Interim Results

Edinburgh Investment Trust PLC
24 October 2001


24 October 2001



                      THE EDINBURGH INVESTMENT TRUST plc
                    INTERIM RESULTS FOR SIX MONTHS ENDING
                              30 SEPTEMBER 2001

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.


  * The net asset value fell by 18.5% against a fall of 13.7% in the FTSE
    All-Share Index.

  * The interim dividend has been increased by 2.5% to 4.1p per share.  The
    underlying rate of inflation over the same period was 1.9%.

  * Interest rate reductions in UK and US should help boost economic
    activity, although prolonged conflict in Afghanistan could further
    de-stabilise the global economy.

  * Notice period under the management contract to be reduced.


For further information, please contact:


Robert Waugh     Director        0131 313 1000
                 Edinburgh Fund Managers plc

Ian Massie       Director        0131 313 1000
                 Edinburgh Fund Managers plc


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 Review

The Company did not perform well in the six-month period to 30 September 2001
during which the net asset value per share fell by 18.5%, against a fall of
13.7% in the FTSE All-Share Index.  The share price fell by 19.8%.  The
interim dividend has been increased by 2.5% to 4.1p per share.

The UK Equity Market

The FTSE All-Share Index started the period positively, rising by almost 6% in
the month of April.  This strength stemmed from the market's expectation that
interest rate cuts and other measures taken by the US authorities would
prevent the domestic slow-down which, it was feared, would trigger a
world-wide loss of confidence.  Thereafter as the corporate results season
progressed through the summer, it became increasingly clear that economic
activity in Europe and the US was weaker than the market had been
anticipating.  Thus, while the UK domestic economy remained in relatively good
health, companies with international businesses were quickly being exposed to
the growing pressure on corporate profitability from the slowdown elsewhere.
The resulting steady flow of earnings disappointments served to dampen
investor sentiment, and the Index declined steadily by about 2% each month
from May until August, and at an increased rate following the events of 11
September.  Despite some recovery at the end of that month, the FTSE All-Share
Index had by 30 September retreated to 2,340 - a fall of 13.7% over the
six-months.

Performance

The performance during the period was attributable to a combination of two
principal factors.  Firstly, the manager's stock and sector selection was
based on the premise that the global economy would remain relatively strong.
The portfolio was, therefore, disadvantaged by the unexpected weaker economic
activity and it suffered particularly from the extreme conditions in
September.  Secondly, the company's gearing had a negative impact during the
falling market.

During the period the company bought back 4,615,000 shares (1.8% of issued
capital) from holders, adding 0.2% to net asset value.

At the AGM last July it was announced that the potential gearing of the
company had been increased through the arrangement of a loan facility of up to
£75 million to take advantage of current low UK interest rates and the long
term attractions of the UK stockmarket.  None of this loan has as yet been
drawn down and the facility will remain unused until such time as there are
clear signs of an economic outlook supportive for equities.

Interim Dividend

The interim dividend of 4.1p per share, 2.5% higher than last year, will be
paid on 3 December 2001 to shareholders on the register at 2 November 2001.
The more challenging economic conditions and resulting pressure on
profitability has forced many companies to reduce their dividend payments with
the result that the company's own income per share is likely to be marginally
less than last year.  However, in deciding the level of final dividend to be
recommended, the board will have regard to the substantial revenue reserve
carried forward and also to the beneficial effect of the buy back programme on
the retained earnings per share for remaining shareholders.

Prospects

The tragic events of 11 September in the US have significantly increased the
likelihood of the US economy entering a period of recession.  The severity of
this economic contraction will hinge on the reaction of the US consumer, who
up until the terrorist attacks, had been spending strongly. The impact on
global confidence from the military response in Afghanistan is presently
extremely difficult to forecast.

However, in the current economic and political turmoil it would be easy to
forget that US interest rates have been reduced from 6.5% to 2.5% and UK base
rates from 6.0% to 4.5% during 2001.  The company remains confident that the
scale of this monetary easing, coupled with an expansionary fiscal policy in
the UK and US, should provide the necessary stimulus to boost economic
activity.  In that case we would expect the FTSE All-Share Index to make
progress from its current level, though recognise that a prolonged conflict in
Afghanistan or elsewhere could further de-stabilise the global economy.

Manager

At the Board's request Edinburgh Fund Managers has agreed that the notice
period under the management contract will be reduced from 1 year to 3 months.


STATEMENT OF TOTAL RETURN (for the six months to 30 September 2001)


                                              Revenue      Capital        Total
                                                 £000         £000         £000
Realised losses on investments                     -       (1,917)      (1,917)
Decrease in unrealised appreciation                -     (246,924)    (246,924)

TOTAL CAPITAL LOSSES ON INVESTMENTS                -     (248,841)    (248,841)
Currency losses                                    -           (3)          (3)
Income from investments                       19,158            -       19,158
Interest receivable on short term deposits     1,852            -        1,852
Underwriting commissions                           2            -            2
Investment management fee                       (817)      (1,905)      (2,722)
Other administrative expenses                   (506)           -         (506)

NET RETURN BEFORE FINANCE COSTS AND           19,689     (250,749)    (231,060)
TAXATION
Interest payable and similar charges          (2,944)      (6,870)      (9,814)

RETURN ON ORDINARY ACTIVITIES BEFORE
TAXATION                                      16,745     (257,619)    (240,874)
Taxation                                          (1)           -           (1)

RETURN ON ORDINARY ACTIVITIES AFTER
TAXATION                                      16,744     (257,619)    (240,875)
Dividends in respect of equity shares         (9,880)           -       (9,880)

Transfer to/(from) reserves                    6,864     (257,619)    (250,755)

Return per ordinary share                       6.69p    (102.96p)     (96.27p)

Interim dividend per ordinary share             4.10p




STATEMENT OF TOTAL RETURN (Cont'd) (for the six months to 30 September 2000)


                                              Revenue     Capital        Total
                                                 £000        £000         £000
Realised gains on investments                      -      125,041      125,041
Decrease in unrealised appreciation                -     (100,988)    (100,988)

                                              ---------   ----------   ---------
TOTAL CAPITAL GAINS ON INVESTMENTS                 -       24,053       24,053
Currency gains                                     -          873          873
Income from investments                       18,920            -       18,920
Interest receivable on short term deposits       764            -          764
Underwriting commissions                          38            -           38
Investment management fee                       (948)      (2,213)      (3,161)
Other administrative expenses                 (1,027)           -       (1,027)
                                             -----------   ---------  ----------
NET RETURN BEFORE FINANCE COSTS AND
TAXATION                                      17,747       22,713       40,460
Interest payable and similar charges          (2,944)      (6,870)      (9,814)
                                             -----------   ---------  ----------
RETURN ON ORDINARY ACTIVITIES BEFORE
TAXATION                                      14,803       15,843       30,646
Taxation                                           -            -            -

RETURN ON ORDINARY ACTIVITIES                 14,803       15,843       30,646

Dividends in respect of equity shares         (9,815)           -       (9,815)
                                             -----------   ---------  ----------
Transfer to reserves                           4,988       15,843       20,831

Return per ordinary share                      5.73p        6.13p       11.86p

Interim dividend per ordinary share            4.00p


STATEMENT OF TOTAL RETURN (Cont'd) (for the 12 months to 31 March 2001)

                                              Revenue     Capital        Total
                                                 £000        £000         £000
Realised gains on investments                      -      183,567      183,567
Decrease in unrealised appreciation                -     (373,754)    (373,754)
                                             -----------   ---------  ----------

TOTAL CAPITAL LOSSES ON INVESTMENTS                -     (190,187)    (190,187)
Currency gains                                     -          866          866
Income from investments                       38,454            -       38,454
Interest receivable on short term              1,889            -        1,889
deposits
Underwriting commissions                          53            -           53
Investment management fee                     (1,874)      (4,372)      (6,246)
Other administrative expenses                 (1,707)           -       (1,707)
                                             -----------  ----------  ----------

NET RETURN BEFORE FINANCE COSTS AND
TAXATION                                      36,815     (193,693)    (156,878)
Interest payable and similar charges          (5,850)     (13,651)     (19,501)
                                             -----------  ----------  ----------

RETURN ON ORDINARY ACTIVITIES BEFORE
TAXATION                                      30,965     (207,344)    (176,379)
Taxation                                          (1)           -           (1)
                                             -----------  ---------  ----------

RETURN ON ORDINARY ACTIVITIES                30,964     (207,344)    (176,380)
Dividends in respect of equity shares        (31,177)           -      (31,177)
                                             -----------  ----------  ----------

Transfer from reserves                          (213)    (207,344)    (207,557)
                                             -----------  ----------  ----------

Return per ordinary share                      12.07p     (80.81p)     (68.74p)

Interim dividend per ordinary share            12.45p



*  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 in the year.


BALANCE SHEET

                                                   At           At          At
                                                   30     31 March          30
                                            September                September
                                                 2001         2001        2000
                                                 £000         £000        £000

FIXED ASSETS
Investments                                 1,262,985    1,530,594   1,778,156
                                           -----------   ---------  ----------

CURRENT ASSETS
Debtors                                        16,169      13,087       20,751
UK Treasury Bills                              14,890      54,605        9,884
Cash and short term deposits                   15,489       5,138       20,183
                                           -----------   ---------  ----------
                                               46,548      72,830       50,818
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE
YEAR                                           14,419      35,542       20,818
                                           -----------   ---------  ----------


NET CURRENT ASSETS                             32,129      37,288       30,000
                                           -----------   ---------  ----------

TOTAL ASSETS LESS CURRENT LIABILITIES       1,295,114    1,567,882   1,808,156

CREDITORS: AMOUNTS FALLING DUE AFTER MORE
THAN ONE YEAR                                 194,725     194,599      194,474
                                           -----------   ---------  ----------
                                            1,100,389    1,373,283   1,613,682
                                           -----------   ---------  ----------

CAPITAL AND RESERVES
Called up share capital -equity                62,062      63,215       63,812
Other reserves                              1,038,327    1,310,068   1,549,870
                                           -----------   ---------  ----------

TOTAL EQUITY SHAREHOLDERS' FUNDS            1,100,389    1,373,283   1,613,682
                                           -----------   ---------  ----------


Net asset value per ordinary share             441.14p     540.96p      630.03p




CASHFLOW STATEMENT


                                                  At             At          At
                                                  30             30    31 March
                                           September      September
                                                2001           2000        2001
                                                £000           £000        £000
Revenue before finance costs and             19,689         17,747      36,815
taxation
Decrease/(increase) in accrued income         4,140          3,336      (2,014)
Decrease in other debtors                         -              -         371
Decrease in creditors                           (38)           (19)         (1)
Expenses charged to capital                  (1,905)        (2,213)     (4,372)

NET CASH INFLOW FROM OPERATING
ACTIVITIES                                   21,886         18,851      30,799

NET CASH OUTFLOW FROM SERVICING OF
FINANCE                                      (9,625)        (9,625)    (19,250)

TOTAL TAX (PAID)/RECOVERED                     (769)            (6)        233

NET CASH INFLOW FROM FINANCIAL
INVESTMENT                                    2,352         72,685     121,149

EQUITY DIVIDENDS PAID                       (21,069)       (21,372)    (31,577)


NET CASH (OUTFLOW)/INFLOW BEFORE
FINANCING                                    (7,225)        60,533     101,354

MANAGEMENT OF LIQUID RESOURCES               39,715         (9,884)    (54,605)

NET CASH OUTFLOW FROM FINANCING             (22,139)       (44,091)    (56,102)

INCREASE/(DECREASE) IN CASH                  10,351          6,558      (9,353)


Notes to the Accounts:

1.  The accounts have been prepared in accordance with the Statement of
    Recommended Practice 'Financial Statements of Investment Trust Companies'.  
    The same accounting policies used for the year to 31 March 2001 have been   
    applied.

2.  Total equity shareholders' funds have been calculated in accordance
    with the provisions of Financial Reporting Standard 4, 'Capital             
    Instruments'. The net asset values per ordinary share have been calculated  
    on the basis of shareholders' rights to reserves adjusted to reflect the    
    redemption of debentures at par. A reconciliation of the two figures is as  
    follows:-


                                                    30   31 March            30
                                             September       2001     September
                                                  2001                     2000
                                                     p          p             p
Shareholders' funds per ordinary 25p
share                                          443.26     543.10        632.20
Less: Unamortised discount and expenses
arising from debenture issue                    (2.12)     (2.14)        (2.17)
Net asset value per ordinary 25p share
                                               441.14     540.96        630.03



3.  The number of ordinary shares in issue at 30 September 2001 was 248,246,714
    (31 March 2001-252,861,714). The return per ordinary share is
    based on the weighted average number of shares in issue. The net cash       
    outflow from financing shown in the Cashflow Statement relates wholly to    
    the cost of share buybacks.

4.  An interim dividend of 4.10p for the year to 31 March 2002 will be
    paid on 3 December 2001 to shareholders on the register on 2 November 2001.
    The ex-dividend date is 31 October 2001.

5.  The financial information for the year ended 31 March 2001 has been
    extracted from the Annual Report and Accounts of the company which have been
    filed with the Registrar of Companies. The auditor's report on those        
    accounts was unqualified.

    The statement of total return and the balance sheet do not represent full   
    accounts in accordance with Section 240 of the Companies Act 1985.

6.  The Interim Report will be posted to shareholders on 3 November 2001 and    
    copies will be available from the registered office of the company -
    Donaldson House, 97 Haymarket Terrace, Edinburgh EH12 5HD.


Independent Review Report by KPMG Audit Plc
to the Members of The Edinburgh Investment Trust plc


Introduction

We have been instructed by the company to review the financial information set
out on pages 6 to 10 and we have read the other information contained in the
interim report and considered whether it contains any apparent misstatements
or material inconsistencies with the financial information.

Directors' responsibilities

The interim report, including the financial information therein, is the
responsibility of, and has been approved by, the directors. The Listing Rules
of the Financial Services Authority require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where they are to be
changed in the next annual accounts in which case any changes, and the reasons
for them, are to be disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999
/4: Review of interim financial information issued by the Auditing Practices
Board. A review consists principally of making enquiries of management and
applying analytical procedures to the financial information and underlying
financial data and, based thereon, assessing whether the accounting policies
and presentation have been consistently applied unless otherwise disclosed. A
review is substantially less in scope than an audit performed in accordance
with Auditing Standards and therefore provides a lower level of assurance than
an audit. Accordingly we do not express an audit opinion on the financial
information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2001.



KPMG Audit Plc
Chartered Accountants
Edinburgh, 23 October 2001



Note:  The page numbers referred to above relate to the interim report.