Final Results

SchroderJapan Growth Fund PLC
11 October 2002


                                                                 11 October 2002



Press Release

                              Preliminary Results



The Directors of Schroder Japan Growth Fund plc announce the unaudited
preliminary results for the year ended 31 July 2002.

                                                   For the year ended                    For the year ended

                                                      31 July 2002                          31 July 2001
                                                Revenue     Capital       Total      Revenue     Capital       Total
                                                  £'000       £'000       £'000        £'000       £'000       £'000

Realised (losses)/ gains on investments               -     (3,227)     (3,227)            -       6,159       6,159
Realised exchange rate losses                         -       (319)       (319)            -       (358)       (358)
Unrealised losses on investments                      -    (17,122)    (17,122)            -    (31,101)    (31,101)
Realised exchange gains / (losses) on                 -         412         412            -       (897)       (897)
the loan facility
Unrealised exchange gains on the loan                 -         680         680            -       2,798       2,798
facility
Income                                            1,227           -       1,227        1,406           -       1,406
Investment management fee and                   (1,492)           -     (1,492)      (1,727)           -     (1,727)
administrative expenses
Deficit before finance costs and                  (265)    (19,576)    (19,841)        (321)    (23,399)    (23,720)
taxation
Interest payable                                  (312)           -       (312)        (343)           -       (343)
Deficit on ordinary activities before             (577)    (19,576)    (20,153)        (664)    (23,399)    (24,063)
taxation
Tax on ordinary activities                        (181)           -       (181)        (204)           -       (204)
Deficit attributable to equity                    (758)    (19,576)    (20,334)        (868)    (23,399)    (24,267)
shareholders
Basic and diluted deficit per ordinary          (0.61)p    (15.66)p    (16.27)p      (0.69)p    (18.72)p    (19.41)p
share-pence



                                                           Year ended 31 July 2002   Year ended 31 July 2001
Abridged Cash Flow Statement                                        £'000                     £'000

Net cash outflow from operating activities                                     (324)                    (363)

Net cash outflow from returns on investments and                               (320)                    (341)
servicing of finance

Total tax paid                                                                 (185)                    (180)

Net cash inflow / (outflow) from financial investment                          2,839                  (2,753)

Net cash outflow from financing                                                (319)                    (376)

Net cash inflow/ (outflow)
                                                                               1,691                  (4,013)


                                                              As at 31 July 2002        As at 31 July 2001
Assets                                                                                        £'000

Listed investments                                                           109,255                  132,536

Net current assets / (liabilities)                                             4,857                  (5,424)

Creditors: amounts falling due after one year                               (21,381)                 (14,047)

Net Assets
                                                                              92,731                  113,065


Net asset value per share - undiluted pence
                                                                              74.18p                   90.45p

Net asset value per share - diluted pence
                                                                                 N/A                      N/A




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 Total Return Index over the longer term.

Notes

The above financial information is unaudited and does not amount to statutory
accounts under Section 240 of the Companies Act 1985 (as amended). The
information given for the financial year ended 31 July 2001 does not constitute
the Company's statutory accounts for that financial year. Statutory accounts for
the financial year ended 31 July 2001 have been reported on by the Company's
auditors and delivered to the Registrar of Companies. The report of the auditors
was unqualified and did not contain a statement under Section 237(2) or (3) of
the Companies Act 1985.

The statutory accounts for the year ended 31 July 2002 will be finalised on the
basis of the financial information presented by the Directors in this
preliminary announcement and will be delivered to the Registrar of Companies
following the Company's Annual General Meeting.

This announcement is prepared on the basis of the accounting policies as set out
in the most recent published set of annual financial statements.

Statement by the Chairman, Mr Jeremy Hill:

Key Events


  • Decrease of -17.98% in net asset value per share during the year ended 31
    July 2002 compared with a negative total return from the Company's benchmark
    Index of -22.12% in sterling terms.

  • Continued out-performance against the Company's benchmark Index and AITC
    peer group.

  • Share price fell by 14.5%

  • As in previous years, no final dividend payment has been proposed for the
    year ended 31 July 2002.

Performance

During the year ended 31 July 2002, the net asset value of the Company decreased
by -17.98% as compared with a decrease in the Tokyo Stock Exchange 'TSE' First
Section Total Return Index of -22.12%. The absolute performance of the Company
continued to be disappointing but relative performance, both against the
benchmark and the peer group, was more encouraging. Over the period the share
price fell by 14.5%, a slightly smaller decline as the discount to the Net Asset
Value narrowed.

Gearing

During the year the Company maintained a loan facility of Yen 2.5 billion with
Allied Irish Banks plc. A further Yen 1.5 billion repayable on 29 April 2002 was
replaced with a Yen 1.5 billion facility with ING Bank NV repayable on 30 April
2005. The remaining Yen 2.5 billion loan is repayable on 29 August 2004. At 31
July 2002, the gearing ratio (borrowings less cash and short-term deposits as a
percentage of net assets) was 18%.

Share and Warrant Purchases

The Company has powers to buy back its own shares and warrants. The share buy
back facility is one of a number of tools that may be used to enhance
shareholder value. During the year, the Directors have not utilised the
authority given to them and no purchases have been made. Your Board believes
that there are other tools which may be used to address the discount of the
Company's shares, in particular sustained good performance compared to peer
group companies, which can have as much effect.

A resolution to renew the share buy back authority is included in the Notice of
the Annual General Meeting.

Warrantholders' Circular

On 30 November 2002, warrantholders will have a further opportunity to exercise
their subscription rights. A Circular reminding them of this opportunity and
setting out the steps they must take if they wish to exercise their subscription
rights will be distributed with the Report and Accounts. I would like to remind
warrant holders, however, that they will have further opportunities to exercise
their subscription rights in each of the years 2003 and 2004.

Articles of Association

The Company's current Articles of Association were adopted in 1997. Since then
there have been certain changes to company law and practice. Most notably, The
Companies Act 1985 (Electronic Communications) Order 2000 enables companies to
use electronic communications as an alternative to traditional means of
communication. In February 2001, the UK Listing Authority amended the Listing
Rules to allow listed companies (subject to certain conditions) to use
electronic communications for sending documents to shareholders and to publish
documents on a website, instead of sending them by conventional means.

We are therefore proposing to adopt revised Articles of Association. These will
allow the company, where the shareholder agrees, (a) to send the shareholder by
electronic means certain information required relating to the Company (e.g.
notices, proxy forms and accounts) or (b) to place such information on a website
or other electronic noticeboard, but only if the shareholder has been sent
notice that it is available in this way.

The revised Articles of Association do not compel shareholders to receive
documents in electronic form and this method of communication will only apply to
those shareholders who make appropriate elections when and if these services are
made available by the Company. Shareholders who do not make an election to send
or receive documents electronically will continue to receive communications by
traditional means. There are also a number of other minor changes proposed,
principally to reflect other minor legislative changes over the last five years.

Outlook

The market has continued to weaken materially since the year ended 31 July 2002.
Notwithstanding the gloomy macroeconomic picture, corporate newsflow in Japan
has been more encouraging and profits are showing signs of recovery on the back
of restructuring.

The portfolio retains its bias towards smaller companies with strong balance
sheets and substantial cashflow.

We believe that the low level of valuations and good momentum of profit growth
should allow positive returns from today's levels and accordingly the Company
continues to use its gearing facility.

Annual General Meeting

The Annual General Meeting will be held on Thursday 14 November 2002 and
shareholders are invited to attend. The meeting will follow our usual format,
which includes a presentation 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 in October 2002 and from the date of release 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

John Spedding     (0207 658 3206)

11 October 2002


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