Interim Results

Atlantis Japan Growth Fund Ld
29 January 2004

FOR IMMEDIATE RELEASE

RELEASED BY MANAGEMENT INTERNATIONAL (GUERNSEY) LIMITED

ATLANTIS JAPAN GROWTH FUND LIMITED

PRELIMINARY ANNOUNCEMENT

THE BOARD OF DIRECTORS OF ATLANTIS JAPAN GROWTH FUND LIMITED ANNOUNCE UNAUDITED
RESULTS FOR THE SIX MONTHS ENDED 31 OCTOBER 2003:

                            UNAUDITED BALANCE SHEET

                             As at 31 October 2003

                      (Expressed in United States Dollars)


                                                        2003       2002 
                                                       $'000      $'000 
        FIXED ASSETS                                                   
        Investments at market value                  314,734    196,104
        (cost $221,833,181; 2002 - $223,032,457)                       

        CURRENT ASSETS                                                 
        Due from brokers                               1,972        354
        Dividends and interest receivable                629        400
        Other debtors                                     10          -
        Bank balances                                  7,722      4,938
                                                      10,333      5,692
        CURRENT LIABILITIES                                            
        Due to brokers                                 4,242      1,063
        Creditors and accrued expenses                   538        435
        Loans payable                                 40,876     24,433

                                                      45,656     25,931

        NET CURRENT LIABILITIES                     (35,323)   (20,239)

        TOTAL NET ASSETS                            $279,411   $175,865
        Represented by:                                                
        CAPITAL & RESERVES                                             
        Called-up share capital                          204        204
        Share premium                                192,650    192,650
        Other reserves                                86,557   (16,989)
        TOTAL SHAREHOLDERS' FUNDS                   $279,411   $175,865

        NET ASSET VALUE PER ORDINARY                  $13.67      $8.61
        SHARE                                                          


Based on 20,435,627 (2002 - 20,435,627) ordinary shares and a Net Asset Value
of $279,411,000 (2002 - $175,865,000)




                       UNAUDITED STATEMENT OF TOTAL RETURN

                       (incorporating the Revenue Account)

                    For the six months ended 31 October 2003

                      (Expressed in United States Dollars)

                                                                              
                                                Revenue    Capital      Total 
                                                  $'000      $'000      $'000 

  Realised profit on sales of investments             -      5,372      5,372 
  Unrealised appreciation of investments              -    104,106    104,106 
  Exchange gain/(loss)                              327    (2,210)    (1,883) 
  Investment income                               1,287          -      1,287 
  Deposit interest                                    6          -          6 

                                                  1,620    107,268    108,888 

  Investment management fee                       1,620          -      1,620 
  Custodian fees                                    114          -        114 
  Administration fees                               103          -        103 
  Registrar and transfer agent fees                   7          -          7 
  Directors' fees and expenses                       48          -         48 
  Interest expense and bank charges                 116          -        116 
  Audit fee                                          16          -         16 
  Printing and advertising fees                      17          -         17 
  Legal and professional fees                        20          -         20 
  Listing fees                                       15          -         15 
  Miscellaneous expenses                              3          -          3 

                                                  2,079          -      2,079 

  (DEFICIT)/ RETURN ON ORDINARY                                               
  ACTIVITIES BEFORE TAX                           (459)    107,268    106,809 

  Tax on ordinary activities                      (193)          -      (193) 

  (DEFICIT)/ RETURN ATTRIBUTABLE                                              
  TO EQUITY SHAREHOLDERS                          (652)    107,268    106,616 

  (DEFICIT)/ RETURN PER                                                       
  ORDINARY SHARE :                             $(0.032)     $5.249     $5.217 

Based on the weighted average of 20,435,627 Ordinary Shares and the
(Deficit)/ Return Attributable to Equity Shareholders noted above.



                       UNAUDITED STATEMENT OF TOTAL RETURN

                       (incorporating the Revenue Account)

                     For the six months ended 31 October 2003

                       (Expressed in United States Dollars)

                                                                              
                                              Revenue     Capital       Total 
                                                $'000       $'000       $'000 

  Realised loss on sales of investments             -    (13,798)    (13,798) 
  Unrealised depreciation of investments            -     (5,043)     (5,043) 
  Exchange gain/(loss)                             60     (1,318)     (1,258) 
  Investment income                             1,001           -       1,001 
  Deposit interest                                 13           -          13 

                                                1,074    (20,159)    (19,085) 

  Investment management fee                     1,508           -       1,508 
  Custodian fees                                  109           -         109 
  Administration fees                             114           -         114 
  Registrar and transfer agent fees                 3           -           3 
  Directors' fees and expenses                     62           -          62 
  Interest expense and bank charges               137           -         137 
  Audit fee                                         8           -           8 
  Printing and advertising fees                    30           -          30 
  Legal and professional fees                      46           -          46 
  Listing fees                                     14           -          14 
  Miscellaneous expenses                            1           -           1 

                                                2,032           -       2,032 

  DEFICIT ON ORDINARY                                                         
  ACTIVITIES BEFORE TAX                         (958)    (20,159)    (21,117) 

  Tax on ordinary activities                    (150)           -       (150) 

  DEFICIT ATTRIBUTABLE TO                                                     
  EQUITY SHAREHOLDERS                         (1,108)    (20,159)    (21,267) 
  DEFICIT RETURN PER                                                          
  ORDINARY SHARE :                           $(0.054)    $(0.986)    $(1.040) 


Based on the weighted average of 20,435,627 Ordinary Shares and the Deficit
Attributable to Equity Shareholders noted above.



                          UNAUDITED STATEMENT OF CASH FLOWS

                       For the six months ended 31 October 2003

                          (Expressed in United States Dollars)

                                                                              
                                               2003                     2002    
                                  $'000        $'000       $'000        $'000 
  OPERATING ACTIVITIES                                                        
  Net cash inflow/(outflow)                      181                    (326) 
  from operating activities                                                   

  SERVICING OF FINANCE                                                        
  Interest paid                                (116)                    (142) 

  FINANCIAL INVESTMENT                                                        
  Purchase of investments      (92,551)                 (91,306)              
  Sale of investments            85,672                   95,415              
  Net cash (outflow)/inflow                                                   
  from investing activities                  (6,879)                    4,109 

  (Decrease)/Increase in                     (6,814)                    3,641 
  cash                                                                        

  RECONCILIATION OF NET CASH FLOW TO                                          
  MOVEMENT IN NET DEBT                                                        
  (Decrease)/Increase in cash as above       (6,814)                    3,641 
  Exchange movements                         (2,210)                  (1,318) 
  Movement in net debt in                    (9,024)                    2,323 
  the period                                                                  
  Net debt at 1st May                       (24,130)                 (21,818) 
  Net debt at 31st October                 $(33,154)                $(19,495) 





                       ATLANTIS JAPAN GROWTH FUND LIMITED

                          INVESTMENT MANAGER'S REPORT

                   FOR THE SIX MONTHS ENDED 31ST OCTOBER 2003

PERFORMANCE

In the six-month period ended 31st October 2003, the Company's Net Asset Value
increased by 61.6% in U.S. dollar terms, aided by a rising stock market, the
strengthening of the Japanese yen, and good individual stock selection, bringing
Net Asset Value per share to $13.67 at period-end. In comparison, the Tokyo
First Market index (Topix) rose 42.1% while the Tokyo Second Market index rose
53.3% in dollar terms.

Since inception on 10th May 1996, Net Asset Value per share in U.S. dollar terms
has risen 37.8%. This compares with a -41.3% decline in the Topix and a -5.6%
decline in the Tokyo Second Market index as measured in U.S. dollars.

As of the end of October 2003, the Net Asset Value of the Fund stood at
US$279,411,096, the Fund had borrowings of Y4.5 billion and cash of Y597
million. On a net basis, the Fund was leveraged about 12.7%. The manager had no
currency hedges as of 31st October, meaning the Fund's value in U.S. dollar
terms benefits from a stronger Japanese yen and, conversely, would be hurt by a
weaker yen. During the six-month period under review the yen appreciated 8.7%
versus the U.S. dollar, moving from Y119.475/US$ to Y109.05/US$, and thereby had
a favourable impact on the value of the Fund.

There are no outstanding warrants and the number of outstanding shares remains
at 20,435,627.

MARKET OUTLOOK

The market outlook was filled with uncertainty at the beginning of the period
under review, with worries about the domestic economic outlook and corporate
earnings trends compounded by aggressive selling by domestic pension funds and
retail investors. Following an extremely weak April, when some Japanese market
indices fell to twenty-year lows, we have seen a number of favourable
developments that have worked to bring about a major change in market sentiment
and push stock prices sharply higher over the last six months (see figures
above).

The corporate earnings outlook has improved, aided by continued restructuring
and stronger-than-expected growth in the Japanese economy, where the main
drivers of growth have been exports, capital investment, and consumer spending.

The market has naturally been helped by renewed optimism that the economy is
slowly recovering, and we believe troubles in the financial sector, including
problems at the major city banks and some life insurance companies, have been
almost fully discounted.






                       ATLANTIS JAPAN GROWTH FUND LIMITED

                    INVESTMENT MANAGER'S REPORT (continued)

                   FOR THE SIX MONTHS ENDED 31ST OCTOBER 2003

Until recently, the main buyers in the market have been overseas investors and
broker trading accounts in some months. While Japanese corporations have
continued to buy back shares, corporate pension funds have been steady sellers
as many companies return their pension accounts to the government, which only
invests a small portion of the money returned into equities. Banks have also
been sellers and have aimed to raise cash to improve their financial condition.
In recent months we have seen net buying in some weeks by local retail investors
and local investment trusts, indicating that individual investors may soon
become net buyers.

Trading volume increased steadily during the period under review. This is
attributable in part to a pickup in trading by local individual investors using
online brokerage accounts.

Looking ahead, we see a number of fundamental factors potentially affecting the
Japanese stock market. These include trends in the domestic economy, progress in
corporate restructuring, corporate earnings growth and growth prospects, the
yen-dollar exchange rate (with too much strengthening of the yen being negative,
since it could dampen exports, which are currently an important growth driver
for the economy), progress toward government reform, and monetary policy (which
is still expansionary at this time). Outside of Japan, factors that could
potentially affect the Japanese stock market include trends in other world
markets, especially the U.S. market, and trends in the world economy. Selling by
overseas investors or even less buying could also hold down the market.

On the domestic political front, we note that Prime Minister Koizumi's Liberal
Democratic Party and its coalition partners maintained their majority in the
recent Lower House elections. This should mean that we can look forward to a
stable government and a gradual move toward further economic reforms, which
would also be another plus for the economy. At this time we believe Japan is
moving in the right direction and, hopefully, over the longer term this will
provide further support to the stock market.

OUR STRATEGY AND THE PORTFOLIO

We are looking for favourable growth in corporate earnings in the current fiscal
year ending March 2004, underpinned by ongoing corporate restructuring and
stronger-than-expected GDP growth. We expect the earnings expansion to continue
in the next fiscal year (ending March 2005) as corporations continue to
streamline operations and the domestic economy continues to recover.

Small and medium-sized companies appear to be doing especially well in the
current economic environment. We would attribute this to their general
flexibility, focus, ability to make faster decisions, and the presence of less
'deadwood' in their operations. This is the exact opposite of many old-line
Japanese companies, which are highly bureaucratic, lacking in focus, slow to
change, and generally overstaffed.




                       ATLANTIS JAPAN GROWTH FUND LIMITED

                    INVESTMENT MANAGER'S REPORT (continued)

                   FOR THE SIX MONTHS ENDED 31ST OCTOBER 2003

At this time, we are still finding many attractive buy candidates, primarily
among small and medium-sized companies. Some of these companies have been listed
on the stock exchange only recently and are not yet well known. With some of
these also having small market floats, we usually restrict our holdings in any
one stock as a means of limiting risk. We do make mistakes, and we recognize
that when something goes wrong it may be difficult or even impossible to sell
our holdings in these smaller companies. This helps to explain the large number
of stocks in our portfolio.

As always, we remain bottom-up investors, stressing individual stock selection
and not sector analysis or indexing. We aim to buy undervalued stocks with good
medium-to longer-term growth prospects. We like strong balance sheets, low
price-earnings ratios, positive cash flow and, most importantly, good earnings
growth potential.

Based on our positive outlook for the economy, we have recently placed more
emphasis on cyclical stocks and recovery situations. Even in these cases,
though, we are not forgetting the fundamentals, and continue to focus on value
and growth.

We are encouraged by the fact that we are still finding many undervalued buy
candidates. Indeed, many of our investment decisions often come down to deciding
which stock among several attractive alternatives should be added to the
portfolio. In some cases, we have been selling off or reducing holdings in
issues that have gone up significantly and look either fully valued or
overvalued. In cases where earnings are not coming through as expected or where
we think things are going wrong, stocks are usually sold. However, if a company
has missed earnings for a good reason and longer-term growth prospects remain
promising, we will usually hold onto the stock and, in some cases, may even add
to our position.

In the past, we have urged investors in the Fund to remain patient. At this
time, we would like to thank all of our shareholders for their continued
patience and give them our pledge that we will continue to seek out attractive
undervalued stocks.



Ed Merner

Atlantis Fund Management (Guernsey) Limited

November 2003


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