Interim Results

JPMorgan Fleming Smaller Cos IT PLC
27 March 2003



            JPMORGAN FLEMING SMALLER COMPANIES INVESTMENT TRUST PLC





                         STOCK EXCHANGE ANNOUNCEMENT OF
                         UNAUDITED HALF YEARLY RESULTS
                             TO 31st JANUARY 2003





The Board of the Company today release the unaudited interim results of the
Company for the half year to 31st January 2003.



The following are comments from the Chairman and the Investment Managers:



Chairman's Statement



Performance

Over the six month period to the end of January 2003, the Company's net asset
value total return fell by 10.7%. This compares with a fall in the benchmark
index, the FTSE Small Cap Index (excluding investment trusts) of 15.3%. The
discount narrowed from 20.8% to 16.2%, and the share price declined 5.1% on a
total return basis.



Management Changes

Georgina Brittain, who has been involved in the day-to-day management of the
Company's assets since 1998, was appointed by JPMorgan Fleming Assets Management
(UK) Limited as lead investment manager of this Company's portfolio on 13th
January 2003. She will be supported in this role by  Mark Davids who has worked
in the JPMFAM Smaller Companies investment management team for the last 3 years.
This change has resulted from Ross Hollyman's decision to leave JPMorgan Fleming
Asset Management (UK) Limited.



Share Repurchases and Gearing

Since this half-year end, the Company has repurchased 1,200,000 shares,
representing 4.5% of the issued share capital at a price of 134.5p and a
discount of 25.8%, thereby enhancing the net asset value per share for remaining
shareholders by 1.2%. At the time of writing, following this repurchase, gearing
is at 113%, having drawn £6m out of the total facilities available of £15m. The
Board remains cautious about increasing gearing materially at the current time.



Outlook

The markets continue to be particularly unsettled, and at the time of writing
the net asset value stands at 177.7p per share and the discount has widened to
26.5%.



However, the Board is confident that your Company has the flexibility to take
advantage of any change to more positive sentiment in the financial markets, and
that while further significant volatility can be expected, good value is now
available in the smaller company sector.



Strone Macpherson
Chairman, 27th March 2003






Investment Manager's Review



Market Background

The last six months have been a turbulent period for global stockmarkets, and
the UK stockmarket has been no exception. The FTSE All Share index declined by
16% during the six months under review, and volatility has remained a key
feature. The two main causes of this on-going decline in stockmarkets were the
further deterioration of the geo-political situation, in particular the
increased likelihood of war in Iraq; and the lack of signs of global economic
recovery. In addition, insurance companies also contributed to the market's
malaise as the value of their equity portfolios dropped and they became forced
sellers of equities in order to maintain solvency ratios.



In the UK the economy remained strong compared with much of the rest of the
world, particularly Continental Europe. Much of the UK's higher growth came from
heavy ongoing government investment in public services. This has also been key
to keeping unemployment at 30 year lows.



Portfolio

Performance over the last six months has been strong relative to the index,
despite the negative impact of gearing. This outperformance was concentrated in
the first quarter of the Company's year, and was attributable in the main to
positive stock selection and to avoiding severe profit warnings across a variety
of sectors. In the second quarter performance was more muted.



Over the last six months the shape of the portfolio has not changed
dramatically, as there has been little change in the economic outlook over the
period. Both the Cyclical Consumer and Non Cyclical Consumer sectors have been
slightly reduced.



The notable increases in the portfolio were in Cyclical Services and in
Financials. We also reduced our underweight position in the General Retailers as
Christmas trading was not as difficult as many analysts had been forecasting.
Likewise, following the collapse of several share prices in the Leisure sector,
we selectively bought back into a number of companies in this area. In
Financials, we maintained our overweight position in Speciality & Other
Financials as these stocks continued to look undervalued and to trade well, and
after the decline in Insurance stocks over the summer months we increased our
weighting again in Insurance by adding to our Lloyds investment vehicles
holdings.



The overall focus has remained firmly on valuation and on delivery against
expectations. Investors have begun again to place emphasis on the dividend
yields on stocks, as the technology bubble, with its sole focus on capital
appreciation, has continued to unwind. As valuations have continued to decline
and yields have climbed commensurately, we have seen the benefit of this within
the value holdings of the portfolio, and the Company currently has a yield on
the shareholdings within the portfolio of 3.4%. Gearing, which has detracted
from short term performance, was gradually reduced throughout the six month
period from 119% to approximately 115%. Since the end of the half year, gearing
has continued to be reduced.



Market Outlook

UK equities remain attractively valued compared with bonds, and smaller
companies remain the cheapest class of UK equities. The recent surprise cut in
interest rates by the Bank of England should provide a further boost to the
economy. The principal positive impact will be to shore up consumer spending,
which should provide some counterbalance to the National Insurance increases and
Council Tax increases which will start to bite in the Spring of 2003. In
addition, the subsequent sharp fall in sterling during February implies that
pressure may now start to ease on the beleaguered manufacturing sector.



There is unlikely to be a sustainable market recovery until the short term
stockmarket concerns over Iraq are resolved. Besides politics, concern is also
focused on the performance of the US economy.



In the UK, the domestic focus of smaller companies continues to be a positive
factor during the global economic slowdown. While a sustained period of positive
performance in the short term may be unlikely in the face of international
weakness, considerable value is beginning to emerge. The evidence for this comes
not only from low earnings multiples and high dividend yields, but from a surge
in corporate activity. As the market languishes, your Company's managers fully
expect this trend to continue. This corporate activity not only suggests that
many valuations within the smaller companies arena are extremely attractive on a
fundamental basis, but also demonstrates that there are future re-rating
opportunities as that value is recognised by a wider audience.



Georgina Brittain
Mark Davids
Investment Managers, 27th March 2003





Please note that the above statements may differ from the final version to be
published in the interim accounts.





For further information, please contact:



Fraser Easton
J.P. Morgan Fleming Asset Management (UK) Limited, 020 7742 3425
Secretary to the Company





JPMorgan Fleming Smaller Companies Investment Trust plc
Unaudited figures for the six months ended 31 January 2003



Statement of Total Return (Unaudited)


                    Six months to 31 January 2003    Six months to 31 January 2002   Year to 31 July 2002
                      Revenue    Capital     Total   Revenue   Capital      Total    Revenue   Capital     Total
                        £'000      £'000     £'000     £'000     £'000      £'000     £'000     £'000      £'000

Realised losses on
investments
                            -    (1,991)   (1,991)         -   (3,251)    (3,251)         -   (9,874)   (9,874)
Increase in
unrealised
depreciation

                            -    (4,818)   (4,818)         -   (2,216)    (2,216)         -  (10,367)  (10,367)
Other capital
Charges                     -                              -
                                     (9)       (9)                   -          -         -      (20)      (20)
Franked investment
income                    619          -       619       759         -        759     1,572         -     1,572
                          
Unfranked
investment income           -          -         -         -         -          -         3         -         3
                            
Scrip dividends            25          -        25        24         -         24        89         -        89
Deposit interest           38          -        38        98         -         98       149         -       149
Underwriting                -          -         -         6         -          6         8         -         8
Commissions

                      _______   ________   _______    ______   _______   ________   _______   _______   _______

Gross return              682    (6,818)   (6,136)       887   (5,467)    (4,580)     1,821  (20,261)  (18,440)

Management fee          (141)      (141)     (282)     (202)     (202)      (404)     (386)     (386)     (772)

Other
administrative
expenses                (113)          -     (113)     (104)         -      (104)     (228)         -     (228)

Interest payable        (106)      (106)     (212)     (212)     (212)      (424)     (359)     (359)     (718)

                      _______    _______   _______    ______   _______    _______   _______   _______   _______

Return before             322    (7,065)   (6,743)       369   (5,881)    (5,512)       848  (21,006)  (20,158)
taxation

Taxation                  (5)          5         -      (14)        14          -      (21)        21         -

                       ______    _______   _______    ______   _______     ______   _______   _______   _______

Total return              317    (7,060)   (6,743)       355   (5,867)    (5,512)       827  (20,985)  (20,158)
attributable to
ordinary
shareholders

Dividend (s)                -          -         -         -         -          -     (800)         -     (800)
payable on ordinary                                                                                   
shares
                       ______    _______   _______    ______   _______    _______    ______   _______   _______
                                                                                                        
Transfer to/ (from)       317    (7,060)   (6,743)       355   (5,867)    (5,512)        27  (20,985)  (20,958)
reserves

Return per ordinary     1.19p   (26.52)p  (25.33)p     1.33p  (22.00)p   (20.67)p     3.10p  (78.70)p  (75.60)p
share

Dividend per
ordinary share            Nil                            Nil                          3.00p
                          




JPMorgan Fleming Smaller Companies Investment Trust plc
Unaudited figures for the six months ended 31 January 2003


BALANCE SHEET                                                         31 January      31 January         31 July
                                                                            2003            2002            2002
                                                                           £'000           £'000           £'000

Investments at valuation                                                  55,690          82,105          65,963


Net current (liabilities)/assets                                         (7,306)           1,045         (5,759)

Creditors (amounts falling due after more than one year)                       -        (12,500)         (5,000)
                                                                         _______         _______         _______
Total net assets                                                          48,384          70,650          55,204
                                                                           =====           =====           =====
Net asset value per ordinary share                                        181.8P          264.9p          207.0p



CASH FLOW STATEMENT
                                                                            2003            2002            2002
                                                                           £'000           £'000           £'000

Net cash inflow from operating activities                                    232             308             719

Net cash outflow from returns on investments and servicing
of finance                                                                 (234)           (486)           (780)
                                                                           

Net cash inflow from capital expenditure and financial
investment                                                                 3,218           3,455           6,037
                                                                           

Total equity dividends paid                                                (800)           (613)           (613)

Net cash outflow from financing                                          (5,019)         (4,915)         (5,000)
                                                                         _______          ______          ______
(Decrease)/increase in cash for the period                               (2,603)         (2,251)             363
                                                                           =====           =====           =====






The above financial information does not constitute statutory accounts as
defined in Section 240 of the Companies Act 1985. The comparative financial
information is based on the statutory accounts for the year ended 31st July
2002. These accounts, upon which the auditors issued an unqualified opinion,
have been delivered to the Registrar of Companies.








J.P. MORGAN FLEMING ASSET MANAGEMENT (UK) LIMITED
27th March 2002






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