Interim Management Statement

Baillie Gifford Shin Nippon PLC
04 May 2007

                        BAILLIE GIFFORD SHIN NIPPON PLC

            Interim Management Statement - 3 months to 30 April 2007

Baillie Gifford Shin Nippon PLC aims to pursue long-term capital growth
principally through investment in small Japanese companies which are believed to
have above average prospects for capital growth.

Review of the Period

•    John MacDougall has replaced Alistair Way as portfolio manager.
•    Over the three months to 30 April 2007, the Company's net asset value (at par) fell by 6.7% compared to
     a fall in the benchmark of 3.5% while the share price fell by 6.5%
•    On 23 February 2007 the Company issued 500,000 shares at a premium to the then net asset value per share
     at a price of 221.5p.
•    The Y500m  term loan which matured in March  has been rolled forward to March 2014 at a rate of 2.27%.
     Total borrowings remain unchanged at Y2,900m.
•    Reductions were made to USS and Horiba as share prices more fully reflected prospects and other
     movements in the Top 10 were due to market movements in existing holdings.


           Sector Analysis of Total Assets                             Top Ten Equity Holdings

Name                             % of     % of total      Name                             % of   % of total
                                total     assets at                                       total    assets at
                              assets at    31/01/07                                   assets at     31/01/07
                               30/04/07                                                30/04/07

Manufacturing and machinery      29.6        28.5         Shinko Plantech              3.6          2.7
Commerce and services            20.8        19.9         Pronexus                     3.3          3.2
Retail                           12.5        14.3         Funai Zaisan Consultants     3.0          2.8
Real estate and construction     12.1        12.0         Nabtesco                     2.9          2.6
Financials                       9.4         10.1         Moshi Moshi Hotline          2.8          2.5
Info. comm. and utilities        9.1         9.3          Message                      2.6          3.4
Chemicals and other materials    2.1         3.6          Aruze                        2.5          2.2
Electricals and electronics      1.6         1.6          H.I.S.                       2.5          2.1
Pharmaceuticals and food         0.8          -           Juki                         2.4          2.1
Net Liquid Assets                2.0         0.7          Suruga                       2.3          2.8
Total                           100.0       100.0         Total                        27.9         26.4


Performance
                     3 Months               1 Year                3 Years               5 Years
Share Price          -6.5%                  -27.9%                16.0%                 65.3%
Nav (Par)            -6.7%                  -27.4%                7.5%                  41.2%
Benchmark            -3.5%                  -25.8%                4.2%                  49.8%

Source: Fundamental Data Ltd.  Capital only.

Benchmark - a composite index comprising the Tokyo Second Section Index, the
TOPIX Small Index and the JASDAQ Index, weighted by market capitalisation, in
sterling terms.

Past performance is not a guide to future performance

                                          General Information

                                                             30/04/07                  31/01/07

Annual management fee (based on net assets)                   1.00%                     1.00%
Share Price                                                  191.75p                   205.00p
Total assets (before deduction of bank loans)                 £73.9m                    £77.4m

Total borrowings (loans at par)                              £12.13m                   £12.25m
Net asset value per share (at par)                           198.66p                   213.00p
Discount of share price to net asset value (at par)            3.5%                      3.8%
Potential Gearing (at par)                                    19.6%                     18.8%
Actual Gearing (at par)                                       17.4%                     17.6%

Total borrowings (loans at fair)                             £12.15m                   £12.25m
Net asset value per share (at fair)                          198.59p                   213.00p
Discount of share price to net asset value (at fair)           3.4%                      3.8%
Potential Gearing (at fair)                                   19.7%                     18.8%
Actual Gearing (at fair)                                      17.4%                     17.6%


This interim management statement and up to date NAV and share price information
is available on the Managers' website www.bailliegifford.com.

For further information contact:-  Anzelm Cydzik on 0131 275 3276


                      This information is provided by RNS
            The company news service from the London Stock Exchange