Preliminary Results

SchroderJapan Growth Fund PLC
28 September 2005


28 September 2005

Press Release

PRELIMINARY RESULTS

The Directors of Schroder Japan Growth Fund plc announce the unaudited
preliminary results for the year ended 31 July 2005.


                                      For the year ended                For the year ended
                                      31 July 2005                      31 July 2004
                                      Revenue     Capital    Total      Revenue      Capital     Total
                                      £'000       £'000      £'000      £'000        £'000       £'000

Gains on investments                  -           8,890      8,890      -            21,774      21,774
Realised exchange gains/ (losses) on  -           41         41         -            (46)        (46)
currency balances
Unrealised exchange (losses)/ gains   -           (553)      (553)      -            907         907
on the loan facility
Income                                1,713       -          1,713      1,460        -           1,460
Investment management fee             (1,307)     -           (1,307)   (1,240)      -            (1,240)
Administrative expenses               (348)       -          (348)      (387)        -           (387)
Return/(deficit)  before finance      58          8,378      8,436      (167)        22,635      22,468
costs and taxation
Realised gain on  expiry of warrants  -           9,637      9,637      -            -           -
Interest payable                      (139)       -          (139)      (292)        -           (292)
(Deficit)/ return on ordinary         (81)        18,015     17,934     (459)        22,635      22,176
activities before taxation
Tax on ordinary activities            (118)       -          (118)      (116)        -           (116)
(Deficit)/ return attributable to     (199)       18,015     17,816     (575)        22,635      22,060
equity shareholders
(Deficit)/ return per ordinary        (0.16)p     14.41p     14.25p     (0.46)p      18.10p      17.64p
share-pence


                                                           Year ended               Year ended
                                                           31 July 2005             31 July 2004
Abridged Cash Flow Statement                               £'000                    £'000

Net cash inflow/(outflow )from operating activities        104                      (148)

Net cash outflow from returns on investments and servicing (244)                    (299)
of finance

Total tax paid                                             (120)                    (116)

Net cash (outflow) /inflow from financial investment       (2,061)                  3,435
Financing                                                  2,519                    -

Net cash inflow                                            198                      2,872


                                                           As at 31 July 2005       As at 31 July 2004
Assets                                                     £'000                    £'000

Listed investments                                         139,144                  127,535

Net current liabilities                                    (19,701)                 (16,276)


Net Assets                                                 119,443                  111,259

Net asset value per share - undiluted pence                95.55p                   89.00p


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 2005 does not constitute
the Company's statutory accounts for that financial year.  Statutory accounts
for the financial year ended 31 July 2004 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 2005 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
Performance



The year to 31 July 2005 built on the significant increase in absolute returns
in 2004, and the net asset value per share increased during the year by 7.4%,
(from 89.00p per share to 95.55p per share). The share price fared better,
increasing by 15.4% over the year, mainly due to a narrowing of the discount
from 10.67% to 3.97%. Although long-term performance of both the net asset value
and share price is significantly ahead of the benchmark index, relative net
asset value performance during the year suffered. This was due to disappointing
stock selection among materials sectors, from a number of technology holdings
and from the large holding in East Japan Railway.

Gearing

During the year ended 31 July 2005 the Company increased total borrowings to Yen
4.5 billion (from Yen 4.0 billion). All of the borrowings are now obtained via a
revolving credit facility as we believe that this provides increased flexibility
to the Board and the Investment Manager.

As previously stated, the Directors do not forsee gearing levels in excess of
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 14%, and this had increased to 16% at 31 July 2005.

Continuation Vote

At the Annual General Meeting of the Company held in November 2004, the ordinary
resolution proposing that the Company should continue as an investment trust for
a further five year period was overwhelmingly supported by shareholders. Your
Board would like to take this opportunity to thank shareholders for their
support.

Directors' Fees and Cap

The Board has reviewed the fees paid to Directors and has agreed that fees
should be increased to reflect current market rates, additional responsibilities
of Directors and increased time spent on the affairs of the Company. Fees to
Directors will increase from £10,000 per annum to £12,000 per annum, and fees
paid to the Chairman will increase from £15,000 to £20,000 per annum. The fee
increases will take effect from 1 August 2005.

The Articles of Association of the Company currently impose a cap on aggregate
fees paid to Directors of £75,000 per annum. This cap has remained at the same
level since the launch of the Company in 1994. During the eleven years since
launch, responsibilities of Directors have significantly increased and this has
resulted in greater demands on Directors time. Market rates for fees paid to
directors generally have increased against this background. Total remuneration
to Directors in respect of the year ended 31 July 2006 is expected to be
approximately £85,000. An ordinary resolution will therefore be proposed at the
forthcoming Annual General Meeting to increase the cap on the aggregate of all
fees paid to Directors each year from £75,000 to £125,000. Directors' fees
continue to be reviewed each year and the Remuneration Report will be submitted
for approval by shareholders at each Annual General Meeting.

Purchase of Shares for Cancellation

At the Company's last Annual General Meeting in November 2004, the Company was
given the authority to purchase up to 14.99% of the Company's issued share
capital for cancellation. The share buy-back facility is one of a number of
tools that may be used to enhance shareholder value and to reduce the discount
volatility. During the year ended 31 July 2005, the Directors did not use the
authority given to them and no purchases for cancellation were undertaken.

The Board continues to consider whether purchases should be made on a regular
basis, and therefore proposes that the authority be renewed at the forthcoming
Annual General Meeting.

Annual General Meeting

The Annual General Meeting will be held on Thursday 10 November 2005 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
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 2005


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