Final Results

Foreign & Colonial PEP&ISA Inv Tst
29 November 2000

        Date: 28 November 2000
        Contact: Julian Cane Foreign & Colonial Management 020 7628 8000

        Louise Dolan Financial Dynamics 020 7831 3113

                 FOREIGN & COLONIAL PEP AND ISA INVESTMENT TRUST PLC

           Unaudited Preliminary Statement of Results for the year ended 30
                                    September 2000

        Highlights

  * The net asset value (NAV) per share of 205.99p increased by 7.8% over
    the year to 30 September 2000. Over the same period, the FTSE All-Share
    Index increased by 7.2% in capital terms.
  * The share price rose 0.9% to 173.00p, as the discount widened to 16.0%.
  * A final dividend of 3.05p per share will be payable on 8 February 2001.
    The total dividend for the year is 4.95p, an increase of 3.1%, which is
    above the rate of underlying inflation of 2.2%.
  * The Company has once again been actively purchasing its own shares.
    During the year it bought 2,665,000 shares, or 5.0% of the Company at an
    average price of 166p and an average discount of more than 17% to NAV.



        SUMMARY OF RESULTS


                                                 30           30 Sept    %
                                                 Sept                           
                                               2000          1999    Change
                                                            (restated)
                                                                   *

Attributable to equity shareholders

Net assets                                     £104.31m     £101.89m    +2.4
                                               

Net asset value per share                       205.99p      191.14p    +7.8
                                            


Net revenue after taxation                     £2.55m       £2.96m     -14.1
                                               

Earnings per share                             4.90p          5.19p    - 5.6
                                              

Dividends per share                            4.95p           4.80p    + 3.1
                                               
Share price                                    173.00p        171.50p   + 0.9
                                               
*Restated to reflect changes in accounting policies (see notes 1 (a) and (b))

Balance Sheet
                                                      at 30 Sept     at 30 Sept
                                                                    (restated*)
                                                            2000           1999
                                                          £'000s         £'000s
Investments
Listed in Great Britain                                   98,516         92,237
 Listed outside Great Britain                             11,543          9,923
                                                         110,059        102,160
Current assets
Debtors                                                      724          1,924
Taxation recoverable                                          27             47
Cash at bank and short-term deposits                         728            288
                                                           1,479          2,259
Current liabilities
Creditors: amounts falling due within one year:
Short-term loans                                         (5,400)              -
Other creditors                                          (1,824)        (2,532)
                                                         (7,224)        (2,532)
Net current liabilities                                  (5,745)          (273)
Net assets                                               104,314        101,887
Capital and reserves:
Called up equity share capital                            12,660         13,326
Capital redemption reserve                                 2,097          1,431
Share premium                                             16,394         16,394
Special reserve                                           20,270         24,721
Capital reserves                                          52,050         45,195
Revenue reserve                                              843            820
Total equity shareholders' funds                         104,314        101,887
Net asset value per ordinary share - pence                205.99         191.14

* Restated to reflect a change in accounting policy (see note 1 (a))

Geographical distribution of total assets less current liabilities at 30
September 2000 was: United Kingdom: 89.4%; Continental Europe 10.6%.



        Statement of Total Return (incorporating the revenue account*)


                                           - 2000-               -1999-
                                                               (restated **)
                                  Revenue Capital Total Revenue   Capital Total
                                   £'000s  £'000s £'000s £'000s   £'000s £'000s 
                                                
      Gains on investments              -   7,227 7,227    -     16,258 16,258
    

     Exchange gains and losses on   (3)       (23)  (26)   (3)        2   (1)
     currency balances
                              
    
     Income                         3,018       - 3,018   3,365       -  3,365
    

     Management fee                  (260)   (260) (520)   (256)   (257) (513)
    

    Other expenses                   (112)     (5) (117)   (115)     (2) (117)
    

    Net return before finance        2,643   6,939 9,582   2,991  16,001 18,992
    costs and taxation

    Interest payable and similar      (84)    (84) (168)     (1)      (1)   (2)
    charges

    Return on ordinary               2,559   6,855 9,414   2,990  16,000 18,990
    activities before taxation

    Taxation on ordinary              (13)       -  (13)    (26)       -   (26)
    activities

    Return attributable             2,546   6,855  9,401   2,964  16,000 18,964 
    equity shareholders

    Dividends on ordinary          (2,523)      - (2,523) (2,581)     - (2,581) 
   shares (equity)

    Amount transferred to              23  6,855   6,878     383  16,000 16,383
    reserves

    Return per ordinary share-       4.90  13.19   18.09    5.19   28.04  33.23
    pence


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

** Restated for changes in accounting policies (see notes 1 (a) and (b).

     Note 1     Changes in accounting policies:


        (a) Allocation of Expenses

        50% of management fee, including related VAT, and, 50% of finance
        costs, (net of applicable tax relief), have been allocated to capital
        reserve realised in accordance with the board's expected long-term
        split of returns from the investment portfolio of the Company.
        Previously, management fee and finance costs were allocated 100% to
        revenue. Prior year figures have been restated accordingly.

        (b) Income

        Dividends are accounted for in accordance with Financial Reporting
        Standard 16 (FRS16) 'Current Taxation' on the basis of the income
        actually receivable, without adjustment for the tax credit attaching
        to the dividends. Previously, dividends were accounted for inclusive
        of the tax credit. Prior year figures have been restated.

Cash Flow Statement
                                                                  2000     1999
                                                                £'000s   £'000s
Net cash inflow from operating activities                        2,436    2,867
Net cash outflow from servicing of finance                       (160)      (2)
Total tax recovered/(paid)                                           5     (23)
Net cash inflow from financial investment                          369    7,915
Equity dividends paid                                          (2,551)  (2,691)
Net cash inflow before use of liquid resources and financing        99    8,066
Management of liquid resources                                   (600)        -
Net cash inflow/(outflow) from financing                           359  (9,483)
Decrease in cash                                                 (142)  (1,417)



Note 2     The Directors propose a final dividend of 3.05p (1999 - 2.95p) per
share payable on 8 February 2001 to shareholders registered on 15 December
2000.

Note 3     The financial information set out in this announcement does not
constitute the Company's statutory accounts for the years ended 30 September
2000 or 30 September 1999. The financial information for the year ended 30
September 1999 (restated to comply with changes in accounting policies) has
been extracted from the statutory accounts for that year which have been
delivered to the Registrar of Companies. The auditors report on those
accounts was unqualified and did not contain a statement under either Section
237(2) or Section 237(3) of the Companies Act 1985. The statutory
accounts for the year ended 30 September 2000 will be finalised on the basis
of the financial information presented by the directors in this preliminary
announcement and will be delivered to the Registrar of Companies following the
Company's Annual General Meeting.

The Audited Report and Accounts will be posted to shareholders on or around 12
December 2000. Copies may be obtained thereafter during normal business hours
from the Company's Registered Office, Exchange House, Primrose Street, London
EC2A 2NY.

The Annual General Meeting will be held at Exchange House, Primrose Street,
London EC2A 2NY on Wednesday, 7 February 2001 at 11:00am.

By order of the Board

Foreign & Colonial Management Limited - Secretary