Interim Results - 6 Months to 30 April 2000

Henderson Strata Investments PLC 15 June 2000 HENDERSON STRATA INVESTMENTS plc Unaudited Interim Results for the Half Year ended 30 April 2000 Highlights * Net asset value per share up 44.8% over the half year * FTSE SmallCap Index (excluding investment companies) up 20.8% * The outlook for smaller companies remains as exciting as ever The Chairman's Statement: Net Assets The net asset value rose 44.8% in the six months to end April 2000. In the same period the FTSE SmallCap Index (excluding investment companies) was up 20.8%, without income included. Review The closing months of 1999 saw share prices in the three areas of technology, media and telecommunications surge as investors around the world perceived that such companies are in the forefront of dramatic changes taking place. These changes are being led by the internet which is transforming the way people work, learn and enjoy their leisure time. The effects will be far reaching for companies which will have more flexibility to reduce costs, to improve customer services, to enter new markets and generally to become more competitive. One consequence of this is that smaller companies can compete on more equal terms with major multinationals. The enthusiasm for these areas diminished sharply in March, triggered by concerns over the strong economic growth in the US and the UK and the prospect of higher interest rates; the anti- trust judgement on Microsoft; unsustainable equity valuations and a constant stream of new issues. The correction in the technology stocks extended to falls of over 50% in some cases and resulted in more sensible valuations of new issues. Portfolio The high exposure to technology and media companies gave a strong boost to the asset value over the six months. While many holdings have seen their share prices retreat from what had become excessive valuations, their trading prospects remain encouraging. In the US some of the technology stocks are turning more profitable sooner than analysts had been expecting. In the UK the outlook for computer consultancy and services companies is extremely good over the next three to five years although not all have yet seen a pick up after the slowdown caused by the change over to year 2000. Stock picking remains the cornerstone of our investment approach. -2- HENDERSON STRATA INVESTMENTS plc Unaudited Interim Results for the Half Year ended 30 April 2000 Borrowings peaked at £23 million but were reduced by the period end to £18 million. They are now down to £13 million as holdings which were not demonstrating strong growth in revenues have been sold. Outlook Investors will be looking for convincing signs of slowing economic growth before adopting a more positive stance on the overall stock market. At present, indications are mixed, certainly in the UK where labour costs continue to rise and the recent weakness of sterling will be pushing inflation higher. Smaller companies able to produce strong earnings growth look extremely good value, particularly following the recent setback in share prices. Despite share price volatility, the outlook for smaller companies remains as exciting as ever. Frans ten Bos Chairman 14 June 2000 - 3 - HENDERSON STRATA INVESTMENTS plc Unaudited Interim Results for the Half Year ended 30 April 2000 Statement of Total Return (incorporating the revenue account) for the half year ended 30 April 2000 (unaudited) Half year ended Half year ended 30 April 2000 30 April 1999 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Total capital gains on - 57,401 57,401 - 20,111 20,111 investments Income from fixed asset 435 - 435 430 - 430 investments Other interest receivable 28 - 28 82 - 82 and similar income ------ ------ ------ ------ ------ ------ Gross revenue and capital 463 57,401 57,864 512 20,111 20,623 gains Management fee (930) - (930) (567) - (567) Other administrative (137) - (137) (91) - (91) expenses ------ ------ ------ ------ ------ ------ Net (loss)/return on ordinary activities before interest (604) 57,401 56,797 (146) 20,111 19,965 payable and taxation Interest payable (498) - (498) (3) - (3) ------ ------ ------ ------ ------ ------ Net (loss)/return on ordinary activities before taxation (1,102) 57,401 56,299 (149) 20,111 19,962 Taxation on net loss on (18) - (18) (17) - (17) ordinary activities ------ ------ ------ ------ ------ ------ Net (loss)/return on ordinary activities after taxation (1,120) 57,401 56,281 (166) 20,111 19,945 Dividend - - - - - - ------ ------ ------ ------ ------ ------ Transfer (from)/to (1,120) 57,401 56,281 (166) 20,111 19,945 reserves ===== ===== ===== ===== ===== ===== (Loss)/return per (6.37p) 326.65p 320.28p (0.94p) 114.44p 113.50p ordinary share (note 1) ===== ===== ===== ===== ====== ====== The revenue columns of this statement represent the revenue accounts of the Company. - 4 - HENDERSON STRATA INVESTMENTS plc Unaudited Interim Results for the Half Year ended 30 April 2000 Summary of Net Assets at 30 April 2000 (unaudited) (audited) 30 April 30 April 31 October 2000 1999 1999 £'000 £'000 £'000 Investments at market 199,795 106,049 128,635 value Net current (17,818) 492 (2,939) (liabilities)/assets ----------- ---------- ---------- Total net assets 181,977 106,541 125,696 ======= ======= ======= Net asset value per 1,035.6p 606.3p 715.3p ordinary share Number of ordinary shares 17,572,350 17,572,350 17,572,350 in issue Notes 1. (Loss)/return per ordinary share Revenue loss per ordinary share is calculated by dividing the net revenue loss after taxation of £1,120,000 (half year ended 30 April 1999: £166,000) by the 17,572,350 ordinary shares in issue during the period (half year ended 30 April 1999: 17,572,350). Capital return per ordinary share is calculated by dividing the net capital return after taxation of £57,401,000 (half year ended 30 April 1999: £20,111,000) by the number of ordinary shares in issue, as above. 2. Current Taxation The Company has adopted the recently issued Financial Reporting Standard ('FRS') 16 Current Taxation under which UK franked dividend income should be accounted for net of the attributable tax credits. The comparative figures for the half year ended 30 April 1999 have been restated accordingly. Adoption of FRS 16 has no effect on the revenue or capital returns per ordinary share, nor on the net asset value per ordinary share. 3. Comparative information The figures and financial information for the year ended 31 October 1999 are extracted from the latest published accounts of the Company and do not constitute the statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a statement under either section 237(2) or section 237(3) of the Companies Act 1985. - 5 - HENDERSON STRATA INVESTMENTS plc Unaudited Interim Results for the Half Year ended 30 April 2000 4. Interim Report The interim report will be sent to shareholders early in July 2000 and copies will be available from the Company's registered office, 3 Finsbury Avenue, London EC2M 2PA. For further information, please contact: Richard Smith/Norman Brown or Vicki Staveacre Henderson Strata Investments plc The Press Office Telephone: 020 7410 4368/3185 Henderson Investors Limited Telephone: 020 7410 4222

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