Interim Results

European Assets Trust NV
26 July 2005

To:                   RNS
From:                 European Assets Trust NV
Date:                 26 July 2005

Embargoed until 7am on 26 July 2005

UNAUDITED INTERIM RESULTS - SIX MONTHS TO 30 JUNE 2005

•         The Company's sterling net asset value total return (capital
performance with dividends added back) rose over the six months by 13.7 per cent
(19.2 per cent in Euro terms); and over the past year by 32.7 per cent (31.8 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 19.0 per cent (24.7 per cent
in Euro terms); and over the past year by 43.8 per cent (42.8 per cent in Euro
terms).

•         In accordance with the Company's stated policy, dividends payable for
the year of 6 per cent based on net asset value at the start of the year.  The
dividend of Euro 0.555 per share for 2005 represents an increase of 19.4 per
cent over the previous year.

Dividend Information

2005

Two dividends of €0.175 per share each have been paid in January and May 2005
and a further dividend will be paid in August 2005 of €0.205 per share.  This
will result in total dividends paid for the year of €0.555 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 registered strong gains in the
first six months of 2005.  The HSBC Smaller Europe (ex UK) Index climbed by 20.1
per cent in Euro total return* terms over the period, almost double the return
recorded by the equivalent large capitalisation index.  After briefly dipping in
March and April, share prices resumed their upwards trend towards the end of the
first half.  Instrumental in the late spring move was a temporary fall in oil
prices and a resurgence in the value of the US dollar.  These factors outweighed
news of disappointing economic growth rates across continental Europe in the
first quarter of 2005 with both Italy and now the Netherlands in technical
recession.  Another mitigating factor was the company results season which lived
up to best expectations.  Despite the risks posed to companies' cost base from
the dramatically higher prices for oil and other basic raw materials, margins
continue to benefit from earlier cost cutting and negligible wage inflation.
Further support for the small and mid-sized asset class came from a marked
increase in takeover activity both from private equity houses and corporate
buyers.

The net asset value of European Assets Trust rose by 19.2 per cent in Euro total
return* terms over the first six months of 2005.  Several recent additions to
the Trust's portfolio made particularly noteworthy gains over the period.
Spanish-based Fadesa rose by 68% in Euro total return* terms, benefiting from
earnings upgrades and broader broker coverage.  This innovative developer of
residential property now ranks among the larger holdings in the Trust's
portfolio.  The higher oil price helped French company, Groupe Bourbon to a gain
of 59% in the first six months of 2005.  Its oil platform service and
maintenance vessels are expected to profit from a likely increase in exploration
and production activity.  Another strong performer was Italian civil engineering
firm Astaldi which published an aggressive but convincing business plan to 2009.
 Astaldi shares gained 50% by the end of June.  Not all of the Trust's Italian
investments were so successful.  Broadband internet provider Fastweb fell by 10%
as investors responded to increasing competition in the domestic market. Growing
competition was also a factor behind the drop of 14% in the share price of
Indesit, the white goods manufacturer.  We have 'bitten the bullet' with both
these poorly-performing stocks and liquidated the positions.  One of the key
criteria for retention of a stock in the portfolio is for the company to hold a
franchise of sufficient strength to withstand competitive pressure.  The
benefits of a strong franchise are demonstrated by the example of Trust holding,
Jurys Doyle Hotel Group.  The company stands out among hotel operators by
offering accommodation at a unique brand of value-for-money Inns in prime
locations.  This proven business model has now lured a potential corporate buyer
for the group who is prepared to offer a minimum 30% premium to the price in the
market.

The Investment Managers welcome recent announcements concerning the
simplification and liberalisation of the Dutch tax regime; the measures should
benefit the Company.

Gearing

During the first six months of the year, the Managers employed gearing in the
range of 2% to 8% of asset value in order to take advantage of new investment
opportunities.  The use of flexible borrowing powers is a useful feature to
enhance returns to shareholders in favourable market conditions.

Outlook

It is all too easy to focus on the political, social and economic problems which
face Europe.  The French and Dutch referenda on the EU constitution delivered a
clear 'no' vote.  Ageing populations are increasing the strains on already
over-burdened social welfare schemes.  Economic growth across Europe is slow to
gain traction.

This challenging backdrop however masks positive developments initiated by
management and employees of many companies.  With the 'one size fits all' Euro,
companies in countries with legacy weak currencies are forced to accept that
their declining sales or profits momentum is not going to be 'rescued' by
devaluation or interest rate reductions.  Longer working hours are being agreed
in return for job guarantees.  Performance-related pay is becoming the norm for
senior company managers.  For smaller companies, where work practices have not
yet become entrenched, the shift in business practice and thinking is easier to
make.  On visits to and by company management, we encounter a desire to generate
long-term stakeholder value, not just for shareholders but also for employees
and communities.  For the communities, the proof comes in the form of greater
attention to environmental and social issues.  For employees, the proof comes in
the form of profit related bonuses rather than formulaic 'holiday allowances'.
For shareholders, the proof comes in the form of a marked improvement in
measures of return on capital and return on equity within the smaller
capitalisation asset class.

In selecting stocks for inclusion in the Trust's portfolio, the Managers pay
particular attention to these measures and to the consistency of cashflow and
value creation.  This is manifest in a number of the Trust's key holdings.  Our
companies look to grow their franchise by reinvesting their annual cashflow in
value-enhancing acquisitions or organic growth.  In the event that opportunities
are not available, or do not meet the criterion of value enhancement, management
is now committed to return cash to shareholders.  The Interim report to
shareholders will contain a brief description of the Trust's top five holdings
and a summary of their financial results.  You will see from this that Indra
this year raised its dividend by 226%, Neopost by 180% and Andritz by 40%. 
Fadesa, a newly-listed company, paid a dividend for the first time and Logitech
is creating shareholder value not by paying out  cash dividend but by buying
back shares for cancellation.  We consider the outlook to be favourable for the
companies in the smaller capitalisation asset class in general and especially so
for the companies in the portfolio of European Assets Trust.


Crispin Longden
Investment Manager
F&C Asset Management plc


*Capital performance with dividends added back




Balance Sheet                                                         30 June      31 December
                                                                         2005             2004
                                                    Note             Euro 000         Euro 000
 
Investments
Securities                                          5                 194,700          164,591
Net current liabilities                             6                 (9,269)          (3,399)

Total assets less current liabilities                                 185,431          161,192

Equity shareholders' funds                                            185,431          161,192



Net asset value per share                           7              Euro 10.05        Euro 8.75
Expressed in sterling                                                    679p             620p

based on 18,446,261 shares in issue (31 December 2004 - 18,420,953)


Revenue Account - six months to                                             30 June            30 June
                                                                               2005               2004
                                                       Note                Euro 000           Euro 000

Income from investments
Securities                                                                    1,781              1,503
Deposit interest                                                                 65                 38
Securities lending                                                               83                 63
Total income from investments                          1                      1,929              1,604

Realised and unrealised                                                      30,065             10,530
movements on investments

Total income                                                                 31,994             12,134

Expenses and interest
Administration expenses                                4                    (1,236)              (966)
Interest                                                                      (295)               (96)
Net income                                             2                     30,463             11,072

Distributed by dividends                               3                      6,224              5,498

Earnings per share                                     Euro                    1.65               0.60
Dividends per share                                    Euro                    0.35               0.31


Statement of Cash Flows - six months to

                                                                              30 June               30 June
                                                                                2005                   2004
                                                                            Euro 000               Euro 000

Cash flow from investment activities
Interest, dividends and other income                                           1,825                  1,583
Purchases of shares                                                         (56,779)               (33,889)
Sales of shares                                                               50,771                 42,019
Administrative expenses and interest charges                                 (1,454)                  (958)

                                                                             (5,637)                  8,755


Cash flows from financial activities
Dividends paid                                                               (6,224)                (5,498)
(Payment)/refund of prior year tax                                           (1,459)                  3,357
Loan facility                                                                  5,000                      -
                                                                             (2,683)                (2,141)

Cash at bank
Net (decrease)/increase for the period                                       (8,320)                  6,614
Balance as at 31 December                                                      8,870                  (991)

Balance as at 30 June                                                            550                  5,623


Notes


1.     Income is stated after deduction of irrecoverable withholding taxes of Euro
170,451  (2004 - Euro 194,615).

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 0.175 per share each have been paid in January and May 2005
respectively, a further dividend of Euro 0.205 per share will be paid on 24 August 2005.
  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 1.43 per cent annualised (first half year 2004 - 1.33 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 1.76 per cent annualised (first half
year 2004 - 1.47 per cent annualised).

5.     The securities are valued at market price.

6.  The Company has Euro 15,000,000 drawn down on its banking facilities at 30 June 2005
(31 December     2004: Euro 10,000,000).

7.     25,308 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
2005 are consistent with those underling the 2004 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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