Response to press speculation

Graphite Enterprise Trust PLC
26 August 2004

                         ANNOUNCEMENT TO STOCK EXCHANGE



                         GRAPHITE ENTERPRISE TRUST PLC



                                 26 August 2004





Graphite Enterprise Trust PLC (the 'Trust') notes today's press speculation on
the potential sale of Maplin Electronics ('Maplin'), the largest investment in
the Trust's portfolio.  While discussions are under way that may lead to the
disposal of the Trust's investment in Maplin, no binding agreement has been
reached and there is no certainty that a disposal will take place.



On 20 May 2004 the Trust announced that its net asset value per share as at 31
March 2004 was 289.6p.  Since that date the Trust has disposed of its investment
in Paperchase and it has received proceeds from the refinancing of Ridgmont.
The effect of these disposals, taken in isolation, has been to increase the
Trust's net asset value per share by 7.4p, of which 6.1p is attributable to the
capital account and 1.3p is attributable to the revenue account.



The Board reviews the valuation of the portfolio quarterly and expects to
announce the Trust's net asset value per share as at 30 June 2004 by 30
September 2004.  As well as reflecting the increases in value as a result of the
disposals of Paperchase and Ridgmont, the Board expects to increase the
valuation of certain investments that are performing well, including Maplin, and
to make provisions against other investments that are underperforming.














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