Posting of Tender Offer Circ.

Electra Investment Trust PLC
18 May 2001


                  ELECTRA INVESTMENT TRUST P.L.C. ('ELECTRA')
                 --------------------------------------------
                       POSTING OF TENDER OFFER CIRCULAR
                       ---------------------------------

In December, 2000, the Board of Electra indicated that it was considering
options for the future of Electra with the aim of building on the success of
the realisation programme and maximising the value of the remaining assets.
On 28th February, 2001, the Board announced a further tender offer of up to
GBP 150 million and also proposed changes to Electra's investment strategy and
management arrangements.  Electra announces that it is today posting a
circular to shareholders explaining these proposals in more detail and seeking
shareholder approval for them.

Since 28th February, 1999, Electra has achieved asset sales of over GBP 1.1
billion (over 80 per cent. of the net asset value at that date).  Under the
proposals, the Board will remain committed to realising investments but in
view of the recent change in market conditions, the Board has concluded that
it should adopt a more flexible investment strategy.  Under this strategy the
realisation of the portfolio will continue with at least two-thirds of cash
flow being returned to shareholders via share buy-backs and tender offers,
with the balance of the cash flow being available for investment in private
equity opportunities.  This strategy will be reviewed by the Board in 2004.

The tender offer is the third under Electra's realisation strategy and,
assuming full take-up, would bring the total cash returned to shareholders to
GBP 945 million.

The tender offer is for up to £150 million:

-         shares will be acquired at the tender price, being the unaudited net
          asset value per Share as at 31st March, 2001 as adjusted to the
          calculation date of 16th June, 2001;

-         shareholders will be entitled to have a percentage of their holdings
          (the 'basic entitlement') repurchased under the tender offer.
          Shareholders will also be able to request the repurchase of
          additional shares, but such requests will only be satisfied on a pro
          rata basis, to the extent that other shareholders do not tender for
          their full basic entitlement; and

-         for the purposes of illustration, and assuming the proposals are
          approved by shareholders and the tender offer taken up in full, if
          the calculations for the tender price and basic entitlement for the
          tender offer had been effected as of the 16th May, 2001, the tender
          price would have been GBP 9.88 and the basic entitlement would have
          been 18.9 per cent.

Commenting on the proposals, Brian Williamson, Chairman said:

'These proposals will allow us to build on our successful realisation strategy
and to continue to maximise value for shareholders.'

For further information:

Brian Williamson, Chairman of Electra Investment Trust PLC  020 7831 6464
Hugh Mumford, Chief Executive, Electra Partners Ltd

Stephen Breslin, Brunswick Group Limited                    020 7404 5959

Jonathan Dawson, Lazard                                     020 7588 2721
Jon Hack, Lazard
Christopher Smith, Cazenove                                 020 7588 2828


Expected Timetable:

Latest time and date for receipt
of Forms of Proxy                                 10.00 a.m. on 9th June

Extraordinary General Meeting                     10.00 a.m. on 11th June

Latest time and date for receipt
of tender forms                                   3.00 p.m. on 16th June

Record date for tender offer                      5.00 p.m. on 16th June

Calculation date for tender offer                 16th June

Tender offer trade date and result
of tender offer announced                         25th June

Settlement date, cheques despatched and
assured payments through CREST made               29th June