new Ordinary shares will rank pari passu in all respects  with  the
existing  Ordinary  shares and, following admission, there will  be  237,276,875
Ordinary shares in issue.




For further information please contact:

Valerie Mackenzie
Edinburgh Fund Managers plc, Secretary
Tel. [phone]