Final Results

6 October 2004


                           EDINBURGH DRAGON TRUST PLC
               PRELIMINARY RESULTS FOR THE YEAR TO 31 AUGUST 2004

Edinburgh   Dragon  Trust's  objective  is  long-term  capital  growth   through
investment  in  the Far East (excluding Japan and Australasia).   The  Company's
benchmark is the MSCI All Country Asia Free (ex Japan) Index.


-  The  Company's NAV fell by 1.4% compared to a fall in its benchmark,  MSCI
   All Country Asia Free ex Japan index, of 1.7%, a modest outperformance of 0.3%.

-  A  number of factors held back the performance of Asian markets during the
   period, including political uncertainty as many countries held elections and the
   concern about an economic slowdown in China.

-  For the next few years economic growth looks set to average 5% p.a. across
   the region.

-  The  investment  manager, Jeremy Whitley, has relocated to  Aberdeen  Asia
   equity team based in Singapore providing him with increased Asian resources and
   the opportunity to conduct company visits more frequently.


For further information please contact:-

Jeremy Whitley, Investment Manager            0065 6395 2700

Ian Massie, Director  - Investment Trusts      0131 313 1000




Chairman's Statement

Over the past year Edinburgh Dragon Trust's net asset value has declined by 1.4%
from  85.35p to 84.18p. The company's benchmark index, the MSCI All Country Asia
Free  (ex  Japan)  index, declined 1.7% in sterling terms. The share  price  has
fallen  3.1%,  which  reflects a slight widening of the discount  at  which  the
shares trade to the adjusted net asset value to 16.8%.

In  comparison to last year, when the company posted a return of more than  20%,
performance this year has been somewhat subdued. The underlying reason for  this
is  Asian stockmarkets have struggled over the past few months; indeed, a number
of markets have had significant corrections. The best returns have come from the
smaller, less liquid markets of the region such as Sri Lanka, Pakistan  and  the
Philippines.

Thailand,  on  the other hand, which was one of the best performing stockmarkets
in  the  world  during  2003, has been one of the worst  performing  this  year,
falling  nearly  20%.  Another  market which had  done  well  in  2003  only  to
disappoint  this year has been India, which has failed to recover following  the
surprise election result in May. The three largest markets, Korea, Hong Kong and
Taiwan,  which  together account for almost two thirds of  the  region's  market
capitalisation, were flat, moving only 0.7%, -0.5% and 3.6% respectively.

There have been a number of factors holding the Asian markets back. Politics has
played  a  particularly important and, at times, destabilising role  on  markets
this  year as over one billion Asians have voted in countries ranging from India
to  Indonesia.  Whilst  the election results in Malaysia,  the  Philippines  and
Indonesia  were  as expected, events took a surprising turn in both  Taiwan  and
India.

The  other  main factor weighing on markets has been the threat of  an  economic
slowdown  in  China where inflationary pressures, caused to a  large  extent  by
sharply  higher  food prices, have been building up over the  past  few  months.
Investors have been concerned that the People's Bank of China will be forced  to
raise  rates sharply in an effort to subdue demand. Even though the company  has
limited  exposure to China (9.7%) through a few Hong Kong listed companies,  the
situation  is  being closely monitored. A sharp slowdown in China would  have  a
negative impact on regional trade.

Borrowings
The Board regularly reviews the borrowing facilities of the company. As reported
in  the  interim report on 20 February 2004 the company repaid the  U$15m  7.56%
loan  from  JP  Morgan  Chase Bank. The prepayment penalty  amounted  to  £1.1m,
equivalent  to 0.5p per share. For many years the Board has approved a  strategy
whereby  the  manager  has  discretion to operate the portfolio  with  effective
gearing  up to 20% of shareholder funds. The Board continues to believe that  in
current  market conditions the remaining U$80m 7.26% loan, repayable in December
2008, provides the manager with an adequate gearing facility.

Revenue account
Gross  revenue  increased from £5.6 million to £6.6 million, due principally  to
increased  yields on equities being received. The interest costs of the  company
fell significantly due to the repayment of the $15 million loan.  The net result
is  that  the  revenue return per share has improved from a revenue  deficit  of
0.52p  to  a  positive return of 0.04p, the first positive revenue return  since
1998.

The principal objective of the company is capital appreciation and therefore  it
is again proposed that no dividend be paid.

Management agreement
Our  manager,  Edinburgh  Fund  Managers plc, was  acquired  by  Aberdeen  Asset
Management PLC in October 2003.

Following  a  review of the management agreement, the company  announced  on  12
November 2003 that it had agreed with Edinburgh Fund Managers plc to change  the
period  of  notice required in order to terminate the Management and Secretarial
Agreement  from  twelve months to three months. No compensation was  payable  in
respect of these amendments.

Continuation vote
As  reported in the February interim statement, shareholders voted in favour  of
continuation  as an investment trust at the Annual General Meeting  in  December
2003.  The  next  continuation vote is scheduled to take  place  at  the  Annual
General Meeting in December 2006.

The Board
During  the  year  Adam Fleming resigned from the Board due  to  other  business
commitments.   The Board wishes to place on record his much valued  contribution
and we wish him well for the future.

On  4  October 2004, the Board announced the appointment of Anthony Lowrie as  a
non-executive  director.  Mr Lowrie has been involved in  Asian  investment  for
over  30 years, originally with Hoare Govett, subsequently with HG Asia  and  is
currently a managing director in ABN Amro Bank.  Shareholders will be  asked  to
confirm his appointment at the annual general meeting.

The investment manager
Within  this generally favourable environment, the investment strategy  endorsed
by  the  Board  encourages  the  manager to focus  on  the  quality  of  company
management, the consistency of company earnings and the ability of companies  to
achieve their potential within the right corporate governance framework with due
regard  to  the  rights of minority shareholders. This requires a  rigorous  and
disciplined  investment process combined with the ability  to  interview  senior
company  management  at  regular intervals. The attachment  of  your  investment
manager,  Jeremy Whitley, to the Aberdeen Asia equity team located in Singapore,
has not only increased the Asian resources available to him but will also enable
him  to  develop his in-market knowledge and conduct target company visits  more
frequently.

Outlook
Over  the  past few years the changes forced on companies by the impact  of  the
Asian  crisis in terms of better corporate governance and the need to  focus  on
profitable  core  operations  and balance sheet restructuring  have  led  to  an
improvement  in  the  long term prospects for Asia. As the  capital  expenditure
cycle  returns to Asia and demand for bank lending picks up, the improvement  in
bank  lending  policy should result in less volatile credit cycles.  This  would
provide a better operating environment for many Asian companies.

For  the next few years economic growth looks set to average 5% per annum around
the  region.  The  main  challenge facing Asia remains  to  develop  and  foster
domestic demand rather than relying on exporting cheap manufactured goods to the
West. Asia's core competitive advantages have historically been its structurally
low  cost labour base and abundance of raw materials. These benefits will remain
but  need  to be augmented by higher value-added products and services over  the
course  of the next decade.  The foundations are already in place.  Many Western
companies  now  employ  Indian  software programmers,  Chinese  sub-contractors,
Taiwanese  chip foundries and Singaporean logistical operators.  In the  future,
these sectors will grow and take a greater share of globally outsourced services
which  will generate further jobs and profits. Potentially, this will create  an
even  larger middle class with increased discretionary purchasing power, overall
leading to a positive business growth environment.


Tony Cassidy
Chairman



STATEMENT OF TOTAL RETURN
for the year ended 31 August 2004 (audited)

                                               Revenue    Capital     Total
                                                  £000       £000      £000
Realised gains/(losses) on investments               -     14,402    14,402
Unrealised (losses)/gains on investments             -    (17,267)  (17,267)
Currency gain on repayment of currency loan          -      1,237     1,237
Repayment penalty on currency loan                   -     (1,105)   (1,105)
Currency gains/(losses)                              -         33        33
Investment income                                6,198          -     6,198
Interest receivable                                266          -       266
Other income                                       166          -       166
Investment management fee                       (1,970)         -    (1,970)
Administrative expenses                           (674)         -      (674)
                                                 ______     ______     ______

Net return before finance costs and taxation     3,986     (2,700)     1,286
Interest payable and similar charges            (3,493)         -     (3,493)
                                                 ______     ______     ______

Return on ordinary activities before taxation      493     (2,700)    (2,207)
Taxation on ordinary activities                   (415)       (40)      (455)
                                                 ______     ______     ______

Return attributable to equity shareholders          78     (2,740)    (2,662)
after taxation
                                                 ______     ______     ______

Return per ordinary share                         0.04p    (1.21p)    (1.17p)
                                                 ______     ______     ______

________________________________________________________________________________________


STATEMENT OF TOTAL RETURN
for the year ended 31 August 2003 (audited)

                                         Revenue    Capital     Total
                                            £000       £000      £000
Realised gains/(losses) on investments         -    (18,715)  (18,715)
Unrealised gains/(losses) on                   -     55,059    55,059
investments
Currency gains/(losses)                        -       (288)     (288)
Investment income                          5,070          -     5,070
Interest receivable                          524          -       524
Other income                                  37          -        37
Investment management fee                 (1,585)         -    (1,585)
Administrative expenses                     (561)         -      (561)
                                         ________   ________  ________
Net return before finance costs and        3,485     36,056    39,541
taxation
Interest payable and similar charges      (4,318)         -    (4,318)
                                         ________   ________  ________
Return on ordinary activities before        (833)    36,056    35,223
taxation
Taxation on ordinary activities             (340)         -      (340)
                                         ________   ________  ________
Return attributable to equity             (1,173)    36,056    34,883
shareholders after taxation
                                         ________   ________  ________
Return per ordinary share                 (0.52p)    15.91p    15.39p
                                         ________   ________  ________
________________________________________________________________________________________


BALANCE SHEET (audited)
                                 At 31 August      At 31 August
                                     2004              2003
                                 £000     £000     £000    £000
Fixed assets
Investments                              199,463          217,669



Current assets
Debtors                             610             1,731
US Treasury Bills                31,028            33,449
Cash - foreign currency           5,850             2,078
                                _______           _______

                                 37,488            37,258
Creditors: amounts falling due
within one year                   1,591             1,431
                                _______           _______

Net current assets                        35,897           35,827
                                         _______          _______

Total assets less current                235,360          253,496
liabilities

Creditors: amounts falling due
after more than one year                  44,347           59,906
                                         _______          _______

                                         191,013          193,590
                                         _______          _______

Capital and reserves
Share capital                             45,354           45,325
Share premium                                 81               26
Capital redemption reserve                 8,752            8,752
Special reserve                           85,520           85,520
Warrant reserve                            1,047            1,047
Capital reserve - unrealised              33,933           45,052
Capital reserve - realised                22,865           14,485
Revenue reserve                           (6,539)          (6,617)
                                         _______          _______

Total equity shareholders' funds         191,013          193,590
                                         _______          _______

Adjusted net asset value per share        84.18p           85.35p
                                         _______          _______


CASHFLOW STATEMENT (audited)
                                         For the year       For the year
                                            ended              ended
                                          31 August          31 August
                                             2004               2003
                                         £000     £000      £000     £000

Net cash inflow from operating                   4,386              3,215
activities

Servicing of finance
Interest paid                          (3,761)           (4,281)
                                       _______           _______

Net cash outflow from servicing of              (3,761)            (4,281)
finance

Taxation
Overseas tax paid                        (475)             (280)
                                       _______            _______

Net tax paid                                      (475)              (280)

Financial Investment
Purchase of investments                (59,713)          (92,961)
Sale of investments                     76,255            91,043
                                        _______           _______

Net cash inflow/(outflow) from                  16,542             (1,918)
financial investment                           ________            ________

Net cash inflow/(outflow) before                16,692             (3,264)
financing
Net cash outflow from financing                 (9,016)                 -


Management of liquid resources                  (2,368)           (15,034)
                                                ______            _______

Increase/(decrease) in cash and cash             5,308            (18,298)
equivalents                                     ______            _______


Reconciliation of net cashflow to
movement in net debt
Increase/(decrease) in cash              5,308           (18,298)
Net change in liquid resources           2,368            15,034
                                        _______           _______

Change in net debt resulting from               7,676             (3,264)
cashflows
Amortised Loan Note expenses                      (31)               (31)
Loan Repayment                                  7,995                  -

Foreign exchange differences on loan            1,237               (288)
repayments
Other foreign exchange differences                 33                  -
                                               ______              ______

Movement in net debt in year                   16,910             (3,583)
Opening net debt                              (24,379)           (20,796)
                                              ________            ________

Closing net debt                               (7,469)           (24,379)
                                              ________            ________


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 2003.
2. The  directors propose that no final dividend be paid in respect of the  year
   ended 31 August 2004.
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 2003 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  2004
   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  13
   December 2004 at 11.00am.
4. The  Annual Report will be posted to shareholders in early November 2004  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