Interim Results

Edinburgh Dragon Trust PLC
26 March 2001

26 March 2001


                          EDINBURGH DRAGON TRUST PLC

                               INTERIM RESULTS


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 in excess of £8 billion.




            Interim Results for Six Months Ended 28 February 2001


  * The trust's undiluted net asset value fell by 12.9% compared to a fall
    in the MSCI Combined Asia Free ex Japan benchmark index of 15.5%, an
    outperformance of 2.6%


  * The relative outperformance was due to a combination of good stock
    selection and asset allocation


  * The trust benefited from a high exposure to Hong Kong and particularly
    to the property sector there.


  * Gearing will be utilised in the months ahead, reflecting the cautious
    optimism towards the region

For further information please contact:-


Alistair Thompson, Investment Manager

Edinburgh Fund Managers plc         0131 313 1000


Alex Gowans, Director

Edinburgh Fund Managers plc          0131 313 1000


Chairman's Statement

Performance


Over the six months to 28 February 2001, the trust's net asset value fell
12.9% compared with a fall of 15.5% in its benchmark index, the MSCI Combined
Asia Free ex Japan Index. The largest declines were Taiwan and Korea, which
fell 28% and 25% respectively in sterling terms. The biggest factor affecting
Asian equity markets has been the sharp slowdown in the US economy. Both Korea
and Taiwan are heavily reliant on demand for electronics goods, which has
fallen sharply resulting in a rapid increase in inventories.


The relative outperformance of 2.6% against the benchmark is a combination of
both good asset allocation and stock selection. Stock selection gave a
positive contribution of 1.8%, whilst asset allocation accounted for the 0.8%
balance. The fund benefited from a high exposure to Hong Kong, where sectors
such as technology and telecommunications are not as highly represented as in
Korea and Taiwan.


Good stock selection in Hong Kong helped offset declines. This was largely due
to exposure to the property sector, which rose strongly on account of falling
interest rates and rising affordability. The sector had also performed poorly
during the preceding eighteen months relative to the benchmark. Office
property stocks rose particularly strongly as rents have doubled from their
lows after the crisis in 1998 and are now close to the highs seen at 1997 peak
levels. Hong Kong Land rose 28% and Wharf was up 23%. The portfolio's poorest
performers were in electronics companies such as Samsung Electronics and
Taiwan Semiconductor. Both fell in excess of 35%.




Revenue


For the six months to 28 February 2001, the revenue deficit represented 0.38p
per share compared with a deficit of 0.77p for the six months to 29 February
2000. The lower deficit was due to an increase in interest receivable as a
consequence of higher cash balances.


Outlook


The key to the short-term performance of Asian equity markets is the depth and
extent of the contraction in the US economy, as the region is heavily reliant
on the American consumer continuing to spend. Provided the US economy does not
enter a prolonged recession we believe that most Asian markets should perform
well.


As the most indebted and cyclical region in the world, Asia is the biggest
beneficiary of falling global interest rates and of any rebound in world
economic growth.


Equity valuations are at very low levels, earnings expectations have already
been cut aggressively and it is felt many of the risks are being factored in.


The long-term outlook is dependent on Asian companies continuing to
restructure and their governments pushing through more aggressive reform,
which will not be easy when coinciding with an economic downturn. This is
arguably the biggest challenge.


Whilst in the short-term the risks are still high, interest rates will
continue to be cut, inventories will reduce and we believe growth should
recover towards the end of the year. This cautious optimism is reflected in
the trust's decision to utilise gearing for the first time in a number of
months, a consequence of the increasing number of attractive investment
opportunities arising.




Tony Cassidy, Chairman

26 March 2001







STATEMENT OF TOTAL RETURN

for the six months to 28 February 2001 (unaudited)

                                              Revenue      Capital        Total
                                                 £000         £000         £000
Losses on investments                              -      (29,307)     (29,307)
Currency losses                                    -       (1,278)      (1,278)
Buy-back of warrants                               -            -            -
Investment income                              1,534            -        1,534
Interest receivable                             1,553           -         1,553
Other income                                      28            -           28
Investment management fee                     (1,035)           -       (1,035)
Administrative expenses                         (391)           -         (391)


Net return before finance costs and             1,689     (30,585)     (28,896)
taxation
Interest payable and similar charges          (2,550)           -       (2,550)


Return on ordinary activities before            (861)     (30,585)     (31,446)
taxation
Taxation                                          (9)           -           (9)


Return attributable to equity                   (870)     (30,585)     (31,455)
shareholders



Return per ordinary share                     (0.38p)     (13.49p)     (13.87p)


Diluted return per ordinary share             (0.38p)     (13.34p)     (13.72p)




________________________________________________________________________________

STATEMENT OF TOTAL RETURN

for the six months to 29 February 2000(unaudited)

                                              Revenue      Capital        Total
                                                 £000         £000         £000
Gains on investments                               -       56,648       56,648
Currency losses                                    -         (666)        (666)
Buy-back of warrants                               -         (198)        (198)
Investment income                              1,442            -        1,442
Interest receivable                              527            -          527
Other income                                      20            -           20
Investment management fee                     (1,169)           -       (1,169)
Administrative expenses                         (395)           -         (395)


Net return before finance costs and              425       55,784       56,209
taxation
Interest payable and similar charges          (2,170)           -       (2,170)


Return on ordinary activities before          (1,745)      55,784       54,039
taxation
Taxation                                         (12)           -          (12)


Return attributable to equity                 (1,757)      55,784       54,027
shareholders



Return per ordinary share                     (0.77p)       24.48p       23.71p


Diluted return per ordinary share             (0.76p)       24.20p       23.44p



STATEMENT OF TOTAL RETURN

for the year to 31 August 2000 (audited)

                                              Revenue      Capital        Total
                                                 £000         £000         £000
Gains on investments                               -       46,834       46,834
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            2,554       42,669       45,223
taxation
Interest payable and similar charges          (4,583)           -       (4,583)


Return on ordinary activities before          (2,029)      42,669       40,640
taxation
Taxation                                        (236)           -         (236)


Return attributable to equity                 (2,265)      42,669       40,404
shareholders



Return per ordinary share                     (1.00p)       18.76p       17.76p


Diluted return per ordinary share             (0.98p)       18.51p       17.53p



________________________________________________________________________________



BALANCE SHEET (unaudited)
                                               At 28       At 31          At 29
                                       February 2001 August 2000  February 2000
                                                £000        £000           £000
Fixed assets
Investments                                  215,190      279,291       307,490

Current assets                                64,575       38,011        11,806

Creditors: amounts falling due within          1,840        8,149         1,677
one year

Net current assets                            62,735       29,862        10,129

Total assets less current liabilities        277,925      309,153       317,619

Creditors: amounts falling due after
more than one year                            65,620       65,045        59,914

                                             212,305      244,108       257,705

Capital and reserves
Called up share capital - equity              45,326       45,415        45,413
Other reserves                               166,979      198,693       212,292

Total shareholders' funds relating to        212,305      244,108       257,705
equity interests

Net asset value per ordinary share            93.57p      107.39p       113.38p

Diluted net asset value per share             92.06p      105.26p       110.99p




CASHFLOW STATEMENT
(unaudited)
                                        For the six    For the six     For the
                                          months to      months to     year to
                                        28 February    29 February   31 August
                                               2001           2000        2000
                                               £000           £000        £000

Revenue before finance costs and              1,689            425        2,554
taxation
Decrease/(increase) in accrued                  197            230        (243)
income
Decrease/(increase) in other                     45              2         (19)
debtors
Increase/ (decrease) in creditors                 9            235          118
                                               ----            ----        ----
Net cash inflow from operating                1,940            892        2,410
activities
Net cash outflow from servicing of          (2,377)         (2,156)     (4,454)
finance
Total tax received /(paid)                       93           (158)        (80)
Net cash inflow/ (outflow) from              27,080        (12,564)      12,000
financial investment
                                               ----            ----        ----
Net cash inflow/ (outflow) before          (26,736)        (13,896)       9,876
financing
Net cash outflow from financing               (347)         (1,996)     (1,989)

Management of liquid resources             (23,996)          9,255      (3,627)
                                               ----            ----        ----
Increase/ (Decrease) in cash and
cash equivalents                              2,393         (6,727)       4,260
                                               ----            ----        ----




NOTES :


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

        2.     There will be no interim dividend for the year ending 31 August
        2001.

        3.     The statement of total return and the balance sheet 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 and contained an unqualified auditors' report.

        4.     The Interim Report will be posted to shareholders on 12 April
        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

David Holland

Company Secretary


Ends