Final Results

Fidelity Japanese Values PLC
25 February 2000


FIDELITY JAPANESE VALUES PLC

Preliminary Announcement of unaudited results for the year ended 
31 December 1999

Comment from the Chairman

Performance - NAV +340% - What a remarkable year 1999 was!

While your Directors have been cautiously optimistic for a little while about
the prospects for Japan and for smaller companies in particular, it has to be
said that we could never have envisaged quite such an extraordinary turnabout
as we experienced last year.  Our diluted net asset value ended the year at
164.07p per share, up from 40.20p (undiluted; there was no dilution last
year). 

What is particularly pleasing to your Board of Directors is that founding
shareholders are now making a profit on their subscription price (100p). 
Since the launch of the Company on 15 March 1994, the undiluted net asset
value has risen by 84.3% compared with a 13.2% rise in the Tokyo Stock
Exchange Second Section Index.  The share price ended the year at 161.75p and
the original units (1 share and 1/5th warrant) had a value of 178.25p,
providing a return of 10.3% per annum over these five and a half years.  

There have been a number of things going for us during the last two years. 
But the single most important contribution to our performance was the
outstanding fund management provided for us by our Managers in Tokyo, led by
our Investment Manager Asako Kibe but backed up by a strong team.  I am sure
shareholders will join me in thanking her and her colleagues for their efforts
in achieving these results.

Japan in the 1990s - The hangover from the 1980s bubble -It has not been an
easy time for Japan nor indeed for investors in Japan, like ourselves. It is
very difficult for anybody, be it a country or a company or a person, who has
been very successful to change the ways that have brought the success.  It was
not, nor indeed is not, easy for Japan.  Extended stockmarket bubbles can so
distort the structure of an economy that it really does take a long time to
return to equilibrium. Japan has had to contend with that and has had to do so
at the same time that the rest of the world has been undergoing a quite
remarkable change in the wake of the IT revolution and the emergence of the
global economy.  In other words returning to equilibrium wasn't even an
option.  

But the change has been going on for quite some time - very slowly at first
but rather more quickly now.  Your Managers have been drawing it to the
attention of the Board of Directors and indeed we have seen plenty of evidence
of it on our own trips to Japan.  But it has taken a long time for there to be
any recognition of it in the stockmarket. During that period the markets of
Japan performed very poorly, as I am afraid did we at the start of our life as
a company.  Our net asset value declined a long way (it had reached just 29p
by the end of September 1998).  However, gradually the evidence of change and
the success it brought in its wake became recognised in individual stocks. 
While the various indices in general continued to perform poorly, it became
possible to make money with astute stock picking. 

In our case, our first positive year was 1998 when our net asset value rose
for the first time. By late in that year one or two successful IPOs had
brought back interest in the stockmarkets (particularly the OTC).  During 1999
both Japanese and international investors' confidence in the 'New Japan' began
to return. Because the stockmarkets had been so badly beaten up by September
1998 (our benchmark index had declined approximately 65% since our launch),
the bounce when it came has been very significant.  In the space of 15 months
our benchmark index rose 225% and our (undiluted) net asset value rose 502%. 
The question of whether it has recovered too quickly in the short term I will
address later.  

Corporate Matters

Dividends - With the very low yields on the shares of the companies in our
portfolio we do not expect to earn a surplus and therefore to be able to pay a
dividend.  Indeed in this last year our revenue account once again shows a
deficit and we are not proposing the payment of a dividend. 

Buying In Shares - In October shareholders gave approval and authority to the
Directors to buy in up to 15 million shares.  The purpose behind doing so is
to enhance the net asset value by buying at a discount and to reduce the
discount that the share price sells to the net asset value. 

AITC's its campaign - The Association of Investment Trust Companies has
launched a number of initiatives to raise the profile of investment trusts,
including a generic advertising campaign entitled 'its'.  It was launched in
October and it is anticipated that it will run for three years.  Research done
by the AITC showed a low degree of awareness of investment trusts and the
benefits they can bring to investors in the stockmarket.  We are supporting
this initiative and believe that it will benefit shareholders by improving the
demand for the shares of investment trusts. 

Share Plan and ISAs - It is important that we take advantage of the AITC's new
publicity for investment trust companies by raising awareness of the
investment plans that our Manager, Fidelity International, offers investors. 
I am delighted to say that in 1999 over 1,700 new accounts were opened in
these plans and I would like to welcome these new shareholders.  The Fidelity
Investment Trust Share Plan and the Fidelity Investment Trust Individual
Savings Account both provide investors with a simple and cost effective way to
invest in the Company's ordinary shares.  Both plans are well promoted by
Fidelity International. 

Annual General Meeting - The AGM is due to take place at 12.00pm on 11 May
2000 at Fidelity's London offices, at which Asako Kibe will be making a
presentation on Japan, the portfolio and future prospects. We do urge all
shareholders to come and join us; it gives you the opportunity to discuss
matters with your Board and Management. 

Corporate Governance - There seems to be no end to the number of new edicts
emerging which seek to dictate the behaviour of boards of directors in
fulfilling their responsibilities as guardians of the shareholders interests. 

My boardroom colleagues and I believe that there is a danger in going too far
in prescribing behaviour and laying down, controversially so at times, ideas
of 'best practice'.  All the rules and regulations in the world are not going
to stop premeditated malpractice nor are they going to produce good corporate
performance. Too many rules are a haven for mediocrity.

Investment Approach - Following the further rises in the Japanese stockmarket
the market capitalisation limit of the companies in which the portfolio is
primarily invested has been increased to Yen 750 billion. As indicated
previously this limit is subject to review and adjustment by the Board from
time to time in the light of market conditions.

Gearing - Your Board believes that in the long-term gearing will enhance the
returns to shareholders. As a result of the increase in the net asset value of
your Company in the year the level of gearing had fallen to a low level and
accordingly a further loan equal to the yen equivalent of £10 million was
drawn down in November 1999. The Company had total borrowings of £28.9 million
at the year end resulting in gearing of 15.5%.

Directorate

The growth of Fidelity International and the pressure of his responsibilities
as its President has meant that Barry Bateman has decided to step down as a
Director of the Company at the forthcoming annual general meeting. He became a
Director at its launch in 1994 and has made a valuable contribution to its
progress during the past 5 years. On behalf of the shareholders I would like
to say thank you to Barry for his contribution over this time.

The independent Directors of the Board believe that, in their experience,
there is value in having a senior member of the Company's management who
assumes the responsibility of being a Director of the Company. We are
therefore pleased to announce that Simon Fraser has agreed to join the Board
following Barry's resignation. Simon is currently Fidelity's Chief Investment
Officer, UK & Europe. He joined Fidelity in 1981 as an analyst and he has
spent a number of years in Japan, most recently as Chief Investment Officer
for the Asia/Pacific region. He returned to the UK in 1999 to take up his
current position. Simon was also the Portfolio Manager for the Company from
its launch in 1994 to August 1997.

Outlook

After such an extraordinary year as we have just experienced, it is quite
difficult to provide a guide as to what we might expect in the coming year. 
One thing seems to me to be a near certainty: that we will not produce another
increase in our net asset value comparable to the year just ended.  Such was
the excitement in certain areas of the Japanese stockmarket, particularly the
IT and telecoms sectors, that there may well be an element of overvaluation in
the short term in these sectors. We could see some profit taking in the short
term.  The outlook for the economy will continue to be affected by the breadth
of change that Japan is undergoing.  Some of it, such as the rising
unemployment, will retard the recovery that is emerging.  However your Board
of Directors remain optimistic that the changes affecting so many different
aspects of corporate life in Japan will be very beneficial in the longer term.
With a greater emphasis on shareholder value and thence on profitability we
could see a large increase in corporate profits over the next several years
which would undoubtedly be good for the stockmarket.  I believe that, with
Fidelity's great resources and proven ability at choosing shares our own
longer term prospects are excellent. 


Alex Hammond-Chambers
24 February 2000


Enquiries: Barbara Powley - Fidelity Investments International - 01737 836883



FIDELITY JAPANESE VALUES PLC

STATEMENT OF TOTAL RETURN (unaudited)
(incorporating the revenue accounts*) of the Company for the year ended 31
December 1999

                                    1999                    1998
                        revenue  capital    total   revenue  capital    total
                          £'000    £'000    £'000     £'000    £'000    £'000

Gains on investments          -  147,310  147,310         -   11,603   11,603
Income                      539        -      539       470        -      470
Investment management
fee                      (1,396)       -   (1,396)     (504)       -     (504)
Other expenses             (293)       -     (293)     (182)       -     (182)
Exchange gains                -      558      558         -      261      261

Net gain/(loss) before
finance costs and
taxation                 (1,150) 147,868  146,718      (216)  11,864   11,648

Exchange loss
on loans                      -   (2,249)  (2,249)        -   (2,003)  (2,003)
Interest payable           (500)       -     (500)     (407)       -     (407)

Return on ordinary
activities before tax    (1,650) 145,619  143,969      (623)   9,861    9,238

Tax on ordinary
activities                  (81)       -      (81)      (58)       -     (58)

Return on ordinary
activities after tax
for the year
attributable to
equity shareholders      (1,731) 145,619   143,888     (681)   9,861   9,180

Return/(loss) per 
ordinary share  (1)      (1.64p) 138.33p   136.69p   (0.65p)   9.37p   8.72p


Notes
1  Returns per ordinary share have been calculated using 105,272,951 being the
weighted average number of shares in issue during the year to 31 December 1999
(1998 : 105,272,750).  As the basic and fully-diluted returns, calculated
according to the provisions of FRS14, are identical, the fully-diluted return
has not been disclosed.  Since the effect of the warrants outstanding on the
first day of the accounting period is not dilutive, they have not been
included in the calculation of the fully-diluted return.

* the revenue column on this statement represents the profit and loss account
of the Company.
All revenue and capital items in the above statement derive from continuing
operations
No operations were acquired or discontinued in the year

BALANCE SHEET
(unaudited)                                    1999                  1998
                                              £'000                 £'000

Investments                                 208,104                52,638

Debtors                                         839                   146
Cash at bank                                  7,222                 6,268

Creditors - amounts falling due within
one year                                     (1,064)                 (357)

Net current assets                            6,997                 6,057     

Total assets less current liabilities       215,101                58,695

Creditors - amounts falling due after
more than one year                          (28,896)              (16,378)

Total net assets                            186,205                42,317

Capital and reserves
Called up share capital                      26,318                26,318
Share premium account                             -                64,619

Other reserves
Other reserve                                64,619                     -
Warrant reserve                              10,525                10,525
Capital reserve - realised                  (10,693)              (58,852)
Capital reserve - unrealised                100,095                 2,635
Revenue reserve                              (4,659)               (2,928)

Total equity shareholders' funds            186,205                42,317

Net asset value per ordinary share
Basic                                       176.88p                40.20p
Fully-diluted                               164.07p                   n/a


The fully-diluted net asset value per ordinary share has been calculated on
the assumption that the outstanding warrants of 21,049,750 at 31 December 1999
(1998 : 21,050,050) 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.  The fully-diluted net asset value per ordinary share exceeds
the basic net asset value per ordinary share in 1998 and is therefore not
stated.



CASH FLOW STATEMENT
(unaudited)

                                               1999                  1998
                                              £'000                 £'000

Net cash outflow from operating activities     (934)                 (165)

Net cash outflow from servicing of finance     (471)                 (399)

Tax recovered                                    43                    32

Net cash outflow from financial investment   (7,351)                  (64)

Net cash inflow from financing               10,269                     -

Increase/(decrease) in cash                   1,556                  (596)


The above statements have been prepared on the basis of the accounting
policies as set out in the recently published set of annual financial
statements.
The figures for the year to 31.12.98 have been extracted from the accounts for
the year ended 31.12.98 which have been delivered to the Registrar of
Companies and on which the Auditors gave an unqualified report.

The annual report and accounts will be posted to shareholders as soon as is
practicable.