Interim Results

European Assets Trust NV
24 July 2007

          
To:        RNS
From:      European Assets Trust NV
Date:      24 July 2007

UNAUDITED INTERIM RESULTS - SIX MONTHS TO 30 JUNE 2007
     
•    The Company's sterling share price total return* was 14.7 per cent over the 
     six months.

•    6 per cent annual dividend yield on net asset value representing an actual 
     dividend of €0.912 per share for 2007. This represents a 24.5 per cent 
     increase in annual dividend for 2007 compared to 2006.

•    Over the six months, the Company's net asset value rose by 11.6 per cent in 
     sterling total return* terms compared to a 14.3 per cent rise for the 
     benchmark index.

•    Net asset value total return* of +322.3 per cent since December 1997
     (portfolio refocused), compared with +251.0 per cent for the benchmark 
     index.

Dividend Information

2007

Two dividends of €0.296 per share each have been paid in January and May 2007
and a further dividend will be paid in August 2007 of €0.32 per share. This will
result in total dividends paid for the year of €0.912 per share. This represents
a 24.5 per cent increase in annual dividend for 2007 compared to 2006. The
increase in the August dividend is to offset the element of Dutch withholding
tax, and provide a full 6 per cent payment to shareholders.

Investment Manager's Review

Performance

Continental European smaller company share prices again registered healthy gains
over the first six months of 2007.  The HSBC Smaller Europe (ex UK) Index ended
the period 14.3 per cent higher in Sterling total return* terms.  Performance
was particularly strong early in the year as investors responded both to upbeat
start-of-year trading statements from companies and to the resumption of bid
activity after the Christmas/New Year holiday period.  Private equity buy-outs
and corporate mergers featured prominently throughout the six months although
the focus shifted up the market capitalisation scale towards the end of the
period.  These deals were facilitated by access to abundant and cheap sources of
debt; data produced by the ratings agency Standard and Poor's shows that of the
leveraged buy-out deals conducted so far this year almost 40 per cent have been
financed with debt amounting to more than 6x the target company's earnings
before interest, depreciation and amortisation (EBITDA).

Numerous statistics released during the period confirmed the vibrancy of the
European economies.  Gross domestic product in both the Eurozone and the broader
EU member countries rose by 0.6 per cent in the first three months of the year
compared to the previous quarter and by 3.2 per cent year-on-year.  Despite the
strength of the Euro currency, export activity remained buoyant and investment
spending also made a significant contribution to the better-than-expected
figures.  The annual rate of growth remains above the level estimated by the
European Central Bank to be the non-inflationary growth potential of the
Eurozone.  Accordingly, the market-setting interest rate was pushed up a further
50 basis points in the first six months of the year to stand at 4 per cent.

Having delivered a gain of 35.9 per cent in 2006, the net asset value of
European Assets Trust rose by a further 11.6 per cent in Sterling total return*
terms over the first six months of 2007.  The Company's share price total return
* in the half year period came to 14.7 per cent.  A number of holdings made very
positive contributions to the overall gain.  Companies involved with commodities
and especially oil and gas featured at the top of the list.  Schoeller
Bleckmann, an Austrian-based producer of directional oil drilling equipment, led
the way with a rise of 48.4 per cent in Euro terms and Trevi, Italian provider
of foundation drilling equipment and services, gained 41.9 per cent.  The share
price of Finnish mining technology stock Outotec, a very recent addition to the
portfolio, increased by 47.9 per cent since purchase and German potash supplier
K&S rose by 38.1 per cent.  Compared to the index benchmark, the net asset value
total return was slightly handicapped by the portfolio's significant weighting
in Irish companies; Ireland was the only country constituent of the index to
register an absolute decline in value during the first six months of the year.
A similar pattern of poor relative performance from Ireland occurred in the
first half of 2006 but quickly reversed to leave the country at the top of the
performance league table by the end of the year.

Liquidity Enhancement Policy

The liquidity enhancement policy was successfully employed during the period and
resulted in growth in the Company's assets.  Investor demand for the Company's
shares exceeded supply allowing the Company to release from treasury a total of
1,470,000 shares, raising €22.0m for the Managers to invest both in new and
existing stocks for the portfolio.  These treasury shares were sold on a
narrowing discount to net asset value with the most recent transactions
commanding a small premium.

Gearing

During the first six months of the year, the Managers initiated holdings in
twelve new stocks.  These purchases were financed without recourse to the
borrowing facilities; the proceeds from the sale of the treasury shares proved
sufficient when combined with the divestment of existing positions for which the
outlook had become more uncertain.

Outlook

The continental European smaller company asset class has continued to deliver a
superior performance compared to its larger company counterpart in 2007 to date,
extending its run of success to four consecutive years.  This coincides broadly
with the cyclical upturn in Europe which has been reflected in stronger earnings
momentum for the more economically sensitive smaller companies.  Based on
estimates made by Deutsche Bank, smaller European companies can expect to
deliver earnings growth of around 12 per cent in 2007 compared to just 6.5 per
cent for their larger capitalisation  brethren.  By 2008 the gap is expected to
fall to just two percentage points.  And yet the valuation premium of smaller
companies, as measured by the prospective price/earnings ratio, remains at
around 20 percentage points.  The Managers continue to believe that the current
level of earnings multiple for the asset class in general is too high for this
relatively mature stage of the economic cycle.  The amount of leverage prevalent
in many corporate deals is also a cause for concern as credit conditions
tighten. Hence a reluctance to make full use of the borrowing facilities, at
least in the short term.  Nevertheless, the changes in the composition of the
portfolio made so far this year show that it is still possible to find
attractive new investment candidates.  The current market appetite for the
supply of stock is encouraging a number of companies to seek a stock market
listing.  Where these possess business models with strong growth credentials,
they can offer particularly fruitful new investment opportunities especially if
they are priced at a realistic discount to existing quoted competitors.
Examples of new issues which have caught the Manager's eye include HanseYachts,
a leading builder of leisure sailing craft; Goldbach Media, a marketer of
advertising space to major media publishers and broadcasters; and Tigenix, a
late-stage bio-technology company with an innovative tissue regenerative
procedure for damaged joints.  A tour of potential investment candidates in
central Europe has resulted in the first-time inclusion of a Hungarian stock in
the portfolio.  Majority owned by Deutsche Telekom, Magyar Telekom is Hungary's
incumbent telecommunications provider with a healthy cashflow and an appealing
dividend yield.  The geographical scope of the Company's holdings now spans
Norway in the north to Greece in the south, Ireland in the west to Hungary in
the east, demonstrating the full range of opportunities available for
investment.


Crispin Longden
Investment Manager
F&C Investment Business Limited

*Capital performance with dividends added back



Balance Sheet                                                               30 June       31 December
                                                                               2007              2006
                                                         Note              Euro 000          Euro 000

Investments
Securities                                               5                  288,735           245,328
Net current (liabilities)/ assets                        6                    (857)               216
                                                                           ________          ________

Total assets less current liabilities                                       287,878           245,544
                                                                           ________          ________

Equity shareholders' funds                                                  287,878           245,544
                                                                           ________          ________


Net asset value per ordinary share                       7                   €15.98            €14.85
Expressed in sterling - basic                                                £10.76            £10.01
                      - treasury                                             £10.75             £9.97
 
The number of shares in issue at 30 June 2007 was 18,018,298 (31 December 2006 - 16,533,475).


Revenue Account - six months to                                             30 June            30 June
                                                                               2007               2006
                                                       Note                Euro 000           Euro 000

Income from investments
Securities                                                                    3,590              2,405
Deposit interest                                                                 88                101
Securities lending                                                              141                 65
                                                                           ________           ________
Total income from investments                          1                      3,819              2,571

Realised and unrealised                                                      28,322             26,662
movements on investments                                                   ________           ________

Total income                                                                 32,141             29,233

Expenses and interest                                  4
Administration expenses                                                       (499)              (398)
Investment management fee                                                   (1,059)              (836)
Interest                                                                      (141)              (246)
                                                                           ________           ________
Net income                                             2                     30,442             27,753

Distributed by dividends                               3                     10,086              7,139

Earnings per share                                     Euro                    1.73               1.74
Dividends per share                                    Euro                   0.592               0.46



Statement of Cash Flows - six months to
                                                                             30 June                30 June
                                                                                2007                   2006
                                                                            Euro 000               Euro 000

Cash flow from investment activities
Interest, dividends and other income                                           3,607                  2,603
Purchases of shares                                                         (86,623)               (65,591)
Sales of shares                                                               73,049                 59,177
Administrative expenses, investment management fees and
interest charges                                                             (1,853)                (1,487)
Refund of surtax                                                                 445                      -
                                                                            ________               ________
                                                                            (11,375)                (5,298)

Cash flows from financial activities
Dividends paid                                                              (10,086)                (7,139)
Sale of shares from treasury                                                  27,142                      -
Repurchase of own shares                                                           -                (9,404)
Stamp duty paid                                                                    -                  (131)
Loan facility                                                               (10,000)                  2,500
                                                                            ________               ________
                                                                               7,056               (14,174)
Cash at bank
Net decrease for the period                                                  (4,319)               (19,472)
Balance as at 31 December                                                      4,641                 21,777
                                                                            ________               ________
Balance as at 30 June                                                            322                  2,305


Notes

     
1.   Income is stated after deduction of irrecoverable withholding taxes of Euro
     528,165 (2006 - Euro 402,663).
     
2.   Income for the six months period should not be taken as an indication of 
     the income for the full year.

3.   Two dividends of Euro 0.296 per share each have been paid in January and 
     May 2007 respectively, a further dividend of Euro 0.32 per share will be 
     paid on 24 August 2007.
     These dividends are mostly funded from accumulated capital gains.

4.   The total expense ratio, based on average shareholders' funds for the first 
     half of the year amounted to 1.15 per cent annualised (first half year 
     2006, restated - 1.24 per cent annualised).

5.   Listed investments are valued at the bid price on the valuation date on the
     relevant stock markets.

6.   The Company has no money drawn down on its banking facilities at 
     30 June 2007 (31 December 2006: Euro 10,000,000).

7.   During the six months to 30 June 2007 the Company sold 1,470,000 shares 
     from treasury. In addition, 14,823 shares were issued during the period via 
     the scrip dividend option.

8.   The accounting policies applied in preparing the half-year figures at 
     30 June 2007 are consistent with those underlying the 2006 annual accounts.


For further information, please contact:

Crispin Longden
F&C Investment Business Limited, Investment Managers               0131 718 1000

Michael Campbell
F&C Investment Business Limited, Company Secretary                 0131 718 1000


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