Statement re. ERROR DISREGARD - RECOMMENDED PRO...

PREMIUM TRUST PLC

RECOMMENDED PROPOSALS FOR VOLUNTARY LIQUIDATION

1 DECEMBER 2006


Introduction

Further  to  the  Company's announcement of 28 September 2006  the  Board  today
announces  proposals  under  which the Company  will  be  placed  into  members'
voluntary  liquidation in accordance with the timetable set out in the Articles.
A   circular  containing  full  details  of  the  proposals  and  convening   an
extraordinary general meeting to be held on 29 December 2006 is being  published
today and will be posted to members shortly.

Winding Up Requirement

The  Directors are required under the Articles to convene the EGM and at the EGM
to  propose  a resolution pursuant to section 84 of the Insolvency Act  1986  to
wind up the Company.

The  Articles  provide that those members voting in favour of the resolution  to
wind  up the Company shall collectively have sufficient votes for the resolution
to  be  carried notwithstanding the number of shareholders who vote against  the
resolution.

Holders  of Capital Shares, Income Shares and ZDP Shares (in relation to certain
business) all have the right to attend and vote, in person or by proxy,  at  the
EGM.

Portfolio Realisation

The  Directors have reviewed with the Manager the process by which the Company's
assets are to be realised.  Certain major shareholders have also been consulted.
With  a  view to maximising shareholder value in the winding up while  returning
capital  as soon as practicable following the appointment of the liquidators  on
29  December 2006, it is intended, having regard to the holiday period, that  on
the  Company's  behalf  the Manager will place orders,  or  a  single  order  if
believed  appropriate, for the Company's assets to be sold on the  London  Stock
Exchange  on  18  December 2006.  The Directors presently intend  to  acquire  a
derivative  instrument  on  18  December 2006 through  which  the  Company  will
maintain  exposure  to  movements  in the  FTSE  100  Index  until  as  near  as
practicable to the commencement of the Company's winding up.

Final Interim Dividend

Under  the Articles, the Directors are required to pay a final interim  dividend
to the holders of Income Shares.  This dividend is to be based on the Directors'
best  estimate  of the revenue profits (including accumulated revenue  reserves)
available for distribution.

As  a  result of this requirement, the Directors have determined to pay a  final
interim  dividend  of  3.0p per Income Share.  The amount of  this  dividend  is
potentially  subject  to  adjustment, in which case the  Company  will  make  an
announcement  of  the  change to a Regulatory Information Service.   The  Income
Shares  will be declared "ex" this dividend entitlement on 6 December 2006,  the
record date for this dividend will be 8 December 2006, and this dividend will be
paid on 27 December 2006.

Bank Loan

It  is  expected that the Company's term loan facility with Lloyds TSB  will  be
repaid  in  full  (together with interest accrued to that date) on  20  December
2006,  applying  part  of  the proceeds of the portfolio  realisation  described
above.  It is anticipated that, at 20 December 2006, the principal amount  drawn
and  outstanding under the loan facility will be £7,000,000.  It is not expected
that any breakage costs will be incurred.

Proposed Winding Up Process

Upon  the passing of the first resolution to be proposed at the EGM, liquidators
will be appointed and the winding up will commence.

The  liquidators will set aside sufficient assets in a liquidation fund to  meet
the  known and contingent liabilities of the Company, including the costs of the
winding up.  In addition, a retention fund will be set aside by the liquidators,
such  fund  being of an amount considered by them to be sufficient to  meet  any
unknown liabilities of the Company.

On  the winding up, members' entitlements will be determined by reference to the
Articles, which provide as follows:

(i)  first,  holders of Income Shares have the right to be paid an amount  equal
     to  the amount standing to the credit of the Company's revenue reserves (as
     reduced  by  the final interim dividend referred to above),  including  the
     amount  of  the undistributed revenue profits for the current year  of  the
     Company as at the date of the commencement of winding up;

(ii) second,  holders  of ZDP Shares have the right to receive a  final  capital
     entitlement of 105.05p per ZDP Share;

(iii)      third,  after  the  payments of capital  to  holders  of  ZDP  Shares
     described in paragraph (ii) above, holders of Income Shares have the  right
     to receive a final capital entitlement of 47.7p per Income Share; and

(iv) fourth,  holders  of Capital Shares have the right to receive  the  surplus
     assets of the Company available for distribution.

It  is  expected  that  the  liquidators will  make  payments  pursuant  to  the
entitlements described in paragraphs (i) to (iv) above in the week commencing  8
January  2007.   It  is expected that the value of the Company's  assets,  after
allowing  for  payment  of the known liabilities of the Company,  including  the
costs  of  the  winding  up, and the retention fund  to  be  set  aside  by  the
liquidators,  will  permit  the  payment of  the  entitlements  referred  to  in
paragraphs (i), (ii) and (iii) above in full by the liquidators.  However  given
the  exposure of the Company's assets to stock market movements there can be  no
absolute certainty that this will be the case.

The liquidators may make a further distribution to holders of Capital Shares, at
the  conclusion of the winding up of the Company, depending on whether there are
surplus assets remaining.  This distribution would include any unapplied part of
the retention fund set aside by the liquidators.

Expenses

The  costs incurred in relation to the proposed liquidation, including financial
advice, other professional advice and the liquidators' charges, are estimated to
amount to approximately £178,000, inclusive of VAT.

Management and Secretarial Services Agreement

The  Company  and  the Manager have agreed that the management  and  secretarial
services  agreement between them will terminate with effect from the passing  of
the  resolution to wind up the Company.  No compensation will be payable by  the
Company other than accrued fees and other payments due under the agreement up to
and including the date of termination.

Enquiries

For further information, please contact:

Keith Swinley
Martin Currie Investment Management Ltd
Tel. [phone]

Nathan Brown
Winterflood Investment Trusts
Tel. [phone]

Notes

Capitalised  terms  shall  bear the meanings given  to  them  in  the  Company's
circular dated 1 December 2006 unless the context otherwise requires.

A  copy  of  the  above document will be submitted shortly  to  the  UK  Listing
Authority  and  will  be available for inspection at the UK Listing  Authority's
Document Viewing Facility, which is situated at:

Financial Services Authority
25 The North Colonnade
Canary Wharf
London E14 5HS