Final Results

RIT Capital Partners PLC
10 May 2001


                                                                   10 May 2001

                 PRELIMINARY ANNOUNCEMENT FOR THE YEAR ENDED

                                31 MARCH 2001

PERFORMANCE

The year to 31 March 2001 was one of the most difficult and challenging of the
last decade, as is well illustrated by the decline in stock market indices
during this period.

Morgan Stanley Capital International (in £)                          -16.8%
FTSE All-Share                                                       -12.8%
Investment Trust Net Assets                                          -17.5%
S & P Composite (in £)                                               -13.1%
NASDAQ (in £)                                                        -54.8%

The Company's net asset value per share declined by 5.7% from 509.0p to
480.2p, after deducting the proposed dividend. This is disappointing in the
sense that the net asset value has not increased over the year, but represents
a relatively satisfactory performance in comparison with the indices.

The most recent net asset value of 496.6p at 8 May 2001, after deducting the
proposed dividend, represents an increase of 3.4% since the year end and a
recovery of most of the decline in the period under review. The Company has
therefore come through a period of extraordinary market turbulence relatively
unscathed.

Since its inception in 1988, RITCP has outperformed the relevant indices by a
considerable margin, with an increase in capital value of 353.4%, compared
with increases of 181%, 180.6% and 172.6% in the Morgan Stanley Capital
International Index (in £), the FTSE All-Share Index and the Investment Trust
Net Assets Index respectively.

ASSET ALLOCATION

Set out below is the Company's asset allocation at the year end.

                                           % of Portfolio        % of Portfolio
                                              at 31 March      at 31 March 2000
                                                     2001

Quoted investments                                   33.1                  58.0
Hedge funds                                          17.4                   7.2
Unquoted investments                                 18.8                  17.1
Private equity partnerships                           6.9                   3.4
Government securities (liquidity)                    20.2                  10.9
Property                                              3.6                   3.4


The main changes in the asset allocation over the past year were:

        *     A significant reduction in quoted investments, from 58% of the
              portfolio to 33.1%.

        *     An increase in government securities and liquidity, from 10.9%
              to 20.2%.

        *     An increase in hedge fund investments, from 7.2% to 17.4%.

        *     Some increase in our investments in private equity partnerships,
              from 3.4% to 6.9%. A substantial part of the monies committed in  
              this area have not as yet been drawn down.

At the year end, 45.8% of the portfolio was invested in the USA, 33.1% in the
UK, 7.4% in Germany, 3.1% in Canada and 2.9% in Japan, with the balance of
7.7% in other countries

THE QUOTED PORTFOLIO

At the year end, £246.7 million, or 33.1% of the portfolio was held directly
in quoted investments. A further £130.2 million, or 17.4% of the portfolio,
was held in hedge funds which invest mainly in quoted securities. Taking these
two categories together (but excluding the holdings of government securities),
just over 50% of the portfolio was invested in quoted or other marketable
securities.

Quoted Investments

In last year's Statement the Chairman commented on the Company's concern about
stock market valuations, particularly of 'new economy' growth stocks. In
response to this uncertainty, the Company has maintained a significant element
of the portfolio in government securities, amounting to £150.6 million, or
20.2% of the portfolio, at the year end. While the Company remains cautious
about stock markets generally, it is well placed to take advantage of the
opportunities which inevitably occur after a period of market weakness.

The proportion of the quoted portfolio which was invested in the most volatile
area, the American NASDAQ stock exchange, was relatively minor and was largely
limited to investments which had originally been made in unquoted companies.
In a number of these instances, the holdings were reduced substantially, early
in the year, taking advantage of the higher prices then available.

Hedge Funds

The diversification of the portfolio, particularly into areas which are less
directly correlated to stock markets, has been a strength in the period under
review. During the year, for instance, the Company increased its allocation to
'hedge' funds, particularly those which aim to produce absolute and consistent
returns. Within this category, the investment in hedge funds which specialise
in 'merger arbitrage' was increased.

The Company believes that its investments in these funds provide its
shareholders with access to money managers with specialised expertise and
successful performance records, whose funds are, in many cases, closed to new
investors.

THE UNQUOTED PORTFOLIO

The Company's exposure to the unquoted sector results either from investments
which have been made directly by RITCP's own management, or from investments
in externally managed partnerships which make private equity investments. In
total, some £191.1 million, or 25.7% of the portfolio, is invested in this
sector: £139.9 million, or 18.8%, by RITCP's own management and £51.2 million,
or 6.9%, through investment in limited partnerships managed by third parties.

Unquoted Investments

Among the unquoted investments made by RITCP's own team, there are a number of
holdings, valued at some £28 million, in the US power supply sector. The
Company has for some time regarded this as a particularly promising area and
interest in this sector has been considerable, prompted partly by power
shortages in the US. Examples of this theme are Cherokee, Power Measurement
and Xantrex. Similarly, in the quoted portfolio, two of the Company's three
largest investments, Caminus (which was the subject of an IPO last year) and
Turbo Genset, fall into the same category.

Private Equity Partnerships

These are mostly managed by leading US private equity firms and are, in many
cases, difficult to access, even for institutional investors. Because of the
risk inherent in venture capital, the Company has concentrated its investments
with well established firms that have achieved strong track records. Broadly
speaking, these partnerships invest mainly in venture capital and, to a lesser
extent, in leveraged buy-outs. The commitment to invest is made when the
partnership is formed; the actual funding normally occurs over a three to five
year period as investments are identified, with money being returned to
investors as investments are realised. While the Company's investments in such
partnerships amount to £51.2 million, it has additional commitments of £90.4
million.

Most of the partnerships to which the Company has made commitments have not
drawn down the greater part of the capital which was recently committed. This
has protected the Company, to a large extent, from the severe decline in
valuations in the high technology and telecommunications sectors.

With partnerships which have existing exposure to these sectors, the Company
has reviewed the underlying investments and, where necessary, reduced the
valuations. The Company has taken a similarly rigorous approach to its own
directly held unquoted investments and has reduced valuations to reflect
changed conditions.

Property

The Company's property investments, valued at £26.9 million, or 3.6% of the
portfolio, are concentrated in St James's Place in central London, and remain
largely unchanged.

SHARE BUY-BACK

During the first half of the year, RITCP bought back 2.575 million of its own
shares for cancellation at a cost of some £11 million. As the shares were
acquired at a discount to their underlying value, the repurchases increased
the Company's asset value by 1.4p per share.

The extent to which the Company can make use of this facility is limited, in
practice, by the number of shares that become available and by the discount to
the underlying net asset value, which has narrowed during the course of the
year.

The Company will be seeking shareholders' approval at this year's AGM for the
renewal of its buy-back facility.

RESULTS AND DIVIDENDS

The total reduction in net assets for the year under review was £40.1 million,
of which £62.8 million was attributable to capital, partly offset by a £22.7
million revenue profit. In the previous year the total return was £171.6
million, of which £155.3 million related to capital and £16.3 million to
revenue. These figures exclude taxation, the proposed dividend and the cost of
the share buy-back.

The Company proposes to pay a dividend of 3.1p per share on 6 July 2001 to
shareholders on the register at 8 June 2001, the same dividend as last year.
As was the case last year, the unusually high level of the dividend is mainly
due to the relatively high levels of income generated by our holdings of
government securities and might not be sustainable in future years. As always,
the focus of the Company is on achieving capital growth rather than providing
dividend income.


For further information please contact: Duncan Budge     020-7514 1928


CONSOLIDATED STATEMENT OF TOTAL RETURN

for the year ended 31 March 2001
                                            Revenue       Capital        Total
                                              £'000         £'000        £'000

Losses on investments                             -       (59,402)     (59,402)
Dealing profits                              10,104             -       10,104
Investment income                            22,312             -       22,312
Other income                                    498             -          498
Administrative expenses                      (5,985)            -       (5,985)
Investment management fees                   (3,647)            -       (3,647)
Other capital items                               -        (3,398)      (3,398)
Net return before finance costs              23,282       (62,800)     (39,518)
and taxation
Interest payable and similar                   (560)            -         (560)
charges
Return/(loss) on ordinary activities         22,722       (62,800)     (40,078)
before taxation
Taxation on ordinary activities              (5,862)        3,283       (2,579)

Return/(loss) on ordinary activities
after taxation attributable to               16,860       (59,517)     (42,657)
equity shareholders
Dividends                                    (4,802)            -       (4,802)

Transfer to/(from) reserves                  12,058       (59,517)     (47,459)

Return/(loss) per ordinary share              10.7p        (37.8p)      (27.1p)
Net asset value per ordinary share                                      480.2p


The revenue column of this statement is the consolidated profit and loss
account of the Group.

The accompanying notes are an integral part of this statement.

All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or discontinued in the period.

CONSOLIDATED STATEMENT OF TOTAL RETURN

for the year ended 31 March 2000
                                           Revenue       Capital         Total

                                             £'000         £'000         £'000

Gains on investments                             -       167,799       167,799
Dealing profits                              2,055             -         2,055
Investment income                           23,397             -        23,397
Other income                                   642             -           642
Administrative expenses                     (5,156)            -        (5,156)
Investment management fees                  (3,221)            -        (3,221)
Premium on purchase of                           -        (1,172)       (1,172)
convertible stock
Currency translation of US Dollar                -         1,333         1,333
loan notes
Other capital items                              -       (12,677)      (12,677)


Net return before finance costs             17,717       155,283       173,000
and taxation
Interest payable and similar                (1,360)            -        (1,360)
charges
Return on ordinary activities               16,357       155,283       171,640
before taxation
Taxation on ordinary activities             (2,550)        1,669          (881)

Return on ordinary activities
after taxation attributable to              13,807       156,952       170,759
equity shareholders
Dividends                                   (4,613)            -        (4,613)


Transfer to reserves                         9,194       156,952       166,146

Return per ordinary share                     8.5p         96.1p        104.6p

Basic
Diluted                                       8.2p         92.0p        100.2p
Net asset value per ordinary share                                      509.0p



The revenue column of this statement is the consolidated profit and loss
account of the Group.

The accompanying notes are an integral part of this statement.

All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or discontinued in the period.

CONSOLIDATED BALANCE SHEET
                                                       31 March       31 March
                                                           2001           2000
                                                          £'000          £'000
Fixed assets
Investments                                             745,486        796,687

Tangible fixed assets                                       259            196

                                                        745,745        796,883

Current assets                                           57,674         78,942
Creditors: Amounts falling due                          (41,699)       (30,727)
within one year
Net current assets                                       15,975         48,215
Total assets less current                               761,720        845,098
liabilities
Creditors: Amounts falling due after
more than one year:
Bank loans                                                    -        (24,414)
Provisions for liabilities                               (8,527)        (9,298)
and charges
                                                        753,193        811,386
Capital and reserves
Called up share capital                                 156,848        159,423
Capital redemption reserve                               33,308         30,733
Capital reserve - realised                              518,383        458,180
Capital reserve - unrealised                             17,803        148,491

Revenue reserve                                          26,851         14,559
Equity shareholders' funds                              753,193        811,386


CONSOLIDATED CASH FLOW STATEMENT
                                                  Year Ended        Year Ended
                                                    31 March          31 March
                                                        2001              2000
                                                       £'000             £'000

Cash inflow from                                      20,692             4,136
operating activities
Servicing of finance
Bank and loan interest paid                             (563)             (716)
Interest on convertible stock                              -              (184)
Interest on US Dollar loan notes                           -            (6,035)
Net cash outflow from servicing                         (563)           (6,935)
of finance
Taxation
UK tax paid                                           (1,240)              (33)
Overseas tax paid                                       (953)             (864)
Net cash outflow from taxation                        (2,193)             (897)
Financial investment
Purchase of investments                             (562,814)         (361,113)
Sale of investments                                  626,294           580,358
Net cash inflow from financial                        63,480           219,245
investment
Capital expenditure
Purchase of fixed assets                                (247)             (100)
Sale of fixed assets                                      71                10
Net cash outflow from capital                           (176)              (90)
expenditure
Equity dividends paid                                 (4,882)           (3,674)
Net cash inflow before
management of liquid resources                        76,358           211,785
and financing
Management of liquid resources
Purchase of government                              (560,524)         (762,685)
securities
Sale of government securities                        497,540           763,222
Net cash (outflow)/inflow from                       (62,984)              537
management of liquid resources
Financing
Buy-back of ordinary shares                          (10,968)         (114,047)
Increase in term loans                                     -            24,414
Repayment of US Dollar loan                                -           (91,587)
notes
Purchase of convertible stock                              -            (1,582)
Net cash outflow from financing                      (10,968)         (182,802)
Increase in cash in the year                           2,406            29,520



NOTES

1     RETURN/(LOSS) PER ORDINARY SHARE

The return per share for the year ended 31 March 2001 is based on the revenue
return after tax of £16.9 million (31 March 2000 - £13.8 million) and the
capital loss after tax of £59.5 million (31 March 2000 - capital return after
tax of £157.0 million) and the weighted average number of ordinary shares in
issue during the year of 157.3 million (31 March 2000 - 163.3 million).

The diluted return per share for the year ended 31 March 2000 is based on the
revenue return after tax of £13.9 million, the capital return after tax of £
157.0 million, and the weighted average diluted number of ordinary shares in
issue during the year of 170.6 million.

2     NET ASSET VALUE PER ORDINARY SHARE

The net asset value per share at 31 March 2001 is based on the net assets
attributable to ordinary shareholders of £753.2 million (31 March 2000 - £
811.4 million) and the number of ordinary shares in issue at 31 March 2001 of
156.8 million (31 March 2000 - 159.4 million).

3     MOVEMENTS IN FIXED ASSET INVESTMENTS

                            Unquoted                      Funds and
                    Quoted       and  Government       Partnerships      Total
                     £'000  Property  Securities              £'000      £'000
                               £'000       £'000

At 31 March 2000   461,978   163,649     86,921              84,139    796,687
Reclassifications    1,255    (1,255)         -                   -          -
Additions          441,824    20,307    560,524             103,140  1,125,795
Disposals         (630,643)   (8,173)  (498,156)             (4,601) (1,141,573)
Revaluation        (27,772)   (7,721)     1,352              (1,282)   (35,423)
At 31 March 2001   246,642   166,807    150,641             181,396    745,486



4     SHARE CAPITAL

The Company purchased 2,575,000 shares for cancellation during the year at a
cost of £11 million. This amount has been charged to capital reserve.

5     CONTINGENCIES AND FINANCIAL COMMITMENTS

There has been no material change to the position reported at 31 March 2000 in
connection with the litigation proceedings issued in New York by Richbell
Information Services Inc.

6     UNAUDITED STATEMENTS

The results for the year ended 31 March 2001 are unaudited and do not
constitute statutory accounts within the meaning of Section 240 of the
Companies Act 1985. Statutory accounts for the year ended 31 March 2000 have
been delivered to the Registrar of Companies. The auditors have made a report
under Section 235 of the Companies Act 1985 on those statutory accounts which
was unqualified and did not contain a statement under Section 237 (2) or (3)
of the Companies Act 1985.

7     ANNUAL REPORT

The Company's annual Report and Accounts for the year ended 31 March 2001 will
be posted to shareholders on Monday 21 May 2001. Copies of this announcement
and the annual Report will be available to the public at the Company's
registered office at 27 St James's Place, London SW1A 1NR.