Interim Results

European Assets Trust NV
25 July 2006

To:                   RNS

From:                 European Assets Trust NV

Date:                 25 July 2006





UNAUDITED INTERIM RESULTS - SIX MONTHS TO 30 JUNE 2006



•  The Company's sterling net asset value total return (capital
   performance with dividends added back) rose over the six months by 15.6 
   per cent (14.9 per cent in Euro terms); and over the past year by 35.9 
   per cent (32.8 per cent in Euro terms).



•  The Company's sterling share price total return (share price with
   dividends added back) rose over the six months by 18.0 per cent (17.2 per cent
   in Euro terms); and over the past year by 37.5 per cent (34.3 per cent in Euro
   terms).



•  6 per cent annual dividend yield on net asset value representing an
   actual dividend of Euro 0.7325 per share for 2006. This represents a 32 per cent
   increase in annual dividend for 2006 compared with 2005.



Dividend Information



2006

Two dividends of €0.23 per share each have been paid in January and May 2006 and
a further dividend will be paid in August 2006 of €0.2725 per share.  This will
result in total dividends paid for the year of €0.7325 per share.  The increase
in the August dividend is to compensate shareholders for a small element of
Dutch withholding tax that will apply to it.



Investment Manager's Review



Performance

Continental European smaller company share prices ended the first half of 2006
with a double digit percentage gain.  This positive outcome was achieved despite
a downwards lurch in markets in May and June.  Positive factors which had held
sway during much of 2005 continued to influence market sentiment in the first
four months of the year.  Companies reported strong earnings growth in their
2005 results releases and management expressed confidence in the current year's
outcome at shareholders' annual general meetings.  Takeover activity intensified
over the period and the appearance of contested and rival offers served to
emphasise the bidders' belief in prospects for business growth.

The broader economic backdrop was also supportive in the first six months of
2006.  Earlier surveys of business and public sentiment had pointed to a pick-up
in home-grown demand and this was borne out by rising levels of capital
expenditure and consumption during the period.  In the first quarter alone gross
domestic product (GDP) in the EU region increased by 0.6% taking the annual rate
of growth close to 2%.  The European Central Bank acknowledged the stronger
momentum of the Eurozone economies by raising its key lending rate by 50 basis
points to 2.75% supporting the common currency in the process.

The HSBC Smaller Europe (ex UK) Index rose by 12.1% in Euro total return* terms
over the first six months of the year having been up by as much as 20% at the
end of April.  Sectors which led the way in the first four months of the year
were precisely those which took the largest beating in the markets' retreat in
May and June - energy stocks and basic materials companies.  Similarly, a
strategy which followed share price or earnings momentum would have delivered
strong gains up to the end of April only to disappoint significantly in May and
June.



The net asset value of European Assets Trust rose by 14.9% in Euro total return*
terms over the first six months of 2006.  It is gratifying to note that the
strongest period of relative performance versus the index occurred in May and
was achieved despite maintaining a measure of gearing during this month of share
price falls.  The portfolio benefited from its bias towards defensive companies
with healthy cashflow and disciplined utilisation of invested capital.  The
strongest gains over the period were recorded by the largest holding in the
Trust, Neochimiki Lavrentiadis.  Our confidence in the management and business
model of this under-researched Greek company was rewarded with a sharp 115%
increase in the share price.  Of the other companies in the 'top five' list,
Andritz recorded a gain of 39.2% and Kingspan 28.2%.  Other notable performers
included Finnish anti-virus software company F-Secure up by 26.5% and German
office equipment distributor Takkt 32.7% higher.



Gearing

The Managers made limited use of the borrowing facility during the early part of
the year but increased gearing throughout May and June to take advantage of new
investment opportunities as markets weakened.  At the half year end gearing
stood at 8%.  Towards the end of the period, the Company renegotiated its
borrowing facilities on improved terms offering greater flexibility to enhance
returns to shareholders during favourable market conditions.



Outlook

At this stage of the economic cycle, it is important to be out on the road
visiting companies.  Coincident economic indicators are now pointing
indisputably to a broadening of growth momentum across the European continent.
Public and private sector capital spending and domestic consumption are
sustaining growth in the region's GDP at close to its long-term trend rate.
This raises a number of questions which should be asked of company management.
Are your company's products, processes or services sufficiently well priced or
differentiated to benefit from higher corporate investment or consumer buying
patterns?  What increases have you made or do you intend to make in your
company's variable cost and fixed asset base to meet anticipated higher demand?
And how do you fund these increases?  How do you respond to the temptation in a
better economic climate to grow by acquisition, expand geographically or
diversify into new areas of activity?

It is encouraging that we have recently identified several opportunities by
quizzing managers on these issues.  Our preference is for companies which have
already had the foresight to build up capacity and are now in a position to
supply customers with niche products or services quickly and profitably.
Examples include Italian-based Trevi which is one of the world's leading
providers of foundation engineering services to the construction and energy
industries and Thielert, a family-run German business, which is the undisputed
leader in the manufacture of aircraft piston engines capable of running on both
jet fuel and automotive diesel at a substantial cost advantage to aviation gas.
We also favour companies which take advantage of good market conditions to
expand their operations in a consequent fashion, creating value for shareholders
in the process.  Greek refrigerated display manufacturer Frigoglass is being
encouraged by customers of the stature of Coca Cola, Heineken, Nestle and Danone
to set up operations in China in time for the 2008 Olympic Games.  In Norway,
Bergesen Worldwide Offshore is capitalising on its expertise in converting oil
and gas tankers to floating production and storage units at a time when securing
reserves has become a major strategic concern for oil-producing nations.  One
final recent investment deserving mention is Agfa-Gevaert.  The well-known
Belgian supplier of imaging equipment is benefiting from the switch to digital
technology at the same time as making concerted cuts in its cost base.



Crispin Longden
Investment Manager
F&C Asset Management plc



*Capital performance with dividends added back



Balance Sheet                                                               30 June       31 December
                                                                               2006              2005
                                                         Note              Euro 000          Euro 000

Investments
Securities                                               5                  218,354           184,159
Net current liabilities                                  6                 (16,731)           (3,019)

Total assets less current liabilities                                       201,623           181,140


Equity shareholders' funds                                                  201,623           181,140




Net asset value per share - basic                        7               Euro 12.67        Euro 11.39
Expressed in sterling                                                          876p              783p

The number of shares in issue at 30 June 2006 was 15,919,483 (31 December 2005 - 
15,905,178).




Revenue Account - six months to                                             30 June            30 June
                                                                               2006               2005
                                                       Note                Euro 000           Euro 000

Income from investments
Securities                                                                    2,405              1,781
Deposit interest                                                                101                 65
Securities lending                                                               65                 83
Total income from investments                          1                      2,571              1,929

Realised and unrealised                                                      26,662             30,065
movements on investments

Total income                                                                 29,233             31,994

Expenses and interest                                  4
Administration expenses                                                       (398)              (508)
Investment management fee                                                     (836)              (728)
Interest                                                                      (246)              (295)
Net income                                             2                     27,753             30,463

Distributed by dividends                               3                      7,139              6,224

Earnings per share                                     Euro                    1.74               1.65
Dividends per share                                    Euro                    0.46               0.35



Statement of Cash Flows - six months to




                                                                             30 June                30 June
                                                                                2006                   2005
                                                                            Euro 000               Euro 000


Cash flow from investment activities

Interest, dividends and other income                                           2,603                  1,825

Purchases of shares                                                         (65,591)               (56,779)

Sales of shares                                                               59,177                 50,771

Administrative expenses, investment management fees and
interest charges                                                              (1,487)                (1,454)


                                                                             (5,298)                (5,637)



Cash flows from financial activities

Dividends paid                                                               (7,139)                (6,224)

Refund of dividend withholding tax                                                 -                (1,459)

Repurchase of own shares                                                     (9,404)                      -

Stamp duty paid                                                                (131)                      -

Loan facility                                                                  2,500                  5,000

                                                                            (14,174)                (2,683)

Cash at bank

Net decrease for the period                                                 (19,472)                (8,320)

Balance as at 31 December                                                     21,777                  8,870


Balance as at 30 June                                                          2,305                    550


Notes


1. Income is stated after deduction of irrecoverable withholding taxes of Euro
   402,663  (2005 - Euro 170,451).

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 0.23 per share each have been paid in January and May 2006
   respectively, a further dividend of Euro 0.2725 per share will be paid on 23 August
   2006.  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 1.29 per cent annualised (first half year 2005 - 1.43 per cent
   annualised).  Based on Dutch regulations, the expenses ratio, which includes interest
   and tax, over the first half of the financial year which, within the scope of the
   Investment Institutions Supervision Act (Wet toezicht beleggingsinstellingen) should be
   reported by investment institutions, amounts to 1.48 per cent annualised (first half
   year 2005 - 1.76 per cent annualised).

5. Listed investments are valued at the final trading price on the valuation date on
   the relevant stock markets. From 1 July 2006, listed investments will be valued at the
   bid price on the valuation date on the relevant stock markets. This is in line with
   industry practice and in agreement with Dutch and UK generally accepted accounting
   principles. The effect of moving to bid prices is not expected to have a significant
   impact on the Company's net asset value. If the Company's listed investments, as
   included in the balance sheet at 30 June 2006, had been valued at bid prices, the impact
   on shareholders' equity would have been a decrease of €891,000, equal to almost €0.06
   per share.

6. The Company has Euro 17,500,000 drawn down on its banking facilities at 30 June 2006
   (31 December 2005: Euro 15,000,000).

7. 14,305 shares were issued during the period via the scrip dividend option. The
   Company's treasury net asset value at 30 June 2006 was 871p per share (Euro 12.61 per
   share); 31 December 2005, 779p per share (Euro 11.33 per share).

8. The accounting policies applied in preparing the half-year figures at 30 June
   2006 are consistent with those underlying the 2005 annual accounts.




For further information, please contact:



Crispin Longden
F&C Asset Management, Investment Managers                    0131 465 1000



Michael Campbell
F&C Asset Management, Company Secretary                      0131 465 1000




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