Interim Results - 6 Months to 31 March 2000

Lowland Investment Co PLC
3 May 2000

                                                                              
                                                                    2 May 2000
                 LOWLAND INVESTMENT COMPANY PLC

Unaudited Interim Results for the half year ended 31 March 2000
                                       
Chairman's Statement
Review
In my first six months as your Chairman it is disappointing to have to report
that the net asset value per ordinary share for the period ending 31 March
2000 fell 4.8% compared to a rise of 10.1% in the FTSE All Share Index.  It
has been an extraordinary period with three sectors, namely Technology,
Telecoms and Media, rising strongly whilst other areas languished.  The
favoured sectors contain shares with either low or no dividend yields combined
with relatively high valuations and Lowland has only a small exposure.  The
FTSE All Share Index, without these three sectors, would be marginally down,
as was the FTSE 350 Higher Yield Index which fell by 4.9% over the six months.
This has been a challenging period for those adopting the value and income
approach to investment.

The companies that are in the Lowland portfolio have benefited operationally
from the pick up in global economic activity.  This can be seen in the strong
earnings and dividend growth that many companies have been reporting.
However, investors have been more interested in the effect of the internet on
future margins than on good trading results.  In March and April the more
mature companies have recovered to some extent with a small resurgence in
investor interest.

There has been a significant number of cash bids for companies in the
portfolio which suggests industrial buyers recognise value.  Bids include
those for Tarmac, Rugby and Bristol United Press.

Dividend
The earnings per ordinary share for the half year is 3.91p versus 4.87p for
the same period last year.   The fall is due to the timing of dividend
payments on underlying holdings.  It is expected that earnings for the full
year will show an increase on last year.  Underlying dividend growth from
Lowland's holdings has been satisfactory and the directors propose an interim
dividend of 5.50p (compared to 5.00p for the same period last year).  The
directors would expect to at least maintain the final dividend.

Share Buy-Backs
During the period 1,025,000 shares were purchased by the Company for
cancellation at an average price of 365p.  These purchases have enhanced the
net asset value per ordinary share of Lowland.  Shareholders granted the
Company authority to buy-back up to 14.99% of the issued share capital
(3,202,644 shares) at the 1999 Annual General Meeting.  The Board will
continue to use this authority if it can be clearly seen to be in the best
interests of existing shareholders.

                                     - 2 -
                                       
                        LOWLAND INVESTMENT COMPANY PLC
                                       
        Unaudited Interim Results for the half year ended 31 March 2000

The Board
Since the Annual General Meeting we have been fortunate to secure the services
of John Hancox as a non-executive director of your Company and we are
delighted that Rupert Barclay has rejoined the Board.  They both bring a wide
range of relevant experience.  Richard Smith has retired from the Board after
seventeen years.  He was the very successful manager of Lowland in the 1980's
and we thank him for his most valuable contribution over so many years.

Outlook
The volatility of share prices is a reflection of large swings in sentiment
amongst investors - this may continue.  A sensible course is to look for sound
growing companies that are undervalued.  This investment style continues to be
our objective.  Companies which are able to grow profits and dividends in the
future will prove to be rewarding investments.   Lowland is focused on these
companies.

Ian M Trotter
Chairman
2 May 2000

                                      
                                     - 3 -
                                       
                        LOWLAND INVESTMENT COMPANY PLC
                                       
        Unaudited Interim Results for the half year ended 31 March 2000

Statement of Total Return (incorporating the revenue account)
for the half year ended 31 March 2000

                                 (Unaudited)               (Unaudited)
                          Half year ended 31 March  Half year ended 31 March
                                  2000                        1999
                                                           (restated*)
                                                                             
                           Revenue Capital    Total  Revenue Capital    Total
                             £'000   £'000    £'000    £'000   £'000    £'000
                                                                             
Total capital                    -  (5,273)  (5,273)       -  14,069   14,069
(losses)/gains on
investments
Income from fixed asset      2,201       -    2,201    1,988       -    1,988
investments
Other interest receivable       54       -       54       44       -       44
and similar income
                          -------- -------- -------- -------- -------- -------
                                
Gross revenue and capital    2,255  (5,273)  (3,018)   2,032  14,069   16,101
(losses)/gains
                                                                             
Management fee               (334)       -    (334)    (306)       -    (306)
Other administrative         (151)       -    (151)     (84)       -     (84)
expenses
                          -------- -------- -------- -------- -------- -------
                               
Net return/(loss) on                                                         
ordinary activities
   before interest           1,770 (5,273)  (3,503)    1,642  14,069   15,711
payable and taxation
                                                                             
Interest payable             (947)       -    (947)    (488)       -    (488)
                          -------- -------- -------- -------- -------- -------
                          
Net return/(loss) on                                                         
ordinary activities
   before taxation             823 (5,273)  (4,450)    1,154  14,069   15,223
                                                                             
Taxation on net                                                              
return/(loss) on ordinary        -       -        -      (8)       -      (8)
   activities after
taxation
                          -------- -------- -------- -------- -------- -------
                                     
Net return/(loss) on                                                         
ordinary activities            823 (5,273)  (4,450)    1,146  14,069   15,215
   after taxation
                                                                             
Dividend declared                                                            
    Interim of 5.50p       (1,119)       -  (1,119)  (1,146)       -  (1,146)
(1999: 5.00p)
                          -------- -------- -------- -------- -------- -------
                               
Transfer (from)/to           (296) (5,273)  (5,569)        -  14,069   14,069
reserves
                             =====  ======   ======    =====  ======   ======
                                  
Return/(loss) per            3.91p (25.07p) (21.16p)    4.87p  59.73p   64.60p
ordinary share

The revenue columns of this statement represent the revenue accounts of the
Company.

* See note 2.

                                     - 4 -
                                       
                        LOWLAND INVESTMENT COMPANY PLC
                                       
        Unaudited Interim Results for the half year ended 31 March 2000
                                       
Summary of Net Assets
at 31 March 2000

                                 (Unaudited) (Unaudited)   (Audited)
                                                              
                                    31 March   31 March   30 September
                                        2000       1999         1999
                                       £'000      £'000        £'000
                                                                    
Investments at market value          113,113    115,792      123,749
Net current liabilities             (16,921)   (10,140)     (18,229)
                                  ---------- ----------   ----------
Total assets less current             96,192    105,652      105,520
liabilities
                                                                    
Creditors: amounts falling due       (6,000)    (6,000)      (6,000)
after more than one year
                                                                    
                                  ---------- ----------   ----------
Net assets attributable to            90,192     99,652       99,520
ordinary shareholders
                                      ======     ======       ======
Net asset value per ordinary         443.42p    434.95p      465.80p
share
                                                                    
Number of ordinary shares in      20,340,205 22,911,031   21,365,205
issue


Notes:

1.  Share buy-backs
     During the half year to 31 March 2000, the Company made authorised market
     purchases for cancellation of 1,025,000 of its own issued ordinary shares
     of 25p, representing 4.80% of its called up share capital, for an
     aggregate consideration of £3,759,000.

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 31 March 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.  Return per ordinary share
    Revenue return per ordinary share is based on the net return on ordinary
    activities after taxation of £823,000 (1999: £1,146,000) and on a
    weighted average number of 21,030,839 ordinary shares in issue during the
    period (1999: 23,552,157). Capital loss/return per ordinary share is
    based on the net capital loss of £5,273,000 (1999: £14,069,000 gain) and
    on a weighted average number of 21,030,839 ordinary shares in issue
    during the year (1999: 23,552,157).
    
                                       
                                     - 5 -
                                       
                        LOWLAND INVESTMENT COMPANY PLC
                                       
        Unaudited Interim Results for the half year ended 31 March 1999

4.  Loss of investment company status
    As a result of the share buy-backs during the period the Company ceased
    to be an investment company within the meaning of Section 266 of the
    Companies Act 1985. However, it continued to conduct its affairs as an
    investment trust  for taxation purposes under Section 842 of the Income
    and Corporation Taxes Act 1988, and the Articles of the Company prohibit
    capital profits from being distributed by way of dividend. As such the
    directors consider it necessary to continue to present the accounts in
    accordance with the Statement of Recommended Practice 'Financial
    Statements of Investment Trust Companies' (the 'SORP'). Under the SORP,
    the financial performance of the Company is presented in a statement of
    total return in which the revenue column is the profit and loss account
    of the Company. The revenue column excludes net profits on disposal of
    investments, calculated by reference to their previous carrying amount,
    of  £4,375,000 (1999: £2,276,000). Since the Company is no longer an
    investment company, the Companies Act and/or FRS3 would ordinarily
    require this amount to be included in the profit and loss account. In the
    opinion of the directors the inclusion of this item in the profit and
    loss account would be misleading because it would obscure and distort
    both the revenue and capital performance of the Company, and would not
    show clearly the revenue profits emerging to be distributable by way of
    dividend. The directors therefore consider that these departures from the
    specific provisions of Schedule 4 of the Companies Act relating to the
    form and content of accounts for companies other than investment
    companies and these departures from accounting standards are necessary to
    give a true and fair view. The departures have no effect on total return
    or on the balance sheet.

5.  Accounts for the year ended 30 September 1999
    The figures and financial information for the year ended 30 September
    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.

6.   Dividend
    An interim dividend of 5.50p per ordinary share has been declared payable
    on 9 June 2000 to shareholders on the register of members at the close of
    business on 26 May 2000.  The Company's shares will be quoted ex-dividend
    on 22 May 2000.
    
    
                                     - 6 -
                                       
   
7.  Year 2000
    The directors of Lowland Investment Company plc have been advised by
    Henderson plc and its subsidiaries ('Henderson'), which provide
    investment management, UK custodian, accounting, administrative and
    company secretarial services to the Company, that the corporate programme
    initiated by Henderson has been satisfactorily completed and that at the
    date of this document no material or significant problems affecting the
    Company have arisen from the Year 2000 date change. Costs relating to
    this project were borne by Henderson.

8.  Interim Report
    Copies of the Company's interim report for the half year ended 31 March
    2000 will be posted to shareholders in May 2000 and will be available
    from the Secretary at the Registered Office, 3 Finsbury Avenue, London,
    EC2M 2PA.


For further information please contact :

James Henderson                              Norman Brown
Lowland Investment Company plc               Henderson Investors
Telephone: [phone]                     Telephone: [phone]

Vicki Staveacre
Henderson Press Office
Telephone: [phone]