Final Results

Edinburgh Dragon Trust plc
01 November 2007

1 November 2007





                           EDINBURGH DRAGON TRUST plc

               PRELIMINARY RESULTS FOR THE YEAR TO 31 AUGUST 2007



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 (ex Japan) Index.



•   The Company's net asset value rose 27.7% on a total return basis
    compared to a rise of 40.1% in the MSCI All Country Asia (ex Japan) Index.

•   Asian stock markets enjoyed major growth conditions, with many
    exchanges climbing to fresh highs. Strong underlying growth, stable interest
    rates and global money flows all contributed.

•   Asian stock markets are at, or close to their all-time highs today.
    This has bred a certain over-confidence and it remains to be seen how the 
    region would respond to any reversal in sentiment.

•   The Company has paid for its caution in terms of underperformance,
    but believes the very high valuations of market leading stocks have not
    reflected the possible risks.



For further information please contact:-



Hugh Young, Managing Director, Aberdeen Asset Management Asia     0065 6395 2700



Ian Massie, Head of Investment Trust Investor Relations,           0131 313 1000
Aberdeen Asset Management



Edinburgh Dragon Trust plc
Chairman's Statement 31 August 2007





During the year ended 31 August 2007, your Company's net asset value rose 27.7%
on a total return basis, compared to a 40.1% rise in the benchmark MSCI All
Country Asia (ex Japan) Index. This underperformance against the benchmark was
largely attributable to stock selection in South Korea and our modest exposure
to China. The share price rose 22.5%, reflecting a widening of the discount to
11.1%.



Overview

Once again Asian stock markets enjoyed surging increases, with many exchanges
climbing to fresh highs. Strong underlying growth, stable interest rates and
global money flows all contributed, and companies continued to report good, if
moderating, growth in earnings.



Economic activity across the region remained brisk. Growth rates were revised
upwards, in part as the growing economic influence of China and India continued
to spur intra-regional trade over the year, even though demand in the key US
export market eased. Private spending, which was lacking in the immediate years
following the Asian financial crisis, appeared more sustainable.



Progress in stock markets was more or less uninterrupted, and had the effect of
ensuring almost every market performed well, although not all equally. Much of
the attention was given over to China, where there was a surge in share buying,
which appeared increasingly speculative over time. Beijing listed a handful of
state-owned mega-stocks in Hong Kong including Ping An, an insurer, and ICBC, a
bank. The interest this generated also influenced other 'Chinese stocks',
including H shares and the so-called 'red chip' conglomerates. Traditional Hong
Kong-listed shares were more muted.



Dragon continued to prefer more mature stocks such as China Mobile, while
portfolio stalwarts such as Swire, despite reporting good earnings growth, were
overshadowed. Away from Hong Kong and China, a similar story obtained:
mainstream investors preferred to chase certain themes, such as cyclicals in
Korea or restructuring in Malaysia, and Dragon's emphasis on companies with
visible growth and strong balance sheets was therefore not necessarily shown to
best effect.



Nowhere has exemplified the rise of the consumer more than India, where a credit
boom has been unleashed, against a background historically of very low levels of
borrowing. But even here, it was larger cap industrial stocks that performed
best, whereas our Indian exposure was more skewed to financials and technology
stocks. This thematic bias was similarly best seen in Korea, where a number of
heavy industry cyclicals that are benefiting from Chinese demand were bid up
rapidly. For reasons of quality as well as doubts over the business model (and,
latterly, the prices being paid), we avoided them.



Overall, it is acknowledged that the caution of your Company has led to
underperformance. Our Manager believes that the 'racier' valuations of market
leaders have perhaps not reflected the possible risks, and that, as often in
bullish markets, there may have been a tendency to extrapolate high growth
projections too far forward. However the corrections we have seen so far, first
in May, then lately in August following problems in global credit markets, were
too short-lived to see any proper switch into more defensive stocks.



Our Manager has reviewed the portfolio carefully, and the 'storyline' remains
the same, companies' earnings growth has kept coming through, dividend yields
have stayed attractive and company managers are properly sticking to core
businesses. Meanwhile, there has been little in markets to commend in terms of
new buys, although many potential investment ideas were considered. In fact, the
most beneficial strategy in terms of portfolio activity was to add to positions
in back-markers and trim some of our more favoured counters as they became
pricier.



Revenue account

The revenue return per share was 1.84p, compared to 1.41p in the previous year.
The Board recommends the payment of a final dividend of 1.1p per ordinary share
which, if approved by shareholders at the Annual General Meeting, will be paid
on 14 December 2007.



Annual General Meeting

In accordance with the articles of association, Mr Lowrie will retire from the
Board and, being eligible, will offer himself for re-election at the annual
general meeting.  In accordance with the corporate governance procedures
endorsed by the Board, all directors who have attained more than nine years'
service or are aged over 70 years will retire from the Board and submit
themselves for re-election on an annual basis. Messrs Cassidy, Frame, Gairns,
Tyrie and Watt will retire and be proposed for re-election at the annual general
meeting.  Following an appraisal of each director, including the Chairman, the
Board is satisfied that each director's performance continues to be effective,
that the Board has the requisite range of expertise and experience and that it
is compliant with the AIC guidelines on independence. The Board recommends that
shareholders vote in favour of the re-election of directors at the annual
general meeting.



During the year discounts within the sector have widened and Dragon's discount
was no exception, rising from 7.3% to 11.1% at the end of the financial year.
The Board monitors closely the discount level of the Company's shares and has in
place a buyback mechanism whereby the Manager is authorised to buy back shares
within certain limits.  This resulted in 1.7 million shares being bought back at
discounts ranging from 10.2% to 14.5%.  A resolution to renew the authority to
buyback shares for cancellation will be proposed at the annual general meeting.



Outlook

Having survived some turbulence already this year, at the time of writing Asian
stock markets are at, or close to their all-time highs. This has bred a certain
over-confidence and it remains to be seen how the region would respond to
another reversal in sentiment.



The main threat clearly comes from the US, where a weaker housing market is now
affecting broad economic data. There is hope that easier money will help avert a
sharp US slowdown, although the earlier cuts in interest rates would appear
partly responsible for soaring asset prices globally. Interest rate reductions
now may thus not be a complete solution - unless the US economy is slowing
faster than expected, a situation which would be unwelcome for company earnings
and for the global economy as a whole. As things stand, inflationary price
pressures remain.



China's response would be critical if reduction in US demand were to be
accompanied by a lower US dollar. It already faces major policy choices, not
least how to confront the stock market overheating. Allowing the renminbi to
float upwards would help stimulate imports. Although the conventional view is
that China can, at least for a time, spend its way out of any trouble, leaving
the region in its slipstream.



In conclusion, whilst from our perspective the balance sheets of Dragon
portfolio companies are sound, valuations remain fair, and earnings growth
appears robust, this investment style, albeit consistent, has resulted in your
company not benefiting from the best of the bull markets to the same extent as
some of its peers. Your Board, in recognising this relative underperformance,
has recently taken independent soundings of a broad range of shareholders and is
in active dialogue with the Manager on ways better to meet shareholder
expectations going forward.





Tony Cassidy

Chairman








INCOME STATEMENT (audited)
                                                  Year ended 31 August 2007        Year ended 31 August 2006

                                                  Revenue    Capital      Total    Revenue    Capital     Total
                                                    £'000      £'000      £'000      £'000      £'000     £'000
Realised gains on investments                          -      14,703     14,703         -      34,810    34,810
Unrealised gains on investments                        -      62,228     62,228         -       3,142     3,142
Currency gains                                         -       2,240      2,240         -       2,168     2,168
Income                                             12,585         -      12,585     11,088         -     11,088
Investment management fee                         (3,614)         -     (3,614)    (2,981)         -    (2,981)
Administration expenses                           (1,065)         -     (1,065)      (915)         -      (915)
                                                  _______    _______    _______    _______    _______    ______
NET RETURN BEFORE FINANCE COSTS AND TAXATION        7,906     79,171     87,077      7,192     40,120    47,312
Interest payable and similar charges              (2,936)         -     (2,936)    (3,258)         -    (3,258)
                                                  _______    _______    _______    _______    _______    ______
RETURN ON ORDINARY ACTIVITIES BEFORE TAXATION       4,970     79,171     84,141      3,934     40,120    44,054
Taxation on ordinary activities                     (604)         -       (604)      (595)         -      (595)
                                                  _______    _______    _______    _______    _______    ______
RETURN ON ORDINARY ACTIVITIES AFTER TAXATION        4,366     79,171     83,537      3,339     40,120    43,459
                                                  _______    _______    _______    _______    _______    ______
RETURN PER SHARE (PENCE):                            1.84      33.37      35.21       1.41      16.91     18.32
                                                  _______    _______    _______    _______    _______   _______


The total column of this statement represents the profit and loss account of the
Company.

No Statement of Total Recognised Gains and Losses has been prepared as all gains
and losses have been reflected in the Income Statement.

All revenue and capital items in the above statement derive from continuing
operations.

No operations were acquired or discontinued in the year.

The accompanying notes are an integral part of the financial statements.






BALANCE SHEET  (audited)

as at 31 August
                                                                            2007                   2006
                                                                       £'000      £'000       £'000      £'000
NON-CURRENT ASSETS
Investments at fair value through profit or loss                                416,089                331,252

CURRENT ASSETS
Debtors and prepayments                                                1,056                  1,531
Cash and short term deposits                                           8,990                 12,194
                                                                     _______               ________
                                                                      10,046                 13,725

CURRENT LIABILITIES
CREDITORS:  AMOUNTS FALLING DUE WITHIN ONE YEAR                      (1,983)                (1,428)
                                                                     _______               ________
NET CURRENT ASSETS                                                                8,063                 12,297
                                                                                _______                _______
TOTAL ASSETS LESS CURRENT LIABILITIES                                           424,152                343,549

CREDITORS:  AMOUNTS FALLING AFTER MORE THAN ONE YEAR                           (39,631)               (41,996)
                                                                                _______                _______
NET ASSETS                                                                      384,521                301,553
                                                                                _______                _______

CAPITAL AND RESERVES
Called-up share capital                                                          47,415                 47,455
Capital reserve - unrealised                                                    140,674                 76,050
Capital reserve - realised                                                       93,469                 79,200
Special reserve                                                                  85,520                 85,520
Capital redemption reserve                                                        8,792                  8,752
Share premium account                                                             4,285                  4,285
Revenue reserve                                                                   4,366                    291
                                                                                _______                _______
EQUITY SHAREHOLDERS' FUNDS                                                      384,521                301,553
                                                                                _______                _______

ADJUSTED NET ASSET VALUE PER SHARE (PENCE)                                       162.18                 127.06
                                                                                _______                _______





RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS (audited)


For the year ended 31
August 2007
                                       Capital    Capital              Capital    Share
                             Share     reserve    reserve  Special  redemption  premium  Warrant  Revenue
                           capital  unrealised   realised  reserve     reserve  account  reserve  reserve    Total
                             £'000       £'000      £'000    £'000       £'000    £'000    £'000    £'000    £'000
Balance at 31 August 2006   47,455      76,050     79,200   85,520       8,752    4,285        -      291  301,553
Return on ordinary               -      64,624     14,547        -           -        -        -    4,366   83,537
activities after taxation
Dividends paid                   -           -          -        -           -        -        -    (291)    (291)
Purchase of Ordinary          (40)           -      (278)        -          40        -        -        -    (278)
shares for cancellation
                             _____    ________     ______   ______    ________   ______   ______   ______   ______
Balance at 31 August 2007   47,415     140,674     93,469   85,520       8,792    4,285        -    4,366  384,521
                             _____    ________     ______   ______    ________   ______   ______   ______   ______

For the year ended 31                  Capital    Capital              Capital    Share
August 2006
                             Share     reserve    reserve  Special  redemption  premium  Warrant  Revenue
                           capital  unrealised   realised  reserve     reserve  account  reserve  reserve    Total
                             £'000       £'000      £'000    £'000       £'000    £'000    £'000    £'000    £'000
Balance at 31 August 2005   47,455      70,485     43,598   85,520       8,752    4,285    1,047  (3,048)  258,094
(restated)
Transfer of Warrant              -           -      1,047        -           -        -  (1,047)        -        -
reserve
Return on ordinary               -       5,565     34,555        -           -        -        -    3,339   43,459
activities after taxation
                             _____    ________     ______   ______    ________   ______   ______   ______   ______
Balance at 31 August 2006   47,455      76,050     79,200   85,520       8,752    4,285        -      291  301,553
                             _____    ________     ______   ______    ________   ______   ______   ______   ______



CASHFLOW STATEMENT
                                                                    Year ended            Year ended
                                                                  31 August 2007        31 August 2006
                                                                    £'000      £'000      £'000      £'000
NET CASH INFLOW FROM OPERATING ACTIVITIES                                      8,077                 7,153

SERVICING OF FINANCE
Interest paid                                                                (2,968)               (3,251)

TAXATION
Overseas tax paid                                                              (685)                 (603)

FINANCIAL INVESTMENT
Purchases of investments                                         (44,727)              (82,231)
Sales of investments                                               37,824                71,611
                                                                  _______                ______
NET CASH OUTFLOW FROM FINANCIAL INVESTMENT                                   (6,903)              (10,620)

EQUITY DIVIDENDS PAID                                                          (291)                     -
                                                                             _______               _______
NET CASH OUTFLOW BEFORE FINANCING                                            (2,770)               (7,321)

FINANCING
Buy back of Ordinary shares (including expenses)                               (278)                     -
                                                                             _______               _______
DECREASE IN CASH                                                             (3,048)               (7,321)
                                                                             _______               _______
RECONCILIATION OF NET CASH FLOW TO MOVEMENTS IN NET DEBT
Net debt at 1 September                                                     (29,802)              (24,618)
Net debt at 31 August                                                       (30,641)              (29,802)
                                                                             _______               _______
Movement in net debt in the year                                               (839)               (5,184)
Amortised Loan Note expenses                                                    (31)                  (31)
Foreign exchange differences                                                   2,240                 2,168
                                                                             _______               _______
Change in net debt resulting from cash flows                                 (3,048)               (7,321)
                                                                             _______               _______



NOTES:



1.  Accounting policies

    (a)    Basis of preparation and going concern

           The financial statements have been prepared under the
           historical cost convention as modified to include the revaluation of 
           investments and in accordance with applicable UK Accounting Standards 
           and with the Statement of Recommended Practice 'Financial Statements 
           of Investment Trust Companies' (issued January 2003 and revised in 
           December 2005).  They have also been prepared on the assumption that 
           approval as an investment trust will continue to be granted.  The 
           financial statements have been prepared on a going concern basis.



           The financial statements, and the net asset value per share
           figures, have been prepared in accordance with UK Generally Accepted
           Accounting Practice ('UK GAAP').


    (b)    Investments

           Listed investments have been designated upon initial
           recognition at fair value through profit and loss.  Investments are 
           recognised and de-recognised on the trade date where a purchase or 
           sale is under a contract whose terms require delivery within the 
           timeframe established by the market concerned and are initially 
           measured at fair value.  Transaction costs on purchases and sales are 
           taken through the Income Statement as part of the cost
           or sales consideration and are dealt within the capital column.  
           Subsequent to initial recognition, investments are valued at fair 
           value.  Gains and losses arising from changes in fair value are 
           included in net profit or loss for the period as a capital item in
           the Income Statement and are ultimately recognised
           in the capital reserve - unrealised.



    (c)    Income

           Dividends (other than special dividends), net of taxes deducted
           at source, are included in revenue by reference to the date on which 
           the investment is quoted ex-dividend.  Special dividends are reviewed 
           on a case-by-case basis and may be credited to capital, if 
           circumstances dictate. Dividends receivable on equity shares where 
           no ex-dividend date is quoted are brought into account when the 
           company's right to receive payment is established.
           Where the Company has elected to receive its dividends in the form of
           additional shares rather than cash, the amount of the cash dividend is
           recognised as income.  Any excess in the value of the shares received 
           over the amount of cash dividend is recognised in capital reserves.  
           Interest receivable on bank balances is dealt with on an accruals 
           basis.



     (d)   Expenses

           All expenses are accounted for on an accruals basis.  Loan interest is
           accountable on an effective interest rate basis.  Both are chargeable 
           to revenue.


           Transaction costs incurred on the purchase and disposal of investments 
           are recognised as a capital item in the Income Statement.



     (e)   Loan Notes

           Loan Notes are translated at the rates of exchange ruling on
           the Balance Sheet date and include unamortised issue expenses.  
           Issue expenses are amortised evenly over the life of the Loan Notes.



     (f)   Taxation

            The charge for taxation is based on the revenue return for the year.


            Deferred tax

            Deferred taxation is recognised in respect of all timing differences 
            that have originated but not reversed at the balance sheet date where 
            transactions or events that result in an obligation to pay more or a 
            right to pay less tax in future have occurred at the balance sheet 
            date measured on an undiscounted basis and based on enacted tax rates.  
            This is subject to deferred tax assets only being recognised if it is 
            considered more likely than not that there will be
            suitable profits from which the future reversal of the underlying
            timing differences can be deducted.  Timing differences are 
            differences arising between the Company's taxable profits and its 
            results as stated in the accounts which are capable of reversal in 
            one or more subsequent periods.  Due to the Company's status as an 
            investment trust, and the intention to continue to meet the
            conditions required to obtain approval for the foreseeable future, 
            the Company has not provided deferred tax on any capital gains and 
            losses arising on the revaluation or disposal of investments.



     (g)    Capital reserves

            Realised

            Gains or losses on investments realised in the period that have
            been recognised in the Income Statement are transferred to the 
            realised capital reserve.  In addition, any prior unrealised gains 
            or losses on such investments are transferred from the unrealised 
            capital reserve to realised capital reserve on disposal of the 
            investment.



            Unrealised

            Increases and decreases in the fair value of investments are
            recognised in the Income Statement and are then transferred to the 
            unrealised capital reserve.



     (h)    Foreign currency

            Transactions involving foreign currencies are translated at the
            rate ruling on the date of the transaction other than investment 
            income which is translated at the rate ruling on the date of receipt.  
            Assets and liabilities in foreign currencies are translated at the 
            rates of exchange ruling on the Balance Sheet date.



     (i)    Dividends payable

            Final dividends are dealt with in the period in which they are paid.



2.   The proposed final dividend of 1.1p per ordinary share in respect of
     the year ended 31 August 2007 will be paid on 14 December 2007 to 
     shareholders on the register at the close of business on 16 November 2007.  
     The ex-dividend date is 14 November 2007.



3.   The income statement, balance sheet, reconciliation of movements in
     shareholder funds 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 2006 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 2007 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 12 December 2007 
     at 11.00am.



4.   The Annual Report will be posted to shareholders in early November 2007
     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


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