Final Results

THE EDINBURGH INVESTMENT TRUST plc
PRELIMINARY RESULTS FOR THE YEAR TO 31 MARCH 2002

The £1.4 billion Edinburgh Investment Trust plc is the UK's largest
investment trust focussed solely on UK quoted companies. The objectives
of The Edinburgh Investment Trust plc are the achievement of capital
growth at a higher rate than the FTSE All-Share Index and dividend
growth above the rate of UK inflation.

Highlights

·    Net asset value per share fell by 10.4% in the year compared to a
fall of 5.7% in the FTSE All-Share Index. In the second six months of
the financial year the net asset value outperformed, increasing 9.9%
compared to a rise of 9.3% in the benchmark index.

·    Dividend up 2.4% to 12.75p for the year against a rise of 2.3% in
underlying inflation over the same period.

·    Share Buybacks: the company bought back 6.04 million shares (2.4%
of share capital), enhancing net asset value by 0.3%.

·    Management Contract: Edinburgh Fund Managers (EFM) is to be judged
against other fund managers in a formal selection process. Protective
notice terminating the management contract from close of business on 31
August 2002 has been given.

For further information, please contact:

The Edinburgh Investment Trust plc  
Lord Eglinton                       01250 883 222
UBS Warburg Ltd - Will Rogers       0207 568 2939


Edinburgh Fund Managers plc             
Robert Waugh                            0131 313 1000
Polhill Communications, Julian Polhill  0207 655 0500


Please note that past performance is not necessarily a guide to the
future and that the value of investments and the income from them may
fall as well as rise. Investors may not get back the amount they
originally invested.

CHAIRMAN'S STATEMENT
The two halves of the year to 31 March 2002 were very different both for
the stock market and for the company. During the first six months the
market fell sharply and the company failed to meet its benchmark: during
the second six months markets recovered and the benchmark was exceeded.
For the year as a whole, however, performance was extremely
disappointing with the net asset value per share ("NAV") falling by
10.4% compared to a fall of 5.7% in the FTSE All-Share Index.

The board is proposing a final dividend of 8.65p which, if approved,
will give a total distribution of 12.75p, an increase of 2.4%. During
the same period the UK's underlying rate of inflation was 2.3%.

Market Background
For the second successive year, the FTSE All-Share Index ended the
period to 31 March at a lower level than at 1 April. Following a sharp
fall in the months before the start of the year under review, the UK
equity market reflected initial optimism that the world economy would
avoid major recession. In the event, this proved unduly optimistic and
weakness in the US caused major problems to international companies, and
in turn affected all the world's major stock markets. The UK was not
immune from this effect and, as I reported at the interim stage, the
FTSE All-Share Index had by 30 September 2001 fallen by 13.7% in the six
month period: the effect of 11 September accounted for only a small part
of this fall. Subsequently, markets recovered sharply in the final
quarter of 2001 as investors became more confident of global economic
recovery. This optimism was later tempered by reported earnings which
fell short of expectation and, despite recovery in March, the market
performed poorly in the first quarter of 2002.

Overall, the FTSE All-Share Index declined by 5.7% in the year ending 31
March 2002: a fall of 13.7% in the first six months being partly offset
by an increase of 9.3% in the second.

Portfolio Performance
I reported at the interim stage that the Company's portfolio had
performed badly in the six months to 30 September. The manager had been
unduly optimistic about economic growth and the portfolio had been
positioned accordingly: balance sheet gearing had exacerbated this
position and the outcome of the first half year was an 18.5% fall in
NAV, compared to the 13.7% reduction in the benchmark index.

There has been a welcome improvement in the second half of the year, as
a result of improved market optimism and some change in focus of the
portfolio to companies and sectors benefiting from economic
developments. In this second six months, the company's NAV has increased
by 9.9%, compared to a rise of 9.3% in the benchmark index.

The better second half performance has not offset the result in the
first six months, and over the year as a whole the 10.4% decline in NAV
was greater than the 5.7% fall in the FTSE All-Share Index.

The use of borrowings - gearing - has been a significant contributor to
the performance of the portfolio. The company's long term borrowings
represented 14.6% of shareholder funds at the start of the year, rising
slightly due to market movements during the year. Over many years of
rising markets, gearing has been highly beneficial in adding value for
shareholders: the reverse is true when the market falls, although this
impact can be mitigated by increasing the amount of cash in the
portfolio. To put this in context, the use of gearing contributed 0.8%
to the fall in NAV during the year. Interest charged to the realised
capital reserve accounted for an additional 1.1% reduction in NAV. The
company has not utilised any of the additional £75million short term
loan facility which was mentioned in my interim statement.

Share buy-back programme
The board's continuing policy is to buy back shares for cancellation in
order to address any imbalance between the supply and the demand for the
shares and to reduce the scale and volatility of the discount, whilst at
all times enhancing the NAV for the remaining shareholders.

During the year the company bought back and cancelled 6,040,000 ordinary
shares, representing 2.4% of the share capital at the beginning of the
year. This resulted in an increase in the NAV for remaining shareholders
of 0.3%

The board believes that its ability to buy back shares for cancellation
is to the benefit of all shareholders. As in recent years, a Special
Resolution proposing an extension of this facility will be put to the
annual general meeting on 3 July 2002.

Dividends
The board is recommending a final dividend of 8.65p per share, which
will make a total for the year of 12.75p per share, a rise of 2.4%. The
revenue return per share for the year was 12.50p and therefore revenue
reserves have again been drawn on modestly to meet the company's
dividend objective. The board remains comfortable with this policy,
which is under regular review, as the level of revenue reserves
presently represents more than a full year's dividend and also because
it anticipates that future dividend growth will not need to rely to any
material extent on the use of these reserves.

The Board
Dick Barfield, who was previously the Chief Investment Manager at
Standard Life, was appointed to the board on 20 August 2001. We welcome
him warmly and the company is already benefiting from his wealth of
investment management expertise.

Management Contract
Last October, following a period of poor investment performance, the
company's manager, Edinburgh Fund Managers ("EFM"), agreed to the
board's request that the notice period under the management contract
should be reduced from 1 year to 3 months.

On 4 March 2002 it was announced that the board had confirmed to Hermes
Pensions Management, who were in merger discussions with EFM, that in
the event of any change of control of its manager, and irrespective of
the party acquiring control, the company would initiate a process
whereby EFM and other fund managers would be invited to tender for the
Investment Management Contract. Subsequently Hermes withdrew from its
discussions with EFM.

These events have introduced an element of uncertainty into the
relationship between the company and its manager which, if allowed to
continue, could be to the detriment of shareholders. The board is
anxious, therefore, that this uncertainty should be dispelled. After
much thought, it has concluded that, despite a welcome improvement in
performance since 30 September 2001, it is not able to give a commitment
to a continuing relationship with EFM without judging them formally
against other fund managers.

Accordingly, Hymans Robertson has been retained to assist the board in
conducting a formal selection process, which will include EFM. Progress
will be reported at the Annual General Meeting of the company on 3 July
2002 and it is hoped that the process will be completed shortly
thereafter.

In the interests of the company's shareholders protective notice
terminating the management contract with effect from the close of
business on 31 August 2002 has been given to EFM.

The Way Ahead
The Edinburgh Investment Trust is the UK's largest investment trust
focussed solely on UK quoted companies and its objectives are the
achievement of capital growth higher than the FTSE All-Share Index and
dividend growth above the rate of UK inflation. Its aim is to provide
both institutions and individuals alike with a low risk, lightly geared
exposure to the UK equity market. The board is confident that, when the
steps it is taking have settled the uncertainty surrounding the
management of the company, these objectives and aims will be seen to
offer an excellent vehicle to long term investors.

STATEMENT OF TOTAL RETURN FOR THE YEAR ENDED 31 MARCH


                                  2002                            2001          
                    Revenue    Capital      Total   Revenue    Capital     Total
                       £000       £000       £000      £000       £000      £000
                                                                                
Realised                  -   (30,040)   (30,040)         -    183,567   183,567
(losses)/gains on
investments
Decrease in               -   (96,227)   (96,227)         -  (373,754) (373,754)
unrealised
appreciation
                                                                                
TOTAL CAPITAL             -  (126,267)  (126,267)         -  (190,187) (190,187)
LOSSES
ON INVESTMENTS
Currency                  -        (2)        (2)         -        866       866
(losses)/gains
Income from          36,324          -     36,324    38,454          -    38,454
investments
Interest              3,457          -      3,457     1,889          -     1,889
receivable on
short term
deposits
Underwriting              4          -          4        53          -        53
commission
Investment          (1,531)    (3,573)    (5,104)   (1,874)    (4,372)   (6,246)
management fee
Administrative      (1,260)          -    (1,260)   (1,707)          -   (1,707)
expenses
                                                                                
NET RETURN BEFORE                                                               
FINANCE COSTS AND    36,994  (129,842)   (92,848)    36,815  (193,693) (156,878)
TAXATION
                                                                                
Interest payable    (5,850)   (13,651)   (19,501)   (5,850)   (13,651)  (19,501)
and similar
charges
                                                                                
RETURN ON                                                                       
ORDINARY             31,144  (143,493)  (112,349)    30,965  (207,344) (176,379)
ACTIVITIES BEFORE
TAXATION
                                                                                
Taxation                (1)          -        (1)       (1)          -       (1)
                                                                                
RETURN                                                                          
ATTRIBUTABLE TO      31,143  (143,493)  (112,350)    30,964  (207,344) (176,380)
EQUITY
SHAREHOLDERS
Dividends in       (31,230)          -   (31,230)  (31,177)          -  (31,177)
respect of equity
shares
                                                                                
Transfer from          (87)  (143,493)  (143,580)     (213)  (207,344) (207,557)
reserves
                                                                                
RETURN PER                                                                      
ORDINARY SHARE       12.50p   (57.59p)   (45.09p)    12.07p   (80.81p)  (68.74p)
                                                                                
TOTAL DIVIDEND                                                                  
PER ORDINARY         12.75p                          12.45p
SHARE
                                                                                

The revenue column of this statement represents the revenue account of
the company.
All revenue and capital items in the above statement derive from
continuing operations.
No operations were acquired or discontinued during the year.

BALANCE SHEET AT 31 MARCH

                                               2002              2001
                                      £000     £000     £000     £000
FIXED ASSETS                                                         
Investments                                 1,329,6           1,530,5
                                                 15                94
                                                                     
CURRENT ASSETS                                                       
Debtors                             12,878            13,087         
AAA Money Market Funds              73,000                 -         
UK Treasury Bills                   24,831            54,605         
Cash and short term deposits         2,797             5,138         
                                                                     
                                   113,506            72,830         
CREDITORS: AMOUNTS FALLING                                           
DUE WITHIN ONE YEAR                 46,693            35,542
                                                                     
NET CURRENT ASSETS                           66,813            37,288
                                                                     
TOTAL ASSETS LESS CURRENT                   1,396,4           1,567,8
LIABILITIES                                      28                82
                                                                     

CREDITORS: AMOUNTS FALLING                                           
DUE AFTER MORE THAN ONE YEAR                194,850           194,599
                                                                     
                                            1,201,5           1,373,2
                                                 78                83
                                                                     
CAPITAL AND RESERVES                                                 
Called up share capital - equity             61,705            63,215
Share premium                                 6,639             6,639
Capital redemption reserve                   11,750            10,240
Capital reserve - realised                  885,336           960,727
Capital reserve - unrealised                194,974           291,201
Revenue reserve                              41,174            41,261
                                                                     
TOTAL EQUITY SHAREHOLDERS' FUNDS            1,201,5           1,373,2
                                                 78                83
                                                                     
NET ASSET VALUE PER ORDINARY                484.73p           540.96p
SHARE




CASHFLOW STATEMENT FOR THE YEAR ENDED 31 MARCH

                                                2002                  2001

                                    £000        £000        £000      £000

                                                                          

NET CASH INFLOW                               33,778                30,799
FROM OPERATING ACTIVITIES
                                                                          
SERVICING OF FINANCE                                                      
Interest paid                   (19,250)                (19,250)          
                                                                          
NET CASH OUTFLOW                            (19,250)              (19,250)
FROM SERVICING OF FINANCE
                                                                          
TAXATION                                                                  
UK tax (paid)/recovered            (768)                     234          
Overseas tax paid                    (1)                     (1)          
                                                                          
NET CASH (OUTFLOW)/ INFLOW                     (769)                   233
FROM TAXATION
                                                                          
FINANCIAL INVESTMENT                                                      
Purchase of investments        (387,035)               (398,102)          
Sale of investments              473,535                 519,251          
                                                                          
NET CASH INFLOW                                                           
FROM FINANCIAL INVESTMENT                     86,500               121,149
                                                                          
EQUITY DIVIDENDS PAID                       (31,247)              (31,577)
                                                                          
NET CASH INFLOW BEFORE                                                    
USE OF LIQUID RESOURCES AND                   69,012               101,354
FINANCING
                                                                          

NET CASH OUTFLOW FROM                       (43,226)              (54,605)
MANAGEMENT OF LIQUID
RESOURCES
                                                                          
FINANCING                                                                 
Buyback of ordinary shares      (28,125)                (56,102)          
                                                                          
NET CASH OUTFLOW FROM                       (28,125)              (56,102)
FINANCING
                                                                          
DECREASE IN CASH                             (2,339)               (9,353)
                                                                          


Notes:
1.   The directors recommend that a final dividend of 8.65p (2001 -
8.45p) per ordinary share be paid. The final dividend will be paid on 4
July 2002 to shareholders on the register on 7 June 2002. The ex
dividend date is 5 June 2002.
2.   The financial information for the year ended 31 March 2001 has been
extracted from the annual report and accounts of the company which has
been filed with the Registrar of Companies and on which the auditors'
report was unqualified.
     The accounts have been prepared under the same accounting policies
used for the year to 31 March 2001.
3.   The statutory accounts for 2002 contain an unqualified audit report
and will be delivered to the Registrar of Companies following the
company's Annual General Meeting which will be held at The Caledonian
Hilton Hotel, Princes Street, Edinburgh on Wednesday 3 July 2002 at
12.00 noon.
4.   The statement of total return (incorporating the revenue account),
balance sheet and cashflow set out above do not represent full accounts
in accordance with Section 240 of the Companies Act 1985. The accounts
have been prepared in accordance with the Statement of Recommended
Practice 'Financial Statements of Investment Trust Companies'.
5.   The annual report will be posted to shareholders on 31 May 2002 and
copies will be available from the Secretary - Edinburgh Fund Managers
plc, Donaldson House, 97 Haymarket Terrace, Edinburgh EH12 5HD.