Final Results

SCHRODER JAPAN GROWTH FUND PLC
29 September 1999

Preliminary Results

The Directors of Schroder Japan Growth Fund plc announce the unaudited
preliminary results for the year ended 31 July 1999.

                                 For the year ended    For the year ended
                                   31 July 1999          31 July 1998
                           Revenue   Capital   Total  Revenue   Capital  Total
                             £'000   £'000     £'000    £'000     £'000 £'000
                                                              
Realised                      -      8,191      8,191     -  (8,208) (8,208)
surplus/(deficit) on                                       
sales of investments
Realised exchange             -       948         948     -  (1,084)  (1,084)
rate gain / (loss)                                    
Unrealised surplus/           -    46,167      46,167     - (18,749) (18,749)
(deficit)on                       
investments
Unrealised exchange           -    (3,126)     (3,126)    -   3,094    3,094
rate                              
(deficit)/surplus on
the loan facility
Realised net (loss)/          -       (16)        (16)    -     384      384
gain on forward
foreign exchange
transactions
Dividend income from          768       -         768    619     -       619
listed overseas
investments
Income from bonds              85       -          85     73     -        73
Bank deposit interest          98       -          98    160     -       160
Investment management      (1,113)      -      (1,113)  (896)    -      (896)
fee                        
Administrative               (299)      -        (299)  (289)    -      (289)
expenses                                                    
(Deficit )/return            (461) 52,164      51,703   (333)(24,563)(24,896)
before finance costs               
and taxation
Interest payable             (219)      -        (219)  (226)    -      (226)
                                                              
(Deficit)/return on          (680)   52,164    51,484   (559)(24,563)(25,122)
ordinary activities              
before taxation
Tax on ordinary              (119)      -        (119)  (100)    -      (100)
activities                                                  
(Deficit)/return             (799)  52,164     51,365   (659)(24,563)(25,222)
attributable to             
equity shareholders
Basic and diluted           (0.64p)  41.73p     41.09p (0.53p)(19.65p)(20.18p)
(deficit)/ return per    
ordinary share-pence




                                    Year ended      Year ended
                                   31 July 1999    31 July 1998
Abridged Cash Flow Statement          £'000         £'000
                                                     
Net cash inflow /(outflow) from           86            (446)
operating activities
                                               
Net  cash outflow from  returns         (182)           (274)
on investments and servicing of
finance
                                               
Total tax paid                           (51)            (92)
                                               
Net  cash (outflow)/inflow from      (14,138)          7,562
financial investment
                                               
Net cash inflow/ (outflow) from        9,122          (2,880)
financing
                                                           
Net cash (outflow)/inflow             (5,163)          3,870

                                     As at 31       As at 31
                                     July 1999     July 1998
Assets                                 £'000         £'000
                                                     
Listed investments                   145,304           75,837
                                                           
Net current                             (355)           6,816
(liabilities)/assets
                                                           
Creditors: amounts falling  due      (21,515)         (10,584)
after one year
                                                           
Net Assets                           123,434           72,069
                                                           
Net asset value per share -            98.75p           57.66p
undiluted pence


The principal investment objective of the Company is to achieve capital  growth
from an actively managed portfolio principally comprising securities listed  on
the Japanese stockmarkets, with the aim of achieving growth in excess of the TSE
First Section Index over the longer term.


Statement by the Chairman, Mr Jeremy Hill:


Performance The year to 31st July 1999 saw a marked recovery in the Japanese
Stockmarket and in the currency. The TSE First Section Index rose by 17.2% in
local currency terms and the strengthening of the Yen increased the figure to
48.9% in sterling terms. This compares to a rise in the company's net asset
value of 71.3% and an increase in the share price of 78.6 %, both in sterling
terms.


Corporate developments Gearing At the beginning of the year the Company had
fully drawn its existing loan facility of Yen 2.5 billion with J Henry Schroder
& Co. Limited . During the year a further Yen 1.5 billion facility was put in
place to take advantage of an improving economic outlook in Japan. Both these
facilities were fully drawn as at 31 July 1999, a position that has been
maintained since that date.


AITC Marketing Campaign The Association of Investment Trust Companies has
recently unveiled plans to introduce a generic marketing campaign for investment
trusts, with the aim of increasing awareness of investment trusts as a vehicle
for private investors. Your Board has agreed to participate in this campaign,
since we believe that it will be in the interests of the Company's shareholders.


Outlook One of the encouraging developments of the year has been the success of
Japan's new Prime Minister, Mr Obuchi. Initially perceived as an old-style
conservative, he has delivered pragmatic policies to address the problems in the
banking system and has been successful in stimulating the economy. He has been
re-elected as leader of the LDP this autumn and his popularity with the
electorate has risen substantially.


The other key development of the year was the acceleration in the pace of
corporate restructuring. In addition to a large number of cost cutting and
rationalisation plans, there was a rise in the number of mergers announced. The
recent alliance between three of Japan's largest banks (DKB, IBJ and Fuji Bank)
and the decision by Hitachi and NEC to combine their semiconductor businesses
illustrates how significantly managements have begun to change their attitudes
towards shareholders' interests.


Despite record levels of unemployment there has been growing evidence in the
latter part of the year to 31 July 1999 that the Japanese economy may be
recovering. In part, this reflects further public spending increases, but there
has also been an improvement in exports to Asia, because of recovery in the
region, and an unexpected pick-up in some areas of consumption. Although the
positive trend of corporate restructuring seems well established, this economic
recovery appears less well underpinned. The recent strength of the Yen and the
absence of fiscal stimulus are both threats to continued recovery next year.


Your Board 

Mr Lyle has expressed a wish to retire as a director of the Company
with effect from the Annual General Meeting. On behalf of the Board I would like
to take this opportunity to thank him for the benefit of his wise counsel and
advice since the launch of the Company.


I am pleased to announce that Mr Taylor was appointed to the Board in July of
this year. He is chairman and managing director of Dragon Partners Limited and
was previously a director of Baring Asset Management Limited.


Warrantholders' Circular 

On 30 November 1999 Warrantholders will have the fourth
opportunity to exercise their subscription rights. I will be writing separately
to warrantholders reminding them of this opportunity and setting out the steps
they must take if they wish to exercise their subscription rights.
Warrantholders are reminded, however, that they will have further opportunities
to exercise their subscription rights in any of the years 2000 to 2004. Annual
General Meeting The Annual General Meeting will be held on Wednesday 17 November
1999 and shareholders are invited to attend. The meeting will include a
presentation by the investment manager on the prospects for the Japanese economy
and on investment strategy.


Jeremy Hill
Chairman


Annual Report and Accounts 

The Annual Report and Accounts will be mailed to
registered shareholders at their registered addresses on 8 October, 1999 and
from that date copies of the Annual Report and Accounts will be made available
at the Company's registered office, 31 Gresham Street, London, EC2V 7QA.


Enquiries:           Schroder Investment Management Limited

Christine Higgens                                 (0171 658 3496)
29 September 1999

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