Final Results

Fidelity Special Values PLC
26 October 2000


FIDELITY SPECIAL VALUES PLC

Preliminary Announcement of Unaudited Results 
for the year ended 31 August 2000

CHAIRMAN'S STATEMENT

The Year's Performance : NAV +25.9% - Although the past twelve months have
been an 'up-and-down' year for the stock market, it did end the year 11.6%
higher than a year ago (as measured by the FTSE All Share Index, our benchmark
against which we compare our performance). I am pleased to be able to report
to you that our own net asset value rose 25.9% to 257.49p per share. This is a
credit to Anthony Bolton and the analytical team at Fidelity, not only because
they did so much better than the FTSE All Share Index but also because they
managed to avoid being sucked into the technology boom/bust which saw the
share prices of many unseasoned technology and particularly internet companies
rise and fall by spectacularly large amounts.  

While it is very pleasing to be able to report that we did much better than
our benchmark index, I think that shareholders should be wary of such
comparisons. The whole concept of a benchmark is that it should be a fixed
reference point for comparative purposes but modern indices are anything but
fixed reference points because their constituents are now changed quarterly.
During this last year the composition of our benchmark index has been altered
significantly just because Vodafone and BP made significant acquisitions. Your
Board of Directors is more concerned about achieving good absolute returns for
shareholders over the longer term than relative returns against an
inconsistent index. Having said that, we do pay attention to the performance
relative to both the Index and our competition; we just don't regard it as
being important as achieving absolute capital gains. 

Perhaps most important of all to our shareholders is the performance of our
share price. In this past year I am again happy to be able to report that it
too did well, rising by 37.5% from 162.50p to 223.50p. The discount at which
our shares sell to their net asset value fell to 6.5%. We are active in doing
all the things we regard as necessary to create demand for our shares,
including promoting the Fidelity Investment Trust Share Plan and the Fidelity
Investment Trust ISA and buying in our own shares (300,000 were bought in
during the year, raising the net asset value by 0.2p per share). 

Gearing - At the end of January 2000, the Equity Index-Linked Loan Stock was
redeemed following legal advice that under the terms of the Trust Deed
governing the Loan Stock the Index to which it was linked (the FT All Share
Index) had been discontinued for the purposes of calculating the yield on the
Loan Stock.  Given the uncertain characteristics of the Index to which I have
already referred, your Board of Directors believes that the more conventional
fixed principle borrowing is now more appropriate and have accordingly
borrowed £10 million for a period of the five years to 28 January 2005 and a
further £6 million for a period of 6 months to 28 January 2001. At the end of
August 2000 our borrowings of £16 million amounted to 17.6% of our
shareholders' funds. 

Dividend - Your Board of Directors is recommending a dividend of 2.3p per
share, to be paid on 15 December 2000 to shareholders on the register on 17
November 2000. Last year there were two payments: an interim of 1.0p and a
final of 2.3p, totalling 3.3p. The management of the portfolio, which is
effected for the pursuit of capital gains, means that the amount of income
that it will generate in any given year will vary and so consequently will the
dividend. 

Corporate Governance - During this past year the Combined Code, which both
directs and guides boards of directors on matters concerning the governance of
their companies as a condition of their Stock Exchange listings, has
introduced some new guidelines in respect of the monitoring of the controls
inherent in companies' management systems. During the course of the year the
Association of Investment Trust Companies also considered those aspects of
corporate governance which are peculiar to investment trust companies. There
is now a proliferation of 'do's' and 'don'ts', some mandatory and some
voluntary, which have to be addressed by boards of directors. They are both
time consuming and, unless boards of directors are very careful, they can
detract from the good direction of a company's business. It must be stressed
that complying with the Combined Code will not of itself produce good
corporate performance, only FSA acceptable boardroom practice. 

In the light of all of this, your Board of Directors decided that it should
think through all of these issues and establish a framework for the governance
of Fidelity Special Values, which deals with the requirements and guidelines
of the Combined Code and with the peculiarities of investment trust companies
and of the Company itself. In a specially convened board meeting, we reviewed
at length the whole issue, covering many thoughts and ideas. We have
incorporated into these accounts our approach to our own corporate governance.
In many cases it is no different to what we did before but we have tried,
where possible, to structure our directors meetings so that board meetings
deal with investment and shareholder value issues and board committee meetings
deal with corporate governance issues. Finally, in relation to the Directors
themselves, we feel it is important that the composition of the Board should
be acceptable to Fidelity Special Values' shareholders; in that respect we
have provided all the relevant information about each director. We do
encourage as many shareholders as possible to attend the Shareholders' Annual
General Meeting, so that they can meet the Directors and so that they can put
to other shareholders any views that they have about the Company and its
governance. 

Annual General Meeting - The Shareholders' Annual General Meeting will take
place at 12 noon on 12 December 2000 at Fidelity's new offices at 25  Cannon
Street, near to St Paul's Cathedral. I do urge shareholders to attend.
Following the formal proceedings there will be a presentation by Anthony
Bolton during which he will review the past year and look at the prospects for
the current one. 

Outlook - The British economy, upon which many of our investments depend for
their prosperity, continues to grow at a reasonable rate without exerting any
undue inflationary pressures. The concern for inflation caused by a housing
boom, particularly in the South East of England, seems to have abated somewhat
with higher interest rates. However the weakness of sterling against many
other currencies, and particularly against the US Dollar, and the strength of
the oil price must add inflationary pressures to the economy. It is possible
therefore that interest rates may have to rise a little, which in turn might
slow down economic and corporate profits growth. And of course the weakest
major currency in the World, the Euro, covers an important exporting area for
British companies. But British companies are generally much better managed and
more resilient than they used to be twenty years ago and should continue to
prosper.

There do not appear to be any major political uncertainties at present: there
is the possibility of a general election during the course of our current year
but it is unlikely that it would cause any surprises; the prospect of a
referendum on the Euro would appear to have receded somewhat, following the
rejection of the new currency by the Danes. The high level of share prices on
Wall Street has been a concern for so long that it is difficult to be
concerned about it just at the moment. The high level of the US Dollar may too
be a concern. But I believe the most important influence on our net asset
value performance will continue to be the ability of Anthony Bolton and the
analytical team at Fidelity to pick the right stocks for the portfolio. Given
their track record to date, I remain optimistic that we can continue to
produce good results. 

Alex Hammond-Chambers
Chairman
26 October 2000


Enquiries : Barbara Powley - Fidelity Investments International
            01737 836883


FIDELITY SPECIAL VALUES PLC

STATEMENT OF TOTAL RETURN (unaudited)
(incorporating the revenue account) of the Company for the year ended 31
August

                                      2000                        1999
                          revenue  capital   total   revenue*  capital   total
Gains on investments            -   19,854  19,854         -    19,328  19,328
Income                      3,250        -   3,250     3,188         -   3,188
Investment management fee  (1,055)       -  (1,055)     (875)        -    (875)
Other expenses               (380)       -    (380)     (298)        -    (298)
Exchange (losses)/gains         -      (21)    (21)        -         9       9
Purchase of warrants
for cancellation                -     (136)   (136)        -      (693)   (693)

Net return before finance 
costs and taxation          1,815   19,697  21,512     2,015    18,644  20,659
Interest payable             (858)       -    (858)     (410)        -    (410)
Revaluation of Loan Stock**    -   (1,049) (1,049)        -    (2,809)  (2,809)

Return on ordinary activities
before tax                    957   18,648  19,605     1,605    15,835  17,440
Tax on ordinary activities     (5)       -      (5)       (5)        -      (5)

Tax on ordinary activities
after tax for the year
attributable to equity
shareholders                  952   18,648  19,600     1,600    15,835  17,435
Dividends                    (813)       -    (813)   (1,185)        -  (1,185)

Transfer to reserves          139   18,648  18,787       415    15,835  16,250

Return per ordinary share
Basic                       2.69p   52.69p  55.38p     4.36p    43.19p  47.55p
Fully-diluted               2.54p   49.69p  52.23p     4.18p    41.40p  45.58p


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

*  The 1999 figures have been restated to reflect the adoption of FRS16
Current    Taxation.

** Although the company has adopted a policy of charging all finance costs and
expenses to the revenue account in the Statement of Total Return, the Board
considered that in order to present a true and fair view the revaluation
element of the Loan Stock, which was an element of the overall finance cost,
should be taken to capital reserves.  By adopting this treatment the
revaluation of the Loan Stock was matched against the capital appreciation or
depreciation of the investment portfolio, in which the original proceeds of
the Loan Stock were invested.


BALANCE SHEET (unaudited)
as at 31 August


                                                     2000                1999
Fixed assets
Investments                                       104,522              89,488

Current assets  
Debtors - amounts falling due within one year         398               1,284
Cash at bank                                        3,650                 155

                                                    4,048               1,439

Creditors - amounts falling due within one year   
Fixed rate unsecured loans                         (6,000)                  -
Other creditors                                    (1,527)             (1,696)

                                                   (7,527)             (1,696)

Net current liabilities                            (3,479)               (257)

Total assets less current liabilities             101,043              89,231

Creditors - amounts falling due after
more than one year       
Fixed rate unsecured loan                         (10,000)                 -
Equity Index-Linked Loan Stock                          -            (16,572)

Total net assets                                   91,043             72,659

Capital and reserves
Called up share capital                             8,839              8,878
Share premium account                              24,098             23,949
Capital redemption reserve                            404                329

Other reserves
Warrant reserve                                     1,325              1,433
Capital reserve - realised                         49,074             36,539
Capital reserve - unrealised                        6,128                495
Revenue reserve                                     1,175              1,036

Total equity shareholders' funds                   91,043             72,659

Net asset value per ordinary share
Basic                                             257.49p            204.60p
Fully-diluted                                     238.93p            191.44p


* The fully-diluted net asset value per ordinary share has been calculated on
the assumption that the outstanding warrants of 4,724,125 at 31 August 2000
(1999 : 5,109,132) 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.

CASH FLOW STATEMENT (unaudited)
for the year to 31 August
                                                     2000              1999
Operating activities     
Investment income received                          2,386             3,013
Deposit interest received                             131               129
Underwriting commission received                        6                10
Investment management fee paid                     (1,022)             (843)
Directors' fees paid                                  (52)              (48)
Other cash payments                                  (298)             (264)

Net cash inflow from operating activities           1,151             1,997

Returns on investments and servicing of finance 
Interest paid                                        (816)             (421)

Net cash outflow from servicing of finance           (816)             (421)

Taxation
UK income tax recovered                                 2                 -
UK income tax paid                                    (62)              (81)

Tax paid                                              (60)              (81)

Financial investment
Purchase of investments                           (58,521)          (33,383)
Realised currency (losses)/gains                      (21)                9
Disposals of investments                           64,739            35,115

Net cash inflow from financial investment           6,197             1,741

Equity dividends paid                                (817)           (1,030)

Net cash inflow before financing                    5,655             2,206

Financing   
Repurchase of ordinary shares                        (480)           (2,035)
Repurchase of warrants                               (203)           (1,226)
Proceeds on exercise of warrants                      144                25
Repayment of Equity Index-Linked Loan Stock       (17,621)                -
Fixed rate unsecured loans drawn down              16,000                 -

Net cash outflow from financing                    (2,160)           (3,236)

Increase/(decrease) in cash                         3,495            (1,030)


The above statements have been prepared on the basis of the accounting
policies as set out in the most recently published set of annual financial
statements.  

The figures for the year to 31.08.99 have been extracted from the accounts for
the year ended 31.08.99 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 by no later than
13 November 2000.