Interim Results

Fidelity European Values PLC
27 July 2000


FIDELITY EUROPEAN VALUES PLC

Announcement of unaudited interim results 
for the six months ended 30 June 2000

CHAIRMAN'S STATEMENT

Performance - I am pleased to say that in the period under review the net
asset value per share increased by 17.1% compared to an increase of 5.8% in
the FTSE Europe (ex UK) Index. The share price increased by 14.1% reflecting a
widening in the discount. (All figures are in sterling and are on a total
return basis.) A detailed review of the performance of the portfolio is
provided in the Manager's review.

Outlook - Europe's economic outlook remains favourable. Economic growth in
Europe has picked up in the last six months, and economists expect gross
domestic product to expand by 3.2%, compared to growth in 1999 of 2.3%. 

Much of the region's economic growth is due to growth in exports and
investment. Unemployment is falling rapidly, and consumer demand is beginning
to play a larger role in fuelling growth. Against this background, inflation
has been creeping up, although in continental Europe consensus forecasts for
inflation are still historically low at 1.9%. 

The beginning of the year saw high levels of volatility for European equity
markets. Investors became increasingly concerned over the demanding valuations
placed on telecom and technology-related stocks. This tension culminated in a
sharp correction to world equity markets at the end of March. The region as a
whole has outperformed the rest of the world, although returns from European
stock markets have been mixed. The general outlook for European companies
remains broadly positive in the long term, although European stock markets
could remain volatile in the short term. 

Analysts have increased their corporate profit growth forecasts - on average,
they expect companies' profits to grow by 17% in 2000, due to accelerating
economic growth and the benefits of restructuring. The outlook for smaller
companies is even more attractive, and analysts expect profits to grow by 53%.
This bodes well for the Company, which has maintained its strong bias towards
smaller and medium-sized companies.

Authority to repurchase shares - The Company's authority to repurchase shares
was renewed at the Annual General Meeting in May 2000. No share repurchases
have been made in the 6 months to 30 June and the Company has purchased and
cancelled 90,000 warrants in the period. The Company will continue to
repurchase both shares and warrants when this is beneficial to shareholders.

Sir Charles Fraser
27 July 2000


INVESTMENT MANAGER'S REPORT

Market performance - Economic recovery in Europe now appears well established.
The eurozone economy grew by 3.2% in the first quarter of 2000, compared with
a rise of 3.1% in the fourth quarter of 1999. Stronger consumer spending and
rising business inventories, which suggest that companies are accumulating
stock in anticipation of future sales, stimulated growth. According to
forecasts by the European Commission, the economy of the eurozone is expected
to grow by 3.4% this year, the fastest pace in a decade. Economists have
raised forecasts for economic growth significantly over the past six months. 

Inflation in the eurozone has accelerated and the European Central Bank (ECB)
raised interest rates from 3.0% to 4.25% in the period. However, the ECB has
cited concerns that inflation might breach its 2% target, leading to increased
expectations for further interest rate rises later in the year. 

Continental European stockmarkets were among the strongest performers in the
world during the six months under review. While the FTSE World Index rose by
3.4% in sterling terms, the FTSE Europe ex-UK Index rose by 5.1%. Markets that
performed especially well included Denmark (+14.2%), Sweden (+13.7%), France
(+10.1%), Italy (+10.7%) and Finland (+6.2%). The Nordic countries performed
especially strongly because of their bias towards 'new economy' sectors such
as technology and telecoms. Switzerland rebounded during the period, rising by
7.5% after a very lacklustre 1999, during which the Swiss market suffered from
its lack of exposure to 'new economy' sectors. The Netherlands (+4.1%), Norway
(+1.1%), Germany (+0.8%) and Spain (-7.5%) were amongst European markets that
performed relatively poorly. 

Companies in the 'new economy' industry sectors drove worldwide markets higher
during the first two months of 2000. Many investors focused on a few
technology-related sectors, which served to increase market volatility.
However, in March, investors became increasingly concerned that share prices
in certain sectors - notably in the technology, media and telecoms (TMT)
sectors - had become too expensive. Since then, many investors have reduced
their holdings in the previously strong TMT sectors, and purchased shares in
more traditional companies in sectors such as oil, pharmaceuticals and
financials. Consequently, the breadth of market trading improved during the
second quarter of 2000, in response to the shift in sector focus. 

The euro fell by 1.8% against sterling during the six month period and ended
June at £0.63. At one point, the euro fell to £0.57 but better economic news
and a belief that the currency was undervalued prompted a recovery in the
currency.

Portfolio review - The portfolio's bias towards medium-sized and smaller
companies continued during the period. Overall, the proportion of the Company
invested in larger companies remained at approximately 50%. During the review
period, the smallest and largest companies performed better than the overall
market in continental Europe, while medium-sized companies underperformed. 

The Company benefited from the rise in corporate take-over activity in the
region. Analysts expect Europe to be the most prominent region in terms of
merger and acquisition activity in 2000. One company that was taken over
during the review period was Esat Telecom, an Irish telecoms company, which
was acquired by BT. 

We have continued to favour service-related companies rather than industrial
companies. Media remains an important theme within the portfolio, accounting
for around 13% of the Company's assets. Holdings in the media sector are
diverse, and include TV, radio and newspaper and magazine companies. We favour
companies with a strong franchise and whose shares are attractively valued.
Stock selection determines sector and geographic allocation. Two of the
largest media holdings are TF-1, the largest commercial television station in
France, and Elsevier, a publishing company based in the Netherlands. 

The proportion of the Company invested in telecoms has been reduced
substantially. At the beginning of the period under review, telecoms were the
largest sector within the portfolio, accounting for approximately 28% of
assets. Exposure to the sector was reduced over the first quarter of 2000, as
share prices became increasingly expensive. By the end of the period, holdings
in telecoms companies had been reduced to approximately 15%. The largest
holdings in the sector include Telecom Italia, an Italian telecoms services
operator, GN Store Nord, a Danish telecoms electrical equipment manufacturer
and Telefonica, a Spanish telephone operator. 

The Company's exposure to TMT stocks was reduced from 50% to 37% during the
period, largely because of the reduction in the holdings in telecom companies.
The exposure to the media sector was increased marginally, while exposure to
technology remained broadly static. Most of the Company's exposure to the
technology sector comes from investment in companies involved in the
production of telecom-equipment. 

The proportion of the portfolio invested in the Netherlands rose from 7.5% to
11.2%, through the addition of several new holdings, and in particular through
an increased holding in Elsevier. Exposure to Denmark, Norway, Germany and
Poland was increased during the period under review, while exposure to Spain,
Sweden, Ireland and France was reduced.

Portfolio performance - The portfolio performed strongly during the six months
under review when compared to the benchmark index. Among the Company's largest
holdings, German software services company Software AG rose by more than 60%
in sterling terms. The shares were boosted by news that Software AG signed an
agreement with Microsoft to develop and market products together. 

German pharmaceutical company Schering rose by almost 49% in sterling terms.
The company is to introduce five new drugs in 2000, and intends to seek
approval for a further five from the US and European authorities. 

TF-1 is France's most popular television station, and dominates the French TV
advertising market with approximately a 50% market share. The company has
benefited from a surge in advertising spending in France, where spending on
advertising reached record levels in April. In addition, demand for the stock
increased in May, when the company entered the benchmark CAC 40 Index, forcing
index-tracking funds to buy the stock. TF-1 rose by almost 43% in sterling
terms during the six months under review. 

The improved economic scenario in Continental Europe has continued to
stimulate demand for medium-sized and smaller companies, which are often more
exposed to the domestic economy than larger companies. This has helped the
performance of the Company, which is biased away from the market leaders. Our
strong bias towards value also boosted performance - during the six months
under review, value stocks generally performed better than growth stocks. 

Outlook - The economic background remains broadly favourable. Signs indicate
that the rise in consumer confidence may have peaked but European economic
growth is still expected to remain buoyant. 

However, domestic demand still remains strong. Unemployment across Europe is
falling rapidly and this looks likely to continue. Industrial production in
much of the eurozone has strengthened because of the weak euro, which has
helped to boost export sales. Analysts expect this to continue in the months
ahead. However, the relative weakness of the euro and the impact of rising
energy costs have led investors to believe inflation may rise. Against this
background, analysts expect further rises in interest rates in the eurozone
this year. 

Accelerating economic growth, continued business restructuring and higher
corporate profits should provide a positive backdrop for European equities
over the medium term. Analysts have raised their forecasts for corporate
profits growth as companies continue to benefit from ongoing restructuring and
from the region's strong economic growth. 

Market analysts expect merger and acquisition activity this year to rival the
levels achieved in 1999. Investors have become more selective and more focused
on individual company fundamentals in the wake of the recent stock market
volatility. 

Fidelity Investments International
27 July 2000



Enquiries: Barbara Powley - Fidelity Investments International 01737 836883




FIDELITY EUROPEAN VALUES PLC

STATEMENT OF TOTAL RETURN (incorporating the revenue account)*
for the six months ended 30 June - unaudited

                                  2000                     1999

                       revenue   capital   total    revenue   capital   total
                         £'000     £'000   £'000      £'000     £'000   £'000

Gains on investments         -    53,442  53,442          -    17,796  17,796

Income                   5,611         -   5,611      4,411         -   4,411

Investment management 
fee                     (2,305)        -  (2,305)    (1,541)        -  (1,541)

Other expenses            (395)        -    (395)      (280)        -    (280)

Exchange gains/(losses)      -       337     337          -      (500)   (500)

Purchase of warrants
for cancellation (1)         -      (303)   (303)         -    (1,954) (1,954)

Net return before finance
costs and taxation       2,911    53,476  56,387      2,590    15,342  17,932

Interest payable          (462)        -    (462)      (449)        -    (449)

Revaluation of Loan 
Stock (2)                    -    (3,056) (3,056)         -      (160)   (160)

Return on ordinary
activities before tax    2,449    50,420  52,869      2,141    15,182  17,323

Tax on ordinary
activities                (668)        -    (668)      (599)        -    (599)

Return on ordinary 
activities after tax for 
the period transferred  
to reserves (3)          1,781    50,420  52,201      1,542    15,182  16,724 

Return per ordinary share (4)
Basic                    3.07p    86.91p  89.98p      2.66p    26.21p  28.87p
Fully-diluted            2.87p    81.24p  84.11p      2.48p    24.38p  26.86p


* the revenue column on this statement is the profit and loss account of the
Company.


BALANCE SHEET
                                   30.06.00         31.12.99         30.06.99
                                  unaudited          audited        unaudited
                                      £'000            £'000            £'000

Investments                         400,997          349,302          275,553

Current Assets
Debtors                               6,097            2,914            3,045
Cash at bank                          7,344            2,386            8,632

Creditors - amounts falling
due within one year                  (6,652)          (2,538)          (5,421)

Net current assets                    6,789            2,762            6,256

Total assets less 
current liabilities                 407,786          352,064          281,809

Creditors - amounts falling due
after more than one year            (62,551)         (59,495)         (50,646)

Total net asset                     345,235          292,569          231,163

Capital and reserves
Called up share capital              14,588           14,463           14,463
Share premium account                51,511           50,929           50,930
Capital redemption reserve               37               37               37

Other reserves
Warrant reserve                       1,920            2,162            2,293
Capital reserve - realised          237,249          169,466          150,613
Capital reserve - unrealised         36,444           53,807            9,815
Revenue reserve                       3,486            1,705            3,012

Total equity shareholders' funds    345,235          292,569          231,163

Net asset value per 
ordinary share (5)
Basic                                591.63p         505.73p          399.58p
Fully-diluted                        554.97p         471.71p          373.06p


The above statements have been prepared on the basis of the accounting
policies set out in the most recently published set of annual financial
statements.
The balance sheet as at 31 December 1999 has been extracted from the accounts
for the year ended 31 December 1999 which have been delivered to the Registrar
of Companies and on which the auditors gave an unqualified report.


CASH FLOW STATEMENT
for the six months ended 30 June - unaudited

                                                       2000             1999
                                                      £'000            £'000

Operating activities                                          
Income received                                       4,071            4,073
Investment management fee paid                       (2,149)          (1,490)
Other cash payments                                    (449)            (433)

Net cash inflow from operating activities             1,473            2,150

Interest paid                                          (635)            (618)

Taxation
UK income tax recovered                                 414                -
UK income tax paid                                       (6)               -
ACT recovered                                            86                -

Tax recovered                                           494                -

Capital expenditure and financial investment                    
Purchase of investments                            (163,843)         (83,358)
Exchange gains/(losses)                                 233             (581)
Disposals of investments                            167,318           91,090

Net cash inflow from financial investment             3,708            7,151

Equity dividend paid                                   (347)            (347)

Net cash inflow before financing                      4,693            8,336

Financing
Proceeds on conversion of warrants                      502              109
Cost of warrant repurchases                            (340)          (2,373)

Net cash inflow/(outflow) from financing                162           (2,264)

Increase in cash                                      4,855            6,072




Notes to the Accounts

1  Warrant buy backs and exercises - During the period, the Company purchased
90,000 warrants for cancellation.  On 2 May 2000, 502,068 ordinary shares of
25p per share were issued and allotted, fully paid at a price of 100p,
following an exercise of warrants.  As at 30 June 2000 there were 4,702,060
warrants in issue (30.06.99 : 5,619,128).

2  These accounts have been prepared in accordance with the AITC Statement of
Recommended Practice (SORP) issued in December 1995, with the exception of the
treatment of the Loan Stock.  Although the Company has adopted a policy of
charging all finance costs and expenses to the revenue account in the
Statement of Total Return, your Board considers that the revaluation element
of the Loan Stock, which is an element of the overall finance cost, should be
taken to capital reserves.  By adopting this treatment, the revaluation of the
Loan Stock is matched against capital appreciation or depreciation of the
investment portfolio, in which the original proceeds of the Loan Stock were
invested.

3  Return on ordinary activities - Attributable to equity shareholders.

4  Return per ordinary share - Basic returns per ordinary share are based on
the return on ordinary activities after taxation of £1,781,000 (1999 :
£1,542,000) and the capital appreciation in the period of £50,420,000 (1999 :
£15,182,000) and on 58,014,113 ordinary shares (1999 : 57,927,319) being the
weighted average number of shares in issue during the period.  According to
the provisions of FRS14, the fully-diluted returns have been calculated on the
assumptions that the warrants in issue were converted on the first day of the
financial period on a weighted average basis for the period over which they
were outstanding, and that the proceeds from conversion have been used by the
Company to purchase its own shares at a fair market price.

5  Net asset value per share - The basic net asset value per ordinary share is
based on net assets of £345,235,000 (31.12.99 : £292,569,000, 30.06.99 :
£231,163,000) and on 58,353,423 ordinary shares (31.12.99 and 30.06.99 :
57,851,355) being the number of ordinary shares in issue at the end of the
period.  The fully-diluted net asset value per ordinary share has been
calculated on the assumption that the outstanding warrants of 4,702,060 at 30
June 2000 (31.12.99 : 5,294,128, 30.06.99 : 5,619,128) were exercised on that
date.  This basis of calculation is considered to be more appropriate than the
basis given in FRS14 as it is consistent with the calculation of fully-diluted
net asset value which is prepared in accordance with guidelines laid down by
the Association of Investment Trust Companies and is provided to the London
Stock Exchange on an ongoing basis.

6  Share repurchases - No shares were repurchased for cancellation during the
period.

7  Loss of investment company status - A technical consequence of the share
buy back is that the Company ceased to the an investment company within the
meaning of Section 266 of the Companies Act 1985.  However, it continued to
conduct its affairs as an investment trust for taxation purposes under section
842 of the Income and Corporation Taxes Act 1988 and the Articles of the
Company prohibit capital profits from being distributed by way of dividend. 
As such, the Directors consider it necessary to continue to present the
accounts in accordance with the SORP ('Financial Statements of Investment
Trust Companies').  Under the SORP, the financial performance of the Company
is presented in a statement of total return in which the revenue column is the
profit and loss account of the Company.  The revenue column excludes net
profits on disposals of investments, calculated by reference to their previous
carrying amount of £67,852,000 (1999 : £21,677,000).  Following the issue of
statutory instrument number 2770, which became effective on 8 November 1999,
the Company re-registered as an investment company on 13 January 2000.





Copies of the Interim Report will be posted to shareholders as soon as
practicable.  Copies will also be available to the public at the Company's
registered office: Beech Gate, Millfield Lane, Lower Kingswood, Tadworth,
Surrey KT20 6RP