Preliminary Announcement of Annual Results

FIDELITY ASIAN VALUES PLC Preliminary Announcement of Unaudited Results for the year ended 31 July 2005 Please note that past performance is not a guide to future returns. The value of investments can go down as well as up and may be affected by exchange rate fluctuations. CHAIRMAN'S STATEMENT Performance and markets The year under review has been very positive for Asian markets in general, and for your Company. The net asset value of the Company increased by 46.8%, ahead of the performance of the MSCI All Countries (Combined) Far East ex Japan Index, which returned 41.2% in sterling terms over the same period. The share price rose by 58.2% and the discount to net asset value narrowed to 8.3%. In aggregate, stock markets across the Asian region delivered robust returns over the twelve-month period, with all markets finishing in positive territory in sterling terms. This was particularly encouraging as it was achieved during a period of sustained high oil prices and rising interest rates globally and demonstrated the improved resilience of Asian markets since the Asian Crisis in the late 1990s. The weakness of the US dollar, to which a number of Asian currencies have been historically tied, also played a part. There was nonetheless considerable variation in the fortunes of individual markets. The strongest among them were Korea and Indonesia, both of which rose over 70% in sterling terms. Smaller markets such as Thailand and Malaysia both returned a more modest 19% over the twelve months. Late in the period China's announcement of its decision to revalue its currency, the yuan, provided a boost to markets such as Hong Kong and China as anticipation of further currency appreciation encouraged fund flows into these markets. Gearing The Board closely monitors the level of gearing within the Company and adjusts it from time to time. In March 2005 US$ 14 million of the Company's facility from HSBC Bank PLC was repaid from cash held in the Fidelity Institutional Cash Fund. The remaining US$18 million is repayable in September 2006. At 31 July 2005 gross gearing was 11.6% of shareholders' funds and net gearing (after deducting cash held including the Company's investment in the Fidelity Institutional Cash Fund) was 10.1%. At today's date gross gearing stands at 11.3% and net gearing at 9.1%. The Board On 9 February 2005 Simon Haslam, the Chief Administrative Officer of Fidelity International Limited, resigned as a Director of the Company. Simon's contribution to the Company's interests over almost six years and his support and counsel have been greatly appreciated. William Knight and Kathryn Matthews were both appointed as Directors of the Company on 9 February 2005. William has considerable experience in banking and investment management, particularly relating to Asia. At the time of her appointment Kathryn was the Head of the Portfolio Strategies Group of Fidelity and is now its Chief Investment Officer for South East Asia, based in Hong Kong. Continuation vote A continuation vote is required only if the average discount has exceeded 15% of the net asset value over the twelve months leading up to the Board meeting at which the annual accounts and notice of Annual General Meeting ('AGM') are approved. The average discount for the year to 22 September 2005, the date of the relevant approvals, was 11.2%. Accordingly, there will be no vote on the continuation of the Company at the Annual General Meeting this year. In accordance with the Company's Articles of Association a continuation vote will be required in any event at the Annual General Meeting in 2006. The Board expect to propose an ordinary resolution that the Company should continue as an investment trust for a further five years. Outlook After signs of weaker investor sentiment during the early months of 2005, confidence in equities has improved. Reasons for this include continuing real GDP growth in the region, the rising number of globally competitive companies, Asia's increasing share of world exports, and the expansion of domestic demand in major regional markets such as China and Korea. In addition, equity valuations remain attractive compared with other markets, and dividend support has improved as companies have become more shareholder friendly. Against this background the Board remain confident that the Asia Pacific region offers attractive, longer-term investment opportunities with stock selection, as always, being the key. Annual General Meeting This year's AGM is scheduled for 14 November 2005 at Fidelity's Cannon Street office commencing at 11.00 am. All shareholders, ISA, PEP and Share Plan investors are invited to attend. The investment manager will be making a presentation on the year under review and immediate prospects for the Company Sir Victor Garland Chairman 22 September 2005 Dividend The Company does not declare a dividend for the year ended 31 July 2005. Enquiries: Barbara Powley - Fidelity Investments International 01737 836883 FIDELITY ASIAN VALUES PLC Statement of Total Return (unaudited) (incorporating the revenue account) of the Company for the year ended 31 July 2005 2004 Restated* Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Gains/(losses) on - 28,065 28,065 - (358) (358) investments Income from dividends 2,641 - 2,641 1,973 - 1,973 Income from scrip 144 - 144 60 - 60 dividends Overseas interest 253 - 253 291 - 291 Deposit income 41 - 41 12 - 12 Investment management (900) - (900) (793) - (793) fee Other expenses (391) - (391) (383) - (383) Exchange losses (10) (85) (95) - (216) (216) Exchange(losses)/ - (89) (89) - 2,250 2,250 gains on loan Net return before finance costs and 1,778 27,891 29,669 1,160 1,676 2,836 taxation Interest payable (924) - (924) (1,119) - (1,119) Loan redemption costs - (168) (168) - - - Return on ordinary activities before tax 854 27,723 28,577 41 1,676 1,717 Tax on ordinary (308) - (308) (212) - (212) activities (overseas) Return/(loss) on ordinary activities after tax for the year attributable to equity shareholders 546 27,723 28,269 (171) 1,676 1,505 Return/(loss) per ordinary share Basic and diluted 0.58p 29.65p 30.23p (0.18p) 1.79p 1.61p All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the year. * The capital net return before finance costs and taxation for the year ended 31 July 2004 has been restated from a loss of £574,000 to a gain of £1,676,000. This restatement has been necessary as exchange gains/(losses) are now included as part of the net return before finance costs rather than a finance cost. This restatement has no impact on the Company's return on ordinary activities for the year ended 31 July 2004. Balance Sheet (unaudited) as at 31 July 2005 2004 £'000 £'000 Fixed assets Investments 97,779 71,445 Current assets Debtors 2,325 2,269 Cash at bank 919 6,196 3,244 8,465 Creditors - amounts falling due (2,067) (1,855) within one year Net current assets 1,177 6,610 Total assets less current liabilities 98,956 78,055 Creditors - amounts falling due after more than one year Fixed rate unsecured loan (10,252) (17,620) Total net assets 88,704 60,435 Capital and reserves Called up share capital 23,376 23,376 Share premium account 7 7 Capital redemption reserve 2.330 2,330 Other reserves Other reserve 59,282 59,282 Warrant reserve 7,369 7,369 Capital reserve - realised (25,543) (35,263) Capital reserve - unrealised 23,471 5,468 Revenue reserve (1,588) (2,134) Total equity shareholders' funds 88,704 60,435 Net asset value per ordinary share: Basic and diluted 94.86p 64.63p Cash Flow Statement (unaudited) for the year ended 31 July 2005 2004 £'000 £'000 Operating activities Investment income received 2,123 1,637 Interest received 294 303 Investment management fees paid (848) (793) Directors' fees paid (51) (36) Other cash payments (338) (335) Net cash inflow from operating 1,180 776 activities Returns on investments and servicing of finance Interest paid (966) (1,130) Loan redemption costs (168) - Net cash outflow from returns on investments and servicing of finance (1,134) (1,130) Financial investment Purchase of investments (73,315) (72,447) Disposal of investments 75,555 78,549 Net cash inflow from financial 2,240 6,102 investment Net cash inflow before financing 2,286 5,748 Financing 6.28% fixed rate unsecured loan part (7,457) - repaid Net cash outflow from financing (7,457) - (Decrease)/ increase in cash (5,171) 5,748 Statement of changes in equity Share Capital Other Warrant Capital Capital Revenue premium redemption reserve reserve reserve reserve reserve account reserve realised unrealised £'000 £'000 £'000 £'000 £'000 £'000 £'000 Beginning of year 7 2,330 59,282 7,369 (35,263) 5,468 (2,134) Exchange losses on - - - - (25) (60) - other net assets Net gain on - - - - 8,270 - - realisation of investments Net (depreciation)/ - - - - (398) 398 - appreciation therein already recognised in prior periods Increase in - - - - - 19,795 - unrealised appreciation Exchange gains/ - - - - 2,041 (2,130) - (losses) on loans Loan redemption - - - - (168) - - costs Retained net revenue - - - - - - 546 for the year End of year 7 2,330 59,282 7,369 (25,543) 23,471 (1,588) The above statements have been prepared on the basis of the accounting policies as set out in the most recently published set of annual financial statements. The figures for the year ended 31 July 2004 have been extracted from the accounts for the year ended 31 July 2004 which have been delivered to the Registrar of Companies and on which the Auditors gave an unqualified report. The annual report and accounts will be posted to shareholders in October 2005 and copies will also be available from the Secretary, Fidelity Investments International, Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey KT20 6RP.

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