Interim Results

Graphite Enterprise Trust PLC
17 September 2003




                         GRAPHITE ENTERPRISE TRUST PLC
                      UNAUDITED RESULTS FOR THE HALF YEAR
                                TO 30 JUNE 2003




SUMMARY

                                                             30 Jun            31 Dec         % change to
                                                             2003              2002           30 Jun 2003

Shareholders' Funds                                            £246.1m          £235.4m           +4.6%
Net assets per share                                            271.1p           259.2p           +4.6%
Share Price                                                     223.0p           206.5p           +8.0%
FTSE All-Share Index                                           1,971.3          1,893.7           +4.1%





KEY POINTS



•        Net assets per share rose by 4.6% to £246.1 million.



•        A total of £75.6 million was invested in or committed to the unquoted
portfolio.



•        Realisations from the investment portfolio totalled £16.5 million.








Commenting on the results, John Sclater, Chairman, said:



'Overall Performance

In the six months to 30 June 2003 the net assets of Graphite Enterprise Trust
PLC (the 'Enterprise Trust') rose by 4.6% to 271.1p per share. The share price
rose by 8.0% to 223.0p.  These movements compare with a rise in the FTSE
All-Share Index of 4.1%.  The discount of the share price to the underlying net
asset value narrowed from 20.3% to 17.7% in the period.



Investment Activity

A total of £75.6 million was invested in or committed to the unquoted portfolio
in the first half of the year.  Two thirds of this amount was accounted for by
the commitment of £50.0 million to Graphite Capital Partners VI which was
described in the annual report.  The largest direct investment was of £7.4
million in Jane Norman, a retailer of women's fashion products.  Two further
direct investments were made of £3.8 million in Leading Edge, a label printing
and flexible packaging company, and of £3.2 million in Elis, an industrial
cleaning business.  A total of £1.4 million was invested elsewhere in the direct
unquoted portfolio.  In the fund portfolio the Enterprise Trust committed £5.2
million to Euromezzanine 4, a fund focusing on mezzanine investments in
continental Europe.  A total of £4.4 million was drawn down against commitments
to existing funds.



Overall £16.5 million was realised from the investment portfolio in the first
half of the year.  Realisations from the direct unquoted portfolio totalled £7.2
million, mostly on the repayment of loan stock by Maplin and Leaderflush +
Shapland, both of which have performed strongly since their acquisition.  The
fund portfolio generated £4.3 million of capital proceeds while total disposals
from the quoted portfolio were £5.0 million.



Performance of the Investment Portfolio

The investment portfolio rose in value by £8.9 million or 5.1% in the period.
Overall the unquoted investments rose by 4.4%.  This movement was largely the
result of valuation increases in Maplin and Leaderflush + Shapland and of the
benefit in the fund portfolio of the appreciation of the Euro against Sterling.
The quoted portfolio rose in value by 9.9%, reflecting the strong relative
performance of a number of the larger holdings partly offset by losses
elsewhere.





Balance Sheet, Liquidity and Revenue Account

The redeployment of the Enterprise Trust's assets into the unquoted portfolio
from the quoted portfolio and from uncommitted cash continued in the six months
to 30 June.  The unquoted portfolio represented 64.7% of net assets at the end
of June by comparison with 60.9% at the beginning of the year.  The equivalent
amounts for the quoted portfolio were 8.2% and 9.8% respectively.  In line with
our long term policy and  following the commitment in April to Graphite Capital
Partners VI, total commitments to the unquoted portfolios have risen to £100.0
million, compared with £70.7 million of net liquid holdings at 30 June.  This is
the first time for a number of years that investment commitments have exceeded
the amount held in cash or near-cash. If all these commitments had been called
on 30 June the Enterprise Trust's gearing would have been 11.7%.



The revenue attributable to shareholders was £3.3 million by comparison with
£1.8 million in the previous year, largely as a result of the receipt of an
exceptional dividend.



Outlook

There has been little change in the investment environment in the last few
months, although there are signs of a fragile recovery in confidence.  The flow
of investment opportunities in the private equity market remains variable in
both number and quality, reflecting uncertainty in the economy and in stock
markets.  Volumes in the new issue market have risen slightly from a very low
base and trade purchasers remain cautious.



Against this background we have been pleased with the underlying trading
performance of the Enterprise Trust's portfolio.  While some companies have
suffered from lower demand and margin pressures, they have been more than
outweighed by companies that have continued to increase their sales and
profitability.  Until confidence recovers further we do not expect to see a
strong flow of disposals and we continue to look for attractive new 
investments.'





For further information, please contact:


Rod Richards / William Eccles                             Tel:  [phone]
Graphite Capital Management Limited





                           GRAPHITE ENTERPRISE TRUST PLC

                 UNAUDITED RESULTS FOR THE HALF YEAR TO 30 JUNE


Consolidated Assets                                                        30 Jun                   31 Dec
                                                                            2003       2002           2002
                                                                          £'000s     £'000s         £'000s

Listed investments                                                        20,222     26,059         21,907
Unlisted investments at directors' valuation                             159,318    127,327        144,410
Total investments                                                        179,540    153,386        166,317
Net current assets                                                        70,714    103,948         73,012
Total net assets                                                         250,254    275,334        239,329
Minority interest                                                        (4,108)    (3,797)        (3,931)
Shareholders' funds                                                      246,146    253,537        235,398

Net asset value per share                                                 271.1p     274.7p         259.2p




Geographical distribution of portfolio investments
at 30 June 2003                                                               UK      Non-UK         Total
                                                                               %           %             %

Listed                                                                        11           -            11
Unlisted                                                                      66          23            89
                                                                              77          23           100









Consolidated Statement of Total Return                               30 Jun                         31 Dec
                                                                       2003         2002              2002
(incorporating the Revenue Account)                                  £'000s       £'000s            £'000s

Revenue Return

Income                                                                5,051        3,321             7,408
Investment management fee                                             (533)        (564)           (1,096)
Other expenses                                                        (408)        (324)             (697)
Net return before finance costs and taxation                          4,110        2,433             5,615
Interest payable and similar charges                                      -          (6)               (8)
Return on ordinary activities before tax                              4,110        2,427             5,607
Tax on ordinary activities                                            (785)        (585)           (1,488)
Return attributable to equity shareholders                            3,325        1,842             4,119
Dividends in respect of ordinary shares  (equity)                         -            -           (3,904)
Transfer to reserves                                                  3,325        1,842               215


Capital Return
Gains/(losses) on investments                                         9,516      (6,355)          (18,514)
Investment management fee                                           (1,600)      (1,691)           (3,287)
Other expenses                                                          (4)          558               461
Tax on ordinary activities                                              480          507             1,488
                                                                       8392      (6,981)          (19,852)
Minority interests                                                    (969)        (936)           (1,760)
Net capital return                                                    7,423      (7,917)          (21,612)

Total Return                                                         10,748      (6,075)          (21,397)

Revenue return per ordinary share                                     3.66p        1.97p             4.47p
Capital return per ordinary share                                     8.18p      (8.47p)          (23.46p)
Total return per ordinary share                                      11.84p      (6.50p)          (18.99p)





Consolidated Cash Flow Statement                                     30 Jun                         31 Dec
                                                                        2003        2002              2002
                                                                      £'000s      £'000s            £'000s

Net cash flow from operating activities                                  942       (807)             (505) 
Returns on investments and servicing of finance                            -         (6)               (7)
Taxation                                                                 173           -               173
Acquisitions and disposals                                           (4,139)       9,912          (14,754)
Equity dividends paid                                                (3,904)     (4,021)           (4,021)
Net cash (outflow)/inflow before financing                           (6,928)       5,078          (19,114)
Management of liquid resources                                        26,000    (14,500)          (14,500)
Financing                                                              (791)     (4,194)           (7,690)
Increase/(decrease) in cash                                           18,281    (13,616)          (41,304)

Reconciliation of net cash flow to movement in net debt

Increase/(decrease) in cash                                           18,281    (13,616)          (41,304)
Cash (outflow)/inflow from change in liquid resources               (26,000)      14,500            14,500
Change in net liquid funds resulting from cash flows                 (7,719)         884          (26,804)
Exchange difference                                                      (4)         558               461
Income received via capital                                              866         879             2,104
Movement of net liquid funds                                         (6,857)       2,321          (24,239)
Net liquid funds at 1 January                                         76,635     100,874           100,874
Net liquid funds 30 June/31 December                                  69,778     103,195            76,635

Reconciliation of operating profit to net cash flow from
operating activities

Net revenue on ordinary activities before taxation                     4,110       2,427             5,608
Add back interest payable                                                  -           6                 7
Income before interest payable and taxation                            4,110       2,433             5,615
(Increase)/decrease in debtors                                         (388)         273             (282)
Increase/(decrease) in creditors                                          81       (249)             (165)
Income received via capital                                            (866)       (879)           (2,104)
Tax on investment income within income                                 (395)       (694)             (282)
Management fee charged to capital                                    (1,600)     (1,691)           (3,287)
Net cash inflow from operating activities                                942       (807)             (505)
                                                                         






The abridged financial statements at 31 December 2002 have been compiled from
the latest published accounts.  Those accounts have been delivered to the
Registrar of Companies: the report of the auditors thereon was unqualified.



Copies of the Interim Report will be posted to all shareholders on or around 30
September 2003 and copies may be obtained during normal business hours from the
Company's registered office, Berkeley Square House, Berkeley Square, London W1J
6BQ thereafter.

                                                    
By order of the Board                                          Registered Office
Graphite Capital Management Limited                        Berkeley Square House
Secretary                                                        Berkeley Square
                                                                  London W1J 6BQ
                                                              Tel: [phone]













                      This information is provided by RNS
            The company news service from the London Stock Exchange             LALIDLIV