Discount Control Mechanism

F&C Latin American Inv Trust PLC
27 August 2004

Not for release, publication or distribution in or into the United States,
Canada, Australia or Japan

27 August 2004

                    F&C LATIN AMERICAN INVESTMENT TRUST PLC

 Tender Offer to purchase up to 7.5 per cent of the Ordinary Shares in issue of

                    F&C Latin American Investment Trust PLC

Introduction

On 28 April 2004 the Board announced its proposals to introduce a discount
control mechanism for the Company which may result in a twice yearly tender
offer. Today, a circular containing the formal terms of the proposed twice
yearly tender offers, together with an explanation of the background to them and
details of how Shareholders and Warrantholders who exercise their subscription
rights can tender Ordinary Shares for purchase, subject to the Tender Offer
being Triggered, has been sent to Shareholders. This circular also contains
notice of the Extraordinary General Meeting and Meeting of Warrantholders at
which the resolutions required to implement the Tender Offer (if the Tender
Offer is Triggered) will be proposed.

Background to and key points of the Tender Offer

Having consulted with a number of Shareholders, the Board has concluded that it
is in the interests of Shareholders as a whole to introduce such a tender
mechanism so as to provide a further form of liquidity for Ordinary Shares which
should also assist in the reduction of the discount to net asset value per
Ordinary Share at which the Ordinary Shares trade.

The Board continues to believe that the Company's closed ended structure remains
the most appropriate vehicle for a fund investing in Latin America. However, in
considering introducing a discount control mechanism, the Board's concern was
that, despite good performance, the discount at which the Company's Ordinary
Shares were trading in the market relative to net asset value remained high due,
in part, to the imbalance between the supply and demand for the Ordinary Shares.

The key points for Shareholders are as follows:

_ Trigger mechanism: a tender offer will be Triggered if the Ordinary Shares
have traded on average at a discount of more than 13.5 per cent. to the Net
Asset Value per Ordinary Share on the Business Days occurring during a period of
60 calendar days ending on 30 September and 31 March in each year. The first
calculation period will be the 60 calendar days commencing on 2 August 2004 and
ending on

30 September 2004;

_ Frequency and size: if a tender offer is Triggered in any calculation period,
the Board will seek to

procure that there will be a tender offer for 7.5 per cent. of the then
outstanding issued share capital

on each such occasion; and

_ Tender Discount: the price at which the Ordinary Shares will be acquired will
be 95 per cent. of the

Tender NAV per Share calculated, in the case of the Tender Offer as at 15
October 2004.

The first calculation period will be the 60 day period commencing on 2 August
2004 and ending on 30 September 2004. The Directors have, accordingly,
determined that the Tender Offer should be made under which, subject to the
Tender Offer being Triggered, up to 7.5 per cent. of the Company's issued share
capital will be purchased. The Tender Offer, which will be open to all
Shareholders (and Warrantholders who exercise their subscription rights prior to
the Warrantholder Record Date), will enable those Shareholders who wish to sell
Ordinary Shares to do so at 95 per cent. of the Tender NAV per Share on the
Calculation Date.

The circular contains the formal terms on which the Tender Offer and all
subsequent tender offers will be made.

The Board believes that the Company's investment strategy has produced a good
return for Shareholders over the last five years. The Company's performance and
prospects are described below.

THE DIRECTORS RECOMMEND SHAREHOLDERS AND WARRANTHOLDERS TO VOTE IN FAVOUR OF THE
RESOLUTIONS TO BE PROPOSED AT THE EGM AND THE MEETING OF WARRANTHOLDERS TO
ENABLE THE TENDER OFFER TO BE IMPLEMENTED AS THEY WILL BE DOING IN RESPECT OF
THEIR OWN BENEFICIAL HOLDINGS.

The key points of the Tender Offer are as follows:

_ the Tender Offer is conditional on the average Mid Market Price at which the
Ordinary Shares trade in the market on the Business Days occurring in the period
of 60 calendar days ending on 30 September 2004 representing a discount to the
Tender NAV per Share of 13.5 per cent. or more, i.e. being ''Triggered'';

_ the Tender Offer, conditional on it being Triggered, is for up to 7.5 per
cent. of the Company's issued

ordinary share capital;

_ Shareholders will be able to decide whether to tender some or all of their
Ordinary Shares within the overall limit of the Tender Offer;

_ Warrantholders who exercise their subscription rights for Ordinary Shares
before the Warrantholder Record Date will be able to participate in the Tender
Offer in respect of 7.5 per cent. of their subsequent holding of Ordinary
Shares;

_ the Tender Price will be the price per Ordinary Share which represents 95 per
cent. of the Tender NAV per Share on the Calculation Date. Assuming a
Calculation Date as at the close of business on 24 August 2004 the Tender Price
would have been US$2.76 compared to the Ordinary Share price as at that date of
US$2.53;

_ for the purposes of the Tender Offer, the NAV and the Tender NAV will include
current period revenue and expenses incurred up to the Calculation Date;

_ the Tender Price will be paid to Shareholders and Warrantholders in Sterling
based on the Exchange Rate as at 27 October 2004; and

_ implementation of the Tender Offer will require the separate approval by
Shareholders at the Extraordinary General Meeting and Warrantholders at the
Meeting of Warrantholders.

SHAREHOLDERS AND WARRANTHOLDERS SHOULD NOTE THAT THE TENDER OFFER IS CONDITIONAL
ON AND SUBJECT TO IT BEING TRIGGERED.

Announcement of the Tender Offer

The Company will determine on 1 October 2004 whether the Tender Offer has been
Triggered and will inform both Shareholders and Warrantholders by making an
announcement which will be released to a Regulatory Information Service of the
London Stock Exchange on 1 October 2004 (or as soon as practicable thereafter).
If the Tender Offer is Triggered the Company will send Tender Forms to
Shareholders, Savings Schemes Tender Forms to participants in the F&C Savings
Schemes and Warrant Tender Forms to Warrantholders on or around 1 October 2004
in order to enable them to participate in the Tender Offer if they wish.

Options for Shareholders

In the event that the Tender Offer is Triggered, Shareholders can choose:

_ to continue their investment in the Company, receiving an expected small
uplift in net assets arising from the Tender Price being at a discount to Tender
NAV per Share; or

_ to tender some or all of their Ordinary Shares for purchase and to receive
cash paid in Sterling in consideration of such purchase (subject to the scaling
back of tenders in excess of the Basic Entitlement and Warrantholder Basic
Entitlement).

Shareholders will be entitled to have up to 7.5 per cent. of their respective
holdings purchased under the Tender Offer. Shareholders will be able to tender
additional Ordinary Shares, but such tenders will only be satisfied, on a pro
rata basis, to the extent that other Shareholders and Warrantholders tender less
than their Basic Entitlement and Warrantholder Basic Entitlement respectively.

Options for Warrantholders

The terms of the Warrants currently provide that if a tender offer is made to
Shareholders, Warrantholders will be able to exercise their subscription rights
for Ordinary Shares under the terms of their Warrants during the period in which
the Tender Offer is open to Shareholders. Warrantholders will be treated as
having exercised their Warrants on the day preceding the day on which the Tender
Offer was made to Shareholders.

This means that in the event that the Tender Offer is Triggered, Warrantholders
will be able to exercise their Warrants before the Warrantholder Record Date and
participate in the Tender Offer in respect of 7.5 per cent. of the Ordinary
Shares held following the exercise of the Warrants.

Warrantholders who exercise their Warrants before the Warrantholder Record Date
and wish to participate in the Tender Offer should submit a Warrant Tender Form
at the same time as they submit a Notice of Exercise of Subscription Rights and
US$ cheque for the subscription price for the Ordinary Shares to the Registrars
or in the case of Warrants held in CREST at the same time as they send a USE
Instruction to CREST.

The final subscription date for the Warrants is 31 July 2005.

Background to the Company

The Company was launched in July 1990 with the objective of achieving long term
capital appreciation through investment in Latin American equity markets.

As at 31 July 2004, the Company held investments in 76 Latin American companies.
The largest 20 companies in the portfolio represented 67.7 per cent. of
Shareholders' funds as at 31 July 2004.

The Company's performance and prospects

Latin American equities, as measured by the Benchmark Index, have produced
strong performance over recent time periods. The region has risen in US dollar
terms by 36.1 per cent. in the year to 31 July 2004, 38.2 per cent. per annum
over two years and by 8.5 per cent. per annum over five years. Rupert Brandt,
who has been running the Mexican and Argentine portion of the Company's
investments since 1998, took over as the Company's fund manager on 1 April 2003.
Since then the Company's NAV has appreciated by 65.0 per cent. on an annualised
basis in US dollar terms compared to the Benchmark Index's 53.5 per cent.
annualised rise over the same period (ending on 31 July 2004). Over a 5 year
period the Company's NAV has appreciated by 7.7 per cent. per annum in US dollar
terms.

The Board continues to have a positive outlook for the Latin American equity
market over the medium term. The combination of a pick-up in the global economy,
a strong rally in global commodity prices and improvement in the domestic
consumption environment have all benefited the region in general. A very
positive political reform agenda in Brazil and ongoing investment related to
NAFTA in Mexico has helped improve the prospects of Brazil and Mexico in
particular. As a result of these positive developments, the Latin American
region has started to experience a robust economic recovery. Mexico's economy
grew by 3.7 per cent. in real terms during the first quarter and Brazil's
economy expanded by 2.7 per cent. in the same period. Despite a very promising
economic recovery, Latin American equity markets continue to trade at attractive
levels which should facilitate continued good performance by the region's stock
markets.

The Brazilian stock market in particular is trading at under 7 times the
estimated net profit that its constituents are expected to generate over the
next twelve months. This is a very attactive level in absolute terms and
represents a sharp discount to Brazil's historical average over the last ten
years which is close to ten times. The Board does not believe that this discount
is warranted as the Brazilian economy is expected to grow, in real GDP terms, at
3 to 4 per cent. in both 2004 and 2005 and inflation is expected to decelerate
and both nominal and real interest rates are also expected to decline over this
time period. In addition the Board expects that this level of GDP growth will
result in corporate profits growing at 20 to 25 per cent. in nominal terms in
both 2004 and 2005 which should further support Brazil's valuation case.
Brazil's trade surplus is expected to grow to US$30 billion in 2004 and this
should help create a current account surplus of close to 1 per cent. of GDP in
2004 which is a much stronger position than over the previous 10 years. The
Board expects that the combination of fiscal reforms passed by the previous
government and the current government's very conservative fiscal stance will
also result in Brazil's nominal fiscal deficit falling to close to 2.5 per cent.
of GDP in 2004 and to below 2 per cent. in 2005. The Board believes that the
combination of reforms, GDP growth, falling interest rates, a falling fiscal
deficit and an improved current account will be likely to result in the
sovereign debt rating agencies upgrading Brazilian sovereign debt which should
also help the stock market to perform well.

The Company's key overweight position in Brazil is backed up by a significant
overweight position in Mexico on a geared basis. The Board expects the Mexican
economy to grow by at least at 3 to 4 per cent. in both 2004 and 2005. This
should help produce double digit earnings growth in both 2004 and 2005. A
successful dis-inflation policy at Mexico's central bank has resulted in
interest rates falling to mid-single digits. The Board believes that the
property, banking and construction sectors will all benefit from this
development and the Company has significant positions in these areas. The
Company has a small overweight position in Venezuela and Colombia, a neutral
position in Chile and underweight or zero weight positions in the rest of the
region.

Possible risk factors to consider against the Board's positive outlook include
an inflation and/or interest

rate shock in the US economy, a hard landing in the Chinese economy, a setback
in the reform program in Brazil, a material rise in global risk aversion and
disappointment related to either the global or regional economic recovery.

The Board believes that the Company continues to represent an attractive vehicle
for investors to gain exposure to the Latin American stock markets. Shareholders
who wish to continue to hold their investment in the Company in full, should not
complete and return the Tender Form which will be sent to Shareholders or
Warrant Tender Form which will be sent to Warrantholders if the Tender Offer is
Triggered.

As the Board indicated in the accounts for the year ended 31 December 2003, the
Board believes that Latin American companies are generally becoming more
shareholder focused. As a result, the dividend flow from the Company's
investments is becoming more significant than it used to be. This enabled the
Company to eliminate its revenue deficit in 2003 and put the Company in the
position to pay a dividend in April 2004. The Company's dividend receipts have
continued to grow rapidly in 2004 and consequently the measure of net asset
value that includes current period revenue is becoming increasingly relevant. As
a result, the Board believes that the NAV, which includes current period revenue
and is calculated on a fully diluted basis, should be used in the calculation of
the Company's discount on both an ongoing basis and for the Tender Facility.

Further details of the Tender Offer

Subject to the Tender Offer being Triggered, Shareholders on the Register on the
Record Date (and Warrantholders who exercise their subscription rights before
the Warrantholder Record Date) will be invited to tender for sale some or all
(subject to the overall limits of the Tender Offer) of their Ordinary Shares to
UBS who will, as principal, purchase at the Tender Price the Ordinary Shares
validly tendered (subject to the overall limits of the Tender Offer) and,
following the completion of all those purchases, sell the relevant Ordinary
Shares on to the Company at the Tender Price by way of an on-market transaction.
All transactions will be carried out on the London Stock Exchange.

The Tender Offer is subject to certain conditions, and may be suspended or
terminated in certain circumstances.

Shareholders' attention is drawn to the letter from UBS and the terms and
conditions set out in the circular, which, together with the Tender Form which
will be sent to Shareholders and Warrant Tender Form which will be sent to
Warrantholders if the Tender Offer is Triggered, constitute the terms and
conditions of the Tender Offer. Details of how Shareholders and Warrantholders
will be able to tender Ordinary Shares can be found in the circular.

Shareholders and Warrantholders should note that, once tendered, Ordinary Shares
may not be sold, transferred, charged or otherwise disposed of other than in
accordance with the Tender Offer.

Expenses

The costs relating to the Tender Offer, to be incurred regardless of whether the
Tender Offer is Triggered, up to the Calculation Date shall be approximately
US$450,000 including VAT. At present it is expected that further costs of
approximately US$225,000 will be incurred in the event of the Tender Offer being
Triggered.

The Board are also currently considering the apportionment of ongoing
operational expenses between revenue and capital. The result of these
considerations will be announced in the interim report and accounts for the
period ending 30 June 2004, which will be published during September 2004.

Overseas Shareholders and Warrantholders

It is the responsibility of all Overseas Shareholders and Overseas
Warrantholders to satisfy themselves as to the observance of any legal
requirements in their jurisdiction, including, without limitation, any relevant
requirements in relation to the ability of such holders to complete and return a
Tender Form or Warrant Tender Form.

Taxation

Shareholders and Warrantholders who sell Ordinary Shares in the Tender Offer
may, depending on their individual circumstances, incur a liability to taxation.
UK individual Shareholders and Warrantholders and trustee Shareholders and
Warrantholders should be aware that the Inland Revenue may seek to treat part of
the disposal proceeds of their Ordinary Shares as income.

The ability of the Company to qualify as an investment trust under section 842
ICTA should not be affected by the Tender Offer.

Shareholders and Warrantholders who are in any doubt as to their tax position or
who are subject to tax in a jurisdiction other than the UK should consult an
appropriate professional adviser.

The Tender Facility

In addition to the authorities to be granted under the Tender Offer, it is the
Board's intention to implement the Tender Facility which may result in a twice
yearly tender offer.

The Board also intends to utilise the Company's existing share buy-back
authority from time to time, subject to market conditions, where it believes
that Shareholder value can be enhanced. However, the Directors have undertaken
to limit the use of this authority in line with the Listing Rules. The rules
limit buy-backs to no more than 14.99 per cent. of the Ordinary Shares of the
Company in issue during each period of authorisation. At the Company's next
annual general meeting (due to be held in May 2005) the Board will seek to renew
the general powers to buy back up to 14.99 per cent. of the then prevailing
issued share capital. Since the AGM on 5 May 2004, the Company has repurchased
932,093 Ordinary Shares in four separate tranches pursuant to the authority
granted at the AGM.

In order to enable the Tender Facility and Ordinary Share buy-backs to continue,
the Company is seeking authority to restructure its balance sheet to increase
its distributable reserves. This will involve the cancellation of the Company's
share premium account, which as at 24 August 2004 amounted to US$61,561,980, to
create a new special reserve. This requires the approval of the Company's
Shareholders by way of a special resolution to be proposed at the EGM and is
also subject to the subsequent approval of the Court. The Company will not be
able to continue with the Tender Facility and buy-back policy following the
Tender Offer to any significant extent unless Shareholder and Court approvals
are obtained. In considering whether to confirm the proposed cancellation of
share premium account, the Court will need to be satisfied that the interests of
the Company's creditors are not prejudiced thereby. The Company will put into
place such form of creditor protection as may be required to satisfy the Court
in this regard. The cancellation of share premium account is expected to become
effective on or around 28 October 2004.

Each future tender offer will be subject to the Company having sufficient
distributable reserves to fund the tender offer and to Shareholder and
Warrantholder approval and a circular will be sent out to Shareholders and
Warrantholders seeking their consent to such tender offers.

Extraordinary General Meeting

The implementation of the Tender Offer requires the approval of Shareholders. An
Extraordinary General Meeting of the Company, is to be held at 2.00 p.m. on 20
September 2004. The quorum requirement for the Extraordinary General Meeting is
not less than three Shareholders present in person or by proxy (or, in the case
of a corporation, by duly authorised representative).

The resolutions to be proposed are:

_ Resolution 1 to grant authority to the Company to purchase up to 7.5 per cent.
of the Company's

Ordinary Shares from UBS under the Tender Offer; and

_ Resolution 2 to approve the cancellation of the Company's share premium
account.

Resolution 1 will be proposed as an ordinary resolution and Resolution 2 will be
proposed as a special

resolution.

Meeting of Warrantholders

The implementation of the Tender Offer also requires the approval of
Warrantholders. A Meeting of Warrantholders is to be held at 2.15 p.m. on 20
September 2004. The quorum requirement for the Meeting of Warrantholders is
Warrantholders present in person or by proxy entitled to subscribe for one-third
in nominal amount of the Ordinary Shares attributable to the outstanding
Warrants. If a quorum is not present at the time fixed for the Meeting of
Warrantholders, the meeting will be adjourned until 4.15 p.m. on 20 September
2004. The Warrantholder(s) present in person or by proxy at the adjourned
meeting will constitute a quorum.

The resolution to be proposed is to consent to Resolution 1 to be proposed at
the Extraordinary General Meeting and any modification of the Warrantholders'
rights which may result from the passing of the resolution.

Action to be taken

Shareholders

(a) Form of Proxy

Shareholders do not need to tender their Ordinary Shares in the Tender Offer in
order to be able to vote at the EGM. Whether or not Shareholders intend to
attend the EGM, they should complete and return a Form of Proxy by post or by
hand (during normal business hours) to Computershare Investor Services PLC, PO
Box 1075, The Pavilions, Bridgwater Road, Bristol BS99 3ZZ or by hand only
(during normal business hours) to Computershare Investor Services PLC at 2nd
Floor, Vintners Place, 68 Upper Thames Street, London EC4V 3BJ as soon as
possible and, in all cases so as to arrive not later than 2.00 p.m. on 18
September 2004. Completion and return of a Form of Proxy will not affect a
Shareholder's right to attend and vote at the Extraordinary General Meeting.

(b) Tender Form

In the event that the Tender Offer is Triggered, Shareholders will be sent a
Tender Form on or around 1 October 2004 and Shareholders who wish to participate
in the Tender Offer should complete the Tender Form in accordance with the
instructions set out therein and return the completed Tender Form by post or by
hand (during normal business hours) to Computershare Investor Services PLC, PO
Box 859, The Pavilions, Bridgwater Road, Bristol BS99 1XZ or by hand only
(during normal business hours) to Computershare Investor Services PLC of 2nd
Floor, Vintners Place, 68 Upper Thames Street, London EC4V 3BJ to arrive as soon
as possible after receipt of the Tender Form and by no later than 3.00 p.m. on
15 October 2004.

Shareholders who hold their Ordinary Shares in certificated form should also
return their Ordinary Share certificate(s) and/or other documents of title in
respect of the Ordinary Shares tendered with their Tender Form. Shareholders who
hold their Ordinary Shares in uncertificated form (that is, in CREST) should
return the Tender Form as described above and arrange for the relevant Ordinary
Shares to be transferred to escrow.

Warrantholders

(a) Form of Proxy

Warrantholders do not need to exercise their subscription rights before the
Warrantholder Record Date or tender such Ordinary Shares in the Tender Offer in
order to be able to vote at the Meeting of Warrantholders. Whether or not
Warrantholders intend to attend the Meeting of Warrantholders they should
complete and return a Form of Proxy by post or by hand (during normal business
hours) to Computershare Investor Services PLC, PO Box 1075, The Pavilions,
Bridgwater Road, Bristol BS99 3ZZ or by hand only (during normal business hours)
to Computershare Investor Services PLC at 2nd Floor, Vintners Place, 68 Upper
Thames Street, London EC4V 3BJ, as soon as possible and so as to arrive not
later than 2.15 p.m. on 18 September 2004. Completion and return of a Form of
Proxy will not affect a Warrantholder's right to attend and vote at the Meeting
of Warrantholders.

(b) Warrant Tender Form

In the event that the Tender Offer is Triggered, Warrantholders will be sent a
Warrant Tender Form on or around 1 October 2004. Warrantholders who hold their
Warrants in certificated form and who wish to participate in the Tender Offer
should complete the Warrant Tender Form in accordance with the instructions set
out therein and return the completed Warrant Tender Form together with the
Warrant certificate(s), the Notice of Exercise of Subscription Rights and the
US$ cheque for the subscription price for the Ordinary Shares by post or by hand
(during normal business hours) to Computershare Investor Services PLC, PO Box
859, The Pavilions, Bridgwater Road, Bristol BS99 1XZ or by hand only (during
normal business hours), to Computershare Investor Services PLC of 2nd Floor,
Vintners Place, 68 Upper Thames Street, London EC4V 3BJ as soon as possible
after receipt of the Warrant Tender Form and to arrive by no later than 3.00
p.m. on 11 October 2004.

Warrantholders whose Warrant Tender Forms are received after this date will not
be entitled to participate in the Tender Offer. Please note that a US dollar
cheque is required for the subscription price.

Warrantholders who hold their Warrants in uncertificated form (that is, in
CREST) should return the

Warrant Tender Form as described above and arrange for a USE Instruction and TTE
Instruction to be

sent.

If Warrantholders have exercised their subscription rights for Ordinary Shares
under the terms of their Warrants prior to 1 October 2004 (the commencement of
the Tender Offer Period) and wish to participate in the Tender Offer in respect
of some or all of those Ordinary Shares and they have not yet received an
Ordinary Share certificate in respect of those Ordinary Shares, they should
submit the Tender Form to the Registrars and forward the Ordinary Share
certificate to the Registrars as soon as possible after receipt and no later
than 3.00 p.m. on 15 October 2004.

Warrantholders who wish to exercise partially their subscription rights for
Ordinary Shares under the terms of the Warrants and also participate in the
Tender Offer will receive a fresh Warrant certificate for any balance of his,
her or its subscription rights remaining exercisable at the same time as cheques
and balancing Ordinary Share certificates despatched.

Recommendation

The Directors have received financial advice from UBS. In providing advice to
the Board, UBS has taken into account the Directors' commercial assessments of
the Tender Offer and the Tender Facility.

The Directors unanimously recommend Shareholders to vote in favour of the
Resolutions to be proposed at the Extraordinary General Meeting, irrespective of
whether or not they propose to tender any Ordinary Shares if the Tender Offer is
Triggered. The Directors intend to vote in favour of the Resolutions in respect
of their own beneficial and non-beneficial holdings of Ordinary Shares
(amounting in aggregate to 23,903 Ordinary Shares representing approximately
0.03 per cent. of the issued share capital of the Company).

In addition, the Directors unanimously recommend that Warrantholders vote in
favour of the extraordinary resolution to be proposed at the Meeting of
Warrantholders, irrespective of whether they wish to exercise their subscription
rights under the terms of their Warrants. The Directors intend to vote in favour
of the extraordinary resolution in respect of their own beneficial holdings of
Warrants, amounting in aggregate to 12,000 Warrants, representing approximately
0.15 per cent. of the Warrants in issue.

The extent to which Shareholders and Warrantholders participate in the Tender
Offer is a matter for each Shareholder and Warrantholder to decide, and will be
influenced by their own individual financial and tax circumstances and their
investment objectives. Shareholders and Warrantholders should seek advice from
their own independent financial adviser authorised under FSMA.

EXPECTED TIMETABLE OF EVENTS


                                        2004

Calculation Period commences                          2 August

Latest time and date for receipt of Forms of Direction    2.00 p.m. 16 September

Latest time and date for receipt of Forms of Proxy       2.00 p.m. 18 September

Latest time and date for receipt of Warrantholders' Forms of Proxy  2.15 p.m. 18 September

Extraordinary General Meeting                         2.00 p.m. 20 September*

Meeting of Warrantholders                               2.15 p.m. 20 September*

Results of Extraordinary General Meeting and Meeting of        20 September**

Warrantholders announced

Tender Calculation Date                               1 October



Result of whether the Tender Offer Triggered announced                1 October

Court hearing for petition to confirm the cancellation of the share           27 October

premium account

Effective Date (approximately)                          28 October

PLEASE NOTE THIS SECTION OF THE TIMETABLE APPLIES ONLY IF THE TENDER OFFER IS
TRIGGERED

Tender Forms, Warrant Tender Forms and Savings Scheme Tender         on or around 1 October

Forms posted

Latest time and date for receipt of Savings Scheme Tender Forms      12.00 noon 11 October

Latest time and date for receipt of Warrant Tender Forms             3.00 p.m. 11 October

Warrantholder Record Date                           close of business 11 October

Closing Date - latest time and date for receipt of Tender Forms        3.00 p.m. 15 October

Record Date for Tender Offer                   close of business 15 October

Calculation Date                               close of business 15 October

Result of Tender Offer and Tender Price announced                19 October

Conversion Date                                    27 October

Settlement Date: cheques despatched and payments through CREST as soon as
practicable after 29 October***



Balancing Ordinary Share certificates despatched and CREST       as soon as practicable after 29 October

accounts settled

Warrantholders Settlement Date: cheques and balancing Warrant    as soon as practicable after 29 October****

certificates despatched



* Or such later time in the event that the EGM is adjourned for whatever reason.

** Assuming that the Meeting of Warrantholders convened for 2.15 p.m. on 20
September 2004 is quorate and that the Extraordinary Resolution has been passed
and becomes unconditional.

*** In the event that sufficient investments in the Company's portfolio to fund
the payment of the aggregate Tender Price for all successfully tendered Ordinary
Shares are not realised and settled by this date, the date for settlement may be
delayed.

**** Or such later time after Warrantholders' cheques in respect of the
subscription price for Ordinary Shares have cleared.

Enquiries

F&C Emerging Markets Limited

Rupert Brandt     020 770 5274

Jeff Chowdhry     020 770 5251

UBS Limited

Will Rogers     020 7568 2939

Nicholas Rucker     020 7568 8574

The Tender Offer is not being made, directly or indirectly, in or into or by the
use of mails or by any means or instrumentality (including, without limitation,
facsimile transmission, telex and telephone) of interstate or foreign commerce,
or any facility of a national securities exchange, of the United States, Canada,
Australia, or Japan, and the Tender Offer is not capable of being accepted by
any such use, means, instrumentality or facility or from within the United
States, Canada, Australia, or Japan.

UBS Limited is acting for the Company in connection with the Tender Offer and no
one else and will not be responsible to anyone other than the Company for
providing the protections offered to clients of UBS Limited nor for providing
advice in relation to the Tender Offer.


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