Final Results

Edinburgh Dragon Trust PLC
12 October 2001




12 October 2001

                        EDINBURGH DRAGON TRUST PLC 
                    PRELIMINARY RESULTS FOR THE YEAR TO 
                            31 AUGUST 2001 

Edinburgh Dragon Trust's objective is long-term capital growth through
investment in the Far East (excluding Japan and Australasia). The trust is
managed by Edinburgh Fund Managers plc, a subsidiary of Edinburgh Fund
Managers Group plc, the international fund management group with funds under
management of around £7 billion.


               Preliminary Results for Year Ended 31 August 2001

* Net asset value fell by 32.2% compared with the fall of 32.3 % (in sterling
  terms) in the MSCI All Country Asia Free (excluding Japan) Index

* Share price fell by 37.1% to 57.75p representing a discount to the net
  asset value of 20.7%

* Having suffered the region's debt crisis in 1998, many Asian companies are
  better placed to cope in this weak economic environment and we will seek to
  identify specific investment opportunities

For further information please contact:-

Alistair Thompson, Investment Manager
Edinburgh Fund Managers plc                    0131 313 1000     

Chairman's Statement

Over the past year Edinburgh Dragon Trust's performance, although
disappointing, was slightly ahead of the 32.3% fall of the benchmark, the
MSCI All Country Asia Free (ex Japan) Index. The net asset value of Edinburgh
Dragon Trust fell by 32.2% from 107.39p to 72.8p and the share price
depreciated by 37.1% to 57.75p, representing a discount to the net asset
value of 20.7%.

Asian stockmarkets have been unable to escape the global impact of the
slowdown in the US economy, which has resulted in a rapid decline in the
region's exports and lower corporate profitability. Generally, analysts'
corporate earnings forecasts have been too optimistic and downgrades have
been commonplace throughout the financial year. These downgrades, which began
in the technology and communications sector, have spread to other areas of
the economy.

Dragon's marginal net asset value lead over the Index resulted from good
stock selection in Hong Kong, China and Thailand, which was offset by a small
amount of gearing utilised during the year and by poor stock performance in
India.

Revenue Account
The earnings deficit per share fell from 1.00p to 0.24p. This reduction was
largely due to the increased gross revenues of £6.9 million following the
receipt of additional interest from higher average cash balances. Expenses
fell from £3.1 million to £2.5 million reflecting lower investment management
fees (which are calculated on the value of net assets).

The net result is that the revenue deficit, after taxation, has fallen from
£2.3 million to £0.5 million. However, since the objective of the trust is
long-term capital growth, this revenue deficit should not be seen as a cause
for concern.

Dividend
In line with our investment objective, it is again proposed that no dividend
be paid.

Marketing Initiative
Over the past two years, the board has supported the AITC's 'its' marketing
initiative designed to raise awareness of the attraction of investment
trusts. The next phase of the AITC's 'its' campaign will focus more on a core
marketing programme, consisting of better public relations, improved consumer
information and the promotion of better understanding in the IFA market. The
campaign is being funded by the investment trust sector and the board remains
supportive of the proposals.

The trust also participates in the Edinburgh Fund Managers Investment Trust
Initiative which enables shareholders to invest in Edinburgh Dragon Trust in
a cost-effective manner through saving products such as regular savings
schemes, ISAs and the Pension Scheme. Shareholders who wish additional
information can find it on the Edinburgh Fund Manager's website www.edfd.com.

Future prospects
Following the terrorist attacks in the US, a global recession is now likely
and most of Asia will not be immune. However, it is too early to judge the
depth and duration of such a recession on the Asian economies. The region is
reliant on the US consumer continuing to spend, but despite aggressive
Federal Reserve easing, it is difficult to see consumption rising. Household
debt in the US is at record levels and unemployment is set to soar.

In general, higher risk premiums, lower growth and lower returns on capital
do not bode well for equities. However, Asia's bear market is more long
standing than that of the US and valuations are far lower. Having suffered
the region's debt crisis in 1998, many Asian companies are better placed to
cope in this weak economic environment due to improved corporate governance,
restructured balance sheets and more proactive management. We thus believe
this uncertainty and resulting volatility will, nonetheless, provide some
specific investment opportunities which the trust will seek to identify.

Tony Cassidy
Chairman
11 October 2001


STATEMENT OF TOTAL RETURN
  for the year ended 31 August 2001 (audited)    Revenue    Capital      Total
                                                    £000       £000       £000
  Realised gains on investments                        -     13,943     13,943
  Unrealised losses on investments                     -   (90,348)   (90,348)
  Currency losses                                      -    (1,570)    (1,570)
  Buyback of warrants                                  -          -          -
  Investment income                                4,326          -      4,326
  Interest receivable                              2,499          -      2,499
  Other income                                        93          -         93
  Investment management fee                      (1,925)          -    (1,925)
  Administrative expenses                          (600)       (50)      (650)
                                                  ------     ------    -------
  Net return before finance costs and taxation     4,393   (78,025)   (73,632)
  Interest payable and similar charges           (4,844)          -    (4,844)
                                                  ------     ------    -------
  Return on ordinary activities before             (451)   (78,025)   (78,476)
  taxation                                                                    
  Taxation                                          (89)          -       (89)
                                                  ------     ------    -------
  Return attributable to equity shareholders       (540)   (78,025)   (78,565)
                                                  ------     ------    -------
  Return per ordinary share                      (0.24p)   (34.42p)   (34.66p)
                                                  ------     ------    -------
  Diluted return per ordinary share              (0.24p)   (34.13p)   (34.37p)
                                                  ------     ------    -------
______________________________________________________________________________

STATEMENT OF TOTAL RETURN
                                                                               
  for the year to 31 August 2000 (audited)         Revenue   Capital     Total
                                                      £000      £000      £000
  Realised gains on investments                          -    21,920    21,920
  Unrealised gains on investments                        -    24,914    24,914
  Currency losses                                        -   (3,968)   (3,968)
  Buyback of warrants                                    -     (197)     (197)
  Investment income                                  4,425         -     4,425
  Interest receivable                                1,148         -     1,148
  Other income                                          65         -        65
  Investment management fee                        (2,321)         -   (2,321)
  Administrative expenses                            (763)         -     (763)
                                                    ------     ------  -------
  Net return before finance costs and taxation       2,554    42,669    45,223
  Interest payable and similar charges             (4,583)         -   (4,583)
                                                    ------     ------  -------
  Return on ordinary activities before taxation    (2,029)    42,669    40,640
  Taxation                                           (236)         -     (236)
                                                    ------     ------  -------
  Return attributable to equity shareholders       (2,265)    42,669    40,404
                                                    ------     ------  -------
  Return per ordinary share                        (1.00p)    18.76p    17.76p
                                                    ------     ------  -------
  Diluted return per ordinary share                (0.98p)    18.51p    17.53p
                                                    ------     ------  -------
______________________________________________________________________________


BALANCE SHEET (audited)

                                                                              
                                         At 31 August 2001   At 31 August 2000
                                                      £000                £000
  Fixed assets                                                                
  Investments                                      175,694             279,291
                                                   -------             -------
  Current assets                                    56,289              38,011
  Current liabilities                                1,508               8,149
                                                   -------             -------
  Net current assets                                54,781              29,862
                                                   -------             -------
  Total assets less current                        230,475             309,153
  liabilities                                                                 
  Creditors: amounts falling due                    65,279              65,045
  after more than one year                                                    
                                                   -------             -------
                                                   165,196             244,108
                                                   -------             -------

  Capital and reserves                                                        
  Called up share capital - equity                  45,325              45,415
  Reserves                                         119,871             198,693
                                                   -------             -------
  Total equity shareholders' funds                 165,196             244,108
                                                   -------             -------

  Net asset value per share                        72.80p              107.39p 
  Diluted net asset value per share                72.22p              105.26p 


CASHFLOW STATEMENT (audited)

                                                                              
                                      For the year ended    For the year ended
                                          31 August 2001        31 August 2000
                                                    £000                  £000
  Net cash inflow from operating                   4,500                 2,410
  activities    
                                                              
  Net cash outflow from servicing                (4,847)               (4,454)
  of finance                                                                  

  Total tax paid                                     (2)                  (80)

  Net cash inflow from financial                  21,012                12,000
  investment                                                                  
                                                  ------                ------
  Net cash inflow before financing                20,663                 9,876

  Net cash outflow from financing                  (347)               (1,989)

  Management of liquid resources                (13,586)               (3,627)
                                                  ------                ------
  INCREASE IN CASH                                 6,730                 4,260
                                                  ------                ------
 
NOTES:

1. The accounts have been prepared in accordance with the Statement of
   Recommended Practice 'Financial Statements of Investment Trust Companies'.
   The accounts are prepared under the same accounting policies used for the
   year to 31 August 2000.

2. The directors propose that no final dividend be paid in respect of
   the year ended 31 August 2001.

3. The statement of total return, balance sheet and cashflow statement
   set out above do not represent full statutory accounts in accordance with
   Section 240 of the Companies Act 1985. The financial information for the year
   ended 31 August 2000 has been extracted from the Annual Report and Accounts
   of the company which have been filed with the Registrar of Companies. The
   auditors' report on those accounts was unqualified. The statutory accounts
   for 2001 contain an unqualified auditors' report and will be delivered to the
   Registrar of Companies following the company's Annual General Meeting which
   will be held at Donaldson House, 97 Haymarket Terrace, Edinburgh on 3
   December 2001 at 11.00am.

4. The Annual Report will be posted to shareholders on 29 October 2001
   and copies will be available from the registered office.

Please note that past performance is not necessarily a guide to the future
and that the value of investments and the income from them may fall as well
as rise and may be affected by exchange rate movements. Investors may not get
back the amount they originally invested. Where investment is made in
emerging markets, their potential volatility may increase the risk to the
value of the investment. 

For Edinburgh Dragon Trust plc
Edinburgh Fund Managers plc, Secretary

END