Final Results

Standard Life Euro Pri Eqty Tst PLC
02 December 2002


2 December 2002


                STANDARD LIFE EUROPEAN PRIVATE EQUITY TRUST PLC

                  RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2002

Highlights

  • Against a background of significant weakness and volatility in the listed
    financial markets and poor macro-economic fundamentals, the Company has made
    solid progress. During the year ended 30 September 2002 the Company's net
    asset value per ordinary share ('NAV') declined 4.2% to 90.3p (30 September
    2001 - 94.3p). As at 30 September 2002 the Company's net assets were £143.8
    million (30 September 2001 - £151.0 million). The closing mid-market price
    of the Company's ordinary shares on 30 September 2002 was 82.0p (30
    September 2001 - 96.5p).

  • Although the Company does not have a defined benchmark, the Company's NAV
    has materially out-performed the two relevant major stock market indices.
    Over the last year and since the Company's listing in May 2001, the
    Company's NAV has fallen by 4.2% and 8.5% respectively, while the FTSE
    All-Share Index has fallen by 23.0% and 36.8% and the MSCI Europe Index
    (sterling adjusted) by 25.8% and 41.4% respectively.

  • The Board is recommending a final dividend of 1.2p per ordinary share
    (period ended 30 September 2001 - 0.45p). This dividend will be paid on 6
    February 2003 to shareholders on the Company's share register as at 10
    January 2003.

  • As at 30 September 2002 the Company had interests in 31 private equity
    funds with a value of £86.7 million (30 September 2001 - £71.6 million) and
    held £57.1 million in cash and other net assets (30 September 2001 - £79.4
    million).

  • Draw downs made during the year totalled £36.0 million (period ended 30
    September 2001 - £5.3 million), with the Company enjoying an active second
    half to its financial year. This was driven by more attractive pricing
    levels for funds to undertake transactions and the Company's increasing
    quantum of new commitments to private equity funds.

  • Distributions received during the year totalled £15.6 million (period
    ended 30 September 2001 - £7.5 million), including £5.1 million of realised
    gains and income (period ended 30 September 2001 - £1.2 million). In overall
    terms, the pace and quantum of realisations was slow.

  • The Company made £113.3 million of new commitments during the year to six
    private equity funds (period ended 30 September 2001 - £104.4 million),
    bringing the aggregate new commitments made by the Company since listing to
    £215.9 million. The six new fund commitments made during the year were to
    four buy-out and two secondary funds.


Quote from Scott Dobbie CBE, Chairman:-

'The Company enjoys the benefit of having acquired on listing a mature portfolio
of private equity fund interests, where many of the underlying investments were
made prior to the inflated asset prices of 1999 and 2000. While the market for
exits is weak, our experience is that where realisations have been achieved
these have been at an increasing average multiple of the Company's acquisition
cost.

Against a weak macro-economic environment and depressed financial markets, the
pricing of current transactions has fallen to levels more favourable to buyers.
We are also seeing increasing steps being taken by European corporates to focus
on their core businesses and to dispose of non-core assets. These trends are
helpful and give current transactions the potential to generate attractive
long-term returns.'



For further information please contact:-

Jonny Maxwell/ Peter McKellar of Standard Life Investments (Private Equity)
Limited (on  0131 245 0055)



Chairman's Statement

The last year has been one of significant weakness and volatility in the listed
financial markets, set against a background of poor macro-economic fundamentals
and disappointing corporate earnings.  Investor confidence remains low and there
are concerns that European economic growth and corporate earnings will show
little short-term recovery.  Within this context, the Company has, I believe,
made solid progress.


Performance and dividend

During the year the Company continued its policy of committing to new private
equity funds and investing in, and generating distributions from, its existing
portfolio of fund interests. As at 30 September 2002 the Company's NAV was
90.3p, a 4.2% decrease over the NAV of 94.3p as at 30 September 2001. The income
received from the Company's portfolio of private equity fund interests and from
the uninvested cash raised at the time of the Company's listing allows the Board
to recommend a final dividend of 1.2p per ordinary share (period ended 30
September 2001 - 0.45p). Subject to shareholder approval at the forthcoming
Annual General Meeting, this dividend will be paid on 6 February 2003 to
shareholders on the Company's share register as at 10 January 2003. In line with
the Company's dividend policy, the Board did not declare an interim dividend.

Although the Company does not have a defined benchmark, the Company's NAV has
materially out-performed the two relevant major stock indices over both the last
year and since the Company's listing in May 2001. Over these time periods the
Company's NAV has fallen by 4.2% and 8.5% respectively, while the FTSE All-Share
Index has fallen by 23.0% and 36.8% and the MSCI Europe Index (sterling
adjusted) by 25.8% and 41.4% respectively. The Company's out-performance
continues to be driven by its cash and money market holdings and the defensive
quality of many of the underlying investments held within the portfolio of
private equity funds. The closing mid-market price of the Company's ordinary
shares on 30 September 2002 was 82.0p (30 September 2001 - 96.5p).


Valuation and cash flow

In line with the Company's accounting policies, its portfolio of private equity
fund interests is valued by aggregating the most recent valuation of each fund
prepared by the relevant manager, adjusted where necessary for subsequent cash
flows. Of the 31 fund interests held by the Company as at 30 September 2002, 26
of the funds, equating to 91.3% of the portfolio by value, were valued by their
respective fund managers as at that date and 99.0% of the portfolio by value was
valued no earlier than 30 June 2002. Accordingly, the Board believes that the
valuation of the Company's portfolio as at 30 September 2002 is timely and
reflects recent stock market movements. The Board has not used its discretion to
write-down the valuation of any underlying investment below that made by the
manager of the relevant fund.

The value of the portfolio of fund interests as at 30 September 2002 was £86.7
million (30 September 2001 - £71.6 million), reflecting a decline of £10.5
million in the unrealised value of the portfolio over the year. This reduction
arose from write-downs and write-offs of a number of specific underlying fund
investments, partially offset by a £0.4 million unrealised foreign exchange
gain. The reduction in the Company's NAV also reflected the impact of the
one-off start-up costs of the new private equity funds to which the Company has
committed and which conservatively are expensed at the outset of the relevant
fund, rather than amortised.

As anticipated, the Company's investment programme resulted in a decline in its
cash and money market holdings, which fell in aggregate to £60.6 million at the
year end (30 September 2001 - £81.6 million). This decline is expected to
continue in the next financial year, in line with the Company's policy of
seeking, over time, to be fully invested on a cash basis. Initially, the Company
held the bulk of its liquid resources in sterling denominated instruments. With
the Company making increasing commitments to euro denominated private equity
funds, the Board felt it prudent to match this commitment in its liquid
resources.  Accordingly, a total of £75.0 million of the Company's money market
holdings were switched into euro denominated 'AAA' money market funds in
December 2001.


Distributions, draw downs and commitments

After a quiet first half, the pace and quantum of distributions rose in the
third quarter of the Company's financial year as the European mergers and
acquisitions market, and consequently private equity activity, increased.
However, the subsequent downturn in listed financial markets in our final
quarter resulted in a slower pace of realisations in the period immediately
prior to, and post, the Company's financial year end. This precipitated the
deferral of some of the planned exits to which I referred in my interim
statement. Total distributions received during the year from the Company's
portfolio of private equity fund interests were £15.6 million (period 29 May to
30 September 2001 - £7.5 million), of which £3.9 million was realised gains and
£1.2 million was income. This gave an average return on the Company's
acquisition cost of the realised investments of 1.5 times; this compares with an
average of 1.2 times in the period to 30 September 2001.

During the year a total of £36.0 million was drawn down by the 31 private equity
fund interests held by the Company (period ended 30 September 2001 - £5.3
million from 25 funds). Since 31 March 2002, and in light of more attractive
pricing levels for undertaking transactions, investment activity has increased
and this was reflected in the split of cash drawn down between the two halves of
the financial year, with £8.8 million drawn down in the first half and £27.2
million in the second half. In addition, the second half benefited from the
Company's increasing quantum of new commitments.

Since listing, the Company has made aggregate commitments of £215.9 million to
12 private equity funds. Together with the 19 private equity fund interests
acquired from The Standard Life Assurance Company on listing, the Company now
has a portfolio of 31 fund interests; this is in line with the original
objective of having around 35 active private equity fund investments. As at 30
September 2002 the Company's portfolio of 31 fund interests were invested in a
total of 300 underlying investments (30 September 2001 - 280 underlying
investments). The Board believes that the portfolio offers shareholders broad
diversification and exposure to some of the best European private equity funds.

During the financial year the Company committed £113.3 million to six private
equity funds, of which four are buy-out funds - The Alchemy Investment Plan,
Duke Street Capital V Fund, Barclays Private Equity European Fund and
Charterhouse Capital Partners VII - and two are secondary funds involved in the
acquisition of existing private equity fund interests - Pomona Capital V Fund
and Coller International Partners IV.

The Company's aggregate new commitments since listing of £215.9 million (30
September 2001 - £104.4 million) meet the Board's target of committing in excess
of £200 million to new private equity fund interests in the period from listing
to 30 September 2002.  Thus, the first step in the Company's objective of
maximising returns for shareholders through pursuing an over-commitment strategy
and then seeking, over time, to be fully invested has been achieved. The pace of
new commitments will be significantly slower in the next and subsequent
financial years when the quantum of new commitments will be more closely driven
by the Company's actual and projected cash flows. The projected cash flows are
sensitive to the Manager's estimates of draw downs payable and distributions
receivable. The Board recognises this risk and, with the Manager, regularly and
closely monitors the Company's future commitments.

As at 30 September 2002 the Company had outstanding commitments of £191.0
million (30 September 2001 - £117.4 million). These commitments can be expected
to be drawn down over the next 3-4 years.


Share buy-back authority

At the Company's Annual General Meeting in January 2002, shareholders renewed
the Company's authority to make market purchases of up to 14.99% of the ordinary
shares in issue. The Board is proposing to renew such authority at the
forthcoming Annual General Meeting.

During the year the Company purchased a total of 850,000 ordinary shares,
representing 0.5% of the ordinary shares in issue, for cancellation at share
prices ranging from 80p to 82p. All of these transactions were NAV enhancing;
this remains a pre-requisite in the use of the buy-back authority. In addition,
the Company has regard to the supply/demand balance in the Company's ordinary
shares in the market and the size and volatility of any discount to NAV.


Outlook

The Company enjoys the benefit of having acquired on listing a mature portfolio
of private equity fund interests, where many of the underlying investments were
made prior to the inflated asset prices of 1999 and 2000. While the pace of
realisation of underlying investments has slowed, our experience is that where
realisations have been achieved these have been at an increasing average
multiple of the Company's acquisition cost.

Against a weak macro-economic environment and depressed financial markets, the
pricing of current transactions has fallen to levels more favourable to buyers.
In addition, we are seeing increasing steps being taken by European corporates
to focus on their core businesses and to dispose of non-core assets. These
trends are helpful to the Company and give current transactions the potential to
generate attractive long-term returns.


Scott Dobbie CBE
Chairman




STATEMENT OF TOTAL RETURN
for the year ended 30 September 2002
                                                                          Revenue         Capital           Total
                                                                            £'000           £'000           £'000

Net realised gains on investments                                               -           4,114           4,114
Net unrealised depreciation on investments                                      -        (10,445)        (10,445)

LOSSES ON INVESTMENTS                                                                     (6,331)         (6,331)

Currency losses on cash balances                                                -           (121)           (121)
Income from investments                                                     3,755               -           3,755
Interest receivable on short term deposits                                     73               -              73
Investment management fee                                                    (82)           (741)           (823)
Administrative expenses                                                     (291)               -           (291)

RETURN ON ORDINARY ACTIVITIES BEFORE TAXATION                               3,455         (7,193)         (3,738)
Taxation                                                                  (1,037)             223           (814)

RETURN ON ORDINARY ACTIVITIES AFTER TAXATION                                2,418         (6,970)         (4,552)
Dividend in respect of ordinary shares                                    (1,910)               -         (1,910)

Transfer to/(from) reserves                                                   508         (6,970)         (6,462)

RETURN PER ORDINARY SHARE                                                   1.51p         (4.36p)         (2.85p)

DIVIDEND PER ORDINARY SHARE                                                 1.20p





STATEMENT OF TOTAL RETURN
for the period 9 March 2001 to 30 September 2001*
                                                                          Revenue         Capital            Total
                                                                            £'000           £'000            £'000

Net realised gains on investments                                               -           1,151            1,151
Net unrealised depreciation on investments                                      -         (8,141)          (8,141)

LOSSES ON INVESTMENTS                                                           -         (6,990)          (6,990)

Currency losses on cash balances                                                -            (12)             (12)
Income from investments                                                     1,268               -            1,268
Interest receivable on short term deposits                                    105               -              105
Investment management fee                                                    (22)           (195)            (217)
Administrative expenses                                                     (116)            (16)            (132)

RETURN ON ORDINARY ACTIVITIES BEFORE TAXATION                               1,235         (7,213)          (5,978)
Taxation                                                                    (369)              57            (312)

RETURN ON ORDINARY ACTIVITIES AFTER TAXATION                                  866         (7,156)          (6,290)
Dividend in respect of ordinary shares                                      (720)               -            (720)

Transfer to/(from) reserves                                                   146         (7,156)          (7,010)

RETURN PER ORDINARY SHARE                                                   0.54p         (4.47p)          (3.93p)

DIVIDEND PER ORDINARY SHARE                                                 0.45p



* The Company commenced business on 29 May 2001.





BALANCE SHEET
as at 30 September 2002
                                                                                    2002                  2001
                                                                           £'000       £'000      £'000      £'000

FIXED ASSETS
Investments                                                                          146,862               150,599

CURRENT ASSETS
Debtors                                                                      191                    303
Cash and short term deposits                                                 463                  2,603
                                                                             654                  2,906

CREDITORS: Amounts falling due within one year                           (3,710)                (1,940)

NET CURRENT (LIABILITIES)/ASSETS                                                     (3,056)                   966

TOTAL ASSETS LESS CURRENT LIABILITIES                                                143,806               151,565

CREDITORS: Amounts falling due after more than one year                                    -                 (605)
                                                                                     143,806               150,960

CAPITAL AND RESERVES
Called up share capital                                                                  354                   355
Share premium                                                                         77,775                77,775
Special reserve                                                                       79,148                79,840
Capital redemption reserve                                                                 1                     -
Capital reserve - realised                                                             4,460                   985
Capital reserve - unrealised                                                        (18,586)               (8,141)
Revenue reserve                                                                          654                   146

TOTAL SHAREHOLDERS' FUNDS                                                            143,806               150,960

ANALYSIS OF SHAREHOLDERS' FUNDS
Equity interests (ordinary shares)                                                   143,771               150,925
Non-equity interests (founder shares)                                                     35                    35

                                                                                     143,806               150,960

NET ASSET VALUE PER EQUITY SHARE                                                       90.3p                 94.3p




CASHFLOW STATEMENT
for the year ended 30 September 2002
                                                                                 2002                  2001
                                                                           £'000      £'000     £'000       £'000

NET CASH INFLOW FROM OPERATING ACTIVITIES                                             2,927                 1,023

NET CASHFLOW FROM SERVICING OF FINANCE                                                    -                     -

NET CASH OUTFLOW FROM TAXATION                                                        (519)                     -

FINANCIAL INVESTMENT
Purchase of investments                                                 (111,559)             (84,082)
Disposal of investments                                                   108,965                7,238

NET CASH OUTFLOW FROM FINANCIAL INVESTMENT                                          (2,594)              (76,844)

ORDINARY DIVIDENDS PAID                                                               (720)                     -

NET CASH OUTFLOW BEFORE USE OF LIQUID RESOURCES AND FINANCING                         (906)              (75,821)

FINANCING
Issue of ordinary shares                                                        -               79,255
Issue of founder shares                                                         -                   35
Expenses of issue                                                           (606)                (854)
Buyback of ordinary shares                                                  (504)                    -
Expenses of share buyback                                                     (3)                    -

NET CASH (OUTFLOW)/INFLOW FROM FINANCING                                            (1,113)                78,436

(DECREASE)/INCREASE IN CASH                                                         (2,019)                 2,615



Notes :-

1. Standard Life European Private Equity Trust PLC is an investment
company managed by Standard Life Investments (Private Equity) Limited, the
ordinary shares of which are admitted to listing by the UK Listing Authority and
to trading on the London Stock Exchange and which seeks to conduct its affairs
so as to qualify as an investment trust under section 842 of the Income and
Corporation Taxes Act 1988. The Board of Standard Life European Private Equity
Trust PLC is independent of The Standard Life Assurance Company.

2. The statement of total return (incorporating the revenue account),
balance sheet and cashflow set out above do not represent full accounts in
accordance with section 240 of the Companies Act 1985. The accounts have been
prepared in accordance with the Statement of Recommended Practice 'Financial
Statements of Investment Trust Companies'.

3. The revenue column of the statement of total return represents the
revenue account of the Company. No operations were acquired or discontinued
during the year ended 30 September 2002. The investment management fee and
financing costs are allocated 10% to revenue and 90% to capital. The Company was
incorporated on 9 March 2001 and commenced business on 29 May 2001.

4. The Directors recommend that a final dividend of 1.2p (2001 - 0.45p)
per ordinary share be paid on 6 February 2003 to shareholders on the Company's
share register as at the close of business on 10 January 2003.  The ex-dividend
date for the final dividend is 8 January 2003.

5. The Company bought back 850,000 ordinary shares for cancellation
during the year (2001- nil). As at 30 September 2002 the Company had 159,150,000
ordinary shares in issue (30 September 2001-160,000,000 ordinary shares).

6. The statutory audited accounts for the period ended 30 September 2001,
which were unqualified, have been lodged with the Registrar of Companies.  The
statutory accounts for the year ended 30 September 2002 contain an unqualified
audit report and will be delivered to the Registrar of Companies following the
Company's Annual General Meeting, which will be held at 1 George Street,
Edinburgh EH2 2LL on 27 January 2003 at 12.30pm.

7. The report and accounts for the year ended 30 September 2002 will be
posted to shareholders on 20 December 2002 and copies will be available from the
Company Secretary - Edinburgh Fund Managers plc, Donaldson House, 97 Haymarket
Terrace, Edinburgh EH12 5HD.



for Standard Life European Private Equity Trust PLC,
Edinburgh Fund Managers plc,
Company Secretary
END



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