Final Results

European Assets Trust NV
26 February 2002


To:     Stock Exchange, Company Announcements

From:   European Assets Trust NV

Date:   26 February 2002

RESULTS FOR YEAR ENDED 31 DECEMBER 2001

  • In a difficult year for equity markets, European Assets Trust maintained
    its number one position in its AITC peer group

  • Dividend of Euro 0.90 per share already announced for 2002, payable from
    accumulated capital reserves

  • Borrowing facilities of up to 20% of assets agreed

  • Outstanding four-year performance record remains


Objective


The investment objective of the Company is to achieve growth of capital through
investment in quoted medium-sized companies in Europe, excluding the United
Kingdom. A high dividend policy has been adopted from 2001, with dividends being
paid mainly from capital reserves.


Results


2001 proved to be a difficult year for financial markets. Despite muted
inflation and the lowest interest rates in a generation, investors chose to
focus on the deteriorating prospects for economic growth and the impact this
would have on corporate profitability.


After staging a convincing rally in the final three months of the year, the HSBC
Smaller Europe (ex UK) Index still ended 2001 with a substantial 19.5% fall in
sterling total return terms. European Assets Trust under-performed its
benchmark, declining by 25.1% in net asset value total return terms. However,
over the past four years since the portfolio refocus the net asset value total
return has been 51.2% in sterling terms compared with 9.6% for the benchmark
index, or 65.6% and 19.9% respectively in euro terms.


Despite the poor investment climate over the past year, European Assets Trust is
the leading performer by some margin in the AITC European smaller companies
sector over both one and two years, measured in net asset value total return
terms (capital performance with dividends re-invested).


It is heartening to report that many of the leading holdings in the Company's
portfolio continued to post strong earnings growth. This fundamentally positive
picture is in marked contrast to the weakness of the investment markets. The
Board continues to believe that there is a strong investment case for the small
to mid cap sector in Continental Europe given the earnings growth prospects.


Dividend


The Supervisory Board has already announced the dividend level in respect of the
year to 31 December 2002 in line with its previously stated high dividend yield
objective. It is based on last year's net yield of 8.5 per cent plus an
additional amount specifically this year taking the net dividend yield to
approximately 9.25 per cent of the net asset value per share at the end of
December 2001. A net dividend has been declared for the year to 31 December 2002
of Euro 0.9 per share (2001: Euro 1.17). In determining the rate of dividend the
Board has had regard to the interests of shareholders as a whole. This has
included consideration of the Company's dividend objective, portfolio and
capital structure and reserve position and prevailing market conditions. In 2001
dividends were paid from the Company's accumulated capital reserves as permitted
by Dutch regulations.


The Boards, through their advisers, seek to achieve the most advantageous
possible treatment for the Company and its shareholders in respect of Dutch tax.
Accordingly, the Supervisory Board has approved a change in the pattern of
dividend payments to be made by the Company to benefit from recent discussions
with the Dutch tax authorities. A net dividend of Euro 0.3 per share is today
declared and made payable and, together with the payments already made in
January and February 2002 amounting in total to Euro 0.15 per share, completes
dividend payments in respect of the Company's first six months of 2002. This
dividend will be paid on 20 March 2002 to shareholders on the register on 8
March 2002, having an ex-dividend date of 6 March 2002. Dutch withholding tax
does not apply to this dividend. Payment of monthly dividends is to recommence
in July 2002 at the previously announced net rate of Euro 0.075 per share.


Shareholders can elect to receive new shares in the Company in place of the cash
dividend.


Gearing


In line with intentions previously set out, the Company has entered into banking
facilities to allow the Managers to gear the portfolio within the 20 per cent of
assets level permitted under the Articles. The Managers anticipate drawing down
amounts during the year as opportunities arise.


Share Price and Discount


The Company's share price discount to net asset value has narrowed over the year
from 17.2 per cent to 6.6 per cent at 31 December 2001. Whilst the level of the
discount is affected by many factors, the Board believes that the creation of
ongoing demand from specific marketing initiatives which have commenced during
the year, together with good investment performance and the high dividend yield
objective should be beneficial. The Company's share price total return
performance is the best in its AITC sector over 1,3 and 5 years.


Outlook


There has been a marked recovery in European equity markets since the September
lows and encouragingly some degree of confidence appears to be returning to the
sector. The Board is confident that opportunities remain for profitable
investment in Continental European small to mid cap companies. It is anticipated
that the gearing facility will gradually be drawn down as these opportunities
arise. European Assets Trust will continue to focus its investments in well
financed, growing businesses selling at attractive valuation levels.


FINAL FINAL RESULTS FOR 12 MONTHS TO 31 DECEMBER 2001

                                                               31 December        31 December
                                                                      2001               2000
BALANCE SHEET
                                                Note                 €'000              €'000

Investments

Securities                                       1                 176,167            243,640
Net current (liabilities)/assets                                   (5,386)            110,942

Total assets less current liabilities                              170,781            254,582


Net Asset Value per share                        2                   €9.35             €14.03
Expressed in sterling                                                 569p               876p


REVENUE ACCOUNT
                                                               31 December        31 December
                                                                      2001               2000
                                                                     €'000              €'000

Income

Securities                                       3                   2,187              1,875
Deposit interest                                                       224              1,139
Securities lending                                                      70                128
Total income                                                         2,481              3,142

Expenses and interest
Administration expenses                                              (749)            (1,385)
Interest charges                                                     (552)                (1)
Exceptional expenses                                                     -              (846)
Total expenses                                                     (1,301)            (2,232)

Net income                                                           1,180                910
Corporation tax surchargeAbsorbed by                               (2,977)             8,760-
dividends
Net income after corporation tax surcharge                         (1,797)                910

Earnings per share                                                (€0.098)             €0.038
Dividends per share                              4                   €1.56       €0.036/€0.57

Statement of Cash Flows - for the year ended
                                                                            31 December             31 December
                                                                                   2001                    2000
                                                                                  € 000                   € 000

Cash flow from investment activities
Interest, dividends and other income                                              2,864                   2,900
Purchases of shares                                                            (81,501)               (173,782)
Sales of shares                                                                  95,793                 295,229
Administrative expenses                                                         (2,161)                 (2,688)
Interest charges                                                                  (550)                       -
Exceptional expense                                                                   -                 (1,658)
                                                                                 14,445                 120,001

Cash flows from financial activities
Dividends paid                                                                 (22,694)                 (1,694)
Special interim dividend                                                              -                 (7,066)
Dividend withholding tax                                                       (25,887)                       -
Net repurchase of shares                                                              -                (86,332)
                                                                               (48,581)                (95,092)
Cash at bank
Net (decrease)/increase for the year                                           (34,136)                  24,909
Balance as at 1 January                                                          36,411                  11,502
Balance as at 31 December                                                         2,275                  36,411

Notes:


 1. Securities are valued at market price.


 2. Based on 18,259,867 shares in issue (2000 - 18,141,038*). During
    the year the Company issued 118,829 shares through its scrip dividend
    option.

 3. Income is stated after deduction of irrecoverable withholding taxes.

 4. A net dividend of €0.90 has been announced for the year 2002. A
    scrip option is available.

 5. Expenses are allocated between revenue and capital reserves in
    the proportion 25:75 for 2001 and 50:50 for 2000 under revised Dutch tax
    law.

 6. These are not the full accounts. The full accounts for the year
    to 31 December 2001 will be sent to shareholders and will be available
    for inspection at the Company's registered office, KAS BANK, Spuistraat
    172, 1012 VT Amsterdam and from the investment advisers at, Friends
    Ivory & Sime, One Charlotte Square, Edinburgh, EH2 4DZ.

 7. A General Meeting to receive the 2001 Report & aAccounts will be held on 17
    May 2002.

For further information, please contact:

Millar Law, Fund Manager        Friends Ivory & Sime          0131 465 1000

Michael Campbell, Company Secretary* During the year the Company bought in
shares by tender offer and subsequently reissued 1,613,000 shares.


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