Preliminary Announcement

Atlantis Japan Growth Fund Ld 06 July 2007 FOR IMMEDIATE RELEASE RELEASED BY HSBC SECURITIES SERVICES (GUERNSEY) LIMITED ATLANTIS JAPAN GROWTH FUND LIMITED PRELIMINARY ANNOUNCEMENT APPROVED BY THE BOARD OF DIRECTORS ON 6TH JULY, 2007. THE BOARD OF DIRECTORS OF ATLANTIS JAPAN GROWTH FUND LIMITED ANNOUNCE UNAUDITED RESULTS FOR THE YEAR ENDED 30TH APRIL, 2007. BALANCE SHEET As at 30th April 2007 (Expressed in United States Dollars) 2007 2006 Unaudited Audited $'000 $'000 Non Current Assets Investments held at fair value 515,814 659,024 Current Assets Due from brokers 798 1,748 Dividends and interest receivable 3,340 3,150 Other receivables 29 2 Cash and cash equivalents 2,813 2,550 6,980 7,450 Current Liabilities Due to brokers (2,634) (1,828) Payables and accrued expenses (820) (941) Loans payable - (26,340) (3,454) (29,109) Net Current Assets/(Liabilities) 3,526 (21,659) Non Current Liabilities Loans payable (54,359) (30,730) Net Assets 464,981 606,635 Equity Ordinary share capital 204 204 Share premium 192,650 192,650 Revenue reserve (20,788) (18,178) Capital reserve 292,915 431,959 Net Assets Attributable to Equity Shareholders 464,981 606,635 Net Asset Value per Ordinary Share* $22.75 $29.69 *Based on the Net Asset Value of $464,980,738 (2006 - $606,634,813) divided by the number of ordinary shares in issue: 20,435,627 (2006 - 20,435,627). INCOME STATEMENT For the year ended 30th April 2007 (Expressed in United States Dollars) 2007 2006 Unaudited Audited Revenue Capital Total Revenue Capital Total $'000 $'000 $'000 $'000 $'000 $'000 Income (Losses)/gains on investments - (140,569) (140,569) - 184,360 184,360 held at fair value Exchange (loss)/gain (67) 2,440 2,373 (72) 3,081 3,009 Investment income 7,219 - 7,219 5,984 - 5,984 Deposit interest - - - - - - 7,152 (138,129) (130,977) 5,912 187,441 193,353 Expenses Investment management fee 7,467 - 7,467 7,536 - 7,536 Custodian fees 256 - 256 331 - 331 Administration fees 274 - 274 278 - 278 Registrar and transfer agent 27 - 27 45 - 45 fees Directors' fees and expenses 197 - 197 141 - 141 Interest expense and bank 824 - 824 566 - 566 charges Transaction costs - 915 915 - 1,113 1,113 Insurance fees 49 - 49 43 - 43 Audit fee 27 - 27 30 - 30 Printing and advertising fees 37 - 37 30 - 30 Legal and professional fees 43 - 43 43 - 43 Listing fees 29 - 29 33 - 33 Miscellaneous expenses 27 - 27 7 - 7 9,257 915 10,172 9,083 1,113 10,196 (Loss)/Profit before tax (2,105) (139,044) (141,149) (3,171) 186,328 183,157 Taxation (505) - (505) (419) - (419) (Loss)/Profit for the year (2,610) (139,044) (141,654) (3,590) 186,328 182,738 Return per ordinary share $(6.932) $8.941 STATEMENT OF CHANGES OF EQUITY For the year ended 30th April 2007 (Expressed in United States Dollars) For the year ended 30th April 2007 Unaudited Ordinary Share Share Revenue Capital Capital Premium Reserve Reserve Total $'000 $'000 $'000 $'000 $'000 Balance at 1st May 2006 204 192,650 (18,178) 431,959 606,635 Loss for the year - - (141,654) - (141,654) Transfer to capital reserve - - 139,044 (139,044) - Balance at 30th April 2007 204 192,650 (20,788) 292,915 464,981 For the year ended 30th April 2006 Audited Ordinary Share Share Revenue Capital Capital Premium Reserve Reserve Total $'000 $'000 $'000 $'000 $'000 Balance at 1st May 2005 204 192,650 (14,588) 245,631 423,897 Profit for the year - - 182,738 - 182,738 Transfer to capital reserve - - (186,328) 186,328 - Balance at 30th April 2006 204 192,650 (18,178) 431,959 606,635 CASH FLOW STATEMENT For the year ended 30th April 2007 (Expressed in United States Dollars) 2007 2006 Unaudited Audited $'000 $'000 Cash outflow from operating activities (3,007) (4,317) Investing Activities Purchase of investments (201,319) (260,435) Sale of investments 205,716 248,300 Net cash inflow/(outflow) from investing activities 4,397 (12,135) Net cash inflow/(outflow) before financing 1,390 (16,452) Cash flows from financing activities Interest paid (789) (563) Net loans drawn-down - 17,425 Net cash (outflow)/inflow from financing activities (789) 16,862 Net increase in cash and cash equivalents 601 410 Exchange movements (338) (291) Movement in cash and cash equivalents in the year 263 119 Cash and cash equivalents at beginning of year 2,550 2,431 Cash and cash equivalents at end of year 2,813 2,550 Reconciliation of profit for year to net cash outflow from operating activities Net (loss)/profit before taxation (141,149) 183,157 Losses/(gains) on investments held at fair value 140,569 (184,360) Exchange gain (2,373) (3,009) Interest expense 824 566 Increase in debtors and accrued income (217) (486) (Decrease)/increase in creditors (156) 234 Taxation (505) (419) (3,007) (4,317) ATLANTIS JAPAN GROWTH FUND LIMITED CHAIRMAN'S STATEMENT For the year ended 30th April 2007 The year to April 2007 saw lacklustre performance from the Japanese stock market, despite a relatively good economy and solid growth in corporate earnings. This was especially true in the case of smaller stocks and stocks outside of favoured areas such as manufacturing, commodities and export-related businesses. Nevertheless, at this time we remain encouraged by continued growth in the economy and corporate earnings, and by the benign trends on the consumer price front that have allowed Japan's central bank to limit interest rate hikes. We also remain confident that consumer spending will pick up momentum going forward, and will strongly underpin continued growth in the economy in the months and years ahead. As long-time investors in Japan well know, consumer spending has been under pressure since the early 1990s as a result of a prolonged period of deflation. The extended drop in asset prices not only reduced the store of wealth of households, through pulling down real estate and stock market prices, it also led to heightened anxiety on the income front, as corporations were forced to restructure, putting more into unemployment and capping income gains for those remaining in work. Only recently have we started to see the light at the end of the tunnel for the Japanese consumer. The prolonged downtrend in asset prices finally appears to be coming to an end, with property prices in major cities now stabilising or moving higher, and stock market prices well above their lows recorded in 2003. Households are also starting to see improvements on the income side, as consecutive years of earnings growth has put corporations in a position to increase the hiring of full-time employees and increase wages, overtime hours and bonuses for existing employees. To be sure, these favourable turns have not yet been enough to bring about a full-fledged recovery in consumer spending. However, we believe these supportive trends will lead to higher consumer spending going forward, which will in turn bolster overall growth and confidence in the economy. In the stock market, we note that local retail investors currently account for about 40-50% of daily trading volume. On balance, Japanese retail investors were net sellers again during the past year, as they have been for many years. Even so, we are finding signs of a growing interest in equity investments, a reflection of a slow, but steady recovery in investor confidence following recent years of sustained growth in corporate earnings and ongoing increases in stock dividend payouts. In addition to net buying by local investment trusts, which represent buying by retail investors, we also find domestic institutional investors such as pension funds showing a greater inclination towards increased exposure to domestic equities, including smaller stocks. The Company remains heavily weighted in small and medium-sized stocks, reflecting our adviser Ed Merner's view that most of the best investment opportunities are still found in this area of the market. These smaller companies, some of which are listed on the newer markets or regional stock exchanges, are seen as offering good value for long-term investors. In many cases, the holdings in which the Company has invested are insulated from swings in the overall economy because they operate in fast growing niche businesses such as generic drugs, temporary worker dispatch services, internet advertising, software and IT services. Regardless of trends in individual company fundamentals, however, there are times when small cap stocks will move sideways or down even as large cap issues continue to rise, and this is precisely what has happened during the past year. This short-term setback notwithstanding, we remain confident that most of the companies in which the Company has invested will continue to grow as expected and, thus, will turn out to reward long-term investors. ATLANTIS JAPAN GROWTH FUND LIMITED CHAIRMAN'S STATEMENT For the year ended 30th April 2007 During the past year, while many major world stock markets moved to new highs, the Japanese market was left behind. With Japanese corporate earnings continuing to rise during this timeframe, share price valuations in Japan have thus remained at their lowest levels since the mid- to early-1980s. Based on prospects for continued growth in the domestic economy and corporate earnings coupled with near-zero inflation, we believe the stage is set for the Japanese stock market to begin moving higher once again and, in particular, think the Company is well positioned to benefit from the recovery. Mr Itai who has served on the board of your Company since its inception has notified the Directors that he does not wish to stand for re-election at the next Annual General Meeting. I wish to take this opportunity to thank Mr Itai for his valuable and insightful contribution over the life of the fund. We will miss his wise counsel. This information is provided by RNS The company news service from the London Stock Exchange

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Atlantis Japan Growth Fund Ltd. (AJG)
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