Final Results

Intl. Biotechnology Trust PLC
5 November 2001




                    International Biotechnology Trust plc


The Board of International Biotechnology Trust plc today announces its
unaudited Preliminary Results for the Year Ended 31 August 2001.

Highlights

  * Net asset value per share fell by 46.4% to 203.1p
  * NASDAQ Biotech Index fell 35.4% (sterling adjusted) and the Bloomberg UK
    Biotech Index fell by 43.3%
  * Schroder Ventures Life Sciences appointed investment adviser to
    International Biotechnology Trust plc (IBT) in November 2000
  * £121.8 million returned to exiting shareholders in January 2001 (47% of
    share capital)
  * Total Net assets at 31 August 2001: £98.7 million (31 August 2000: £
    349.3m)
  * New investments in nine quoted and four unquoted companies including:
    Aradigm Corporation, Essential Therapeutics, Discovery Therapeutics Inc,
    Micromet AG, Eyetech Pharmaceuticals Inc and Affibody AB
  * Increase in unquoted investments form 7.1% to 23.8% of net assets
  * IBT completed partial and full disposals generating total proceeds of £
    101.1 million

Andrew Barker, Chairman, commented:



'International Biotechnology Trust has gone through a period of significant
restructuring since Schroder Ventures Life Sciences's appointment as
investment adviser in November 2000 and IBT has made a number of exciting new
investments since that time.

The fall in NAV is largely due to the correction in the public markets,
despite a strengthening in the underlying fundamentals of the biotech sector.
The dramatic variation in performance over consecutive years demonstrates the
highly volatile nature of the biotechnology market and the importance of
taking a long-term view when investing in this sector.

Current valuations make this an opportune time for IBT to be making
investments in undervalued, overlooked companies with strong management,
scientific capabilities and growth prospects.'




For further information, please contact:

International Biotechnology Trust plc, Andrew Barker, Chairman  020 7658 3206

Schroder Ventures Life Sciences, Kate Bingham                   07979 706751

                                 Katja Stout                    020 7421 7070

GCI Financial, Emily Morris/ Annabel O'Connor                   020 7398 0800

Website: www.internationalbiotrust.com

Chairman's Statement

Overview

In the last year we have seen a significant correction in the global markets
following the unprecedented valuation levels of the previous year. During the
year to 31 August 2001 the NASDAQ Biotechnology Index fell by 35.4% (sterling
adjusted) and the Bloomberg UK Biotechnology Index fell by 43.3%. Over the
same period the share price of IBT fell by 46.1%, from 327.5p to 176.5p,
alongside a fall in the diluted NAV per share of 46.4%, from 379.1p to 203.1p.
This compares to an exceptional performance in the year to 31 August 2000
which saw a 484.8% rise in the share price and a 382.2% increase in the
diluted NAV.

The dramatic variation in performance over consecutive years demonstrates the
highly volatile nature of the biotech market and the importance of taking a
long term view when making an investment in the sector.

While the fall in IBT's NAV was to some extent due to the market correction,
this was compounded by the write-downs of some of the private companies in the
inherited portfolio made by the new Manager as part of the on-going
rebalancing of the portfolio. The result of these write-downs was a reduction
in net assets of £9.9 million during the period under review. The Company's
valuation policy follows BVCA guidelines.

On 8 November 2000, the Board announced the appointment of Schroder Investment
Management Limited as Manager and Schroder Ventures Life Sciences Advisers
(UK) Limited as Investment Adviser to the Company following the termination of
the previous investment management contract with Rothschild Asset Management
Limited. The Schroder Ventures Life Sciences team has significant experience
in the biotechnology sector and a long and successful investment track record.
This combined with their international capabilities gives the Board great
confidence in the future for IBT and I am pleased to report that there has
been a smooth transition to the new Manager and Investment Adviser, and the
rebalancing of the investment portfolio is well underway.

In January 2001, a number of divestments were made as part of the
reconstruction, in order to return cash to shareholders. Proceeds from these
disposals, together with existing cash resources, were used to return £121.8
million to exiting shareholders.

During the year to 31 August 2001, IBT has also made a number of exciting new
investments in order to take full advantage of the recent fall in valuations.
These include two negotiated investments in quoted companies (private
investments in public companies - PIPEs) and four investments in private
companies.

Revenue and dividends

It remains the view of the Directors that the best long term returns are
likely to come from capital appreciation of assets. Therefore, no final
dividend has been proposed for the year ended 31 August 2001.

Share buy-backs

During the year the Company sought and subsequently received approval from
shareholders at an Extraordinary General Meeting to purchase up to 14.99 per
cent of the Company's issued share capital for cancellation. The Company has
subsequently received Court approval for the cancellation of its Share Premium
Account, which was also required to allow for the purchase of shares. To date,
the Company has not utilised the facility. Your Board believes that a share
buy-back authority is one of a number of tools which may be used to address an
imbalance in supply and demand for the Company's shares that results in a
discount of the Company's shares on the market. A resolution to renew the
authority is therefore included in the Notice of the Company's Annual General
Meeting.



Annual General Meeting

The Annual General Meeting will be held at 31 Gresham Street, London EC2V 7QA
on Tuesday 18th December 2001 at 12.00 noon. The meeting will include a
presentation from the Manager and Investment Adviser.

Outlook

I would like to thank those shareholders that have stayed with the Trust over
the last somewhat difficult year and welcome new shareholders. The year has
seen a decline in the biotechnology sector along with the technology sector
and valuations are now even lower than those seen during the last bear market,
despite an improvement in industry fundamentals. However, even in a harsher
macroeconomic environment, we believe that these fundamentals will prevail and
biotech stocks will recover. The timing of this recovery remains uncertain,
but current valuations mean that it is an excellent time for IBT to build
positions in undervalued, overlooked companies with strong management,
scientific capabilities and growth prospects. I am very encouraged by the
progress made by the new Manager and Investment Adviser in rebalancing the
portfolio and believe that IBT is exceptionally well placed to take advantage
of the current weakness in the markets and the strong fundamentals which
underpin the biotechnology sector.

Andrew Barker

Chairman





Investment Review

Schroder Ventures Life Sciences

Schroder Ventures Life Sciences ('SVLS') has a team of 22 professionals based
in London and Boston with a deep base of life sciences investment,
operational, scientific and clinical experience. Schroder Ventures' funds have
invested in the life sciences industry since the early 1980's and to date have
backed over 100 life sciences companies worldwide.

In addition to IBT, SVLS currently advises two private equity funds dedicated
to making investments in the life sciences sector with total commitments of
$410 million. IBT will also benefit from potential investment opportunities in
portfolio companies in these two funds.

SVLS takes a hands-on approach to its investments. To facilitate this
approach, IBT's portfolio will remain relatively concentrated.

Investment Policy

IBT's investment focus is on high growth, development stage biotechnology
companies. IBT takes minority stakes in companies that have either already
been listed on a stock exchange or are approaching flotation or trade sale.
The managers are opportunistic in their approach, investing in undervalued and
/or under-resourced companies with a strong management team and a strong
potential upside through the commercialisation of a product, device or
enabling technology.

The portfolio is diversified by region (IBT's primary focus is on investments
in the United States and Western Europe), stage of development (up to
approximately 25% of the portfolio may be invested in private companies), and
technological and therapeutic focus (approximately two-thirds of the portfolio
will be invested in biotechnology with the remainder in other high growth life
sciences sectors e.g. medtech and healthcare I.T.).

Sector Overview

Following a stellar performance in the year to 31 August 2000, the year under
review has seen a significant correction in the biotechnology markets. The
NASDAQ Biotechnology Index fell by 35.4% (sterling adjusted) during the year
under review and the Bloomberg UK Biotechnology Index fell by 43.3%.

Valuations became overstretched in 2000 and investors became concerned about
worsening economic forecasts and earnings expectations. This resulted in a
severe sell off, particularly in the technology and biotechnology sectors -
the technology sector fared somewhat worse than the biotechnology sector with
the NASDAQ Composite falling by 56.9% (sterling adjusted) during the year.

However the fundamentals of the biotech sector have continued to strengthen.
The sector has matured and there are now a record number of profitable biotech
companies and balance sheets are as healthy as they have ever been.

Furthermore, demand for biotechnology products is not linked to economic
conditions or world events - the demand for prescription medicines is
primarily correlated to the incidence of disease. More effective treatments
are required for unmet clinical needs such as cancer, cardiovascular disease
and CNS (Central Nervous System) disorders. In addition, some existing drugs
are relatively unspecific in their action, leading to side effects or poor
response rates. These factors, combined with an ageing population and
increasing healthcare spending, are driving demand for novel compounds and
technologies from biotechnology companies.



In addition, the pharmaceutical industry is under constant pressure to fill
its product pipeline in order to sustain sales growth and to cope with the
number of products coming off patent and the challenge of increasing R&D
competitiveness. As a result, big pharmaceutical companies have become
dependent on the innovation of biotechnology companies to provide in-licensing
opportunities. The biotech industry is delivering and pipelines are brimming
with potential new drugs. As of end September 2001, biotechnology companies
had 288 compounds in Phase II/III and III trials (Source: BioCentury).

The biotechnology sector is very different to the technology sector due to the
high barriers to entry created by intellectual property, long development
timelines and the high regulatory hurdles that must be met ahead of marketing.
As such, biotechnology companies tend to have long periods of market
exclusivity or have only a few competitors - a very favourable environment for
creating sustainable high margins.

Financing Trends

Despite the year-long biotechnology bear market, the life sciences industry
has actually experienced its second best fundraising year ever. In the first
three quarters of 2001, $9.6 billion was raised in US and Europe compared with
$35.6 billion raised in total in 2000 and $7.0 billion raised in 1999.

However, the IPO market is currently extremely weak and looks likely to remain
so for the foreseeable future. In the first three quarters of 2001 only $269
million was raised in the US and Europe compared to $8.6 billion raised in
total in 2000 and $935 million raised in 1999.

Private equity financings remain strong with $2.8 billion raised between the
US and Europe in the first three quarters of 2001 compared to $4.2 billion
raised in total in 2000 and $1.7 billion raised in 1999 (Source: BioCentury).

Merger and Acquisition Activity

M&A activity in the biotechnology sector is being driven by the need for
biotechnology companies to gain critical mass and by the trend for platform
technology and service oriented businesses to forward-integrate into drug
development. The number of M&A transactions in the biotechnology sector
between 30 June 2000 and 30 June 2001 increased to 258 from 208 in the
previous year, although the total value of these transactions was little
changed at around $10 billion (Source: 2000/2001 Deal Survey, Andersen).

This M&A activity is providing a number of investment opportunities for IBT,
for example the commitment made to invest in the combined entity of Microcide
Pharmaceuticals and Althexis. In addition it provides potential exit routes
for portfolio companies, for example the sale of ImmGenics Pharmaceuticals to
Abgenix Inc. and the merger of Delsys Pharmaceuticals with a subsidiary of
Elan Corporation.

The consolidation of the European biotechnology sector is gradually catching
up with the USA. In the first six months of 2001 the number of top ten
biotechnology deals involving European targets matched the number of North
American targets for the first time - in 2000 only one of the top ten targets
was a European company (Source: PricewaterhouseCoopers).

Summary

In summary, the outlook for product-oriented biotechnology companies goes from
strength to strength, in the face of a deteriorating outlook for many other
growth sectors. However, these positive fundamentals have been overshadowed by
the increasingly negative market sentiment, with biotechnology stocks dragged
down with the market as a whole. It is difficult to predict when the bear
market will cease to overshadow the sector but we believe the strong
underlying fundamentals will eventually shine through. Current valuations of
biotechnology companies, with many trading around cash levels, make this an
opportune time for IBT to be making investments in the sector.



Portfolio Analysis

As at 31 August 2001, IBT was invested in 34 companies. During the year under
review, the percentage of the portfolio invested in unquoted companies was
increased from 9.4% to 26.5%, and in European companies from 2.4% to 11.2%
(excluding cash). This was a stated intention of the new Manager in order to
enable investors to benefit from the significant returns available from early
stage investing as well as the increasing number of investment opportunities
in Europe. In addition, the weighting in drug delivery companies has been
increased in order to further diversify the portfolio.

In order to meet the objective of returning funds to shareholders, the new
Manager completed disposals of Cell Therapeutics and Angiotech
Pharmaceuticals.

In November 2000, ImmGenics Pharmaceuticals was acquired by Abgenix, one of
the world leaders in therapeutic antibody development. ImmGenics' breakthrough
technology is expected to allow Abgenix to select optimal product candidates.
Final proceeds from the sale of ImmGenics were £5.4 million.

The surplus cash from the reconstruction was invested early in 2001 in 13
highly liquid large cap public companies, pending investment into new smaller
cap companies. As at 31 August 2001, IBT retained holdings in Biogen, Celltech
Group, Elan Corporation and Forest Labs, having reinvested the proceeds from
the sales of the other holdings in order to reinvest the cash into core
holdings.

Following the return of cash to shareholders and the resulting reduction in
size of the portfolio partial sales were made of the following holdings -
CeNeS Pharmaceuticals, Corvas International, Onyx Pharmaceuticals, OSI
Pharmaceuticals, Ribozyme Pharmaceuticals, Targeted Genetics and Vernalis
Group. The small holding in Corixa was sold in its entirety.

Since the year end IBT has realised its investment in Delsys Pharmaceuticals
following an agreed merger with a subsidiary of Elan, valuing IBT's holding in
Delsys at a minimum of £1.1 million. This follows an initial write-down during
the year under review of £6.7 million to zero at 31 August 2001, due to
concerns about the company's ability to raise additional finance.

The net outcome of write-ups and write-downs in the inherited unquoted
portfolio since the year end resulted in a reduction in the net asset value of
£2.9 million (including Delsys).



New Investments

Quoted Companies

Aradigm Corporation

In August 2001, IBT invested $2 million in Aradigm Corporation's $14.6 million
PIPE alongside a group of other institutional investors. The total invested in
Aradigm during the year under review was $5 million. Aradigm, based in
California, USA, is working to improve quality of life for patients by
developing aerosol-based drug delivery alternatives to injectable
therapeutics. The company's advanced pulmonary delivery technologies provide
leading pharmaceutical partners with effective drug delivery solutions.

Aradigm's leading technology, the AERx Pulmonary Drug Delivery System, has the
potential to deliver a wide array of traditional drugs and proteins
efficiently via the lungs. Key advantages of the AERx technology include
precise and monitored drug delivery, the use of standard liquid formulations,
and the ability to collect and analyse all dosing data. Aradigm currently has
two major AERx clinical programs: phase II inhaled morphine for breakthrough
cancer pain relief, partnered with Glaxo SmithKline and inhaled insulin,
partnered with Novo Nordisk, the world leader in insulin and diabetes care,
which is in preparation for Phase III trials. In addition, Aradigm has other
ongoing feasibility studies with other proteins and molecules.

Essential Therapeutics

(formerly Microcide Pharmaceuticals and Althexis)

On 2 August 2001, IBT announced that it had committed to invest $7.5 million
in the newly combined operations of NASDAQ-listed Microcide Pharmaceuticals
and the private company Althexis, as part of a $60 million financing round. On
30 July 2001, Microcide and Althexis announced the signing of the definitive
agreement to merge their businesses in a stock-for-stock exchange. SEC
approval and Microcide shareholder approval for the merger and the private
placement was received in October 2001.

Microcide has anti-microbial discovery research programs for the treatment of
serious bacterial, fungal and viral infections. Althexis' discovery approach
is centered around anti-infectives with the use of structure-based drug design
('SBDD'), a powerful method of drug discovery that exploits atomic-level
information about potential disease targets. Althexis combines SBDD and
related technologies with expertise in more traditional discovery tools, such
as high throughput screening and medicinal chemistry.

The merger of Microcide and Althexis will unite Microcide's discovery
platforms, including its VALID Microbial Genomics technologies, with Althexis'
proprietary target validation system, known as Althexis Calorimetric Target
Triage. It will also accelerate Microcide's multiple drug development programs
in infectious disease by applying Althexis' SBDD technology to lead
optimisation. The combined company will have strategic partnerships with
PLIVA, RW Johnson Pharmaceutical Research Institute (a division of Johnson &
Johnson) and Daiichi Pharmaceutical Co. Mark Skaletsky, who previously
built-up and sold GelTex Pharmaceuticals to Genzyme Corporation, will be
Chairman and CEO of the newly merged company.

IBT also took smaller positions in the following public companies during the
year under review.

Weston Medical Group

A drug delivery company in the UK with an exciting needle-free injection
system.

Novuspharma

An Italian oncology company with two compounds in Phase II trials and two in
Phase I trials.

Atrix Laboratories

A US-based drug delivery and development company with three Leuprogel products
in late-stage development for the treatment of hormone-responsive advanced
prostate cancer.

ArQule

A US-based company providing chemistry services aiming to make the drug
discovery process more efficient, less expensive, and more likely to result in
better lead compounds.

Aspect Medical Systems

A consciousness monitoring company based in the US whose core technology
provides a direct measure of the effects of anaesthetic and sedative agents on
the brain.

Inhale Therapeutic Systems

A US-based company that develops advanced drug delivery solutions. These
include the Inhance pulmonary delivery solution and the Shearwater advanced
PEGylation technology.



Aviron

An innovative vaccine company based in the US focusing on the use of live
vaccines against viral infections. They are currently seeking marketing
approval of FluMistTM for the prevention of influenza.

Unquoted Companies

Micromet

In March 2001, IBT invested Euro 5 million in Micromet, based in Martinsried,
Germany, as part of a Euro 40 million private placement. Two other funds
advised by SVLS increased their existing investment by a total of Euro 2.3
million.

Micromet develops novel drugs to empower the patient's immune system to tackle
life-threatening and chronic diseases. Fundamental to Micromet's therapeutic
strategy is the elimination of cells that play a pivotal role in the
pathogenesis of human diseases such as cancer, autoimmune and inflammatory
disease, by recruiting and activating immune effector cells.

The Company has established the BiTE technology ('Bispecific T cell
engagers'), a unique drug format that leverages the outstanding cytotoxic
potential of T cells, the most powerful 'killer cells' of the human immune
system. Micromet's BiTE compounds combine the power of T cells with the
selectivity of antibodies to specifically target diseased tissues and cells.
The BiTE platform comprises single chain bispecific antibodies for recruitment
and simultaneous activation of T cells.

Currently, conventional therapeutic antibodies are some of the most successful
biotechnology drugs with broad therapeutic applicability. However, four
features distinguish BiTEs from traditional antibody drugs - BiTEs have 1,000
- 10,000 times higher potency, are smaller in size (resulting in better access
to tumour cells), have a novel mode of action and lower manufacturing costs.

Micromet's current pipeline of drug candidates includes BiTE molecules as well
as fully human antibodies. Two products have now entered Phase I and II trials
for treatment of prostate cancer and blood cancers of the B cell lineage.

Discovery Therapeutics

In August 2001, IBT invested $5 million in Discovery Therapeutics as part of a
$45 million fund raising. Another fund advised by SVLS invested a further $5
million.

Discovery, headquartered in Richmond, Virginia, is a private, clinical-stage
biopharmaceutical company focused on developing and commercialising
in-licensed products for a variety of clinical indications. The company
currently has five products in clinical development that target Parkinson's,
renal and cardiac diseases. Discovery's expertise is in the discovery and
development of small-molecule drug candidates that act selectively on enzymes
or subtypes of receptors that regulate important physiological processes. The
company's most advanced product is an innovative treatment for Parkinson's
disease, integrated with a unique transdermal patch delivery system that will
enter Phase III clinical trials this year.

Discovery has a number of established corporate relationships, including
out-licensing partnerships with Schwarz Pharma AG, King Pharmaceuticals and
Fujisawa Healthcare for its Parkinson's, and two adenosine-based
cardiovascular products. More recently, the company also has entered into an
in-licensing partnership with Bayer AG to develop and market a novel therapy
for kidney inflammation.



Eyetech Pharmaceuticals

In early August 2001, IBT made an investment of $2.5 million in Eyetech
Pharmaceuticals. A further commitment to invest $2.5 million in August 2002
has been made subject to milestones. The Company raised $109 million in a
self-managed private placement - one of the largest private financing rounds
ever raised by a biotechnology company. Eyetech is based in New York and was
founded in early 2000 to discover, develop and commercialise new drugs to
reduce and prevent serious vision loss caused by eye disease, and to develop
new technologies to deliver drugs safely and conveniently to the back of the
eye. Eyetech has a strong management team, including leading clinicians and
experienced healthcare industry executives. Eyetech has entered into a number
of collaborative arrangements with major research institutions, such as
Harvard Medical School (Massachusetts Eye and Ear Institute) and NY University
School of Medicine.

The Company's lead product, EYE001, is a potential treatment for the two
leading causes of blindness in the adult population, namely age-related
macular degeneration ('AMD') and diabetic macular edema ('DME'). Studies
suggest that Vascular Endothelial Growth Factor ('VEGF') causes the abnormal
blood vessel growth and leakage that result in AMD and DME. EYE001 is an
anti-VEGF (Vascular Endothelial Growth Factor) aptamer which may inhibit the
biological pathway that results in vision loss in AMD and DME. Eyetech's
compound may also result in improved vision and an enhanced quality of life
for these patients. EYE001 is currently in Phase II/III and III pivotal
clinical trials for AMD at 120 of the world's leading medical centres. If
successful in these trials, EYE001 may be on the US market in 2004.

Affibody

In August 2001, IBT committed to invest SEK 40 million in Affibody, a
promising Swedish proteomics and biotherapy company. SEK 20 million ($1.9m) of
this was invested in August 2001 as part of a $28 million fundraising round,
with the remaining SEK 20 million to be invested in August 2002. The Company
was founded in 1998 by a group of prominent researchers from the Royal
Institute of Technology and the Karolinska Institute. Affibody is a leader in
the field of combinatorial protein engineering and is using this cutting edge
technology to create a new generation of antibodies called AffibodiesTM.
AffibodiesTM are small, novel, robust ligands which can be engineered to bind
to any desired target protein. They have strong potential as therapeutics and
diagnostics and will also be used in proteomics research for drug discovery.
Affibody has strategic partnerships with Amersham Pharmacia in the area of
separations and with Gyros AB in protein chips. These partnerships will enable
the Company to leverage its already leading market position.

The Company's management team is highly experienced and has an excellent track
record in building successful businesses and their technology forms a unique
proprietary platform with very broad applications and clear future revenue
streams. The investment by IBT was made alongside a commitment of SEK 80
million from another Fund advised by SVLS.

Ten Largest Quoted Investments

Investment                            Value £,000    % of NAV      Country
Corvas International                  8,893          9.01          USA
OSI Pharmaceuticals                   7,308          7.40          USA
Targeted Genetics (excl. wts)         5,490          5.56          USA
Onyx Pharmaceuticals                  4,939          5.00          USA
Biocompatibles International          4,838          4.90          UK
Ribozyme Pharmaceuticals              4,144          4.20          USA
Aradigm                               3,142          3.18          USA
Inflazyme Pharmaceuticals             2,358          2.39          Canada
Forest Laboratories                   2,114          2.14          USA
Elan                                  2,006          2.03          USA

Unquoted Investments
Investment                           Value £,000     % of NAV      Country
Affibody                             1,320           1.34          Sweden
Axxima Pharmaceuticals               1,121           1.14          Germany
Delsys Pharmaceuticals               -               -             USA
Discovery Therapeutics               3,447           3.49          USA
Entigen                              1,758           1.78          USA
Eyetech Pharmaceuticals              1,724           1.75          USA
Micromet                             3,131           3.17          Germany
NetGenics                            4,693           4.75          USA
Sunesis Pharmaceuticals              3,447           3.49          USA
Targeted Genetics - warrants         263             0.27          USA
ValiGen                              2,584           2.62          Holland



International Biotechnology Trust plc

Unaudited Preliminary Results

Unaudited Statement of Total Return (incorporating the Revenue Account)




                                For the year end          For the year end      
                                  31 August 2001         31 August 2000
                             2001      2001      2001    2000     2000     2000
                          Revenue   Capital     Total Revenue  Capital    Total
                            £'000     £'000     £'000   £'000    £'000    £'000

Realised gains                  -    50,942    50,942       -  109,055  109,055

Performance fee and
termination costs               -   (2,160)   (2,160)       - (14,927) (14,927)
(Decrease)/increase in
unrealised appreciation
on investments                  - (173,782) (173,782)       -  174,754  174,754

Net loss on currency            -   (1,359)   (1,359)       -        -        -

Income                      2,700         -     2,700   2,469        -    2,469

                            2,700 (126,359) (123,659)   2,469  268,882  271,351

Administrative expenses    (3,861)         -   (3,861) (4,471)        -  (4,471)

Net (deficit)/return on
ordinary activities
before finance costs
and taxation               (1,161) (126,359) (127,520) (2,002)  268,882  266,880

Interest payable             (15)         -      (15)     (6)         -      (6)
                                                          

(Deficit)/return on
ordinary activities
before taxation            (1,176) (126,359) (127,535) (2,008)  268,882  266,874

Tax on ordinary
activities                      -         -         -       -        -        -
(Deficit)/return on
ordinary activities
after taxation             (1,176) (126,359) (127,535) (2,008)  268,882  266,874

Transfer (from)/to
reserves                  (1,176) (126,359) (127,535) (2,008)  268,882  266,874


(Deficit)/return per
ordinary share            (1.86)p (199.60)p (201.46)p (2.28)p  305.54p  303.26p






The revenue column of this statement is the profit and loss account of the
Company.

All revenue and capital items in the above statement derive from continuing
operations.

International Biotechnology Trust plc

Unaudited Balance Sheet as at 31 August


                                                  2001    2001    2000    2000
                                                 £'000   £'000   £'000   £'000

Fixed assets
Investments                                             88,524         262,038

Current assets
Debtors                                            219          14,045
                                                   
Investments                                      4,677          89,918
Cash at bank                                     7,157             164
                                                12,053         104,127
Current liabilities
Creditors: amounts falling due within one
year                                             1,838          16,836
Net current assets                                      10,215          87,291
Net assets                                              98,739         349,329
Capital and reserves
Called up share capital                                 12,154          22,001
Shares to be issued                                          -          13,264
Capital redemption reserve                              10,843               -
Share premium account                                   67,083          55,433
Capital reserve                                         15,382         264,178
Revenue reserve                                        (6,723)         (5,547)
Equity shareholders' funds                              98,739         349,329
Net asset value per share
Basic                                                  203.10p         381.88p
Diluted NAV                                            203.10p         379.13p



International Biotechnology Trust plc

Unaudited Cash Flow Statement
                                                    For the year   For the year
                                                           ended          ended
                                                       31 August      31 August
                                                            2001           2000
                                                           £'000          £'000

Operating activities
Dividend income received                                       2             71
Current asset investment income received                   2,639          1,668
Deposit interest received                                    504            238
Management fee paid                                      (3,043)        (2,320)
Performance fee                                          (4,440)              -
Other cash payments                                      (2,138)        (1,288)
Net cash outflow from operating activities               (6,476)        (1,631)
Servicing of finance
Interest paid                                               (15)            (5)
Cash outflow from servicing of finance                      (15)            (5)
Taxation
UK income tax suffered                                      (67)              -
Tax paid                                                    (67)              -
Capital expenditure and financial Investment
Purchase of investments                                 (49,124)       (63,737)
Disposal of investments                                  101,152        153,141
Net cash inflow from capital expenditure and
financial investment                                      52,028         89,404
Net cash inflow before management of liquid
resources and financing                                   45,470         87,768
Management of liquid resources                            85,319       (87,623)
Financing
Repurchase of shares following Tender Offer
                                                       (121,828)              -
Stamp duty                                                 (609)              -
Net cash outflow from financing                        (122,437)              -
Net cash inflow                                            8,352            145




Unaudited Reconciliation of Net Cash Inflow to Movement in Net Funds

                                          For the year ended For the year ended
                                              31 August 2001     31 August 2000
                                                       £'000              £'000

Net cash inflow                                        8,352                145
Exchange losses on currency                          (1,359)                  -
Change in net funds                                    6,993                145
Net funds at the beginning of the year                   164                 19
Net funds at 31 August                                 7,157                164



Notes:

1.     Audit status

The financial information set out in the announcement does not constitute the
Company's statutory accounts for the year ended 31 August 2001 or 31 August
2000. The financial information for the year ended 31 August 2000 is derived
from the statutory accounts for that year which have been delivered to the
Registrar of Companies. The auditors reported on those accounts; their report
was unqualified and did not contain a statement under section 237(2) or (3) of
the Companies Act 1985. The statutory accounts for the year ended 31 August
2001 will be finalised on the basis of the financial information presented by
the Directors in this preliminary announcement and will be delivered to the
Registrar of Companies following the Company's Annual General Meeting.


This announcement is prepared on the basis of the accounting policies as set
out in the most recently published set of annual financial statements.

2.     Annual General Meeting

The Annual General Meeting will be held on Tuesday 18 December 2001 at 12.00
noon at 31 Gresham Street, London, EC2V 7QA.

3.     Annual Report and Accounts

The Annual Report and Accounts will be mailed to registered shareholders at
their registered addresses in November 2001 and from the date of release
copies of the Annual Report will be made available to the public at the
Company's registered office, 31 Gresham Street, London EC2V 7QA.