Final Results

Foreign & Colonial U.S.Smllr.Co PLC
7 September 2001

Date: EMBARGOED 07.00AM FRIDAY 7 SEPTEMBER 2001

Contact: Robert Siddles, F&C, Tel: [phone]/Emma Chilvers, Lansons
Communications, Tel. [phone]




                FOREIGN & COLONIAL U.S. SMALLER COMPANIES PLC

                       Unaudited Preliminary Statement

                       for the year ended 30 June 2001



 Highlights

  * For the year to 30 June 2001, the net asset value per share rose by 9.8%
    compared with a rise of 6.7% for the Russell 2000 Index, the main
    benchmark.
  * Since inception of the Company in 1993, the net asset value has risen by
    176.7% whereas the Russell 2000 Index gained 131.3% in sterling terms.
  * The discount to NAV of the shares stood at 10.7% at 30 June 2001 and the
    discount as at 5 September 2001 was 7.5%. The Board is committed to buying
    back shares at appropriate times.
  * The manager has responded to the current uncertain economic background
    by adding to holdings in the energy sector earlier in the year and buying
    cyclical companies later in the year.
  * The outlook for small companies is bright as, historically, they perform
    well following interest rate cuts and they are priced inexpensively
    relative to large companies.




Summary of Results                                30 June     30 June % Change
                                                     2001        2000

Net assets attributable to equity                 £86.74m     £80.95m   +7.16%
shareholders

Net asset value per share                         267.11p     243.35p   +9.76%

Net asset value per share diluted                 249.22p     228.44p   +9.10%

Share price                                       222.50p     200.00p  +11.25%

Warrant price                                     120.00p     103.00p  +16.50%





Extracts from Chairman's Statement

Dear Shareholder

I am pleased to present the annual report for Foreign & Colonial U.S. Smaller
Companies PLC for the year ended 30 June 2001. Your Company outperformed the
benchmark index against which it is measured. This result is gratifying given
that it has beaten the index in all but one of the eight years since its
formation, the year to June 2000 being the exception.

For the year to 30 June 2001, the net asset value per share rose by 9.8%
compared with a rise of 6.7% for the Russell 2000 Index, our main benchmark.
The comparison is even more favourable in relation to the S&P 500 Index, which
fell by 9.4%. All these figures are stated in sterling terms. This performance
reflects our risk averse investment strategy, which has proved especially
beneficial since the fall in technology stocks that began in March 2000.

Since the inception of the Company in March 1993, the net asset value has
risen by 176.7% whereas the Russell 2000 Index gained 131.3% in sterling
terms.

As in previous years, no dividend is declared for the year to 30 June 2001.
This is in line with the stated policy.

I am pleased to report that the price of the shares has risen by 11.3% over
the year. There has been no further repurchase of your Company's own shares
since the first half of the year. The repurchases in that earlier period were
covered by my interim statement. A total of 18,028,885 shares, or 36% of the
ordinary shares in issue have been brought back since 1999. The discount to
diluted NAV of the shares stood at 10.7% at 30 June 2001 and the discount as
at 5 September 2001 was 7.5%. The Board is committed to buying back shares at
appropriate times.

Market Review

During the last year expectations for economic growth in the US have been
reduced significantly. In response, the Federal Reserve has reversed its
tightening policy and cut interest rates repeatedly. Corporate profits are
likely to decline in 2001, perhaps by as much as 5% for small companies, even
more for larger companies.

Against this background, the Russell 2000 Index of small companies made little
progress, falling almost 1% over the year (in sterling terms it rose) and
major indices fell, for example, the S&P 500 dropped 15.8% and the NASDAQ
Composite slumped by 45%.

The manager has responded to this uncertain economic background by adding to
holdings in the energy sector earlier in the year, to capitalise on the energy
shortages in the United States, and by buying cyclical companies later in the
year, to exploit eventual economic recovery.

Prospects

This is the second successive year in which small companies have performed
better than large. The last occasion that this occurred was in 1990 and the
outperformance lasted for more than three years. The outlook for small
companies is bright. Historically, they perform well following interest rate
cuts and they are currently priced inexpensively relative to large companies.

Over the long run, US small companies should offer very good returns and our
conservative approach to investment is aimed at giving protection at times of
market uncertainty.

Proposals to allow shareholders to vote on realising their investment prior to
the AGM in 2002

The Company's Articles require the Board to propose an ordinary resolution at
the AGM in 2002 that the Company should continue as an investment trust for an
unlimited period. Your Board undertook in June 1999 to put forward proposals
which will allow shareholders to vote on realising their investment at a price
which fairly reflects the then net asset value. Similar resolutions are to be
placed every three years thereafter. I shall be writing to you in the coming
year with recommended proposals to this effect.

Shareholders and the Annual General Meeting

The annual general meeting will be held at Exchange House on Tuesday

30 October 2001 at 12.30pm. I shall look forward to welcoming all those of you
who can attend

Gordon Grender

September 2001





Balance sheet

At 30 June
                                                                2001      2000
                                                              £000's    £000's
Fixed assets
Listed Investments                                            86,028    78,598

Current assets

Debtors                                                           37       171

Taxation recoverable                                               5        42

Cash at bank and short-term deposits                             932     2,395
                                                                 974     2,608
Current liabilities
Creditors: amounts falling due within one year:                (259)     (260)

Net current assets                                               715     2,348

Net assets                                                    86,743    80,946

Capital and reserves

Called up equity share capital                                 8,119     8,316

Capital redemption reserve                                     4,507     4,283

Share premium                                                    165        50

Warrant reserve                                                1,403     1,438

Special reserve                                               26,088    27,945

Capital reserves                                              47,534    39,630

Revenue reserve                                              (1,073)     (716)

Total equity shareholders' funds                              86,743    80,946

Net asset value per ordinary share - Basic pence             267.11p   243.35p
Net asset value per ordinary share -Diluted- pence           249.22p   228.44p


Geographical distribution of the investments at 30 June 2001 was:

United States 100%

Statement of Total Return (incorporating the Revenue Account*)

for the year ended 30 June



                                                                              
                                 2001                          2000  
                    Revenue    Capital    Total    Revenue   Capital     Total
                     £000's     £000's   £000's     £000's    £000's    £000's

  Gains and               -      7,740    7,740          -     (202)     (202)
  losses on                                                                   
  Investments                                                                 
  Exchange gains          -        171      171          -      (40)      (40)
  and losses on                                                               
  currency                                                                    
  balances                                                                    
  Income (Note 1)       498          -      498        627         -       627
  Management fee      (660)          -    (660)      (695)         -     (695)
  Loss on                 -          -        -          -   (1,158)   (1,158)
  warrants                                                                    
  purchased for                                                               
  cancellation                                                                
  Other expenses      (141)        (7)    (148)      (182)      (13)     (195)
  Net return          (303)      7,904    7,601      (250)   (1,413)   (1,663)
  before finance                                                              
  costs and                                                                   
  taxation                                                                    
  Interest                -          -        -          -         -         -
  payable and                                                                 
  similar charges                                                             
  Return on           (303)      7,904    7,601      (250)   (1,413)   (1,663)
  ordinary                                                                    
  activities                                                                  
  before taxation                                                             
  Taxation on          (54)          -     (54)       (69)         -      (69)
  ordinary                                                                    
  activities                                                                  
  Return              (357)      7,904    7,547      (319)   (1,413)   (1,732)
  attributable                                                                
  to equity                                                                   
  shareholders                                                                
  Dividends on            -          -        -          -         -         -
  ordinary                                                                    
  shares (equity)                                                             
  Amount              (357)      7,904    7,547      (319)   (1,413)   (1,732)
  transferred                                                                 
  (from) / to                                                                 
  reserves                                                                    
  Return per         (1.09)      24.19    23.10     (0.86)    (3.81)    (4.67)
  ordinary share                                                              
  - pence                                                                     
  Return per              +      22.64    21.62          +         +         +
  ordinary share                                                              
  (diluted)-                                                                  
  pence                                                                       

  >     *The revenue column of this statement is the profit and loss account of
        the Company.
  >     + There is no dilution.
  >     All revenue and capital items in the above statement derive from
        continuing operations.



Cash Flow Statement

for the year ended 30 June
                                                                 2001      2000
                                                               £000's    £000's

Net cash outflow from operating activities                      (307)     (233)
Total tax paid                                                   (15)      (86)
Net cash inflow from financial investment                         435    27,372
Net cash inflow before use of liquid resources and financing      113    27,053
Management of liquid resources                                      -     6,362
Net cash outflow from financing                               (1,747)  (32,717)
Decrease / increase in cash                                   (1,634)       698



Notes

1) Income                                                       2001       2000
                                                              £000's     £000's

Overseas dividends                                               367        442
Interest from investments                                          7         59
Interest on cash and short-term deposits                         124        126
Total income                                                     498        627


2) Dividends

No dividend is recommended for payment on the ordinary shares.



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

The Audited Report and Accounts will be posted to all shareholders on or
around

26 September 2001. Copies may be obtained during normal office hours from the
Company's Registered Office, Exchange House, Primrose Street, London EC2A 2NY.

The annual general meeting will be held at the Company's Registered Office,
Exchange House, Primrose Street, London EC2A 2NY, on Tuesday 30 October 2001
at 12.30pm.


                                                         By order of the Board

                                                        F&C Management Limited

                                                                     Secretary

6 September 2001