Interim Results

SchroderJapan Growth Fund PLC
11 March 2003





Press Release

11 March 2003


                                Interim Results


The Directors of Schroder Japan Growth Fund plc announce the unaudited interim
results for the six months ended

31 January 2003.


Financial Highlights

                                                                 31 January 2003      31 July 2002          Change %

Total assets (£'000)+                                                     97,909           114,112           (14.20)
Total borrowing (£'000)                                                 (20,290)          (21,381)             -5.10
Shareholders' funds (£'000)                                               77,619            92,731           (16.30)
Shares in issue ('000)                                                   125,004           125,004                 -
Undiluted net asset value per share - pence                               62.09p            74.18p           (16.30)
TSE First Section Total Return (in sterling terms) Index                    4.66              5.74           (18.82)
Share price - pence                                                       54.75p            69.25p           (20.94)
Share price discount                                                      11.82%             6.65%               N/A
Market capitalisation (£'000)                                             68,440            86,565           (20.94)


+ Calculated in accordance with Association of Investment Trust Companies'
(AITC) guidance and comprises shareholders' funds plus gearing used for
investment purposes.



                                               Six months ended                         Six months ended

                                               31 January 2003                           31 January 2002
                                        Revenue       Capital         Total       Revenue       Capital         Total
                                          £'000         £'000         £'000         £'000         £'000         £'000
Realised losses on investments                -       (1,871)       (1,871)             -         (521)         (521)
Unrealised losses on investments              -      (13,854)      (13,854)             -      (21,386)      (21,386)
Realised exchange rate losses                 -         (152)         (152)             -         (435)         (435)
Unrealised exchange rate gain on              -         1,091         1,091             -         1,318         1,318
the loan facility
Investment Income                           531             -           531           551             -           551
Bank deposit interest                         8             -             8             8             -             8
Investment management fee and             (642)             -         (642)         (758)             -         (758)
administration expenses
Deficit before finance costs and          (103)      (14,786)      (14,889)         (199)      (21,024)      (21,223)
taxation
Interest payable                          (144)             -         (144)         (156)             -         (156)
Deficit on ordinary activities            (247)      (14,786)      (15,033)         (355)      (21,024)      (21,379)
before taxation
Tax on ordinary activities                 (79)             -          (79)          (83)             -          (83)
Deficit attributable to equity            (326)      (14,786)      (15,112)         (438)      (21,024)      (21,462)
shareholders
Deficit per ordinary share              (0.26)p      (11.83)p      (12.09)p       (0.35)p      (16.82)p      (17.17)p




                                                                    Six months ended 31       Six months ended 31
                                                                       January 2003              January 2002
Abridged Cash Flow Statement                                                 £'000                     £'000

Net cash outflow from operating activities                                     (147)                    (199)

Net cash outflow from servicing of finance                                     (152)                    (164)

Tax paid                                                                        (76)                     (83)

Net cash (outflow) /(inflow)from financial investment                        (2,103)                    2,723

Net cash outflow from financing                                                (151)                    (435)

Net cash (outflow)/inflow                                                    (2,629)                    1,842


                                                                   As at 31 January 2003       As at 31 July 2002
Assets                                                                     £'000                     £'000

Listed investments at market value                                            95,725                  109,255

Other current assets                                                           2,184                    4,857

Creditors: amounts falling due after one year                               (20,290)                 (21,381)

Net Assets                                                                    77,619                   92,731


Net asset value per share - undiluted                                         62.09p                   74.18p


Net asset value per share - diluted                                               -                        -



Notes

1.     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 as comparative figures for the financial year ended 31 July
2002 does not constitute the Company's statutory accounts for that financial
year. Statutory accounts for the financial year ended 31 July 2002 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.

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

The calculation of the returns per share is based upon the net return
attributable to shareholders and the issued share capital of each class.

2.     Calculation of the undiluted net asset value per share is based on
125,003,500 ordinary shares in issue (31 January 2002 and 31 July 2002 : the
same). A diluted net asset value is not shown for any period. The diluted net
asset value is calculated in accordance with the SORP. It is based on the
assumption that the 24,996,500 warrants in issue at 31 January 2003, (31 January
2002 and 31 July 2002: the same) are converted into ordinary shares. Dilution
occurs if the undiluted net asset value is greater than the warrant exercise
price of £1.00.


The following is the text of the Investment Manager's Review for the six months
ended 31 January 2003


Performance


The Company's undiluted net asset value fell 16.30% over the six months to 31
January 2003. This compares to a decline in sterling terms of 18.82% in the
Tokyo Stock Exchange First Section Total Return Index.


Performance relative to the benchmark was helped by the zero exposure to banks
and an emphasis on companies with strong balance sheets. This was, however,
partially offset by the gearing of the Company in a falling market.






Investment Review


The past six months have been frustrating because, in general, Japanese
companies have been delivering good profit figures through restructuring efforts
and improving their balance sheets thanks to substantial free cashflow. This has
occurred despite a continued subdued economic background. Nevertheless, contrary
to our expectations, the market has continued to decline.


In part this has matched the global trend of falling valuation levels. It also
has been driven by the continued selling of cross shareholdings, particularly by
Japanese banks. Finally it may reflect a lack of confidence in the ability of
the Japanese government either to tackle persistent problems of deflation, or
the weakness in the banking system.


Future Policy / Outlook


We are anticipating a similar economic and profit environment to 2002. Growth is
expected to remain around zero as restructuring weighs on domestic demand both
through consumption and on companies' investment spending. Nevertheless we
expect profits and balance sheets to continue to improve through restructuring
efforts.


We are, however, anticipating a better market environment than last year. This
is partly because as valuations have already declined (we estimate a PER of 18x
2003 earnings) we think a further derating is less likely. It also reflects a
more favourable outlook for supply and demand in the equity market. We
anticipate further growth in share buy-backs as many companies have already
finished reducing debt to target levels. In addition we believe the peak of
cross shareholding sales may pass this fiscal year. Accordingly, we are
continuing to use the Company's gearing facility.


Whilst turnover of the portfolio remained low the transactions reinforced the
quality focus. For example within the electronics sector we sold the holding in
Hitachi reflecting continued balance sheet deterioration and a lack of
convincing restructuring plans. The proceeds were used to add to existing
holdings in Rohm and Ricoh. Both companies are cash-generative, have strong
global market shares and good profitability. The bias of the fund towards
companies with strong balance sheets and free cashflow has remained unchanged,
as has the high exposure to smaller companies because of exceptionally low
valuations in selected stocks.




Schroder Investment Management (UK) Limited

7 March 2003




Interim Report


The Interim Report will be sent by mail to shareholders and warrantholders at
their registered addresses in March 2003 and from the date of release, copies of
the Interim Report will be made available to the public at the Company's
registered office: 31 Gresham Street, London, EC2V 7QA.




Enquiries:           Schroder Investment Management Limited


Neil Olofsson

Tel : [phone]






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