Final Results - Year Ended 31 January 2000

Edinburgh US Tracker Trust PLC 24 March 2000 EDINBURGH US TRACKER TRUST PLC RESULTS FOR THE YEAR ENDED 31 JANUARY 2000 Edinburgh US Tracker Trust aims to achieve long term growth of capital and income by tracking the performance of the S&P Composite Index. HIGHLIGHTS Net asset value per share up 10.6% to 701.06p compared with a rise of 10.4% in the benchmark index. Share price up by 12.5% to 649p Board proposes a final dividend of 2.85p per share which, when combined to the interim dividend, provides a total dividend for the year of 4.85p per share For further information, please contact: David McCraw, Director Edinburgh Fund Managers plc 0131 313 1000 Ian Massie, Director Edinburgh Fund Managers plc 0131 313 1000 Chairman's Statement I am pleased to report that the company has continued to meet its investment objective of tracking the performance of the S&P Composite Index. The net asset value per share (NAV') increased by 10.6% to 701.06p compared with a rise of 10.4% in the index. The company's share price increased by 12.5% to 649p representing a discount of 7.4%. The revenue return of 4.45p per share is broadly unchanged from the previous year and reflects the increasing impact of fast growing but low yielding stocks within the index. Your board is proposing a final dividend of 2.85p per share to be paid on 26 May 2000, which, when combined to the interim dividend of 2.00p, provides a total dividend for the year of 4.85p per share, unchanged from last year. Share Buybacks During the year the company received shareholder approval to reduce its capital by way of repayment of the preference stock, to reclassify the B' shares as ordinary shares and to amend the Articles of Association to allow the company to purchase its own shares. The principal aim of such purchases would be to increase the NAV for those shareholders who retain their shares and to address any imbalance between the supply of and demand for the company's shares. The company did not purchase any shares during the period. The renewal of the share buyback authority will be proposed at the Annual General Meeting. Marketing The board believes that one of the most effective methods of promoting the company is through the manager's investment trust initiative' whereby Edinburgh US Tracker Trust participates in the retail savings products operated by Edinburgh Fund Managers. The products currently comprise savings schemes, personal equity plans, individual savings accounts and pension plans and enable investors to make monthly savings or lump sum investments in the company in a low cost and convenient way. Your board decided against participating in the Association of Investment Trust Companies recently launched marketing campaign which is aimed at increasing investors' awareness of investment trusts and thereby reducing the level of discounts to NAV suffered by many trusts. The issues that this campaign is seeking to address are less relevant to a company with an index tracking objective and your board has decided that the required funds would be better used to attract new investors through direct marketing efforts. Corporate Governance Changes to the Combined Code which relate to internal control became effective for accounting periods ending on or after 23 December 1999 and therefore are relevant to these accounts. The directors are in the process of putting the necessary procedures in place to implement the new arrangements and expect that the company will, as required, be in full compliance with the internal control aspects of the Code by the end of the current financial year. Annual General Meeting The company's Articles of Association require shareholders to vote on the continuation of the company at every Annual General Meeting. Accordingly, a resolution to this effect will be proposed as Special Business at the Annual General Meeting to be held on Wednesday 24 May 2000. If this resolution is not passed, the company will be liquidated later this year. Liquidation would result in a disposal of the company's shares for capital gains tax purposes and therefore shareholders should consider carefully whether they wish the company to be wound up. The economic strength of the US lies in the size of the market place, mobility of labour and an entrepreneurial culture. These factors have combined to create an environment whereby a large number of US companies have emerged as world leaders in many industries. Edinburgh US Tracker Trust provides shareholders with a broadly diversified portfolio which invests in the top 500 companies in the United States of America. In addition, the investment performance, aided by low management and administration costs, as evidenced by the total expense ratio of 0.33%, emphasises the attractions of the index tracking approach to investors. Your board recommends all shareholders to vote in favour of the resolution. Sir Angus Grossart 24 March 2000 STATEMENT OF TOTAL RETURN for the year ended 31 January 2000 (audited) Revenue Capital Total £000 £000 £000 Gains on investments - 56,118 56,118 Premium on redemption of preference shares and - (70) (70) associated costs Income from investments 7,134 - 7,134 Interest receivable 67 - 67 Investment management fee (1,422) - (1,422) Administrative expenses (403) - (403) ---- ---- ---- Net Return before interest and 5,376 56,048 61,424 taxation Interest payable - - - ---- ---- ---- Return on ordinary activities 5,376 56,048 61,424 before taxation Taxation (1,630) - (1,630) ---- ---- ---- Return on ordinary activities 3,746 56,048 59,794 after taxation Dividends in respect of non- (39) - (39) equity shares ---- ---- ---- Return attributable to equity 3,707 56,048 59,755 shareholders Dividends in respect of equity (4,039) - (4,039) shares ---- ---- ---- Transferred from reserves (332) 56,048 55,716 ---- ---- ---- Return per ordinary share 4.45p 67.31p 71.76p ---- ---- ---- for the year ended 31 January 1999 (audited) Revenue Capital Total £000 £000 £000 Gains on investments - 123,271 123,271 Income from investments 6,660 - 6,660 Interest receivable 97 - 97 Investment management fee (1,192) - (1,192) Administrative expenses (294) - (294) ---- ---- ---- Net Return before interest and 5,271 123,271 128,542 taxation Interest payable (3) - (3) ---- ---- ---- Return on ordinary activities 5,268 123,271 128,539 before taxation Taxation (1,615) - (1,615) ---- ---- ---- Return on ordinary activities 3,653 123,271 126,924 after taxation Dividends in respect of non- (37) - (37) equity shares ---- ---- ---- Return attributable to equity 3,616 123,271 126,887 shareholders Dividends in respect of equity (4,058) - (4,058) shares ---- ---- ---- Transferred from reserves (442) 123,271 122,829 ---- ---- ---- Return per ordinary share 4.34p 148.04p 152.38p ---- ---- ---- BALANCE SHEET (audited) At 31 At 31 January January 2000 1999 £000 £000 Fixed assets Investments 584,263 529,240 Current assets Debtors 1,936 1,946 Cash and short term deposits 3,001 913 ---- ---- 4,937 2,859 Creditors: amounts falling due 5,285 2,753 within one year Net current liabilities (348) 106 ---- ---- 583,915 529,346 Provision for liabilities and (138) (227) charges ---- ---- 583,777 529,119 ---- ---- Capital and reserves Called up share capital :non- - 1,058 equity ---- ---- Called up share capital :equity 20,816 20,816 Other reserves 562,961 507,245 ---- ---- Total equity shareholders' funds 583,777 528,061 ---- ---- Total shareholders' funds 583,777 529,119 ---- ---- Net asset value per share 701.06p 634.15p CASHFLOW STATEMENT (audited) For the For the year year ended ended 31 January 31 January 2000 1999 £000 £000 Revenue before taxation 5,376 5,271 Decrease in accrued income 267 (267) Increase in other debtors (6) (12) Increase in creditors 134 90 ---- ---- Net cash inflow from operating 5,771 5,082 activities Net cash outflow from servicing (39) (40) of finance Total tax paid (412) (2,368) Net cash inflow from financial 1,942 (50) investment Equity dividends paid (4,039) (5,704) ---- ---- Net cash inflow before financing 3,223 (3,080) Net cash outflow from financing (1,128) - ---- ---- INCREASE IN CASH 2,095 (3,080) ---- ---- NOTES : 1. The accounts are prepared under the same accounting policies used for the year to 31 January 1999. 2. The proposed final dividend, subject to shareholder approval, will be paid on 26 May 2000 to shareholders on the register at the close of business on 14 April 2000. The ex-dividend date is 10 April 2000. 3. The statement of total return and the balance sheet set out above do not represent full accounts in accordance with Section 240 of the Companies Act 1985. The financial information for the year ended 31 January 1999 has been extracted from the Annual Report and Accounts of the Company which have been filed with the Registrar of Companies. The auditors' report on those accounts was unqualified. The statutory accounts for 2000 are unqualified and will be delivered to the Registrar of Companies following the Company's Annual General Meeting which will be held on Wednesday, 24 May 2000 at 11.00am. 4. The Annual Report and Accounts will be posted to shareholders on 14 April 2000 and copies will be available from the investment manager. Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise and may be affected by exchange rate movements. Investors may not get back the amount they originally invested. For Edinburgh US Tracker Trust plc Edinburgh Fund Managers plc, Secretary David Holland Assistant Company Secretary

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