Interim Results

New Star Investment Trust PLC
15 March 2002

NEW STAR INVESTMENT TRUST PLC

PRELIMINARY ANNOUNCEMENT OF UNAUDITED INTERIM RESULTS





The Directors announce the unaudited statement of consolidated results for the
six months ended 31st December 2001 as follows:





CONSOLIDATED STATEMENT OF TOTAL RETURN

(incorporating the revenue account*) of the Group


                                                 1st July                                 6th May
                                           to 31st December 2001                    to 5th November 2000
                                    Revenue        Capital          Total     Revenue       Capital        Total

                                      £'000          £'000          £'000       £'000         £'000        £'000

(Losses)/gains on investments             -         (3,519)        (3,519)          -         4,637        4,637

Dividend and interest income          1,463              -          1,463       2,276             -        2,276

Profits/(losses) on index                 -           (242)          (242)          -          (192)        (192)
futures contracts

Investment management fee              (271)             -           (271)       (344)            -         (344)

Other expenses                         (184)             -           (184)        (47)            -          (47)

Return on ordinary activities         1,008         (3,761)        (2,753)      1,885         4,445        6,330
before finance costs and
taxation

Interest payable and similar              -              -              -          (4)            -           (4)
charges

Return on ordinary activities         1,008         (3,761)        (2,753)      1,881         4,445        6,326
before taxation

Taxation on ordinary activities        (251)             -           (251)       (543)            -         (543)

Return on ordinary activities           757         (3,761)        (3,004)      1,338         4,445        5,783
after taxation

Dividends                                 -              -              -           -             -            -

Transfer to/(from) reserves             757         (3,761)        (3,004)      1,338         4,445        5,783



*          The revenue column of this statement is the consolidated revenue
account of the Group.



**        The comparative figures disclosed for the period ended 5th November
2000 cover the six month

period from commencement of operations on 6th May 2000 to 5th November 2000.




                                     pence           pence           pence       pence        pence        pence

Return per Ordinary share              0.7            (3.4)           (2.7)        1.2          4.1          5.3




CONSOLIDATED BALANCE SHEET
                                                                            As at                           As at
                                                               31st December 2001                  30th June 2001

                                                                            £'000                           £'000

Fixed assets
Investments                                                                99,702                         106,934

Current assets
Debtors                                                                     1,455                           3,101
Cash at bank                                                                4,269                             710
                                                                            5,724                           3,811
Creditors:  amounts falling due within one year
Creditors                                                                    (731)                           (630)
Dividend payable                                                                -                          (2,416)


Net current assets                                                          4,993                             765


Total assets less current liabilities                                     104,695                         107,699


Capital and reserves:

Called up share capital                                                     1,098                           1,098

Share premium account                                                     108,863                         108,863

Capital reserve                                                            (6,785)                         (3,024)

Revenue reserve                                                             1,519                             762


Equity shareholders' funds                                                104,695                         107,699


Net asset value per share
Ordinary shares                                                             95.33p                          98.07p



CONSOLIDATED STATEMENT OF CASHFLOWS
                                                                      1st July to                 6th May 2000 to
                                                               31st December 2001               5th November 2000
                                                                            £'000                           £'000

Net cash inflow/(outflow) from operating                                      645                            (667)
activities


Servicing of finance
Interest paid                                                                   -                              (4)


Taxation
Taxation paid                                                                (141)                            (69)

Capital expenditure and financial investment
Purchase of investments                                                   (36,915)                       (143,770)

Disposal of investments                                                    42,716                          31,400

Losses on index futures contracts                                            (242)                           (192)

Exchange losses on settlements                                                (63)                              -

Revaluation of foreign currency balances                                      (25)                              -


                                                                            5,471                        (112,562)


Equity dividends paid                                                      (2,416)                              -


Net cash inflow/(outflow) before financing                                  3,559                        (113,302)


Financing
Issue of share capital                                                          -                          17,222
Expenses of issue                                                               -                             (30)


Net cash inflow from financing                                                  -                          17,192


Increase/(decrease) in cash                                                 3,559                         (96,110)



Returns per share



The Group net revenue on ordinary activities after taxation amounted to £757,000
(2000:  £1,338,000).  The basic revenue return per Ordinary share is based on
this figure and a total of 109,820,026 (2000:  107,452,836) shares, being the
weighted average number of Ordinary shares in issue during the period.



The capital return per Ordinary share is based on net capital losses for the
period of £3,761,000 (2000:  gains of £4,445,000) and on 109,820,026 (2000:
107,452,836) shares, being the weighted average number of Ordinary shares in
issue during the period.


Net asset value



The net asset value per share of 95.33p (5th November 2000:  106.24p) has been
calculated by reference to net assets of £104,695,000 (5th November 2000:
£116,667,000) and 109,820,026 (5th November 2000:  109,820,026) Ordinary shares,
being the number of shares in issue at the end of the period.







The above unaudited financial information for the period ended 31st December
2001 which does not constitute statutory accounts as defined in Section 240 of
the Companies Act 1985 has been prepared on the basis of the accounting policies
set out in the statutory accounts of the Group for the period ended 30th June
2001.  The auditors have reported on those accounts; their reports were
unqualified and did not contain a statement under section 237(2) or (3) of the
Companies Act 1985.  The June 2001 statutory accounts have been delivered to the
Registrar of Companies.



Copies of the interim report will be sent to shareholders in March and will be
available to members of the public from the Registered Office at 23 Cathedral
Yard, Exeter EX1 1HB.



CHAIRMAN'S STATEMENT


The total assets of your Company fell by 2.8% over the six months to 31st
December 2001.  This compares to a fall in the FTSE All-Share Index of 7.5% over
the same period.

Net revenue before tax for the six month period was £1.0 million.  Your
Directors are not recommending the payment to shareholders of an interim
dividend.

The dominant influence on the stock market during the six months under review
was the terrorist assault on America. After a lacklustre summer during which the
London market fell marginally in response to growing evidence of recession in
America, shares tumbled in the days after 11th September. The low was reached on
21st September, with the FTSE All-Share Index standing 35% below its September
2000 peak.

Central banks around the world, led by the Federal Reserve, responded by
aggressively cutting interest rates. This monetary easing, combined with the
perceived success of America's Afghan military campaign, produced a strong rally
with those sectors that had performed worst during the long slide such as
information technology hardware, software and electronics showing some of the
best gains. The result was that the All-Share Index ended the year 3.5% above
its level immediately prior to the attacks on New York and Washington amid signs
of recovering consumer and corporate confidence in America and further evidence
of economic growth in Britain, whose relatively strong economy amid the
deteriorating world situation surprised analysts.



Following the terrorist attacks in the US in mid September and the subsequent
weakness in share prices worldwide, your Company increased its exposure to
equities at the expense of bonds.



I would like to update shareholders on the legal matters which I referred to in
my Chairman's Statement which accompanied the 30th June 2001 Annual Report.



Since that time there have been a number of interim hearings in the High Court.
The outcome of those hearings was as follows:  Firstly:  The Court struck out a
significant proportion of Jupiter's claim.  Secondly:  The Court awarded me
substantial costs in connection with the matters struck out.  Thirdly:  The
Court refused Jupiter's application to hear certain preliminary issues.
Fourthly:  The Court set a date of 15th July 2002 for the main trial.



As part of the discussion and negotiation which took place around the time of
these interim hearings, Jupiter finally agreed to consider my proposed
reconstruction which is much cheaper than its proposed reconstruction.  (The
total costs of my proposal are estimated at £400,000 to £450,000).  All the
independent Directors and myself continue to be of the opinion that it is fair
that the exiting shareholders should pay all the costs of the reconstruction
since it is of no benefit to those who will remain.



On the question of the disclosure of confidential information by Mr Stevenson,
the former Jupiter nominated Director, the Company's position is still under
consideration, dependent on the actions of third parties.  On the question of Mr
Baker and Mr Stevenson's expenses, referred to in the 30th June 2001 Annual
Report, no progress has been made as your Board is still awaiting satisfactory
replies to questions which were raised by it some months ago.



The unaudited net asset value at 28th February 2002 was 90.84p per Ordinary
share.





J L Duffield

Chairman

15 March 2002





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