Final Results

Baillie Gifford Shin Nippon PLC
28 February 2003



                        BAILLIE GIFFORD SHIN NIPPON PLC

                    Results for the year to 31 January 2003

                                28 February 2003

The last twelve months have seen very difficult investment conditions globally.
Baillie Gifford Shin Nippon PLC's share price fell 20.9% to 79.5p and net asset
value per share fell 25.9% to 91.5p over the twelve months to 31 January 2003.
This compares to a 13.7% fall in sterling terms to the Company's comparative
index*.

       Long-term outlook for smaller Japanese companies. In terms of valuation, Japan is now at levels which have
       not been seen in two decades. Whilst the short-term outlook for equity markets globally is impossible to
       predict, we remain optimistic that companies which continue to produce good earnings and cash flow growth
       will be rewarded by the stockmarket over the long-term.

       The stockmarket fell despite improvements in the Japanese economy.

       Industrial production turned positive year on year in the summer of 2002 whilst production capacity has
       continued to be reduced, sharply improving utilisation rates. Domestic consumption remained around flat in
       GDP terms, the best available measure, and capital expenditures did not see the large cuts witnessed in
       Europe and the US. Overall Japan's economy grew around 1.5% in 2002 in real terms, well ahead of most
       economists' expectations.

       International concerns overshadow positive domestic developments.

       Capacity has been reduced, corporate activity has increased, both in terms of bankruptcies and mergers and
       acquisitions and companies have improved profits. These factors have not been reflected in share prices as
       the threat of war in Iraq and North Korea dominates sentiment.

       Relative Performance

       At the micro level, many of the small growth companies in which Shin Nippon invests have reported solid
       earnings but have been derated by a market which is more preoccupied with macro issues. Against this
       backdrop, the comparative index has done better through a long tail of illiquid companies where share
       prices have not fallen as rapidly. In the six months to 31 January 2003 the Company's NAV fell 28.6% in
       comparison to a 19.0% fall in its comparative index.



* The Company's comparative index is a market-capitalisation weighted composite
index of the Tokyo Second Section Index, the TOPIX Small Index and the JASDAQ
OTC Index, in sterling terms.

Baillie Gifford Shin Nippon PLC aims to achieve capital growth through
investment in smaller Japanese companies. At 31 January the Company had total
assets of £35.4 million. An ISA and Share Plan are available.

The Company is managed by Baillie Gifford & Co., the leading independent
Edinburgh based fund management group with around £19 billion funds under
management and advice.



For further information please contact:

Mark Urquhart, Manager,

Baillie Gifford Shin Nippon PLC     0131 222 4000

Mike Lord, Director,

Broadgate Marketing                 020 7726 6111



Baillie Gifford & Co. is regulated by the FSA.



                        BAILLIE GIFFORD SHIN NIPPON PLC

The following is the unaudited preliminary statement for the year to 31 January
2003 which was approved by the Board on 27 February 2003. The Board of Baillie
Gifford Shin Nippon PLC are recommending to the Annual General Meeting of the
Company to be held on 1 May 2003 that no dividend be paid for the year ended 31
January 2003.



                           STATEMENT OF TOTAL RETURN

               (unaudited and incorporating the revenue account*)

                                              For the year ended                          For the year ended

                                               31 January 2003                              31 January 2002
                                   Revenue      Capital      Total             Revenue      Capital       Total

                                   £'000        £'000        £'000             £'000        £'000         £'000
Realised losses on investments               -       (6,077)        (6,077)              -          (378)          (378)
Unrealised losses on investments             -       (3,741)        (3,741)              -       (10,755)       (10,755)
Currency gains (note 1)                      -          335            335               -           391            391
Income                                     398            -            398             451             -            451
Investment management fee                 (358)           -           (358)           (473)            -           (473)
Other administrative expenses             (157)           -           (157)           (168)            -           (168)
Net return before finance costs           (117)      (9,483)        (9,600)           (190)      (10,742)       (10,932)
and taxation
                                          
Finance costs of borrowings               (231)           -           (231)           (214)            -           (214)
Return on ordinary activities             (348)      (9,483)        (9,831)           (404)      (10,742)       (11,146)
before taxation
                                          
Tax on ordinary activities                 (59)           -            (59)            (51)            -            (51)
Return on ordinary activities             (407)      (9,483)        (9,890)           (455)      (10,742)       (11,197)
after taxation
Transfer from reserves                    (407)      (9,483)        (9,890)           (455)      (10,742)       (11,197)
Return per ordinary share               (1.32p)     (30.69p)       (32.01p)         (1.46p)      (34.37p)       (35.83p)
(note 3)

There was no dilution of the above returns in either year.

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

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

                        BAILLIE GIFFORD SHIN NIPPON PLC

                            SUMMARISED BALANCE SHEET

                               at 31 January 2003

                                  (unaudited)
                                                                                                         31 January 2002

                                                                            31 January 2003
                                                                                      £'000                        £'000
NET ASSETS                                                                          24,893                       32,693

Listed overseas equities
Unlisted - traded on the OTC/Hercules Japan markets                                  6,573                        9,819
- Directors' valuation                                                                 614                        1,085
Total equities                                                                      32,080                       43,597

Net liquid assets                                                                    3,307                        4,629
Total assets (before deduction of bank loans)                                       35,387                       48,226
Bank loans (note 4)                                                                 (7,101)                     (10,050)
Net assets                                                                          28,286                       38,176
CAPITAL AND RESERVES
Called-up share capital                                                              3,090                        3,090
Capital reserves                                                                    29,096                       38,579
Revenue reserve                                                                     (3,900)                      (3,493)
Equity shareholders' funds                                                          28,286                       38,176


Net asset value per ordinary share (note 5)                                           91.5p                       123.5p

Ordinary shares in issue (note 6)                                                30,900,492                  30,900,492

There was no dilution of net asset value at either date.



                                             BAILLIE GIFFORD SHIN NIPPON PLC
                                             SUMMARISED CASH FLOW STATEMENT

                                                      (unaudited)
                                                                        Year to                       Year to

                                                                    31 January 2003               31 January 2002
                                                                     £'000         £'000             £'000         £'000
NET CASH OUTFLOW FROM OPERATING ACTIVITIES                                         (120)                           (226)
                                                                                   
NET CASH OUTFLOW FROM SERVICING OF FINANCE                                         (255)                           (224)
TOTAL TAX PAID                                                                      (59)                            (51)
FINANCIAL INVESTMENT
Acquisitions of investments                                       (18,719)                        (29,046)
Disposals of investments                                           20,456                          22,379
Realised currency loss                                                (51)                           (742)
NET CASH INFLOW/(OUTFLOW) FROM FINANCIAL INVESTMENT                               1,686                          (7,409)

NET CASH INFLOW/(OUTFLOW) BEFORE FINANCING                                        1,252                          (7,910)
FINANCING
Shares repurchased                                                      -                            (953)
Bank loans repaid                                                  (2,563)                              -
NET CASH OUTFLOW FROM FINANCING                                                  (2,563)                           (953)
DECREASE IN CASH                                                                 (1,311)                         (8,863)
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
Decrease in cash in the year                                                     (1,311)                         (8,863)
Net outflow from bank loans                                                       2,563                               -
Exchange movement on bank loans                                                     386                           1,133
MOVEMENT IN NET DEBT IN THE YEAR                                                  1,638                          (7,730)
NET (DEBT)/FUNDS AT 1 FEBRUARY                                                   (5,753)                          1,977
NET DEBT AT 31 JANUARY                                                           (4,115)                         (5,753)


                                            BAILLIE GIFFORD SHIN NIPPON PLC
                                             TWENTY LARGEST EQUITY HOLDINGS
                                                  at 31 January 2003

                                                  Business                                             Market % of total
                                                                                                        value
  Name                                                                                                            assets
                                                                                                        £'000

      USS Company                                 Second-hand car auctioneer                            1,441        4.1
*     Goodwill Group                              Part-time labour and nursing care                     1,401        4.0
*     Fuji Seal                                   Packaging and shrink-wrap materials                   1,204        3.4
      Nissin                                      Consumer loans and business finance                   1,118        3.2
      Kose                                        Cosmetics                                             1,112        3.1
      Bandai                                      Makers of toys, cartoons and character goods            943        2.7
*     Kappa Create                                Revolving sushi restaurants                             918        2.6
      Eneserve                                    Alternative power generation                            846        2.4
      Hokuto                                      Mushroom cultivator                                     825        2.3
      Arisawa Manufacturing                       Specialist industrial materials                         814        2.3
      Koei                                        Games software                                          761        2.2
      Tsumura                                     Herbal medicines                                        756        2.1
      Japan Retail Fund Investment                Shopping centre real estate investment trust            715        2.0
      Cawachi                                     Drugstore chain                                         692        2.0
      Mandom                                      Male cosmetic products                                  684        1.9
*     LeoPalace21                                 Condominium developer and lessor                        653        1.8
      Nippon Thompson                             Needle roller bearings                                  648        1.8
*     MEW Information Systems                     Business software                                       643        1.8
*     Nissin Healthcare Food Service              Food catering for hospitals                             616        1.7
*     MAC Japan Active Shareholder Fund LP        Shareholder activist fund                               614        1.7
                                                                                                       17,404       49.1

* Denotes unlisted holdings, including those traded on the Japanese OTC market

                        BAILLIE GIFFORD SHIN NIPPON PLC

                                     NOTES
                                                                         31 January 2003                 31 January 2002
                                                                                   £'000                           £'000
1.     Currency gains
       Realised exchange differences                                                 77                            (742)
       Unrealised exchange differences                                              258                           1,133
                                                                                    335                             391

2.     No dividend will be declared.
3.     Return per ordinary share
       Revenue return                                                              (407)                           (455)
       Capital return                                                            (9,483)                        (10,742)

       Return per ordinary share is based on the above returns and on 30,900,492 (2002 - 31,253,095) ordinary shares,
       being the weighted average number of ordinary shares in issue during the year.

4.     Bank loans of £7.1 million (Y1.4 billion) have been drawn down under Yen loan facilities which are repayable
       between August 2004 and May 2005 (31 January 2002 - £10.1 million (Y1.9 billion)).

5.     Net asset value per ordinary share is based on net assets of £28,286,000 (2002 - £38,176,000) and 30,900,492
       (2002 - 30,900,492) ordinary shares, being the number of ordinary shares in issue at the year end.

6.     At 31 January 2003 the Company had authority to buy back 4,631,983 shares in accordance with the authority
       granted at the AGM in May 2002. No shares were bought back during the year.

7.     The financial information set out above does not constitute the Company's statutory accounts for the year ended
       31 January 2003. The financial information for 2002 is derived from the statutory accounts for 2002, which have
       been delivered to the Registrar of Companies. The Auditors have reported on the 2002 accounts, their report was
       unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The statutory
       accounts for 2003 will be finalised on the basis of the financial information presented in this preliminary
       announcement and will be delivered to the Registrar of Companies following the Company's Annual General Meeting.



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