Annual Financial Report

FIDELITY EUROPEAN VALUES PLC                          

        ANNUAL FINANCIAL REPORT, PROXY FORM AND ADDITIONAL DISCLOSURES         

          TO THE PRELIMINARY RESULTS FOR THE YEAR TO 31 DECEMBER 2008          

Further to the voluntary disclosure of the Company's annual results for the
year ended 31 December 2008 by way of a preliminary announcement dated 2 March
2009, in accordance with the Disclosure and Transparency Rules ("the Rules")
4.1.3 and 6.3.5(2) this announcement contains the text of the preliminary
announcement dated 2 March 2009 together with the additional text in compliance
with the Rules.

The Company's annual report and financial statements for the year ended 31
December 2008 together with the accompanying proxy form have been filed with
the UK Listing Authority Document Disclosure team and will shortly be available
for inspection at the UK Listing Authority's Document Viewing Facility which is
situated at:

Financial Services Authority

25 The North Colonnade

Canary Wharf

London

E14 5HS

Tel: [phone]

(Documents will usually be available for inspection within six normal business
hours of this notice being given).

The annual report and financial statements will shortly be available on the
Company's website at www.fidelity.co.uk/its

Tracey Cousins, FIL Investments International, Company Secretary - 01737 836
883

24 March 2009

CHAIRMAN'S STATEMENT

I have pleasure in presenting the annual report of Fidelity European Values PLC
for the year ended 31 December 2008.

PERFORMANCE

2008 was a very challenging year for both the European economy and European
stockmarkets. It is, therefore, disappointing but not surprising to have to
report a fall in the Company's net asset value. In 2008 the net asset value per
share declined 17.5% but significantly outperformed its benchmark (the FTSE
World Europe (ex UK) Index) which fell 24.6%. This relative performance is
encouraging, given the very difficult economic and stockmarket background, and
can be attributed to two factors.

Firstly the Board decided to reduce the net gearing to zero towards the end of
2007 and this clearly helped performance given the fall in share prices through
2008. We continually review our gearing with our Manager (and have retained the
capacity to reinstate it), but feel the immediate outlook too uncertain.
Following the repayment of a fixed term loan of €35m in November 2008, the
Company has fixed term loans of €105m in aggregate with a further €25m
available by way of a revolving credit facility.

Secondly and more importantly share selection, particularly in the banking and
telecommunication sectors, was well executed. This was particularly encouraging
since Sudipto Banerji took over the management of the portfolio from Tim
McCarron during the year. I wish Tim well in his future career with Fidelity
and thank him for his excellent contribution. I also hope and believe that
Sudipto's good start augurs well for the long term future of your Company.

A detailed review of the performance of the portfolio is provided in the
Manager's Review.

DISCOUNT MANAGEMENT

The Board will be active in issuing shares at a premium and buying back shares
at a discount; a continuation of practice since launch. The purpose of this is
to reduce share price volatility and results in an enhancement to the NAV. Over
the last six months share buybacks have been made, further details of which may
be found in the Directors' Report in the annual report.

At the close of business on 31 December 2008 the Company's share price fell to
990.00p per share, significantly below the trading price during that day. This
was due entirely to a small trade badly executed ten minutes before the market
closed (there is a lesson for us all in the timing and execution of such a
transaction). This resulted in a discount level of 16.4%, much higher than
normally exists or the Board intends. The discount narrowed in the New Year and
at the time of writing the share price is 800.50p per share and the discount is
12.6%.

DIVIDEND

I wish to reiterate that the Board will not influence the Manager in any way to
determine the level of income of your Company's portfolio; it will remain the
Board's policy to pay out earnings in full. The Board has decided to recommend
a final dividend of 23.26 pence per share for the year ended 31 December 2008
(2007: 13.75 pence). This dividend will be payable on 29 May 2009 to
shareholders on the register at close of business on 20 March 2009 (ex-dividend
date 18 March 2009).

In addition this year, it has been decided that the £7.4m VAT on investment
management fees plus interest reclaimed following the decision of the European
Court of Justice will be returned to shareholders by way of a special dividend
of 13.24p per share. The dividend payment, record and ex-dividend dates will be
the same as for the proposed final dividend.

DIRECTORATE

As explained in my Chairman's Statement last year, David Simpson will retire
from the Board after the Annual General Meeting. He has served as a Director
since 1998 and I would like to thank David for his contribution to the Company
and personally for the quality and independence of advice that he has given me
over the years. His investment experience and work as Senior Independent
Director and Chairman of the Audit Committee have been extremely valuable. I am
delighted to confirm that Mr van der Klugt will be appointed Senior Independent
Director and Chairman of the Audit Committee with effect from Mr Simpson's
retirement. I look forward to working with Mr van der Klugt in this role. He
has already contributed greatly to Board discussions, including very detailed
work on the VAT reclaim.

This year two Directors will retire and, being eligible, offer themselves for
re-election. As detailed in the biographies in the Annual Report the Directors
have a wide range of appropriate skills and experience to make up a balanced
Board for your Company.

I am subject to annual re-election due to my tenure on the Board exceeding nine
years and Mr Fraser is subject to annual re-election under the Listing Rules
due to his recent employment relationship with the Manager and his directorship
of another investment trust managed by Fidelity, namely Fidelity Japanese
Values PLC. Mr Fraser retired from Fidelity at the end of 2008, but remains a
Senior Advisor. Both I and the Board are pleased that he has agreed to continue
his directorship of this Company. In my case, my fellow Directors met in my
absence and considered my eligibility for re-election. They considered that my
experience, my independence of mind and the manner in which I have filled the
role of Chairman over the last seven years have been beneficial to the Company
and they confirmed that they wish me to continue as Chairman. In particular the
Board believes that my finalisation of the agreement on the repayment of VAT
illustrated my independence well. As previously announced, I plan to retire
following the 2010 Annual General Meeting having retained my role to ensure a
smooth transition to the new Portfolio Manager.

All other Directors are totally independent and this provides an appropriate
balance. The Board recognises the importance of continuity on the Board as well
as the need for refreshment from time to time. The Board has considered the
proposal for the re-election of the Directors and recommends to shareholders
that they vote in favour of the proposals.

Due to Mr Simpson's retirement this year and my proposed retirement in 2010,
the Board is currently considering the appointment of an additional Director.
External consultants will lead the initial search.

CONTINUATION VOTE

In accordance with the Articles of Association of the Company, an ordinary
resolution that the Company continue as an investment trust for a further two
years was passed at the 2007 Annual General Meeting. A further continuation
vote will take place at this year's Annual General Meeting. The Company's
performance record has been excellent since launch with a NAV increase of
1,197.6% compared to an increase in the benchmark Index of 359.1%. During the
past 12 months the Company has outperformed the Index by 7.1% (-17.5% compared
to an Index fall of 24.6%). Therefore your Board recommends that shareholders
vote in favour of the continuation vote. A further continuation vote will take
place at the Annual General Meeting in 2011.

ANNUAL GENERAL MEETING

The Annual General Meeting of the Company is due to take place on 19 May 2009
at midday at Fidelity's offices at 25 Cannon Street. Full details of the
meeting are given in the Annual Report and I look forward to meeting you then.

OUTLOOK

The outlook for the European economy looks challenging. Across the developed
world economic growth is forecast to be negative in 2009 which is not a good
sign for European companies whose revenues depend upon international trade.
This means that company profits in the region will be under severe pressure
moving into 2009. There are other headwinds that weigh upon European companies
such as the overhang from a strong euro as well as tightening credit conditions
as a result of the global credit crunch. The European Central Bank (ECB) has
reduced interest rates in an effort to support economies, but some would argue
they have not gone far enough.

That said, a lot of the bad news has already been absorbed by the markets.
Company valuations in Europe are looking extremely attractive on a historical
basis and relative to other regions. For longer term investors there are now
some good stock picking opportunities to be found where company shares have
been indiscriminately sold without considering longer term fundamentals. In the
coming year, we will be seeking to take advantage of a weak environment to
invest in attractive companies for the longer term.

Robert Walther

Chairman

2 March 2009

Manager's Review

PERFORMANCE REVIEW

As shown in the Financial Summary in the annual report, the NAV per share of
Fidelity European Values PLC declined 17.5% in the year to 31 December 2008,
outperforming the FTSE World Europe (ex UK) Index, which fell by 24.6%. (All
performance figures are quoted on a total return basis and in sterling.)
European equity markets declined considerably in 2008, after five years of
positive gains. Against a very challenging economic and market backdrop, the
portfolio declined less than its benchmark and produced a solid outperformance
in the year. This can be attributed to positive sector allocation and
successful stock picking. During the year, sterling weakened by 24% against the
euro. As a UK investor in a European equity portfolio, this had a positive
effect on returns.

MARKET BACKGROUND

2008 was a year of two halves. In the first half of the year, the synchronised
global expansion of the previous few years continued, driven primarily by
growth in emerging economies. Commodity prices soared and demand fundamentals
supported rising prices. For example, the oil price reached US$150 a barrel in
July, and food prices continued to increase. Concerns over the level of
inflation dominated the market.

The second half of the year was dominated by the deepening of the crisis in the
financial sector and its impact on the real economy. The catalyst for the
sudden collapse of confidence was the bankruptcy of Lehman Brothers, a US
financial institution, in September. Capital and credit markets froze and the
transmission mechanism within the banking system ceased to function
effectively. The crisis spread to the real economy as liquidity in commercial
paper and other short term credit markets became unavailable or prohibitively
expensive. This triggered an unprecedented collapse in business activity as
companies sought to raise cash by cutting back aggressively on costs and
unwinding inventory. Meanwhile, the overall business cycle that had hitherto
been supported by ongoing credit expansion, also ground to a halt. The
simultaneous collapse of aggregate demand and unwinding of the inventory cycle
led to what is likely to be the most severe contraction in GDP for many years.
In response to the crisis, Central Banks implemented aggressive easing
policies. However, share prices declined on the expectation that future
fundamentals would deteriorate further, impacted by the contraction in the
availability and cost of capital. Investors moved into those assets that
provided less risk and lower yields.

PORTFOLIO REVIEW

2008 was a very active year for the portfolio as the Manager concentrated the
portfolio and attempted to move into a generally more defensive position. As
stated earlier, this led to an outperformance against the Index, which can be
attributed to successful positioning in the banking sector, where the portfolio
had less exposure than the benchmark. More specifically, avoiding companies
that suffered most during the global credit squeeze positively contributed to
relative performance.

Roche, a Swiss pharmaceutical firm, was the biggest single contributor. The
company offers a solid product pipeline and enjoys an attractive oncology
franchise. Its defensive characteristics were well rewarded in a more volatile
environment. KPN, the Dutch telecommunications firm, was the second biggest
stock contributor during the year. Its share price was supported by solid
results and the announcement of a share buyback plan. Conversely, stock picking
in the energy sector hurt returns. It proved to be a volatile sector in the
period under review, due to a rising and then declining oil price. A lack of
exposure to Volkswagen also detracted from performance.

OUTLOOK

The near term outlook for corporate earnings is expected to remain difficult.
However, the recent sell-off in the equity markets has meant that company
valuations have declined to attractive levels from a medium term perspective.
As a result, there are some good stock picking opportunities to be found for
longer term investors.

FIL Investments International

2 March 2009

Principal risks and uncertainties

Due to the current economic climate, shareholders will have greater concerns
about the way their investments are managed. The Board confirms that there is
an ongoing process for identifying, evaluating and managing the principal risks
which fall under the general headings of strategic, operational and management.
With the assistance of Fidelity's internal audit team the Board has constructed
a risk matrix which identifies the key risks to the Company under these broad
headings. The Board reviews and agrees policies, which have remained unchanged
since the beginning of the accounting period, for managing risks and summaries
of these are set out below.

The process is regularly reviewed by the Board in accordance with the FRC's
"Internal Control: Revised Guidance for Directors on the Combined Code". Risks
are identified, introduced and graded and this process, together with the
policies and procedures for the mitigation of risks, and are updated and
reviewed twice a year in the form of a comprehensive internal controls report
considered by the Audit Committee.

1. Market risks

The Portfolio Manager's success or failure to protect and increase the
Company's assets against this background are core to the Company's continued
success. Other factors affected by market forces, such as exchange and bond
rates, contribute to risks which have to be taken as part of the Company's
normal business. Risks to which the Company is exposed and which form part of
the market risks category are included in Note 18 to the financial statements
in the annual report together with summaries of the policies for managing these
risks. These comprise: market price risk; foreign currency risk; interest rate
risk, liquidity risk and credit risk.

The Company has fixed term, fixed rate loan facilities in place, the first of
which is due for repayment in 2010. At the present time, cash is being held
against these loans to reduce the level of net gearing to around zero. However,
should good opportunities for investment arise, these funds are readily
available. In addition a revolving credit facility (currently nil drawn down)
and a day to day overdraft facility can be used if required.

The impact of limited finance from counterparties including suppliers has not
impacted the Company to date, however there are alternative suppliers available
in the market place should the need arise. The Company relies on a number of
main counterparties, namely the Manager, Registrar, Custodian and Auditor. The
Manager is the member of a privately owned group of companies on which a
regular report is provided to the Board. The Manager, Registrar and Custodian
are subject to regular audits by Fidelity's internal controls team and the
counterparties' own internal controls reports are received by the Board and any
concerns investigated.

2. Performance risk

The achievement of the Company's performance objective relative to the market
requires the application of risk. Strategy, asset allocation and stock
selection might lead to underperformance of the benchmark Index and target.
Management of the risks set out above is carried out by the Board which, at
each Board meeting, considers the asset allocation of the portfolio and the
risk associated with particular countries and industry sectors within the
parameters of the investment objective. The Portfolio Manager is responsible
for actively monitoring the portfolio selected in accordance with the asset
allocation parameters and seeks to ensure that individual stocks meet an
acceptable risk/reward profile.

3. Investment management and income risks - dividends

In addition to the risk of the mis-management of funds by poor investment
decisions, there is also a risk involved in income. The Company's objective is
capital growth and as explained in the Chairman's Statement in the annual
report, the Portfolio Manager is not constrained in any way to determine the
level of income. The Board monitors this risk through the receipt of detailed
income reports and forecasts which are considered at each meeting.

4. Share price, NAV and discount volatility risk

The price of the Company's shares relative to the

benchmark Index and in absolute terms, as well as its discount to net asset
value, are not factors the Company is able to control. Some short term
influence over the discount may be exercised by the use of share repurchases at
acceptable prices. Details of repurchases during the year are given in the
annual report. The Company's share price, NAV and discount volatility are
monitored daily by the Manager and considered by the Board at each of its
meetings.

5. Gearing risk

The Company has the option to invest up to the total of its loan facilities in
equities. In a rising market the Company will benefit but in a falling market
the impact would be detrimental. In order to manage the level of gearing the
Board regularly considers gearing and gearing risk and sets limits accordingly.
The Portfolio Manager follows these and may hold short term cash deposits to
control the level of net gearing appropriate to the circumstances as viewed at
the time.

6. Control systems, regulation, governance including shareholder relations
risks

The Company is dependent on the Manager's control systems and those of its
Custodian and Registrars, both of which are monitored and managed by the
Manager in the context of the Company's assets and interests on behalf of the
Board. The security of the Company's assets, dealing procedures and the
maintenance of investment trust status under s842 of the Income and Corporation
Taxes Act 1988, among other things, rely on the effective operation of such
systems. These are regularly tested and a programme of internal audits is
carried out by the Manager to maintain standards.

Other risks

Other risks monitored on a regular basis include loan covenants, which are
subject to daily monitoring, together with the Company's cash position, and the
continuation vote (at a time of poor performance).

Related parties

Mr Simon Fraser was employed by Fidelity International until the end of
December 2008 and continues to act for Fidelity as a Senior Advisor. FIL
Limited has an interest of 112,379 shares or 0.20% in the Company (2007:
112,379 shares or 0.19%).

No Director has a contract of service with the Company and no contracts existed
during or at the end of the financial period in which any Director was
materially interested and which were significant in relation to the Company's
business, except as disclosed above in relation to Mr Fraser's interests in the
Management Agreement. There have been no other related party transactions
requiring disclosure under Financial Reporting Standard ("FRS") 8.

Directors' responsibilities statement

The Directors are responsible for preparing the annual report and the financial
statements in accordance with applicable law and regulations. Company law
requires the Directors to prepare financial statements for each financial
period. Under that law they have elected to prepare the financial statements in
accordance with UK Generally Accepted Accounting Practice.

The financial statements are required by law to give a true and fair view of
the state of affairs of the Company and of the profit or loss for the period.
In preparing these financial statements, the Directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and estimates that are reasonable and prudent;

- state whether applicable UK Accounting Standards have been followed, subject
to any material

departures disclosed and explained in the financial statements; and

- prepare the financial statements on the going concern basis unless it is
inappropriate to presume

that the Company will continue in business.

The Directors are responsible for ensuring that proper accounting records are
kept which disclose

with reasonable accuracy at any time the financial position of the Company and
to enable them to ensure that its financial statements comply with the
Companies Act 1985. They are also responsible for safeguarding the assets of
the Company and hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.

Under applicable law and regulations the Directors are also responsible for
preparing a Directors' Report, including a Business Review, a Directors'
Remuneration Report and a Corporate Governance Statement that comply with that
law and those regulations. The Directors are responsible for the maintenance
and integrity of the corporate and financial information included on the
Company's pages of the Manager's website www.fidelity.co.uk/its. Visitors to
the website

need to be aware that legislation in the United Kingdom governing the
preparation and dissemination of the financial statements may differ from
legislation in their jurisdictions.

We confirm that to the best of our knowledge the financial statements, prepared
in accordance with the applicable set of accounting standards, give a true and
fair view of the assets, liabilities, financial position and profit or loss of
the Company; and the Directors' Report includes a fair review of the
development and performance of the business and the position of the Company
together with a description of the principal risks and uncertainties it faces.

Approved by the Board on 2 March 2009 and signed on its behalf.

Robert Walther

Chairman

2 March 2009

Report of the Independent Auditor

We have audited the financial statements (the "financial statements") of
Fidelity European Values PLC for the year ended 31 December 2008 which comprise
the Income Statement, the Reconciliation of Movements in Shareholders' Funds,
the Balance Sheet, the Cash Flow Statement and Notes 1 to 20. These financial
statements have been prepared under the accounting policies set out therein. We
have also audited the information in the Directors' Remuneration Report that is
described as having been audited.

This report is made solely to the Company's members, as a body, in accordance
with Section 235 of the Companies Act 1985. Our audit work has been undertaken
so that we might state to the Company's members those matters we are required
to state to them in an auditor's report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the Company and the Company's members as a body, for our
audit work, for this report, or for the opinions we have formed.

RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS

The Directors' responsibilities for preparing the Annual Report, the Directors'
Remuneration Report and the financial statements in accordance with United
Kingdom law and Accounting Standards (United Kingdom Generally Accepted
Accounting Practice) are set out in the Statement of Directors'
Responsibilities. Our responsibility is to audit the financial statements and
the part of the Directors' Remuneration Report to be audited in accordance with
relevant legal and regulatory

requirements and International Standards on Auditing (UK and Ireland).

We report to you our opinion as to whether the financial statements give a true
and fair view and whether the financial statements and the part of the
Directors' Remuneration Report to be audited have been properly prepared in
accordance with the Companies Act 1985. We also report to you whether in our
opinion the information given in the Directors' Report is consistent with the
financial statements. The information given in the Directors' Report includes
that specific information given in the Chairman's Statement and the Manager's
Review that is cross referenced from the Business Review section of the
Directors' Report.

In addition we report to you if, in our opinion, the Company has not kept
proper accounting records, if we have not received all the information and
explanations we require for our audit, or if information specified by law
regarding Directors' remuneration and other transactions is not disclosed.

We review whether the Corporate Governance Statement reflects the Company's
compliance with the nine provisions of the 2006 Combined Code specified for our
review by the Listing Rules of the Financial Services Authority, and we report
if it does not. We are not required to consider whether the Board's statements
on internal control cover all risks and controls, or form an opinion on the
effectiveness of the Company's corporate governance procedures or its risk and
control procedures. We read other information contained in the Annual Report
and consider whether it is consistent with the audited financial statements.
The other information comprises only the Objective and Highlights, Financial
Summary, the Chairman's Statement, the Manager's Review, Ten Largest
Investments, Distribution of the Portfolio, Summary of Performance, the
Directors' Report, the Corporate Governance Statement, the unaudited part of
the Directors' Remuneration Report and the Full Portfolio Listing. We consider
the implications for our report if we become aware of any apparent
misstatements or material inconsistencies with the financial statements. Our
responsibilities do not extend to any other information.

BASIS OF AUDIT OPINION

We conducted our audit in accordance with International Standards on Auditing
(UK and Ireland) issued by the Auditing Practices Board. An audit includes
examination, on a test basis, of evidence relevant to the amounts and
disclosures in the financial statements and the part of the Directors'
Remuneration Report to be audited. It also includes an assessment of the
significant estimates and judgments made by the Directors in the preparation of
financial statements, and of whether the accounting policies are appropriate to
the Company's circumstances, consistently applied and adequately disclosed. We
planned and performed our audit so as to obtain all the information and
explanations which we considered necessary in order to provide us with
sufficient evidence to give reasonable assurance that the financial statements
and the part of the Directors' Remuneration Report to be audited are free from
material misstatement, whether caused by fraud or other irregularity or error.
In forming our opinion we also evaluated the overall adequacy of the
presentation of information in the financial statements and the part of the
Directors' Remuneration Report to be audited.

OPINION

In our opinion:

- the financial statements give a true and fair view, in accordance with United
Kingdom Generally

Accepted Accounting Practice, of the state of the Company's affairs as at 31
December 2008 and of its net loss for the year then ended;

- the financial statements and the part of the Directors' Remuneration Report
to be audited have been properly prepared in accordance with the Companies Act
1985; and

- the information given in the Directors' Report is consistent with the
financial statements.

Grant Thornton UK LLP

Registered Auditor and Chartered Accountants

London

2 March 2009

Enquiries:

Chris Davies, FIL Investments International - 01737 837 723

Rebecca Burtonwood, Company Secretary, FIL Investments International - 01737
836 869

FIDELITY EUROPEAN VALUES PLC

Income Statement

- for the year ended 31 December 2008

                                       2008                       2007        
                                                                              
                          revenue   capital     total revenue  capital   total
                                                                              
                            £'000     £'000     £'000   £'000    £'000   £'000
                                                                              
(Losses)/gains on               - (158,681) (158,681)       -   98,812  98,812
investments                                                                   
                                                                              
Income                                                                        
                                                                              
- Dividend                 23,757         -    23,757  23,322        -  23,322
                                                                              
- Interest                  1,930         -     1,930     983        -     983
                                                                              
- Interest on VAT           1,429         -     1,429       -        -       -
recovered on investment                                                       
management fee                                                                
                                                                              
- Fidelity Institutional    2,534         -     2,534       -        -       -
Cash Fund plc                                                                 
                                                                              
Investment management and (5,491)   (7,458)  (12,949) (8,002)        - (8,002)
performance fee                                                               
                                                                              
VAT recovered on            5,995         -     5,995       -        -       -
investment management fee                                                     
                                                                              
Other expenses              (875)         -     (875)   (898)        -   (898)
                                                                              
Exchange (losses)/gains     (107)    25,141    25,034      18    5,011   5,029
on other net assets                                                           
                                                                              
Exchange losses on loans        -  (26,695)  (26,695)       -  (9,692) (9,692)
                                                                              
Net return/(loss)before    29,172 (167,693) (138,521)  15,423   94,131 109,554
finance costs and                                                             
taxation                                                                      
                                                                              
Interest payable          (4,427)         -   (4,427) (4,275)        - (4,275)
                                                                              
Net return/(loss)on        24,745 (167,693) (142,948)  11,148   94,131 105,279
ordinary activities                                                           
before taxation                                                               
                                                                              
Overseas taxation on      (2,619)         -   (2,619) (2,812)     (97) (2,909)
return/(loss) on ordinary                                                     
activities                                                                    
                                                                              
Taxation on expenses      (1,509)     1,509         -       -        -       -
charged to capital                                                            
                                                                              
Net return/(loss)on        20,617 (166,184) (145,567)   8,336   94,034 102,370
ordinary activities after                                                     
taxation for the year                                                         
                                                                              
Return/(loss)per ordinary  36.77p (296.35p) (259.58p)  13.79p  155.60p 169.39p
share (1)                                                                     

A Statement of Total Recognised Gains and Losses has not been prepared as there
are no gains and losses other than those reported in this Income Statement. The
total column of the Income Statement is the profit and loss account of the
Company. All revenue and capital items in the above statement derive from
continuing operations. No operations were acquired or discontinued in the year.

FIDELITY EUROPEAN VALUES PLC

Reconciliation of Movements in Shareholders' Funds

- for the year ended 31 December2008

                     called   share    capital  capital    capital revenue     total
                         up premium redemption  reserve    reserve reserve    equity
                      share account    reserve realised unrealised                  
                    capital                                                         
                                                                                    
                      £'000   £'000      £'000    £'000      £'000   £'000     £'000
                                                                                    
Opening              15,611  58,615        214  567,640    152,116   7,467   801,663
shareholders'                                                                       
funds: 1 January                                                                    
2007                                                                                
                                                                                    
Net recognised            -       -          -  127,956   (33,922)       -    94,034
gains/(losses) for                                                                  
the year                                                                            
                                                                                    
Repurchase of         (874)       -        874 (46,145)          -       -  (46,145)
ordinary shares                                                                     
                                                                                    
Net revenue after         -       -          -        -          -   8,336     8,336
taxation for the                                                                    
year                                                                                
                                                                                    
Dividend paid to          -       -          -        -          - (3,243)   (3,243)
shareholders                                                                        
                                                                                    
Closing              14,737  58,615      1,088  649,451    118,194  12,560   854,645
shareholders'                                                                       
funds: 31 December                                                                  
2007                                                                                
                                                                                    
Net recognised            -       -          - (62,415)   (97,820)       - (160,235)
capital losses for                                                                  
the year                                                                            
                                                                                    
Repurchase of       (1,009)       -      1,009 (51,106)          -       -  (51,106)
ordinary shares                                                                     
                                                                                    
Performance fee           -       -          -  (7,458)          -       -   (7,458)
charged to capital                                                                  
                                                                                    
Taxation credited         -       -          -    1,509          -       -     1,509
to capital                                                                          
                                                                                    
Net revenue after         -       -          -        -          -  20,617    20,617
taxation for the                                                                    
year                                                                                
                                                                                    
Dividend paid to          -       -          -        -          - (7,991)   (7,991)
shareholders                                                                        
                                                                                    
Closing              13,728  58,615      2,097  529,981     20,374  25,186   649,981
shareholders'                                                                       
funds:                                                                              
                                                                                    
31 December 2008                                                                    

FIDELITY EUROPEAN VALUES PLC

Balance Sheet

- as at 31 December 2008

                                                             2008          2007
                                                                               
                                                            £'000         £'000
                                                                               
Fixed assets                                                                   
                                                                               
Investments at fair value through profit or loss          657,544       848,119
                                                                               
Current assets                                                                 
                                                                               
Debtors                                                     1,890         4,543
                                                                               
Fidelity Institutional Cash Fund plc                       48,764             -
                                                                               
Cash at bank                                               50,907       111,233
                                                                               
                                                          101,561       115,776
                                                                               
Creditors - amounts falling due within one year                                
                                                                               
Fixed rate unsecured loan                                       -      (25,755)
                                                                               
Other creditors                                           (9,145)       (6,230)
                                                                               
                                                          (9,145)      (31,985)
                                                                               
Net current assets                                         92,416        83,791
                                                                               
Total assets less current liabilities                     749,960       931,910
                                                                               
Creditors - amounts falling due after more than                                
one year                                                                       
                                                                               
Fixed rate unsecured loans                               (99,979)      (77,265)
                                                                               
Total net assets                                          649,981       854,645
                                                                               
Capital and reserves                                                           
                                                                               
Called up share capital                                    13,728        14,737
                                                                               
Share premium account                                      58,615        58,615
                                                                               
Capital redemption reserve                                  2,097         1,088
                                                                               
Capital reserve - realised                                529,981       649,451
                                                                               
Capital reserve - unrealised                               20,374       118,194
                                                                               
Revenue reserve                                            25,186        12,560
                                                                               
Total equity shareholders' funds                          649,981       854,645
                                                                               
Net asset value per ordinary share                      1,183.61p     1,449.76p

FIDELITY EUROPEAN VALUES PLC

Cash Flow Statement - for the year ended 31 December 2008

                                                               2008        2007
                                                                               
                                                              £'000       £'000
                                                                               
Operating activities                                                           
                                                                               
Investment income received                                   18,280      19,971
                                                                               
Deposit interest received                                     6,162         628
                                                                               
Investment management fee paid                              (6,011)     (8,841)
                                                                               
VAT recovered on investment management fee paid               6,043           -
                                                                               
Directors' fees paid                                          (104)        (62)
                                                                               
Other cash payments                                           (762)     (1,084)
                                                                               
Net cash inflow from operating activities                    23,608      10,612
                                                                               
Returns on investments and servicing of finance                                
                                                                               
Interest paid                                               (4,505)     (4,265)
                                                                               
Net cash outflow from returns on investments and            (4,505)     (4,265)
servicing of finance                                                           
                                                                               
Taxation                                                                       
                                                                               
Overseas taxation recovered                                     740       1,232
                                                                               
Taxationrecovered                                               740       1,232
                                                                               
Financial investment                                                           
                                                                               
Purchase of investments                                   (937,042)   (995,838)
                                                                               
Disposal of investments                                     982,820   1,152,214
                                                                               
Net cash inflowfrom financial investment                     45,778     156,376
                                                                               
Dividend paidto shareholders                                (7,991)     (3,243)
                                                                               
Net cash inflowbefore financing                              57,630     160,712
                                                                               
Cash flow from management of liquid resources                                  
                                                                               
Fidelity Institutional Cash Fund plc                       (48,764)           -
                                                                               
Net cash outflow from management of liquid resources       (48,764)           -
                                                                               
Financing                                                                      
                                                                               
Repurchase of ordinary shares                              (51,906)    (45,361)
                                                                               
4.335% credit facility drawn down                                 -      10,191
                                                                               
4.595% credit facility drawn down                                 -      10,109
                                                                               
5.165% credit facility drawn down                                 -      10,462
                                                                               
3.54% fixed rate unsecured loan repaid                     (29,736)           -
                                                                               
4.1465% credit facility repaid                                    -    (10,191)
                                                                               
4.335% credit facility repaid                                     -    (10,109)
                                                                               
4.595% credit facility repaid                                     -    (10,462)
                                                                               
5.165% credit facility repaid                                     -    (11,078)
                                                                               
Net cash outflowfrom financing                             (81,642)    (56,439)
                                                                               
(Decrease)/increasein cash                                 (72,776)     104,273

1. Returns per ordinary share are based on the net revenue return on ordinary
activities after taxation of £20,617,000 (2007: £8,336,000), the capital loss
in the year of £166,184,000 (2007: return £94,034,000) and the total loss in
the year of £145,567,000 (2007: return £102,370,000) and on 56,077,724 ordinary
shares (2007: 60,434,721) being the weighted average number of ordinary shares
in issue during the year.

The above statements have been prepared on the basis of the accounting policies
as set out in the financial statements in the annual report to 31 December
2008. This preliminary statement, which has been agreed with the auditor, was
approved by the Board on 2 March 2009. It is not the Company's statutory
financial statements.  The statutory financial statements for the financial
year ended 31 December 2007 have been delivered to the Registrar of Companies.
The statutory financial statements for the financial year ended 31 December
2008 have been approved and audited but have not yet been filed. The statutory
financial statements for the financial years ended 31 December 2007 and 31
December 2008 received unqualified audit reports, did not include a reference
to any matters to which the auditor drew attention by way of emphasis without
qualifying the report and did not contain statements under section 237(2) and
(3) of the Companies Act 1985.

 
The annual report and financial statements will be posted to shareholders as
soon as is practicable and in any event no later than 16 April 2009.