Interim Management Statement

Baillie Gifford Shin Nippon PLC
07 May 2008



                         BAILLIE GIFFORD SHIN NIPPON PLC
            Interim Management Statement - 3 months to 30 April 2008


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

Review of the Period


•    Over the period, the Company's net asset value (at fair value) rose by 
     2.3% compared to a rise in the benchmark of 5.3% while the share price 
     fell by 0.8%

•    Changes in the Top 10 Equity Holdings were due to a part sale of Modec, 
     with the rest attributable to market movements.

•    During the period the Company repaid a Y500 million loan, bringing its 
     total loans down to Y1.9 billion.


           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    31/01/08                                assets at     31/01/08
                             30/04/08                                             30/04/08

Manufacturing and machinery      34.5        32.2         Shinko Plantech              4.9          3.6
Commerce and services            18.8        20.4         Nabtesco                     3.6          2.9
Retail                           14.7        13.4         Pronexus                     3.5          4.1
Real estate and construction     8.0         8.4          EPS                          3.1          2.2
Financials                       5.7         4.8          Aruze                        3.1          2.6
Info. comm. and utilities        6.7         6.6          Shoei                        2.9          2.5
Chemicals and other materials    2.1         1.6          Funai Zaison Consultants     2.6          1.8
Electricals and electronics      3.5         4.3          Moshi Moshi Hotline          2.5          2.5
Pharmaceuticals and food         3.1         2.2          USS Company                  2.4          1.9
Net liquid assets                2.9         6.1          USJ                          2.3          2.1
Total                           100.0       100.0         Total                        30.9         26.2



Performance
                                                              %
                            3 Months               1 Year              3 Years              5 Years
Share Price                  (0.8)                 (33.1)               (12.5)               55.9
Nav (Par)                     1.9                  (25.6)               (14.8)               44.0
Benchmark                     5.3                  (11.0)               (9.7)                55.2


Source: Fundamental Data Ltd/HSBC/Baillie Gifford & Co.  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

                                                             30/04/08                  31/01/08
Annual management fee (based on net assets)                   1.00%                     1.00%
Share Price                                                   128.3p                    129.3p
Total assets (before deduction of bank loans)                 £55.2m                    £56.5m

Total borrowings (loans at par)                               £9.2m                     £11.3m
Net asset value per share (at par)                            147.9p                    145.2p
Discount of share price to net asset value (at par)           13.3%                     11.0%
Potential Gearing (at par)                                    20.0%                     25.1%
Actual Gearing (at par)                                       16.5%                     17.2%

Total borrowings (loans at fair)                              £9.3m                     £11.6m
Net asset value per share (at fair)                           147.7p                    144.4p
Discount of share price to net asset value (at fair)          13.2%                     10.5%
Potential Gearing (at fair)                                   20.2%                     25.8%
Actual Gearing (at fair)                                      16.7%                     17.8%



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


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