Final Results

Foreign & Colonial Eurotrust PLC
12 November 2001

Date: 12 November 2001

Contact: Stephen White, F&C Management Limited, F&C Management Limited, 020
7628 8000 / Tamsin Martle, Lansons Communications, 020 7294 3620

                           FOREIGN & COLONIAL EUROTRUST PLC

                  Unaudited Preliminary Statement of Results

                     for the year ended 30 September 2001



HIGHLIGHTS


  * In the year to 30 September 2001, the Company's net assets per share
    fell from 690.5p to 478.3p, a decline of 30.7%. This compares with a fall
    of 29.4% in the FTSE World Europe Index. Following some recovery, at 8
    November the unaudited net assets per share had risen 9.9% to 525.6p.

  * The poor performance of the European equity markets over the year
    reflected the deterioration in prospects for business activity and
    corporate earnings as the slowdown already underway in the USA, aggravated
    by the atrocities of 11 September in New York and Washington, spread to
    Europe.

  * As the outlook deteriorated, the portfolio was shifted away from the
    telecoms, media and technology stocks (TMT), which had led the preceding
    bull market, to areas which were considered to be more defensive, such as
    insurance, utilities and retail.

  * The revenue account showed a substantial improvement, benefiting from
    lower expenses and reduced interest costs as the gearing was cut.

  * The Board is recommending an unchanged ordinary dividend of 1.70p per
    share in addition to the special dividend of 0.60p per share. This would
    enable shareholders to benefit from last year's buoyant revenue account
    without any commitment to the higher level for future years.

SUMMARY OF RESULTS
                        30 September 2001        30 September 2000     % Change

Net assets                       £359.90m                 £519.60m        -30.7
Net assets per share              478.29p                  690.54p        -30.7
Earnings per share                  3.64p                    1.02p       +257.8
Dividends per share                 2.30p                    1.70p        +35.3
Share price                       438.50p                  653.50p        -32.9



Extracts from the Chairman's Statement

Dear Shareholder,

Capital Performance

The year to 30 September 2001 proved a disappointing period for investors in
Continental Europe. The Company's net assets per share fell from 690.5p to
478.3p, a decline of 30.7%. This compares with a fall of 29.4% over the same
period in the FTSE World Europe Index, which excludes the United Kingdom and
is adjusted for the movement in sterling against the European currencies.
Since our year end, there has been some recovery, and at 8 November the
unaudited net asset value per share was 525.6p, up 9.9% from 30 September.

The poor performance of the European equity markets over the year reflected
the deterioration in prospects for business activity and corporate earnings as
the slowdown already underway in the USA spread to Europe. This was most
evident in capital spending, particularly in the telecommunications industry.
Within the markets, the best performing sectors over the year were the more
defensive areas, such as food and drinks, pharmaceuticals and utilities. The
poorer performers were the telecoms, media and technology stocks (TMT), which
had led the preceding bull market.

As the outlook deteriorated, we reduced our stake in TMT and reinvested in
insurance, utilities and retail, which we thought would prove more resilient.
We also made our balance sheet more cautious by eliminating our gearing.

Management Fee

Following the regular review of the fee, your Board agreed various changes
with F&C Management. Under the new terms, which were backdated to 1 October
2000, the fee payable on funds under management will be at a flat rate of 0.5%
per annum, compared to the previous rate of 0.75% on funds up to £400 million
and 0.5% thereafter. A graduated performance fee has been added, which becomes
payable if for a single year the manager has outperformed the benchmark index
by 1.5% on a total return basis. This performance fee, together with quarterly
management fees paid, may not in any circumstances exceed the fees which would
have been incurred under the previous agreement, and any underperformance of
the threshold in prior years must be caught up before any performance fee is
paid. No performance fee is payable in respect to the year September 2001.

The management agreement may be terminated upon one years' notice given by
either party or upon six months' notice by the Company in certain
circumstances related to performance or a change in ownership of the
management company.

Revenue

Our gross income showed little change from the previous year because dividend
growth from our portfolio was only modest. However, our expenses fell sharply,
mainly because of the drop in the management fee from £4.483 million to £2.669
million. Downward pressure on the fee came from the renegotiation of the rate,
the fall in markets and the elimination of the gearing, which also led to a
reduction in interest costs for the year. The result is that net revenue
attributable to shareholders rose by 258%, from £0.765 million to £2.737
million.

Dividend

In deciding the level of dividend to recommend for the year, the Board has had
to take account both of the minimum distribution it can make in order to
maintain the Company's investment trust status and the risk of setting a
precedent which would be difficult to repeat should expenses rise again, which
they might do, for example, should equity markets recover or gearing be
resumed. The Board is thus recommending an unchanged ordinary dividend of
1.70p per share in addition to the special ordinary dividend of 0.60p per
share declared on 9 November 2001. This would enable shareholders to benefit
from last year's buoyant revenue account without any commitment to the higher
level for future years.

Corporate Governance

We comply with the recommendations for best practice in corporate governance
published by the Cadbury Committee and the Association of Investment Trust
Companies.

 Private Investor Plan

At the end of September, there were over two thousand individuals
participating in the private investor plan on a regular monthly basis. It is a
very attractive way for the private investor to buy shares, and we believe it
justifies fully its cost to the Company. We now have some 27,000 shareholders
and the percentage of the Company's share capital directly owned by private
individuals is almost 76%. This is one of the highest levels of individual
ownership in the investment trust sector, and a feature of the Company we are
keen to see continue.

AGM

We hope that as many shareholders as possible will attend the Annual General
Meeting which will be held on Tuesday 18 December at 3.00 p.m. at the Brewers'
Hall, Aldermanbury Square, London EC2. We look forward to meeting all those of
you who can come.

Outlook

The slowdown in economic activity which is well evident now in both the USA
and Europe, disappointing corporate news and political uncertainties following
the terrorist attacks on New York and Washington are all likely to continue to
weigh on investor sentiment. Our current focus on more defensive investments
and our lack of gearing thus still seem appropriate. However, while the
economic downturn may now be more severe than expected previously, it is
possible that the recovery, when it comes, will be sharper. The authorities
are taking both monetary and fiscal steps to support business activity.

Directors and Staff

David Thomson will be retiring from the Board at the AGM. He joined the Board
in 1998 at the time of the merger between Foreign & Colonial Eurotrust and
Foreign & Colonial German Investment Trust, having been chairman of the
latter. We have benefited greatly from his experience and have valued his
contribution to the success of the Company during that time.

Finally, I should like to thank our manager, Stephen White, and his colleagues
at F&C Management for their efforts during a difficult year.

Douglas McDougall

9 November 2001



Balance Sheet

at 30 September
                                                               2001        2000

                                                             £'000s      £'000s
Fixed assets
Investments                                                 359,512     561,976
Current assets
Debtors                                                       4,995       4,433
Taxation recoverable                                            507       1,080
Cash at bank                                                  2,316       1,024
                                                              7,818       6,537

Current liabilities
Creditors: amounts falling due within one year
Foreign currency loans                                            -    (44,370)
Other                                                       (7,435)     (4,539)
                                                            (7,435)    (48,909)

Net current assets/(liabilities)                                383    (42,372)

Net assets                                                  359,895     519,604

Capital and Reserves
Called up equity share capital                               18,811      18,811
Share premium                                               123,749     123,749
Capital reserves                                            214,035     374,750
Revenue reserve                                               3,300       2,294
Total equity shareholders' funds                            359,895     519,604

Net asset value per ordinary share - pence                   478.29      690.54




The geographical distribution of investments at 30 September 2001 was:

France - 38.1%

Switzerland - 11.7%

Germany - 10.7%

Netherlands - 9.4%

Italy - 8.2%

Spain - 7.2%

Finland - 5.1%

Sweden - 3.7%

Denmark - 2.7%

United Kingdom - 1.4%

Norway - 1.1%

Greece - 0.7%.







Statement of Total Return (incorporating the Revenue Account*) for the year
ended 30 September
                                                 2001                     2000
                           Revenue Capital      Total  Revenue Capital   Total
                                      £'000s             £'000s
                            £'000s              £'000s           £'000s  £'000s
(Losses)/gains on                - (158,845) (158,845)        - 127,580 127,580

Investments
Exchange (losses)/gains       (18)   (1,847)   (1,865)     (56)   2,539   2,483
Income                       8,366         -     8,366    8,141       -   8,141
Management fee             (2,669)         -   (2,669)  (4,483)       - (4,483)
Other expenses               (950)      (23)     (973)    (956)    (17)   (973)
Net return before finance
costs and taxation           4,729 (160,715) (155,986)    2,646 130,102 132,748
                             
Interest payable and
similar charges            (1,131)         -   (1,131)  (1,526)       - (1,526)
                           
Return on ordinary
activities before taxation   3,598 (160,715) (157,117)    1,120 130,102 131,222

Taxation on ordinary         (861)         -     (861)    (355)       -   (355)
activities
Return attributable to
equity shareholders          2,737 (160,715) (157,978)      765 130,102 130,867
                             
Dividends on ordinary
shares (equity)
Proposed final of 1.7p
(2000: 1.7p)               (1,279)         -   (1,279)  (1,279)       - (1,279)
                           
Special dividend of 0.6p
(2000: nil)                  (452)         -     (452)        -       -       -
                             
Amount transferred to/
(from) reserves              1,006 (160,715) (159,709)    (514) 130,102 129,588
                             
Return per ordinary share
- pence                       3.64  (213.59)  (209.95)     1.02  172.90  173.92
                              



* The revenue column of this statement is the profit and loss account of the
Company.

All revenue and capital items in the above statement derive from continuing
operations.

Cash Flow Statement

For the year ended 30 September
                                                                   2001    2000
                                                                 £'000s  £'000s
Net cash inflow from operating activities                         4,291   2,935
Interest paid                                                   (1,235) (1,503)
Taxation paid                                                     (288)   (233)
Net cash inflow/(outflow) from financial investment              46,038 (4,572)
Equity dividends paid                                           (1,279) (1,279)
Net cash inflow/(outflow) before use of liquid resources and     47,527 (4,652)
financing
Decrease in short-term deposits                                     293   4,456
Net cash outflow from financing                                (46,010) (1,401)
Increase/(decrease) in cash                                       1,810 (1,597)





Notes

The Directors propose a final dividend of 1.70p (2000 - 1.70p) per share
payable on 21 December 2001 to shareholders on the register at close of
business on 23 November 2001.

The Directors have declared on 9 November 2001 a special dividend of 0.60p
(2000 - nil) per share payable on 21 December 2001 to shareholders on the
register at close of business on 23 November 2001.

The above financial information comprises non-statutory accounts within the
meaning of section 240 of the Companies Act 1985. The financial information
for the year ended 30 September 2000 has been extracted from published
accounts for the year ended 30 September 2000 that have been delivered to the
Registrar of Companies and on which the report of the auditors has been
unqualified.

The Annual General Meeting will be held at Brewers' Hall, Aldermanbury Square,
London EC2V 7HR on Tuesday 18 December 2001 at 3.00 p.m.

The Report and Accounts will be posted to shareholders on 19 November 2001.
Copies may be obtained during normal business hours from the Company's
Registered Office, Exchange House, Primrose Street, London EC2A 2NY.



By order of the Board

F&C Management Limited, Secretary

9 November 2001