Dividend Declaration & Six Month Results

To: Stock Exchange For immediate release: 14 September 2007 Martin Currie Portfolio Investment Trust plc Interim results for the six months to 31 July 2007 Chairman's statement With all three parts of your company's investment portfolio - UK equities, international equities and private equity - outperforming, the net asset value of the trust increased by 7.3% in the six months to 31 July 2007. That compares favourably to the benchmark's return of 2.4%. The company's share price rose by 5.5%. Volatility since August in global stock markets has affected our share price but, as outlined below, presents us with opportunities. Earnings and dividends Corporate earnings growth has been robust over the period, and that is reflected in the company's portfolio. Compared with the same period last year, revenue return per share has increased by 8.7%, rising from 1.49p to 1.62p. The board is recommending that an unchanged interim dividend of 0.50p be paid on 26 October 2007 to shareholders on the register as at 5 October 2007. Investment strategy In my statement for the company's last annual report, I said that the board had decided to allow the manager, over time, to increase international investments beyond the then ceiling of 25% of the portfolio. The majority of the portfolio was to remain in UK-quoted investments and, because the company's primary objective is to provide a core holding for UK-based investors, we retained the FTSE All-Share index as our benchmark. Our decision reflected our belief that it is wrong to restrict investment freedom based on the country of a company's listing, and recognised that many of the most exciting companies in the world are quoted on stockmarkets other than the UK. We also acknowledged the manager's skill as a stock-picker in international equities. Our assets overseas rose from 23% at the end of January to 30% at the end of July. Despite the rise in sterling against the US dollar, the portfolio's international holdings have continued to contribute strongly to performance. Investment outlook Since the end of the reporting period, a crisis in the credit markets, led by US sub-prime mortgages, has sent confidence and stockmarkets falling worldwide and volatility has increased. It is too soon to say when these issues will be resolved. But your board's confidence in equities as a long-term investment remains. Increased volatility in markets overall can give rise to attractive under-valuations in the shares of individual companies. As Tom Walker explains in his manager's report, stock-specific opportunities abound. We believe that the company's portfolio will continue to exploit these opportunities. Proposed amendments to Articles of Association In accordance with industry best practice the Board intends to convene an Extraordinary General Meeting of its shareholders to amend the company's Articles of Association in light of the Companies Act 2006. Amongst other things, this will allow the company to use electronic communication with shareholders. Peter Berry Manager's report The first six months of our current fiscal year was a positive period for equity markets and even more so for the Company with all three parts of the portfolio outperforming. Although the turmoil in financial markets that we have witnessed since the end of July clearly impacts the investment outlook, the company's net asset value today is little changed since the half year end. REVIEW United Kingdom The weakness it experienced towards the end of the period moderated the returns generated by the UK equity market. However, this weakness was a global phenomenon. UK equities managed to outperform the world index as well as other asset classes like bonds, gilts and property. The market was rather polarised by sector - basic materials rose nearly 33%, while healthcare stocks fell some 5%. Financials, which are important because they represent nearly 30% of the market, were also weak, falling over 3%. This suited our view of the world - we have long been overweight resource stocks and underweight financials. Stocks like BHP Billiton, Vedanta and BG and our limited exposure to healthcare and banks helped the UK portfolio outperform in the six month period. International The most significant change that we made to the portfolio during the period was to increase our exposure to overseas equities. Our assets overseas rose from 23% at the end of January to 30% at the end of July. The biggest detractor from investing overseas has for some time been the strength of the pound, most particularly versus the dollar. The pound gained nearly 4% on the dollar during this six months, the principle reason for overseas market's underperformance of the UK in the period. During the period, the Euro and European markets have performed well while the dollar and the US market have lagged. Emerging markets have been exceptionally strong and Japan has continued to disappoint, both economically and as an investment destination. We increased exposure to Asia ex-Japan and further reduced our Japanese investments during the period. That, combined with good stock selection, helped the overseas portfolio to outperform also. Private equity Following a multi-year bull market, private equity suffered significant declines in recent weeks as credit markets started to price risk more sensibly. Many highly leveraged deals had been made possible by the abundance of lenders keen to provide finance at low rates of interest. Those interest rates have now risen and/or the lenders have disappeared. While we believe our private equity investments are less vulnerable than some to this change in market conditions, there is no denying that, having benefited from the euphoria, they have inevitably given back some of that benefit. We sold 3i during the period but retain our investments in SVG, Candover and F&C Private Equity. This last investment has a very mature portfolio which, we believe, makes it attractive, especially at this time. It has continued to outperform strongly. Activity In cutting UK exposure, we sold a number of our higher risk financial positions including Intermediate Capital, Land Securities, Tullett Prebon and Collins Stewart where valuations appeared at risk. Given subsequent events, these sales were helpful and, more recently, we have bought back into Land Securities at a much more attractive level. New holdings during the period include European dairy products company, Danone, Swiss power equipment manufacturer, ABB and Texan oil and gas company, Anadarko Petroleum. Outlook The recent collapse in credit markets has led to a sharp increase in volatility in most markets around the world. In truth, no one can really know how serious are the problems within the US sub-prime credit market nor to what extent they may spill over to affect other credit markets and eventually impact the health of the world economy. Currently, it seems that there is no shortage of capital to invest but confidence has taken a knock and risk aversion is elevated. Central bankers have no interest in bailing out people who have made bad or reckless investment decisions, but they want to prevent otherwise healthy markets becoming the victims of a liquidity crisis because this could bring the economy to a grinding halt. We believe that it may take several months for the markets to "clear" and that, during this period, volatility will remain elevated. Having said which, global growth and historically low long term interest rates are a constructive backdrop for equity markets which appear to offer attractive valuations. It is when we focus on individual stocks that we are most encouraged by the investment outlook. Share prices have declined across the board and we are particularly interested in companies whose earnings and balance sheets have very limited exposure to the current financial uncertainties. ABB, Corning and Intercontinental Hotels fall into this category. In summary, we expect market fluctuations to continue near term but believe the longer term outlook for equities is good. Tom Walker For more information, please contact: Tom Walker twalker@martincurrie.com 0131 229 5252 MARTIN CURRIE PORTFOLIO INVESTMENT TRUST plc INCOME STATEMENT for the six months to 31 July 2007 Unaudited Revenue Capital Total £000 £000 £000 Gains / (losses) on - realised - 6,831 6,831 investments - unrealised - 5,288 5,288 Currency gains - 382 382 Income - franked 2,315 692 3,007 - unfranked 582 - 582 Investment management fee (190) (380) (570) Performance fee - (1,198) (1,198) Other expenses (233) - (233) _______ _______ _______ Net return before finance costs and 2,474 11,615 14,089 taxation Finance costs - debt (95) (185) (280) Finance costs - shareholders' funds (2,726) (11,104) (13,830) Finance costs - repurchase of shares - 85 85 _______ _______ _______ Return on ordinary activities before (347) 411 64 taxation Taxation on ordinary activities (64) - (64) _______ _______ _______ Return attributable to shareholders (411) 411 - _______ _______ _______ Returns per ordinary share (as defined by the Articles) are detailed in note 1. The total 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. No operations were acquired or discontinued in the period. The directors have declared an interim dividend of 0.50p per share, which will be paid on 26 October 2007 to shareholders on the register on 5 October 2007. The interim results will be circulated to shareholders in the form of an interim report, copies of which will be available at the company's registered office, Saltire Court, 20 Castle Terrace, Edinburgh EH1 2ES. MARTIN CURRIE PORTFOLIO INVESTMENT TRUST plc INCOME STATEMENT for the period to 31 July 2006 Unaudited Revenue Capital Total £000 £000 £000 Gains on investments - realised - 3,883 3,883 - unrealised - (5,121) (5,121) Currency losses - 6 6 Income - franked 2,289 3,045 5,334 - unfranked 403 - 403 Investment management fee (179) (358) (537) Performance fee - (131) (131) Other expenses (257) - (257) _______ _______ _______ Net return before finance costs and 2,256 1,324 3,580 taxation Finance costs - debt - - - Finance costs - shareholders' funds (2,544) (1,171) (3,715) Finance costs - repurchase of shares - 161 161 _______ _______ _______ Return on ordinary activities before (288) 314 26 taxation Taxation on ordinary activities (26) - (26) _______ _______ _______ Return attributable to shareholders (314) 314 - _______ _______ _______ Returns per ordinary share (as defined by the Articles) are detailed in note 1. The total 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. No operations were acquired or discontinued in the period. MARTIN CURRIE PORTFOLIO INVESTMENT TRUST plc BALANCE SHEET As at 31 July 2007 As at 31 July 2006 As at 31 January (unaudited) (unaudited) 2007 (audited) £000 £000 £000 £000 £000 £000 Fixed assets Investments at market value Listed on the 144,244 142,056 150,08 stock exchange in 3 the UK Listed on stock 62,708 33,917 45,249 exchanges abroad _______ _______ ______ _ 206,952 175,973 195,33 2 Current assets Debtors 387 434 284 Cash at bank 471 2,847 2,047 _______ _______ _______ 858 3,281 2,331 Creditors Amounts falling due within one (11,174) (309) (11,265) year _______ _______ _______ Net current (10,316) 2,972 (8,934 (liabilities)/ ) assets _______ _______ ______ _ Net asset value 196,636 178,945 186,39 attributable to 8 shareholders _______ _______ ______ _ Net asset value 137.6p 119.7p 129.9p per ordinary share (note 2) AIC net asset 136.8p 118.2p 127.5p value per ordinary share (note 2) MARTIN CURRIE PORTFOLIO INVESTMENT TRUST plc STATEMENT OF CASH FLOW Six months to Six months to 31 July 2007 31 July 2006 (unaudited) (unaudited) £000 £000 £000 £000 Net cash inflow from 2,712 2,966 operating activities Servicing of finance Finance costs - debt (291) - Finance costs - (2,726) (2,544) shareholders' funds _______ _______ Net cash outflow from (3,017) (2,544) servicing of finance Capital expenditure and financial investment Payments to acquire (29,859) (15,877) investments Receipts from disposal of 29,369 17,872 investments _______ _______ Net cash (outflow) inflow (490) 1,995 from capital expenditure and financial investment _______ _______ Net cash (outflow)/ inflow (795) 2,417 before financing Financing Repurchase of ordinary share (781) (1,715) capital _______ _______ (Decrease)/increase in cash (1,576) 702 _______ _______ Notes 1. Returns and net asset value The return and net asset value per ordinary share are calculated with reference to the following figures: Six months Six months Revenue return to to 31 July 31 July 2007 2006 Return attributable to (£411,000) (£314,000) ordinary shareholders Add back finance costs: £2,726,000 £2,544,000 shareholders' funds __________ __________ _ _ £2,315,000 £2,230,000 Average number of shares in 143,174,98 149,720,12 issue during period 3 6 Revenue return per ordinary 1.62p 1.49p share Capital return Capital return attributable £411,000 £314,000 to ordinary shareholders Add back finance costs: £11,104,00 £1,171,000 shareholder funds 0 Deduct finance costs: (£85,000) (£161,000) repurchase of shares __________ __________ _ _ £11,430,00 £1,324,000 0 Average number of shares in 143,174,98 149,720,12 issue during period 3 6 Capital return per ordinary 7.98p 0.88p share Net asset value per share As at 31 As at 31 As at 31 July 2007 July 2006 January 2007 Net assets attributable to £196,636,0 £178,945,0 £186,398,000 shareholders 00 00 Number of shares in issue at 142,917,91 149,529,85 143,527,886 period end 5 8 Net asset value per share 137.6p 119.7p 129.9p 2. Reconciliation of accounting and AIC net asset values As at 31 As at 31 As at 31 July 2007 July 2006 January 2007 Accounting net asset value 137.6p 119.7p 129.9p per share Exclusion of undistributed (0.8p) (1.5p) (2.4p) current period revenue ___________ ___________ ___________ AIC net asset value per share 136.8p 118.2p 127.5p

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