Interim Results

SVM Ofex Fund PLC
11 December 2001

News Release




11 December 2001

SVM OFEX FUND PLC

Results for the six months to 30 September 2001


KEY POINTS



  * Since its inception in October 2000, the Company has outperformed its
    benchmark, the FTSE Fledgling Index, falling 17.2% against an Index drop
    of 18.2%. In the period under review, the Fund's net asset value decreased
    by 15.8%, which compares with a decline of 14.5% in the benchmark.

  * Strongest contributors to performance during the period were Sprue Aegis
    and Appian Technology, rising 43% and 33% respectively.

  * At the end of the period under review, around 75% of the funds raised at
    lunch have been invested. The portfolio is invested in 28 companies, seven
    of which are unquoted and represent 20% of the invested assets.

  * The managers continue to invest cautiously, recognising that the
    environment for young companies remains difficult, due to the weak economy
    and subsequent reduced stockmarket appetite.

  * Good investment opportunities do still exist with a number of quality
    businesses and management teams currently seeking funding at attractive
    valuations.



                                   - Ends -



For further information, please contact:

David Stevenson     Scottish Value Management     0131 226 6699

Roland Cross        Broadgate Marketing           020 7726 6111



                              SVM OFEX Fund plc


                             Chairman's Statement

                   for the six months to 30 September 2001


In the period under review, the Fund's net asset value decreased by 15.8%,
which compares with a decline of 14.5% in the benchmark FTSE Fledgling Index.
Since its inception in October 2000 the Company has outperformed the
benchmark, falling 17.2% against an Index drop of 18.2%. The investment
objective of the Fund is to achieve long-term capital growth and no dividend
is payable. The portfolio, which is broad based, is invested in 28 companies,
seven of which are unquoted and represent 20% of the invested assets.


At the end of the period around 75% of the funds raised at launch were
invested. The managers continue to invest cautiously, recognising that the
environment for young companies remains difficult not only in terms of the
weak economy but also as a result of reduced stockmarket appetite. These
conditions, however, provide an investment opportunity for the Fund, with a
number of quality businesses and management teams currently seeking funding at
attractive valuations. Looking beyond the end of this year and into 2002,
these investments have the potential to generate very attractive returns once
general conditions improve. Despite the poor backdrop, growing companies with
robust and fully funded business models can still be found, many of them
operating in niche markets enjoying buoyant demand. The Fund has focused its
investment activity in these areas.


The strongest contributors to performance during the period were Sprue Aegis
and Appian Technology. Sprue Aegis was a new OFEX issue in June, and it rose
43% to the end of the period under review. The company designs and
manufactures innovative smoke alarms, with the share price responding
positively to the announcement of distribution agreements with B&Q, Tesco and
Woolworths. The Fund took part in a placing for Appian Technology in
September, and it rose 33% to the end of the period under review. The funding
followed a number of contract wins for the company's traffic management and
licence plate recognition technology.


More than half of the portfolio is represented by companies which either have
a well-established trading history, or are already generating significant
early revenues. A number of these investments have future listing potential
once stockmarket conditions improve, at which point 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 the younger company sector.




Peter Dicks

Chairman

11 December 2001



Summarised Statement of Total Return

                     6 months to 30 September 2001    Period to 31 March 2001
                                    
                         Revenue  Capital    Total    Revenue  Capital    Total
                           £'000    £'000    £'000      £'000    £'000    £'000

Gains on sale of               -       38       38          -        7        7
investments

Movement in unrealised         -    (909)    (909)          -    (217)    (217)
appreciation
                        -------- -------- --------   -------- -------- --------

Gains on investments           -    (871)    (871)          -    (210)    (210)

Income                        29        -       29        152        -      152

Investment management          -     (23)     (23)          -     (23)     (23)
fees

Other expenses              (52)        -     (52)       (11)        -     (11)
                        -------- -------- --------   -------- -------- --------

Return on ordinary          (23)    (894)    (917)        141    (233)     (92)
activities before
taxation

Taxation                      14        -       14       (29)        -     (29)
                        -------- -------- --------   -------- -------- --------

Transfer to / (from)         (9)    (894)    (903)        112    (233)    (121)
reserves
                           =====    =====    =====      =====    =====    =====


Return per ordinary      (0.15p) (14.92p) (15.07p)      1.87p  (3.89p)  (2.02p)
share




Balance Sheet                                              As at          As at
                                                    30 September       31 March
                                                            2001           2001
                                                           £'000          £'000

Investments                                                4,141          2,373

Net current assets                                           398          3,355
                                                     -----------    -----------

Ordinary shareholders funds                                4,539          5,728
                                                          ======         ======

Net asset value per ordinary share                        80.33p         95.46p


Summarised Cash Flow Statement
                                                                      
                                                     6 months to      Period to
                                                    30 September       31 March
                                                            2001           2001
                                                           £'000          £'000

Net cash flow from operating activities                      113            136

Capital expenditure and financial investment             (2,640)         (2583)

Financing                                                  (257)          5,820
                                                      ----------     ----------

Increase / (decrease) in cash                            (2,784)          3,373
                                                          ======         ======






Notes


 1. The above results, which are unaudited, cover the period from 1 April 2001.
    The comparatives relate to the period from incorporation on 4 October 2000
    to 31 March 2001. 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 5,991,575 shares in
        issue during the period (31 March 2001 - 6,000,000). The number of
        shares in issue at 30 September 2001 was 5,650,000. (31 March 2001-
        6,000,000).


        3.     During the period, the Company purchased for cancellation
        350,000 ordinary shares through the market for a total consideration
        of £257,000 at an average price of 73 pence per share.


        4.     The above figures do not constitute full accounts in terms of
        Section 240 of the Companies Act 1985. The interim report will be
        mailed to shareholders towards the middle of December 2001. Copies
        will be available for inspection at 7 Castle Street, Edinburgh, the
        registered office of the Company.