Interim Results

NEWS RELEASE

29 April 2005



                           EDINBURGH DRAGON TRUST PLC

            INTERIM RESULTS FOR THE SIX MONTHS ENDED 28 FEBRUARY 2005

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 Countries Asia Free (ex Japan).

·  The Trust's net asset value rose by 12.3% to 94.5p per share compared to a
   rise in the MSCI A/C Asia Free Ex Japan Index of 15.3%.
·  The share price rose 26.1% to 88.25p reflecting a sharp narrowing in the
   discount  from 16.8% to 6.6%.  The discount is now in line with the  sector
   average.
·  The economic picture across Asia remains encouraging with strong intra-
   regional trade, healthy domestic consumption and rising business investment.
   With a geared portfolio, the trust should benefit from any strength in the Asian
   markets.


For further information please contact:-

Jeremy Whitley, Investment Manager,           0065 6395 2700
Edinburgh Fund Managers

Ian Massie, Director - Investment Trusts       0131 313 1000
Edinburgh Fund Managers


Chairman's Statement

Performance
Over  the  six months to 28 February 2005, the trust's net asset value  rose  by
12.3%  to 94.53p per share compared with a rise of 15.3% in its benchmark index,
the MSCI All Country Asia Free (ex Japan) Index. Over the same period, the share
price  rose  26.1% to 88.25p reflecting a sharp narrowing in the  discount  from
16.8%  to 6.6%.   The underperformance of the net asset value was the result  of
portfolio underperformance and the dilutive effect following the exercise of the
warrants.

It is pleasing to report that the trust's discount to net asset value declined a
full  10%  in the six month period. The discount is now in line with the  sector
average.

Asian stockmarkets
Asian  markets have gained momentum across the board. A summer of caution caused
by  rising  oil  prices and interest rates gave way to a strong fourth  quarter,
underpinned by healthy economic data and solid corporate profits.

South  Korea and Hong Kong reacted positively to interest rate cuts  -  in  Hong
Kong  because  of excess liquidity; in South Korea, in response to  sluggishness
following a domestic stockmarket bubble. Firm economic data and strong corporate
earnings enabled Indian equities to rally strongly. Thailand, which for most  of
2004 had failed to make headway on higher oil prices and ethnic violence in  the
south, has also regained some lost ground in recent months.

The  economic picture across Asia was generally upbeat. Stronger trade, domestic
consumption  and  rising business investment were the main factors  driving  the
economic  expansion. China led on growth as initial concerns  about  a  possible
hard  landing for the economy proved to be exaggerated. Growth was also  evident
in  India,  where stocks recovered from initial market volatility following  the
general election. In Malaysia, prime minister Badawi's resolve to clamp down  on
corruption  and  restructure government-linked companies  was  reflected  in  an
upgrade  of  the country's sovereign rating and a healthy economic  performance.
Meanwhile,  Singapore  registered full-year growth  of  8.1%  in  2004,  thereby
emerging as the second-fastest growing economy in Asia after China.

The  devastating Indian Ocean tsunami which struck on Boxing Day tragically left
more  than  250,000  people dead in Indonesia, Thailand, Sri  Lanka  and  India.
However,  in spite of the violent destruction and great loss of human life,  the
economic  impact  appears limited; and as if to confirm the  brutally  objective
reaction of capital markets to extraordinary events, the stock markets in  those
particular countries have performed strongly in recent weeks.

Revenue account
For the six months to 28 February 2005 the revenue account recorded a deficit of
£278,000 representing 0.12p per share compared with a deficit of 0.50p per share
for the six months to 29 February 2004. The trust is forecast to make a positive
revenue  return for the 12 month period to 31 August 2005 reflecting the greater
dividend  paying capability of Asian companies following six years of successful
restructuring activities undertaken in response to the Asian crisis of 1997.

Exercise of Warrants
The final exercise date for the Warrants was 31 January 2005.  Approximately 8.1
million  Warrantholders exercised their rights to convert  their  Warrants  into
Ordinary  shares.  As determined under the terms of the warrant instrument,  the
Company appointed The Law Debenture Trust Corporation to act as trustee for  the
remaining  2.4  million Warrantholders.  The trustee exercised the  subscription
rights  on behalf of the remaining Warrantholders, the resulting Ordinary shares
were  sold  in  the  market  and  the appropriate proceeds  distributed  to  the
Warrantholders.

As  a  result of the final Warrant conversion exercise 10.5 million new Ordinary
shares  were  issued and listed and rank pari passu with the  existing  Ordinary
shares.

Outlook
Against  the  uncertain  backdrop of a declining US  dollar  and  slower  global
growth,  2005  is  shaping up to be a more challenging year for Asian  economies
after  the  strong  recovery seen in 2004 once fears  of  a  SARS  flu  epidemic
subsided.   The  global  economic  growth  profile  looks  to  be  decelerating,
particularly in the United States. Whilst this might help to correct some of the
imbalances in the US economy such as the twin deficits (both trade and  fiscal),
it  bodes  ill  for the rest of the world as it seems unlikely  that  any  other
developed economy will be in a position to take up the slack. In economic  terms
we  expect  Asia  to  do  relatively well, driven by a  continuation  of  rising
domestic demand and increasing inward investment from foreigners. However,  2005
earnings growth is likely to be more muted than 2004 as earnings are coming  off
a higher base.

The  view  on  China  as an economic generator remains.  Extensive  research  on
Chinese  companies is undertaken by the Manager's investment team, although  the
trust's exposure to China continues to be obtained through holdings in Hong Kong
listed companies.  This position is closely monitored.

While  valuations in Asian markets are no longer cheap, balance sheets are  much
stronger  and  corporate  governance has improved.   This,  we  believe,  should
provide  impetus for the market.  We will, however, continue to focus on balance
sheet  strength,  cashflow generation and the ability  of  management  to  drive
shareholder value through dividend increases or improved returns on capital.  We
will remain prudent on valuations.



Tony Cassidy
Chairman
29 April 2005



STATEMENT OF TOTAL RETURN
for the six months to 28 February 2005 (unaudited)
                                     Revenue     Capital      Total
                                        £000        £000       £000
Net gains on investments                   -      26,175     26,175
Net currency gains                         -       1,207      1,207
Investment income                      2,382           -      2,382
Interest receivable                      220           -        220
Other income                              60           -         60
Investment management fee             (1,068)          -     (1,068)
Administrative expenses                 (329)          -       (329)
                                      ______      ______     ______
Net return before finance costs        1,265      27,382     28,647
and taxation
Interest payable and similar          (1,452)          -     (1,452)
charges
                                      ______      ______     ______
Return on ordinary activities           (187)     27,382     27,195
before taxation
Taxation                                 (91)        (21)      (112)
                                      ______      ______     ______
Return attributable to equity           (278)     27,361     27,083
shareholders
                                      ______      ______     ______

Return per ordinary share             (0.12p)     12.01p     11.89p
                                      ______      ______     ______



for the six months to 29 February 2004 (unaudited)
                                     Revenue     Capital      Total
                                        £000        £000       £000
Net gains on investments                   -      18,920     18,920
Net currency gains                         -       1,131      1,131
Currency gain on repayment of              -       1,237      1,237
currency loan
Repayment penalty on currency loan         -      (1,105)    (1,105)
Investment income                      1,931           -      1,931
Interest receivable                      139           -        139
Other income                              96           -         96
Investment management fee             (1,028)          -     (1,028)
Administrative expenses                (327)           -      (327)
                                      ______      ______     ______
Net return before finance costs          811      20,183     20,994
and taxation
Interest payable and similar          (1,850)          -     (1,850)
charges
                                      ______      ______     ______
Return on ordinary activities         (1,039)     20,183     19,144
before taxation
Taxation                                 (85)          -        (85)
                                      ______      ______     ______
Return attributable to equity        (1,124)      20,183     19,059
shareholders
                                      ______      ______     ______

Return per ordinary share             (0.50p)      8.91p      8.41p
                                      ______      ______     ______
Diluted return per ordinary share     (0.49p)      8.82p      8.33p
                                      ______      ______     ______



STATEMENT OF TOTAL RETURN
for the year ended 31 August 2004 (audited)
                                  Revenue   Capital       Total
                                     £000      £000        £000
Net losses on investments               -    (2,865)     (2,865)
Net currency gains                      -        33          33
Currency gain on repayment of           -     1,237       1,237
currency loan
Repayment penalty on currency           -    (1,105)     (1,105)
loan
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     3,986    (2,700)      1,286
and taxation
Interest payable and similar       (3,493)        -      (3,493)
charges
                                   ______    ______      ______
Return on ordinary activities         493    (2,700)     (2,207)
before taxation
Taxation                            (415)       (40)       (455)
                                   ______    ______      ______
Return attributable to equity          78    (2,740)     (2,662)
shareholders
                                   ______    ______      ______
Return per ordinary share           0.04p    (1.21p)     (1.17p)
                                   ______    ______      ______

BALANCE SHEET
                                   (Unaudited)   (Audited)  (Unaudited)
                                        At 28       At 31        At 29
                                     February      August     February
                                         2005        2004         2004
                                         £000        £000         £000
Fixed assets
Investments                           243,673     199,463      235,254
                                       ______      ______     ______
Current assets
Debtors                                 2,152         610          693
US Treasury Bills                       5,168      31,028       13,984
Cash and short term deposits           16,567       5,850        8,103
                                       ______      ______       ______
                                       23,887      37,488       22,780

Creditors: amounts falling due          1,725       1,591        2,331
within one year
                                       ______      ______       ______
Net current assets                     22,162      35,897       20,449
                                       ______      ______       ______
Total assets less current             265,835     235,360      255,703
liabilities

Creditors: amounts falling due         41,435      44,347       42,969
after more than one year
                                       ______      ______       ______
                                      224,400     191,013      212,734
                                       ______      ______       ______
Capital and reserves
Called up share capital - equity       47,455      45,354       45,354
Other reserves                        176,945     145,659      167,380
                                       ______      ______       ______
Total equity shareholders' funds      224,400     191,013      212,734
                                       ______      ______       ______

Adjusted net asset value per           94.53p      84.18p       93.75p
share

Adjusted diluted net asset value            -      83.11p       92.26p
per share

CASHFLOW STATEMENT
                                   (Unaudited)    (Unaudited)   (Audited)
                                      For the         For the     For the
                                six months to   six months to     year to
                                  28 February     29 February   31 August
                                         2005            2004        2004
                                         £000            £000        £000

Revenue before finance costs and        1,265             811       3,986
taxation
(Increase)/derease in accrued             150             194         250
income
(Increase)/decrease in other               (7)            (15)          2
debtors
Increase in creditors                       4              32         148
                                       ______           ______     ______
Net cash inflow from operating          1,112           1,022       4,386
activities
Net cash outflow from servicing        (1,490)          (2,158)    (3,761)
of finance
Total tax paid                           (101)            (114)      (475)
Net cash inflow/(outflow) from        (19,247)           3,418     16,542
financial investment
                                       ______           ______     ______
Net cash inflow/(outflow) before     (19,726)           2,168      16,692
financing
Net cash inflow/(outflow) from          6,303          (9,016)     (9,016)
financing
Management of liquid resources         24,913          14,242      (2,368)
                                       ______           ______     ______
INCREASE IN CASH AND CASH              11,490           7,394       5,308
EQUIVALENTS
                                       ______           ______     ______


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 2004 have  been
   applied
2. There  will  be  no  interim  dividend  for  the  year  to  31  August  2005;
   shareholders  are  reminded that the objective of the company  is  long  term
   capital appreciation.
3. As  at  28  February 2005, there were 237,276,875 ordinary shares  in  issue.
   During the period 10.5 million new ordinary shares were issued following  the
   final warrant subscription on 31 January 2005.
4. The  financial  information  for the year ended  31  August  2004,  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 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
                                                                                 the  half
year ended 28 February 2005

In  accordance  with the terms of our engagement letter dated 6 April  2005,  we
have reviewed the attached proposed preliminary announcement of Edinburgh Dragon
Trust  plc  for the half year ended 28 February 2005 ('the prelim'). Our  review
was  conducted having regard to Bulletin 1998/7 issued by the Auditing Practices
Board. As directors you are responsible for preparing and issuing the prelim.

Our  responsibility is solely to give our agreement to the prelim. On the  basis
of  our review, we confirm that in our opinion the financial information in  the
prelim is consistent with the unaudited Interim Report and that we are not aware
of  anything  in  the  management  commentary which  is  in  conflict  with  the
information  that we have obtained during our Independent Review.   Accordingly,
we agree to the prelim's being notified to the London Stock Exchange.

This  report is solely for the information of the Directors of Edinburgh  Dragon
Trust  plc and is not to be quoted or referred to, in whole or in part,  without
our prior written consent.

We  consent to the reference in the prelim in note 4, to our audit report on the
financial statements for the year ended 31 August 2004.

Yours faithfully
KPMG Audit Plc
Chartered Accountants
29 April 2005