Final Results

SVM Ofex Fund PLC
3 May 2002

News Release

3 May 2002





SVM OFEX FUND PLC

Results for the period ended 31 March 2002



KEY POINTS

  • Net asset value declined 12.8% to 84.8p per share, compared to a 48.4%
    fall in the AIM Index and a 18.8% decline in the FTSE Small Cap Index over
    the same period
  • Fund 85% invested - Time taken to invest is a reflection of the market
    conditions. Allowing for proposals under consideration, the Fund should have
    future cash reserves amounting to approximately 10% of the portfolio
  • Investments made outside of OFEX - The Fund has made a number of private
    equity investments, which comprise 15% of the portfolio, including Flying
    Scotsman which was subsequently admitted to OFEX
  • Buy-backs - The Fund was active in buying back a total of 540,000 shares
    representing 9% of the issued capital. Further buy-backs will be made in
    future, as appropriate.
  • Outlook - The Board remains positive about the outlook for the OFEX market
    and believes the Fund is well positioned to benefit from a revival of
    interest in early stage companies.





Ends



For further information, please contact:

David Stevenson

Scottish Value Management                   0131 226 6699

Roland Cross

Broadgate                                   020 7726 6111



Commenting on the results, Chairman, Peter Dicks, said:

'I am pleased to present the Fund's first full report since commencing business
on 18 October 2000. The period under review has been a difficult one for early
stage companies, which have suffered from a lack of interest amongst
institutional and private investors alike. The Fund's performance has reflected
this weak environment, with its net asset value per share falling 12.8% to
84.8p. It's benchmark, the FTSE Fledgling Index, fell 4.0%, but this compared to
a drop of 18.8% in the FTSE Small Cap Index, and a drop of 48.4% in the AIM
Index over the same period. The Fledgling Index has, in fact, been one of the
better performing segments of the UK stockmarket since the Fund's inception. The
Fledgling Index was chosen as a long term benchmark against which the Fund will
be measured, although the constituents of the Index are not available for
investment by this Fund. It is the Board's view that the Managers have achieved
a very creditable performance in light of the poor performance of stocks in the
AIM and OFEX markets.

Portfolio

At the end of the period, 85% of the funds raised at launch have been invested.
Allowing for proposals currently under consideration, the Fund should have
future cash reserves amounting to approximately 10% of the portfolio. This will
give sufficient flexibility to respond to future investment opportunities as
they arise.

Whilst the time taken to bring the Fund to near full investment has been longer
than originally anticipated, this was a reflection of market conditions. New
issues have often taken several months to complete, and liquidity in existing
OFEX stocks has been very limited, with the Fund generally investing when
companies raise fresh capital through placing issues.

During the period the Fund also made use of its ability to invest outwith the
OFEX market. A number of private equity investments have been made, with Flying
Scotsman subsequently admitted to OFEX. At the end of the period, 15% of the
Fund was held in unquoted investments, against a portfolio limitation of 20%,
whilst there was also a 3% holding in AIM stock, Symphony Plastics, which was
promoted from OFEX in early 2002.

A number of holdings in the portfolio are now reporting significant trading
progress, with several having the potential to move up to more senior markets in
due course, when the shares should benefit from a much wider institutional
audience. The Board remains positive about the outlook for the OFEX market, and
believes the Fund is well positioned to benefit from a revival of interest in
early stage companies.

Buy-backs

The Fund was active during the period in buying back shares at a discount to net
asset value. A total of 540,000 shares were acquired for cancellation,
representing 9% of the issued capital. Further share buy-backs will be made in
future, as appropriate.

AGM

The Fund's Annual General Meeting will be held in London on Friday 14 June 2002
and details of the resolutions to be proposed are given in the Notice of
Meeting. The AGM will be at 12.30pm and will be preceded at 12 Noon by a
presentation from the Managers, who will review the portfolio and investment
policy, and answer any questions from shareholders. Copies of the presentation
will be available upon request to all shareholders and will be put on the
Managers' website (www.scottish-value.co.uk).'
Summarised Statement of Total Return


                                                                Period from 4 October 2000
                                                                     to 31 March 2002
                                                         Revenue          Capital            Total
                                                           £'000            £'000            £'000
Losses on sale of investments                                  -             (78)             (78)
Movement in unrealised depreciation                            -            (765)            (765)
                                                        --------         --------         --------
Losses on investments                                          -            (843)            (843)

Income                                                       216                -              216
Investment management fees                                     -             (66)             (66)
Other expenses                                             (114)                -            (114)
                                                        --------         --------         --------
Return on ordinary activities before taxation                102            (909)            (807)
Taxation                                                    (19)               13              (6)
                                                        --------         --------         --------
Transfer to / (from) reserves                                 83            (896)            (813)
                                                           =====            =====            =====

Return per ordinary Share                                (1.45p)         (15.62p)         (14.17p)



Balance Sheet                                                           As at


                                                                31 March 2002
                                                                        £'000

Investments                                                             3,971
Net current assets                                                        660
                                                                  -----------
Ordinary shareholders funds                                             4,631
                                                                       ======

Net asset value per ordinary share                                     84.81p

Summarised Cash Flow Statement                                      Period to
                                                                31 March 2002
                                                                        £'000

Net cash flow from operating activities                                    42
Capital expenditure and financial investment                          (4,814)
Financing                                                               5,444
                                                                   ----------
Increase in cash                                                          672
                                                                       ======



Notes


 1. The above results cover the period from incorporation on 4 October 2000 to 31
    March 2002. The results reflect the adoption in the accounts of the
    Statement of Recommended Practice (SORP) issued by the Association of
    Investment Trust Companies.


        2.     Returns per Ordinary Share are based on 5,739,151 shares in issue
        during the period. The number of shares in issue at 30 September 2001
        was 5,460,000.

        3.     During the period, the Company purchased for cancellation 540,000
        ordinary shares through the market for a total consideration of £376,000
        at an average price of 70 pence per share.

        4.     The above figures do not constitute full accounts in terms of
        Section 240 of the Companies Act 1985. The report will be mailed to
        shareholders towards the middle of May 2002. Copies will be available
        for inspection at 7 Castle Street, Edinburgh, the registered office of
        the Company.



ENDS



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