Final Results

SchroderJapan Growth Fund PLC
28 September 2004

                                                               28 September 2004


Press Release

                              PRELIMINARY RESULTS

The Directors of Schroder Japan Growth Fund plc announce the unaudited
preliminary results for the year ended 31 July 2004.

                                              For the year ended                For the year ended
                                                 31 July 2004                      31 July 2003

                                           Revenue    Capital      Total     Revenue     Capital    Total

                                             £'000      £'000      £'000       £'000       £'000     £'000

Gains/ (Losses) on investments                   -     21,774     21,774           -     (3,591)      (3,591)
Realised exchange losses on currency             -       (46)       (46)           -       (190)     (190)
balances
Unrealised exchange gains  on the                -        907        907           -         738       738
loan facility
Income                                       1,460          -      1,460       1,297           -     1,297
Investment management fee                  (1,240)          -    (1,240)     (1,008)           -   (1,008)
Administrative expenses                      (387)          -      (387)       (326)           -     (326)
(Deficit)/return  before finance             (167)     22,635     22,468        (37)     (3,043)   (3,080)
costs and taxation
Interest payable                             (292)          -      (292)       (297)           -     (297)
(Deficit)/ return on ordinary                (459)     22,635     22,176       (334)     (3,043)   (3,377)
activities before taxation
Tax on ordinary activities                   (116)          -      (116)       (155)           -     (155)
(Deficit)/ return attributable to            (575)     22,635     22,060       (489)     (3,043)   (3,532)
equity shareholders
(Deficit)/ return per ordinary             (0.46)p     18.10p     17.64p     (0.39)p     (2.43)p   (2.82)p
share-pence




                                                                         Year ended 31           Year ended 31
                                                                           July 2004               July 2003
Abridged Cash Flow Statement                                                 £'000                  £'000

Net cash outflow from operating activities                                    (148)                   (43)

Net cash outflow from returns on investments and servicing                    (299)                  (302)
of finance

Total tax paid                                                                (116)                  (155)

Net cash  inflow/(outflow) from financial investment                          3,435                (3,216)

Net cash inflow/(outflow)                                                     2,872                (3,716)


                                                                             As at                   As at
                                                                         31 July 2004            31 July 2003
Assets                                                                                               £'000

Listed investments                                                          127,535                108,973

Net current (liabilities)/assets                                           (16,276)                    869

Creditors: amounts falling due after one year                                     -               (20,643)

Net Assets                                                                  111,259                 89,199

Net asset value per share - undiluted pence                                  89.00p                 71.36p

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 2004 does not constitute
the Company's statutory accounts for that financial year.  Statutory accounts
for the financial year ended 31 July 2003 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 2004 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.



Chairman's Statement

This is my first report to you as your Chairman and it coincides with an
important event in the life of your Company, which celebrates its 10th
anniversary this year. I am pleased to report that we have experienced good
performance for the year under review. As I mention in more detail below, a
resolution to continue the Company for a further 5 years will be proposed at our
Annual General Meeting this year, and the Board are recommending that you vote
in favour.

We believe that proper research and good stock selection are the keys to success
in this market. The role of your Board is to set a strategy and appoint the
manager most appropriate to that strategy and it is our view that Schroders
provide the proper standard and style for the management of your Company and
your investments.

Key Events

  • Increase of 24.72% in undiluted net asset value per share (from 71.36p per
    share to 89.00p per share) during the year ended 31 July 2004, significantly
    out-performing the Company's benchmark index, which produced a total return
    of 17.03% in sterling terms over the same period.
  • Continued out-performance against the Association of Investment Trust
    Companies ('AITC') Japan peer group average during the year under review.

Directors

My predecessor, Jeremy Hill, has retired after chairing the Company since its
launch and I should like to express our gratitude to him for leading the Company
through some difficult and complicated markets with great sensitivity and
judgement.

I should like to welcome John Scott, whom we appointed to your Board as an
independent non-executive Director on 20 April 2004. In accordance with the
Articles of Association, Mr Scott offers himself for election at the forthcoming
Annual General Meeting. Full biographical details for Mr Scott may be found in
the Annual Report and Accounts.

Gearing

During the year ended 31 July 2004 the Company maintained loans totalling Yen
4.0 billion with Allied Irish Banks plc and ING Bank NV. The Yen 2.5 billion
fixed term loan was repaid on 25 August 2004 and replaced with a revolving
credit facility of the same amount, increasing flexibility for the Board.

As previously stated, the Directors do not expect gearing levels to exceed 25%
of shareholders' funds. The gearing continues to be operated within the limits
agreed by the Board. At the beginning of the year, the effective gearing ratio
(borrowings less cash and short-term deposits as a percentage of net assets) was
21.8%, and this had reduced to 14.1% at 31 July 2004.

Continuation Vote

In accordance with the provisions of the Company's Articles of Association, a
resolution for the continuation of the Company as an investment trust for a
further five-year period has been included in the Notice of the Annual General
Meeting, to be held on Wednesday 10 November 2004.

Your Board unanimously recommends that shareholders vote in favour of the
continuation of the Company as an investment trust for a further five-year
period, and Directors will be voting their own shareholdings accordingly. Whilst
we review the performance and strategic position of your Company regularly,
before making this recommendation the Board has undertaken a specific review of
the Company's position: we have examined the prospects for the Japanese economy
and equity markets, the benefits of the structure of investment trusts as
collective investment vehicles and the depth of management and resource provided
by Schroders as Investment Manager.

We remain positive on the prospects for the Japanese stock market and believe
that the depth of experience and resource of our Investment Manager will
continue to help the Company to meet its investment objectives. The Manager's
investment style is well known to shareholders, analysts and market
commentators, and we believe that this continues to assist the rating of the
share price compared to the peer group.

Share Purchases

The Company has powers to buy back its own shares. The share buy-back facility
is one of a number of tools that may be used to reduce the discount volatility.
During the year, the Directors have not used the authority given to them and no
purchases have been made. A resolution to renew the share buy-back authority is
included in the Notice of the Annual General Meeting, to provide maximum
flexibility in the future.

Final Warrant Exercise Date

A Circular to warrantholders will be distributed with the Annual Report and
Accounts in accordance with the Terms and Conditions of the Warrants. The
Circular will remind warrantholders of the final opportunity to exercise their
warrants on 30 November 2004 should market conditions justify this.

Corporate Governance

During the year under review, the governance environment for investment trusts
has changed significantly. The Financial Reporting Council published a revised
Combined Code in July 2003 and the new code will apply to the Company for the
year ending 31 July 2005. The AITC also published their own code of governance
for AITC member companies.

The Board has taken steps to meet the requirements of both of these codes, and
further details may be found in the Corporate Governance section of the Annual
Report and Accounts.

Outlook

Your Board believes the outlook for the Japanese market remains positive. We
continue to be encouraged by what we see at a company level. The recent results
season again demonstrated that cost-cutting and restructuring provide the best
route to profit growth in an environment of steady economic recovery.

We believe that the rotation from low to high quality companies will continue to
gather pace and that many of the portfolio's most overweight positions are still
significantly undervalued. Correspondingly we remain overweight in cheap, cash
generative, good quality companies, and the portfolio maintains its mild
cyclical bias. The Company also continues to use its gearing facilities,
although borrowings were reduced during the year under review.

Annual General Meeting

The Annual General Meeting will be held on Wednesday 10 November 2004 and
shareholders are encouraged to attend. The meeting will follow our usual format,
which includes a presentation on the prospects for the Japanese economy and
investment strategy.



Jonathan Taylor
Chairman



ANNUAL REPORT AND ACCOUNTS

The Annual Report and Accounts will be mailed to registered shareholders at
their registered addresses. 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)
28 September 2004


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