Interim Results

16 April 2003

EDINBURGH DRAGON TRUST PLC
INTERIM RESULTS FOR THE SIX MONTHS ENDED 28 FEBRUARY 2003

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).


*    In aggregate the trust outperformed its benchmark index, the MSCI
     Combined Asia Free ex Japan Index, by 2.0%.

*    Geographically, the trust benefited from being overweight to China
     and Thailand which both performed well over the period.

*    Gearing has been increased from 5% to 10% in recent weeks to
     reflect the breadth of investment opportunity across Asia.

*    While there is volatility in international markets, the trust is
     more positive about Asia as her fortunes appear sustainable 
     particularly in areas of strong growth such as China and Thailand.


For further information please contact:-

Jeremy Whitley, Investment Manager
Edinburgh Fund Managers plc
0131 313 1000



Chairman's Statement

Over the six months to 28 February 2003, the trust's net asset value
fell 11.0% compared with a fall of 13.0% in its benchmark index, the
MSCI All Country Asia Free ex Japan index.

Performance
In aggregate the trust outperformed its benchmark index by 2.0% over the
period. The trust performed relatively well in these declining markets
aided by positive contributions from both asset allocation and stock
selection. The underlying equity portfolio, in the absence of gearing,
outperformed by 4.3%. However, the trust was hampered by its level of
gearing as the portfolio was, at most times, geared into these falling
markets and this impacted performance by (2.3%).  The extent of the
gearing had been reduced during September 2002, at the beginning of the
period under review, which served to reduce the impact of the declines.

Geographically, the trust benefited from being overweight to China and
Thailand which both performed well. In addition, the trust was aided by
good stock selection in China, Singapore and Taiwan.

Revenue account
For the six months to 28 February 2003 the revenue deficit represented
0.64p per share compared with a deficit of 0.32p for the six months to
28 February 2002.

Outlook
Given the current volatility of international equity markets, one is
naturally reluctant to forecast positive returns of any magnitude in the
foreseeable future. Nonetheless, it is possible to be more optimistic
with regard to Asia in a global context in that generally her fortunes
appear sustainable, whilst specifically there are investable areas of
strong growth eg China and Thailand.

On the macro economic front, current account balances have improved,
foreign exchange reserves have risen and lower interest rates are
fostering a period of sustainable consumer development. That is not to
say that there will be no more surprises along the way.  In addition, it
is difficult to predict the economic impact of the sudden outbreak of
Severe Acute Respiratory Syndrome (SARS).  Certainly recent events in
South Korea have highlighted the problems of excessive consumer
confidence and the dangers of unsecured borrowing. Nonetheless, there is
a general determination across the region to learn from recent mistakes,
to lend within strict credit guidelines and to drive forward more
proactive reforms which should ultimately lower the cost of capital.

Within the corporate framework, Asia has been aggressively repaying her
debts. Having survived the extreme pressures of the deflationary crisis
five years ago, Asia has learnt the benefits of deleverage. Debt has
either been paid down or rescheduled at more favourable rates or over
longer periods. This has enabled the resultant cash flow either to be
preserved or returned to shareholders in the form of higher dividends.
On the back of improving balance sheets, management has focused on
generating shareholder value rather than pursuing additional market
share at excessive cost or expanding capacity on the back of ever
optimistic forecasts. Certainly the returns on shareholders funds that
we are seeing across the region have shown a notable improvement over
the last five years.

The theme of deleverage and improved cash generation has also led to an
improvement in the financial system across Asia. As we approach the end
of the provisioning cycle, bank profitability is returning to pre-crisis
levels of 1998. This has enhanced the capital ratios of most financial
institutions and placed them in a stronger position to consider a
renewed, albeit prudent, cycle of lending.

The trust's long term strategy remains to invest in companies which are
likely to benefit from these and other specific sets of circumstances.
Aside from the themes of deleverage and improved cash generation, the
trust continues to benefit from the trend to outsource global
manufacturing production to a low cost environment (notably China), the
emergence of a strong domestic consumer fuelled by lower interest rates
(particularly Thailand) and the benefits of increased government
spending (Malaysia).

Given this breadth of investment opportunity across Asia the trust's
gearing has, in recent weeks, been increased from 5% to 10%.


Tony Cassidy
Chairman

16 April 2003


STATEMENT OF TOTAL RETURN
for the six months to 28 February 2003 (unaudited)
                                         Revenue     Capital       Total
                                            £000        £000        £000

Net gains on investments                       -    (15,740)      15,740
Net currency gains                             -       (329)       (329)
Investment income                          1,448           -       1,448
Interest receivable                          315           -         315
Other income                                  18           -          18
Investment management fee                  (730)           -       (730)
Administrative expenses                    (254)           -       (254)
                                        ________    ________    ________

Net return before finance costs and          797    (16,069)      15,272
taxation
Interest payable and similar charges     (2,161)           -     (2,161)
                                         _______     _______     _______
                                                                        
Return on ordinary activities before     (1,364)    (16,069)    (17,433)
taxation
Taxation                                    (76)           -        (76)
                                        ________    ________    ________

Return attributable to equity            (1,440)    (16,069)    (17,509)
shareholders                            ________    ________    ________
                                                                        
Return per ordinary share                (0.64p)     (7.09p)     (7.73p)
                                        ________    ________    ________

Diluted return per ordinary share        (0.64p)     (7.09p)     (7.73p)
                                        ________    ________    ________



for the six months to 28 February 2002 (unaudited)
                                           Revenue    Capital      Total
                                              £000       £000       £000

Net gains on investments                         -     20,031     20,031
Net currency gains                               -         79         79
Investment income                            2,041          -      2,041
Interest receivable                            755          -        755
Other income                                     2          -          2
Investment management fee                    (872)          -      (872)
Administrative expenses                      (241)          -      (241)
                                          ________   ________   ________

Net return before finance costs and          1,685     20,110     21,795
taxation
Interest payable and similar charges       (2,400)          -    (2,400)
                                          ________   ________   ________

Return on ordinary activities before         (715)     20,110     19,395
taxation
Taxation                                       (4)          -        (4)
                                          ________   ________   ________

Return attributable to equity                (719)     20,110     19,391
shareholders                              ________   ________   ________

                                                                        
Return per ordinary share                  (0.32p)      8.87p      8.55p
                                          ________   ________   ________

Diluted return per ordinary share          (0.32p)      8.87p      8.55p
                                          ________   ________   ________




STATEMENT OF TOTAL RETURN
for the year to 31 August 2002 (audited)
                                           Revenue    Capital      Total
                                              £000       £000       £000

Net losses on investments                        -    (7,091)    (7,091)
Net currency gains                               -    (1,712)    (1,712)
Investment income                            4,791          -      4,791
Interest receivable                          1,149          -      1,149
Other income                                    22          -         22
Investment management fee                  (1,741)          -    (1,741)
Administrative expenses                      (507)          -      (507)
                                          ________   ________   ________

Net return before finance costs and          3,714    (5,379)    (1,665)
taxation
Interest payable and similar charges       (4,659)          -    (4,659)
                                          ________   ________   ________

Return on ordinary activities before         (945)    (5,379)    (6,324)
taxation
Taxation                                     (165)          -      (165)
                                          ________   ________   ________

Return attributable to equity              (1,110)    (5,379)    (6,489)
shareholders                              ________   ________   ________

                                                                        
Return per ordinary share                  (0.49p)    (2.37p)    (2.86p)
                                          ________   ________   ________

Diluted return per ordinary share          (0.49p)    (2.37p)    (2.86p)
                                          ________   ________   ________



BALANCE SHEET (unaudited)
                                       At 28        At 31          At 28
                                    February       August       February
                                        2003         2002           2002
                                        £000         £000           £000
Fixed assets                                                            
Investments                          154,456      178,729        192,735
                                    ________     ________       ________
Current assets                                                          
Debtors                                  753        2,586            334
US Treasury Bills                     39,903       19,326         45,792
Cash and short term deposits           8,213       21,106         24,209
                                    ________     ________       ________
                                      48,871       43,018         70,335

                                                                        
Creditors: amounts falling due         1,985        1,812         11,516
after more than one year            ________     ________       ________
                                                                        
Net current assets                    46,886       41,206         58,819
                                    ________     ________       ________

Total assets less current            201,342      219,935        251,554
liabilities
                                                                        
Creditors: amounts falling due        60,144       61,228         66,966
after more than one year
                                    ________     ________       ________
                                     141,198      158,707        184,588
                                    ________     ________       ________

Capital and reserves                                                    
Called up share capital - equity      45,325       45,325         45,325
Other reserves                        95,873      113,382        139,263
                                    ________     ________       ________
Total equity shareholders' funds     141,198      158,707        184,588
                                    ________     ________       ________
                                                                        
Adjusted net asset value per          62.23p       69.95p         81.36p
share
                                                                        
Adjusted diluted net asset value      62.13p       69.50p         80.40p
per share



CASHFLOW STATEMENT
(unaudited)
                                For the six    For the six       For the
                                  months to      months to       year to
                                28 February    28 February     31 August
                                       2003           2002          2002
                                       £000           £000          £000
                                                                        
Revenue before finance costs            797          1,685         3,714
and taxation
Increase in accrued income            (220)            216          (31)
Decrease in other debtors                15             33            13
Decrease in creditors                 (102)              2          (68)
                                   ________       ________      ________

Net cash inflow from                                                    
operating activities                    490          1,936         3,628

Net cash outflow from               (2,163)        (2,401)       (4,688)
servicing of finance
Total tax paid                         (39)            149           (3)
Net cash inflow from                 10,825         13,012      (11,693)
financial investment               ________       ________      ________

Net cash inflow before                9,113         12,696      (12,750)
financing
Net cash inflow from                      -            (1)             -
financing
Management of liquid               (21,202)       (13,184)        10,675
resources                          ________       ________      ________

DECREASE IN CASH AND CASH                                               
EQUIVALENTS                        (12,089)          (487)       (2,075)
                                   ________       ________      ________


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
2002 have been applied

2. There will be no interim dividend for the year to 31 August 2003;
shareholders are reminded that the objective of the company is long term
capital appreciation.

3. As at 28 February 2003, there were 226,628,835 ordinary shares and
10,648,040 warrants in issue.

4. The financial information for the year ended 31 August 2002, has been
extracted from the Annual report and accounts of the company which have
been filed with the Registrar of Companies.  The auditor's report on
those accounts was unqualified.

5. The statement of total return and balance sheet set out do not
represent full accounts in accordance with Section 240 of the Companies
Act 1985.

6. The interim report will be posted to shareholders in early May.


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