Interim Results

FIDELITY EUROPEAN VALUES PLC

Preliminary Announcement of Unaudited Results

For the six months ended 30 June 2003

Performance

During the first six months of the year, the net asset value rose by 17.5% to
550.52p per share, compared with a return of 10.6% for the FTSE World Europe
(ex UK) Index. (All figures are in sterling and on a total return basis).

Market Review

Equity markets were adversely affected by geopolitical concerns during the
first few months of 2003. However, equities rebounded later in the period as
tensions in the Middle East eased. These factors also influenced currencies;
the euro strengthened by 11.1% against the US dollar (from $1.04 to $1.15).

The European Central Bank (ECB) cut interest rates by 0.25 percentage points in
March and by 0.5 percentage points in June to 2.0%. The ECB also stated that an
inflation target of close to 2% would be their policy objective, explicitly
acknowledging the risks of deflation. Other central banks in Europe also eased
monetary policy; most notably the Norwegian Central Bank, which lowered
interest rates from 5% to 4%.

Portfolio Manager Report

Equity markets fell heavily during January and February as the likelihood of
war in the Middle East concerned investors. During these months, there was a
large differentiation between sector performances. The insurance, steel, food
and chemical sectors struggled, while electricity, transport, telecommunication
and tobacco stocks performed well. As the war in Iraq ended, markets bounced
strongly and sectoral trends were generally reversed, with economically
sensitive sectors outperforming defensive sectors.

The performance of the portfolio was influenced by successful security
selection. Additionally, the strong performance of smaller and medium-sized
companies was beneficial, as the portfolio had a high exposure to these areas
of the market.

There was a large amount of corporate activity, with companies including Wella,
Vodafone Libertel, BBAG and Brau-Union all being the subject of takeovers. The
portfolio's relatively large position in telecommunications and media companies
helped performance, but this was offset by its underweight position in software
and IT hardware stocks, which performed strongly.

The fund manager continued to increase the portfolio's exposure to
telecommunication services and energy stocks, as he believes fundamentals in
both sectors are relatively strong, analysts' estimates of earnings are
generally being upgraded and share price valuations are reasonable. At the end
of the review period, the portfolio held a slightly above-average exposure to
TMT stocks, a below-average exposure to financials and export-oriented stocks,
and a relatively neutral weighting in defensive stocks. In terms of country
positioning, the portfolio continued to be orientated towards the peripheral
and generally smaller markets in Europe including Finland, Norway and Greece,
particularly the domestic and consumer-oriented sectors in these countries.
Meanwhile, it was less exposed to the larger European markets notably
Switzerland, Italy and France.

Outlook

The outlook for the European economy is mixed. The strength of the euro
relative to the dollar has hurt the competitiveness of export-oriented
companies and consumer confidence in most of Europe is still weak. Set against
this, the more accommodating policy stance taken by the ECB should have a
beneficial effect. Overall, economists expect a modest return to growth over
the second half of the year. According to consensus forecasts, the eurozone
economy is expected to grow by 0.7% in 2003 and by 1.8% in 2004. Within this
context the Company will continue to focus on identifying undervalued
individual companies using a bottom-up stockpicking approach.

Dividend

The Company is not proposing to pay an interim dividend.

By order of the Board

Fidelity Investments International

23 July 2003

Enquiries: Barbara Powley - Fidelity Investments International 01737 836883  

  

FIDELITY EUROPEAN VALUES PLC

Statement of Total Return (incorporating the revenue account)

For the six months ended 30 June 2003

                  for the six months e for the year ended   for the six months 
                          nded                                    ended        
                                                                               
                        30.06.03            31.12.02             30.06.02      
                                                                               
                       unaudited             audited            unaudited      

             revenue capital   total  revenue  capital    total  revenue  capital  total 
                                                                                         
              £'000    £'000   £'000    £'000    £'000    £'000    £'000   £'000   £'000 
                                                                                         
Gains/            -    50,079  50,079       -  (25,981) (25,981)       -   28,567  28,567
(losses) on                                                                              
investments                                                                              
                                                                                         
Income -       8,894       -    8,894    9,582       -     9,582    8,050      -    8,050
Dividend                                                                                 
                                                                                         
- Interest       144        -     144      356        -      356      162       -     162
                                                                                         
Investment   (2,141)       -  (2,141)  (4,365)       -   (4,365)  (2,379)      -  (2,379)
management                                                                               
fee                                                                                      
                                                                                         
Other          (398)       -    (398)    (570)       -     (570)    (344)      -    (344)
expenses                                                                                 
                                                                                         
Exchange          -       376     376       -       538      538       -    1,392   1,392
gains                                                                                    
                                                                                         
Repurchase         -        -       -        -    (124)    (124)        -       -       -
of shares                                                                                
                                                                                         
Net return/    6,499   50,455  56,954    5,003 (25,567) (20,564)    5,489  29,959  35,448
(loss)                                                                                   
before                                                                                   
finance                                                                                  
costs and                                                                                
taxation                                                                                 
                                                                                         
Interest     (1,594)       -  (1,594)  (3,018)       -   (3,018)  (1,482)      -  (1,482)
payable                                                                                  
                                                                                         
Exchange           -  (3,729) (3,729)        -  (3,645)  (3,645)        - (3,471) (3,471)
losses on                                                                                
loans                                                                                    
                                                                                         
Return/        4,905   46,726  51,631    1,985 (29,212) (27,227)    4,007  26,488  30,495
(loss) on                                                                                
ordinary                                                                                 
activities                                                                               
before                                                                                   
taxation                                                                                 
                                                                                         
Tax on         (928)       -    (928)    (917)       -     (917)  (1,108)      -  (1,108)
ordinary                                                                                 
activities                                                                               
                                                                                         
Return/        3,977   46,726  50,703    1,068 (29,212) (28,144)    2,899  26,488  29,387
(loss) on                                                                                
ordinary                                                                                 
activities                                                                               
after tax                                                                                
for the                                                                                  
period                                                                                   
attributable                                                                             
to equity                                                                                
shareholders                                                                             
                                                                                         
Dividend           3        -       3    (759)        -    (759)        -       -       -
                                                                                         
Transfer to/   3,980   46,726  50,706      309 (29,212) (28,903)    2,899  26,488  29,387
(from)                                                                                   
reserves                                                                                 
                                                                                         
Return per                                                                               
ordinary                                                                                 
share                                                                                    
                                                                                         
Basic          6.32p   74.24p  80.56p    1.69p (46.32p) (44.63p)    4.60p  42.05p  46.65p

These accounts have been prepared in accordance with the AITC Statement of
Recommended Practice (SORP) issued in January 2003.

The Company over-provided for an amount of dividend on 222,000 shares amounting
to £2,664 being the result of the repurchase of ordinary 25p shares between 31
December 2002 (year-end date) and 7 March 2003 (record date).  

FIDELITY EUROPEAN VALUES PLC

Balance Sheetas at 30 June 2003

                                 30.06.03  31.12.02  30.06.02
                                                             
                                unaudited   audited unaudited
                                                             
                                   £'000     £'000     £'000 
                                                             
Fixed assets                                                 
                                                             
Investments                       398,832   348,059   409,261
                                                             
Current assets                                               
                                                             
Debtors                             6,621     1,552     2,177
                                                             
Cash at bank                       12,426     8,079     8,700
                                                             
                                   19,047     9,631    10,877
                                                             
Creditors - amounts falling due                              
within one year                                              
                                                             
Other creditors                   (9,271)   (2,590)   (6,979)
                                                             
Net current assets                  9,776     7,041     3,898
                                                             
Total assets less current         408,608   355,100   413,159
liabilities                                                  
                                                             
Creditors - amounts falling due                              
after more than one year                                     
                                                             
Fixed rate unsecured loans       (62,312)  (58,583)  (58,409)
                                                             
Total net assets                  346,296   296,517   354,750
                                                             
Capital and reserves                                         
                                                             
Called up share capital            15,726    15,781    15,785
                                                             
Share premium account              58,615    58,615    58,561
                                                             
Capital redemption reserve            100        44        37
                                                             
Other reserves                                               
                                                             
Capital reserve - realised        229,299   220,156   227,524
                                                             
Capital reserve - unrealised       35,085   (1,570)    46,762
                                                             
Revenue reserve                     7,471     3,491     6,081
                                                             
Total equity shareholders'        346,296   296,517   354,750
funds                                                        
                                                             
Net asset value per ordinary                                 
share:                                                       
                                                             
Basic                             550.52p   469.73p   561.82p

The balance sheet as at 31 December 2002 has been extracted from the accounts
for the year ended 31 December 2002 which have been delivered to the Registrar
of Companies and on which the auditors gave an unqualified report.

FIDELITY EUROPEAN VALUES PLC

Cash Flow Statementfor the six months ended 30 June 2003

                                30.06.03   31.12.02  30.06.02
                                                             
                               unaudited    audited unaudited
                                                             
                                   £'000      £'000     £'000
                                                             
Operating activities                                         
                                                             
Investment income received         6,694      8,298     6,421
                                                             
Interest received                    144        252       159
                                                             
Investment management fee paid   (2,019)    (4,450)   (2,301)
                                                             
Directors' fees paid                (26)       (47)      (34)
                                                             
Other cash payments                (260)      (712)     (588)
                                                             
Net cash inflow from operating     4,533      3,341     3,657
activities                                                   
                                                             
Returns on investments and                                   
servicing of finance                                         
                                                             
Interest paid                    (1,620)    (3,032)   (1,494)
                                                             
Net cash outflow from returns    (1,620)    (3,032)   (1,494)
on investments and servicing                                 
of finance                                                   
                                                             
Taxation                                                     
                                                             
Overseas tax recovered               223        659       280
                                                             
Corporation tax paid                   -      (381)     (381)
                                                             
Tax recovered/(paid)                 223        278     (101)
                                                             
Financial investment                                         
                                                             
Purchases of investments       (204,284)  (291,770) (125,058)
                                                             
Exchange gains                       583        452     1,352
                                                             
Disposals of investments         206,801    287,511   119,025
                                                             
Net cash inflow/(outflow)from      3,100    (3,807)   (4,681)
financial investment                                         
                                                             
Equity dividend paid               (755)    (1,260)   (1,260)
                                                             
Net cash inflow/(outflow)          5,481    (4,480)   (3,879)
before financing                                             
                                                             
Financing                                                    
                                                             
Repurchase of ordinary shares      (926)      (124)         -
                                                             
Repayment of Equity                    -   (26,869)  (26,869)
Index-Linked Loan Stock                                      
                                                             
Issue of ordinary shares               -      1,690     1,632
                                                             
Net cash outflow from              (926)   (25,303)  (25,237)
financing                                                    
                                                             
Increase/(decrease)in cash         4,555   (29,783)  (29,116)

Copies of the interim report will be posted to shareholders as soon as
practicable. Copies will also be available to the public at the Company's
registered office Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey
KT20 6RP.