Final Results

European Assets Trust NV
14 March 2006

To:                   RNS
From:                 European Assets Trust NV
Date:                 14 March 2006



RESULTS FOR YEAR ENDED 31 DECEMBER 2005

•         Over the year, the Company's assets rose by 33.7 per cent in Sterling
          total return* terms compared to a 35.5 per cent rise for the benchmark 
          index.

•         Net asset value total return* of +178.6 per cent since December 1997
         (portfolio refocused), compared with a 134.2 per cent rise for the 
          benchmark index.

•         6 per cent annual dividend yield level on net asset value.

•         31 per cent increase in annual dividend for 2006 compared with 2005.
          First dividend for 2006 of €0.23 paid in January and two further 
          dividends of €0.23 each to be paid in 2006.

          * capital performance with dividends added back



The Chairman's Statement follows:



'Continuation vote



At the Company's General Meeting held in October 2005, shareholders voted
overwhelmingly for the continuation of the Company and I would like to thank you
for your support. I am also pleased to report below on the strong investment
performance produced in 2005 continuing on from the previous years.



Also during 2005, the Board introduced a liquidity enhancement policy to seek to
add value for shareholders.  This policy, upon which I comment on below, has
worked as envisaged to date.



2005 results

In 2005 European Assets Trust was able to record another strong year of
investment performance.  The net asset value rose by 33.7 per cent in Sterling
total return* terms following an increase of 19.9 per cent in 2004.  The HSBC
Smaller Europe (ex UK) Index returned 35.5 per cent in 2005.  Good stock
selection was a key positive factor behind last year's substantial increase.
However returns relative to the benchmark index were dented slightly by the
Company's exposure to Ireland which lagged the average share price gains seen
elsewhere in continental Europe.



Since 1997, the date the portfolio was re-focused on the small to mid-sized
company asset class, European Assets Trust's net asset value has appreciated by
178.6 per cent in Sterling total return* terms compared with an increase of
134.2 per cent for the benchmark index.



The markets' exuberance in 2005 was all the more surprising considering the
number of potential negative political and economic themes which prevailed in
Europe throughout the year.  These included soaring prices for oil and metal
commodities, rising interest rates in the US, a resounding 'no' to the EU
constitution from the electorate in France and the Netherlands, anaemic economic
growth, and acts of terrorism in central London.  Any of these factors could
have derailed markets.  Investors chose rather to focus on strong profit figures
from European smaller companies and a surge in merger and acquisition activity.
Unsurprisingly given the developments in the oil price, energy companies
featured at the top of the performance league in 2005.  Industrials and
materials company share prices also recorded strong returns, helped by a
noticeable pick-up in capital expenditure as the year progressed.  Here it is
worth highlighting the performance of the Company's holding in Swedish zinc and
copper mining company, Boliden, which advanced almost 80 per cent from the early
March 2005 purchase price.



Distribution

The level of dividend paid by the Company each year is determined by the Board
in accordance with the Company's distribution policy.  The Board has stated
that, barring unforeseen circumstances, it will pay out an annual dividend
equivalent to 6 per cent of the net asset value of the Company at the end of the
preceding year.



In accordance with this policy, the Board has already announced that for 2006
the total dividend will be Euro 0.69 per share.   This dividend, which
represents an increase of 31 per cent compared with the net dividend payment of
Euro 0.525 (0.555 gross) in 2005, is to be paid in three equal instalments of
Euro 0.23 per share at the end of January, May and August.  The January dividend
was paid to shareholders on 25 January 2006.



The Company benefits from Dutch regulations which allow it to pay dividends from
capital and the 2005 dividend was primarily paid from capital.  The Manager is
therefore not constrained by the requirement to generate income from portfolio
holdings but can concentrate solely on the potential for growth in capital
returns. The Board believes that this distribution policy is an attractive
feature of the Company for shareholders.



Gearing

The Company presently has banking facilities to allow the Managers to gear the
portfolio within the 20 per cent of assets level permitted under the Articles.
The facilities are Euro denominated and flexible, allowing the Managers to draw
down amounts for such periods as they wish on a fixed or variable rate basis.
During 2005, net gearing ranged from zero to 10 per cent of assets and
contributed just over one percentage point to total return over the period.



Dutch Tax

The Dutch authorities have continued to make favourable announcements in respect
of the simplification and liberalisation of Dutch tax, making it an increasingly
competitive environment in a European context.  As I commented last year, Dutch
surtax was abolished from 1 January 2005, one year earlier than had previously
been indicated.



During 2005 the Dutch authorities announced the abolition of capital duty tax
and also the proposed introduction of a new favourable tax regime for investment
funds which could remove Dutch withholding tax on distributions.



These developments are welcome and the Board works with its advisers to seek to
take advantage of the Company's Dutch tax position.



Shareholder Value

During the final quarter of 2005 the Board introduced a liquidity enhancement
policy incorporating share buy backs of the Company's own shares and the
subsequent re-sale of these shares from treasury. The requirements and
parameters set by the Board in respect of this policy have been previously
stated.



The Company bought back an initial 1.65m shares and in December 2005 a further
0.9m shares were bought back. As the shares were bought at a discount, the
Company's net asset value per share was enhanced. Since the introduction of the
policy to 31 December 2005, the share price discount to net asset value averaged
4 per cent, with a low of 2 per cent and a high of 8 per cent. This compares
with an average discount of 8 per cent in the preceding 12 months.  The Managers
have also been undertaking an ongoing marketing programme in order to introduce
new investors to the Company.  This is an initiative the Board is encouraging
and there has been some success to date.



The Board believes that enhancing the market liquidity in the Company's shares
has added value for shareholders and the Board will keep the scope and
implementation of the policy under review to ensure best practice and
operational effectiveness on an ongoing basis.



The performance of the Company's share price during 2005 was again better than
the net asset value.  Over the year, the share price total return* was 38.7 per
cent on a Sterling basis as a result of the narrowing in the share price
discount during the year from 10.8 per cent to 7.9 per cent.



Outlook

The year has started strongly with small and medium-sized companies indicating
confidence for growth in 2006.  This optimism is supported by the broader
economic indicators which show a sharp improvement in consumer confidence based
on hopes of higher employment and rising wages.  Core inflation remains in check
which should reduce the need for the European Central Bank to raise interest
rates.



After five consecutive years of outperformance relative to their larger
capitalisation counterparts, smaller company share prices no longer trade at a
discount rating to the broader market.  It is your Board's opinion that a
premium rating can be justified by the stronger earnings growth exhibited by the
asset class in which the Company invests.  This has been accompanied by a sharp
improvement in returns to capital providers, aided by new accounting rules and
corporate activity.



It is a noticeable feature of today's market that European smaller companies
command very similar valuations irrespective of whether growth in their earnings
and returns to equity holders is driven purely by the economic cycle or by their
own dynamics.  Under these conditions, there should be opportunities for the
Managers to find genuine structural growth stories at attractive relative
valuations.



Shareholder Meetings

The Company's Annual General Meeting will be held on 27 April 2006 in Amsterdam.
In addition, the Company holds a Shareholders' and Investors' Briefing in
London each year.  The London briefing will be held on 11 May 2006 at 11.30am at
Pewterers' Hall, Oat Lane, London and will include a presentation from the
Investment Manager on the Company and its investment portfolio.  Refreshments
and a light buffet will be served after the Briefing concludes.  I hope as many
Shareholders as are able can join us for this Briefing.'





Sir John Ward CBE

Chairman







FINAL RESULTS (AUDITED) FOR 12 MONTHS TO 31 DECEMBER 2005




                                                                 31 December          31 December
                                                                        2005                 2004
BALANCE SHEET
                                                 Note                  €'000                €'000

Investments
Securities                                         1                 184,159              164,591
Net current assets                                                    11,981                6,601
                                                                     _______              _______
Total assets less current liabilities                                196,140              171,192
Loan                                                                (15,000)             (10,000)
                                                                     _______              _______
Equity shareholders' funds                                           181,140              161,192
                                                                     _______              _______
Net asset value per ordinary share                 2                  €11.39                €8.75
Expressed in Sterling                                                   783p                 620p




REVENUE ACCOUNT FOR YEAR ENDED

                                                                 31 December          31 December
                                                                        2005                 2004
                                                                       €'000                €'000
Income
Securities                                          3                  2,909                2,274
Deposit interest                                                         213                  112
Securities lending                                                       158                  160
                                                                      _______              _______
Total income                                                           3,280                2,546
                                                                      _______              _______
Capital gains/ (losses) in investments
-          realised                                                   37,154                6,553
-          unrealised                                                 19,146               19,939
                                                                      _______              _______
                                                                      56,300               26,492
Expenses and interest                                                 _______              _______
Administration expenses                                                (954)                (868)
Investment management fee                                            (1,565)              (1,170)
Costs in connection with marketing and the
continuation vote
                                                                       (589)                    -
Interest charges                                                       (452)                (234)
                                                                     _______              _______
Total expenses                                                       (3,560)              (2,272)
                                                                     _______              _______

Net income before tax benefit and surcharge

                                                                      56,020               26,766
Corporation tax benefit/ (surcharge)                                       2                 (311)
                                                                     _______              _______
Net income                                                            56,022               26,455
                                                                     _______              _______
Earnings per share                                                     €3.10                €1.44
Dividends per share                                 4                 €0.555               €0.465






STATEMENT OF CASH FLOWS FOR THE YEAR ENDED
                                                                  31 December          31 December
                                                                         2005                 2004
                                                                        €'000                €'000
Cash flow from investment activities
Dividends, interest and other income                                    3,265                2,592
Purchases of securities                                               (98,478)             (70,582)
Sales of securities                                                   135,263               74,823
Administrative expenses                                                (3,142)              (1,981)
Surtax                                                                 (1,829)                   -
Net interest charges                                                     (459)                 (79)
                                                                       _______              _______
                                                                       34,620                 4,773
                                                                       _______              _______


Cash flows from financial activities
Dividends                                                              (9,929)              (8,269)
Refund of dividend withholding tax                                          -                3,357
Repurchase of own shares                                              (16,784)                   -
Loan facility                                                           5,000               10,000
                                                                       _______              _______
                                                                      (21,713)               5,088
                                                                       _______              _______


Cash at bank
Net increase for the year                                              12,907                9,861
Balance as at 1 January                                                 8,870                 (991)
                                                                       _______              _______           
Balance as at 31 December                                              21,777                8,870
                                                                       _______              _______



Notes.



1.         Securities are valued at market price.



2.         Based on 15,905,178 shares in issue (2004 - 18,420,953).  During the
year the Company issued 34,225 shares through its scrip dividend option and
repurchased 2,550,000 of its own shares to be held in Treasury.

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

4.         A dividend of €0.23 was announced on 5 January 2006 and paid on 25
January 2006.  This dividend was paid from other reserves.  During 2006, a total
distribution of €0.69 per share will be payable in equal instalments in January,
May and August.

5.         These are not the full accounts.  The full accounts for the
year to 31 December 2005 will be sent to shareholders and will be available for
inspection at the Company's registered office, FCA Management BV, Weena 210-212,
PO Box 1370, 3000 BJ Rotterdam and from the investment managers at F&C Asset
Management, 80 George Street, Edinburgh, EH2 3BU.

6.         A General Meeting to adopt the 2005 Report & Accounts will
be held on 27 April 2006 in Amsterdam.



For further information, please contact:



Crispin Longden, F&C Asset Management plc, Fund Manager       0131 465 1000
Michael Campbell, F&C Asset Management plc, Company Secretary 0131 465 1000


                      This information is provided by RNS
            The company news service from the London Stock Exchange                KDPND