Interim Results

Fidelity Special Values PLC
6 April 2000


Announcement of unaudited results 
for the six months ended 29 February 2000

Extract from the Interim Report

CHAIRMAN'S STATEMENT

Performance - I am pleased to say that in the period under review the net
asset value per share increased by 4.4% compared to an increase of 1.7% in the
FTSE All Share Index.  After taking account of income, the total return per
share was 5.6%, compared with 2.6% from the Index and the share price total
return was 10.2% reflecting a narrowing in the discount. 

Outlook - The UK economy is probably healthier than it has been for a number
of years.  Growth is expected to accelerate this year while inflationary
pressures appear to be under control.  Based on the EU measure of inflation,
the UK has the lowest inflation rate in the region. The Monetary Policy
Committee has raised interest rates to 6.0% which was a pre-emptive action to
restrain inflation.  This has encouraged the belief that we may well be close
to a peak in interest rates this cycle. This is a far cry from past cycles
when interest rates have typically risen above 10%. The country's finances are
healthy which should have a positive influence on the bond market.  Of course
there are some imbalances.  The confidence in the UK's economic outlook has
contributed to strength in sterling and this has led to a growing trade
deficit.  However, overall the economic outlook appears positive.  

The start of the year has seen a high level of volatility in the stockmarket. 
This has, in part, been influenced by events in the US market.  Those sectors
of the market which performed so well last year, namely technology, media and
telecommunications, have lost much of their lustre.  In contrast some of the
'old economy' stocks have performed relatively well such as oil, health care
and utilities.  Smaller companies have continued to perform well relative to
larger companies.  Indeed, shares in smaller companies continue to appear
cheap in relation to larger companies and yet offer similar or in some cases
more attractive profits growth prospects than their larger counterparts.  Our
strong bias towards smaller companies as well as the diversified nature of the
portfolio in terms of sectors represented, should stand the Company in good
stead given the current market environment. 

Redemption of Loan Stock and Gearing - The Equity Index Linked Loan Stock was
redeemed on 31 January 2000 following legal advice that the FTSE All Share,
the index to which it was linked, had been discontinued under the terms of the
trust deed governing the loan stock.  Your Board continues to believe that
gearing will be beneficial to shareholders in the long term and it was
announced on 28 January 2000 that a loan for £10 million had been drawn down
for a period of 5 years and a facility for a further £6 million had been put
in place of which £2.5 million had been drawn down for a period of 6 months. 
This has resulted in a gearing level of 16.5%. 

Authority to repurchase shares - The Company's authority to repurchase shares
was renewed at the Annual General Meeting in December 1999.  In the 6 months
to end February the Company has repurchased and cancelled 250,000 shares which
resulted in an uplift to net asset value of 0.18 pence per share. The Company
has also purchased and cancelled 120,000 warrants in the period.  The Company
will continue to repurchase both shares and warrants when this is beneficial
to shareholders. 

Dividend - The Board of Directors has not declared an interim dividend in
respect of the current year.  The Company's practice is to declare a final
dividend in respect of a year, which is determined by the level of surplus
income and investment trust status requirements.  The payment of last year's
interim dividend was a 'one-off' which enabled shareholders who were
non-taxpayers to reclaim a tax credit of 20%.

Alex Hammond-Chambers
Chairman
6 April 2000


INVESTMENT MANAGER'S REPORT

Market Environment - During the first few months of the period, the UK equity
market languished before rising strongly during the last two months of 1999 to
an all-time high.  Market appreciation was driven predominantly by three
sectors, namely technology, media and telecommunications.  Investor enthusiasm
for these types of companies was strong, as they are expected to benefit from
growth in new services as well as growth related to the internet.  Corporate
activity, in the form of mergers, acquisitions and restructuring, continued to
be a major feature over the period.  

Smaller and medium-sized companies performed better than their larger
counterparts during the period. Companies outside the market leaders benefited
from investors' increasing confidence in the domestic economic environment and
also by strong demand for small technology-related stocks and Initial Public
Offerings (IPOs).  

Another feature of the market was the high level of merger and acquisition
activity.  As well as high profile companies being involved such as Vodafone
Airtouch and National Westminster Bank, a number of smaller companies were
also the subject of take-overs.  Interest rates in the UK rose from 5.0% to
6.0% during the six months under review, despite inflation of 2.1% at the end
of February, well below the government's rolling target of 2.5%.  The Monetary
Policy Committee grew increasingly concerned that strong economic growth,
rising house prices and low unemployment would lead to higher inflation and
therefore took pre-emptive action by raising interest rates. 

Performance Review - The Company's NAV outperformed the FTSE All Share Index,
during the six months to 29 February 2000.  This was largely attributable to
stock selection and also to the Company's strong bias towards medium-sized and
smaller companies.  In addition, the Company benefited from further merger and
acquisition activity over the period under review; several holdings became the
subject of bid activity, including Brands Hatch Leisure, Waddington, Oriflame
International and Medeva.  

The portfolio has a bias towards value stocks (companies whose shares appear
cheap in absolute terms as well as compared to other companies), and at the
beginning of the period, value stocks performed much better than growth stocks
(companies which have above average profits growth and whose shares typically
sell on high valuations).  However, later in the period, investor sentiment
swung sharply in favour of growth stocks, as attention focused firmly on
high-growth industries such as technology and telecommunications.  

A strong bias towards medium-sized and smaller companies proved favourable for
performance; in general these companies performed more strongly than the broad
UK market during the period under review, due to more attractive valuation
levels and the supportive economic environment.  

The Company's performance was enhanced by the performance of a number of
holdings in the technology, media and support services sectors. Stock
selection in the technology sector proved particularly rewarding, and
companies such as Autonomy, a software company which filters and automates
information and Merant, which develops business applications for a variety of
computers, performed very strongly. 

The Company's relatively low exposure to the telecommunications sector proved
detrimental to performance.  However, the low exposure to this sector was
largely due to our preference for investing in companies outside the market
leaders and most telecommunication companies have a market capitalisation
substantially above £1billion. 

Portfolio Review - Almost 40% of the Company's assets were invested in
services-related companies at the end of the period.  This includes industry
sectors such as media, leisure & hotels, retailers and support services. One
reason for the large proportion invested in support services is that the
sector has performed strongly.  In addition, we have traditionally favoured
the sector as it has proven a fertile ground for stock selection.

One of the largest purchases made during the period was Johnson Matthey, an
electronics and materials technology company which performed well during the
six months under review. The Company's exposure to Celltech Group, a
biotechnology and pharmaceuticals company, also increased; this stock
performed particularly well. 

Food and drug retailers also featured in trading activity during the period,
and the Company's holding in Safeway was increased on valuation grounds
following a period of poor performance by the stock.  Meanwhile, the Company's
holding in Iceland was reduced, following the stock's relatively good
performance compared to its sector.  Other sales included Kewill Systems, a
computer services company, which provided strong relative and absolute
performance.  

The proportion of the Company's assets invested in 'old economy' sectors of
the market such as chemicals, construction and building materials, and paper
remained above that of the benchmark index. However, this reflects the outlook
for the individual companies and the very low valuations accorded to them
rather than the outlook for the sectors. The shares of many retailers have
also lagged the rise in the market over the last year and consequently appear
very cheap. While some well known companies are held such as Safeway and Great
Universal Stores, other more specialist retailers are also held, such as
Wickes and Fine Art Developments. 

Outlook - After reaching an all-time high at the end of 1999, the UK market
has fallen back, largely due to concerns over rising interest rates and high
equity valuations. However, smaller companies have continued to perform
relatively well. In following such companies, we continue to place emphasis on
the strength of each company's underlying business or franchise and whether we
believe the share price represents good value. 

The economic environment remains reasonably benign and prospects for corporate
profits growth are generally optimistic. The key concerns continue to be the
extent to which interest rates may rise as well as the potential fall-out from
any significant decline in the US stockmarket. 

The robust domestic economy and the relatively attractive share valuations of
smaller companies lend weight to the view that the investment environment for
medium-sized and smaller companies remains favourable. Continuing corporate
restructuring is also likely to play a positive role in the UK market over the
coming year. 

Year 2000 - The Manager successfully completed a smooth transition to the new
millennium.  All systems, infrastructure, facilities and telecommunication
components owned by Fidelity International Limited and its associate companies
were fully functional over the millennium period and, to date, continue to be
fully functional.  To the best of our knowledge and belief, no significant
Year 2000 problems affecting the Company have, to date, arisen in any of its
third party service providers.

Fidelity Investments International 
6 April 2000


Enquiries : Barbara Powley - Fidelity Investments International 01737 836883


FIDELITY SPECIAL VALUES PLC

STATEMENT OF TOTAL RETURN (incorporating the revenue account)
for the six months ended 29 February 2000 and 28 February 1999 - unaudited

                                   2000                         1999
                      revenue   capital   total    revenue   capital    total
                        £'000     £'000   £'000      £'000     £'000    £'000

Gains on investments        -     3,853   3,853          -     2,373    2,373

Income (note 1)         1,559         -   1,559      1,000         -    1,000

Investment management 
fee                      (489)        -    (489)      (371)        -     (371)

Other expenses           (178)        -    (178)       (94)        -      (94)

Exchange (losses)/gains     -       (14)    (14)         -         8        8

Purchase of warrants
for cancellation (note 2)   -       (64)    (64)         -      (105)    (105)

Net return before 
finance costs 
and taxation              892     3,775   4,667        535     2,276    2,811

Interest payable         (355)        -    (355)      (230)        -     (230)

Revaluation of Loan 
Stock (note 3)              -    (1,049) (1,049)         -    (2,168)  (2,168)

Return on ordinary
activities before tax     537     2,726   3,263        305       108      413

Tax on ordinary
activities (note 1)        (2)        -      (2)        (2)        -       (2)

Return on ordinary 
activities after 
tax (note 4)              535     2,726   3,261        303       108      411

Dividend                    -         -       -       (368)        -     (368)

Transfer to/(from)
reserves                  535     2,726   3,261        (65)      108       43

Return per ordinary 
share (note 5) 
Basic                   1.51p     7.67p   9.18p      0.82p     0.29p    1.11p
Fully-diluted           1.43p     7.26p   8.69p      0.80p     0.28p    1.08p




BALANCE SHEET
                                   29.02.00         31.08.99         28.02.99
                                  unaudited          audited        unaudited
                                      £'000            £'000            £'000

Fixed Assets
Investments                          87,431           89,488           73,140

Current assets
Debtors                               1,299            1,284              712
Cash at bank                            534              155            2,077

                                      1,833            1,439            2,789
Creditors - amounts falling
due within one year (note 8)         (3,631)          (1,696)          (1,204)

Net current (liabilities)/assets     (1,798)            (257)           1,585

Creditors - amounts falling
due after more than one year
Fixed term loan (note 8)            (10,000)               -                -
Equity Index-Linked 
Loan Stock (note 8)                       -          (16,572)         (15,931)

Total net assets                     75,633           72,659           58,794

Capital and reserves
Called up share capital               8,852            8,878            9,207
Share premium account                24,098           23,949           23,949
Capital redemption reserve (note 7)     392              329                -

Other reserves
Warrant reserve                       1,358            1,433            1,741
Capital reserve - realised           42,390           36,539           35,460
Capital reserve - unrealised         (3,028)             495          (12,118)
Revenue reserve                       1,571            1,036              555

Total equity shareholders' funds     75,633           72,659           58,794

Net asset value per ordinary share (note 6)
Basic                               213.61p          204.60p          159.65p
Fully-diluted                       199.93p          191.44p          151.04p

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 August 1999 has been extracted from the accounts
for the year ended 31 August 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 29 February 2000 and 28 February 1999 - unaudited

                                                       2000             1999
                                                      £'000            £'000

Operating activities
Investment income received                            1,449            1,130
Underwriting commission received                          6                5
Deposit interest received                                52               84
Investment management fee paid                         (499)            (179)
Directors' fees paid                                    (20)             (26)
Other expenses                                          (96)            (118)

Net cash inflow from operating activities               892              896

Net cash outflow from returns on investments 
and servicing of finance
Interest paid                                          (336)            (179)

Net cash outflow from servicing of finance             (336)            (179)

Tax paid                                                (60)             (45)

Financial investment
Purchase of investments                             (31,810)         (16,738)
Realised currency (losses)/gains                        (14)               8
Disposal of investments                              37,995           17,917

Net cash inflow from financial 
investment                                            6,171            1,187

Equity dividend paid                                   (817)            (662)

Net cash inflow before financing                      5,850            1,197

Financing
Proceeds on conversion of warrants                      145               24
Repurchase of warrants                                  (98)            (329)
Repurchase of ordinary shares                          (398)               -
Repayment of Equity Index-Linked Loan Stock         (17,620)               -
Fixed term loans drawn down                          12,500                -

Net cash outflow from financing                      (5,471)            (305)

Increase in cash                                        379              892


NOTES

1. Franked dividends are accounted for net of any tax credit. This is a change
in accounting policy to comply with Financial Reporting Standard 16 'Current
Taxation' which has replaced Statement of Standard Accounting Practice 8.
Under the latter Standard, dividends (other than foreign income dividends)
were recognised inclusive of an attributable tax credit which also formed part
of the tax charge.  

The effect of this change is that the return on ordinary activities before
taxation is £133,000 lower (1999: £136,000 lower).  The comparative for 1999
has been restated to reflect this change.  However, there is no effect on the
return on ordinary activities after taxation (1999: nil) or on total equity
shareholders' funds (1999: nil). 

2. Warrant buy backs and exercises - During the period, the Company purchased
120,000 warrants for cancellation. On 1 January 2000, 145,007 ordinary shares
of 25p per share were issued and allotted, fully paid at a price of 100p,
following an exercise of warrants. As at 29 February 2000 there were 4,844,125
warrants in issue (28 February 1999 : 6,209,132). 

3. 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.

4. Return on ordinary activities - Attributable to equity shareholders.

5. Return per ordinary share - Basic returns per ordinary share are based on
the return on ordinary activities after taxation of £535,000 (1999 : £303,000)
and the capital appreciation in the period of £2,726,000 (1999 : £108,000) and
on 35,515,582 ordinary shares (1999 : 36,811,731), 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.

6. Net asset value per share - The basic net asset value per ordinary share is
based on net assets of £75,633,000 (31.08.99 : £72,659,000, 28.02.99 :
£58,794,000) and on 35,407,755 ordinary shares (31.08.99 : 35,512,748,
28.02.99 : 36,827,748), being the number of ordinary shares in issue at the
period end. 

The fully-diluted net asset value per ordinary shares has been calculated on
the assumption that the outstanding warrants of 4,844,125 at 29 February 2000
(31.08.99 : 5,109,132, 28.02.99 : 6,209,132) 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.

7. Share repurchases - The Company repurchased 250,000 ordinary shares for
cancellation in the period at a price of 159.00p per ordinary share and a
discount to NAV of 15.5%. The resultant uplift in the net asset value per
share was 0.18p per share.

8. Gearing - The entire Equity Index-Linked Unsecured Loan Stock was redeemed
as at 31 January 2000. The Board announced that the Company has drawn down for
value on 28 January 2000 a fixed rate loan facility of £10 million at an
interest rate of 7.82% per annum repayable after 5 years. The Company has also
put in place a five year committed revolving credit facility for up to £6
million. An amount of £2.5 million has been drawn down for value on 28 January
2000 for a period of 6 months under this facility at an interest rate of
7.11406% per annum.

9. Loss of investment company status - A technical consequence of the share
buy back is that the Company ceased to be an investment company within the
meaning of S266, Companies Act 1985 on date 1999. However, it continued to
conduct its affairs as an investment trust for taxation purposes under S842 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 £6,327,000 (1999 : £6,006,000). 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.