Final Results

Alliance Trust PLC
18 March 2003

THE ALLIANCE TRUST PLC

FINAL RESULTS FOR THE YEAR TO 31 JANUARY 2003


FINANCIAL SUMMARY

Performance - years to 31 January
                                                                           Year to       Year to

                                                                         31 Jan 03     31 Jan 02

Income
dividends interim paid October                                               29.0p         28.0p
final proposed 1 May 2003                                                    40.5p         40.5p
total                                                                        69.5p         68.5p
gross yield (dividend (1) , closing stock price) (2)                          3.6%          2.6%
total expense ratio (expenses , year end net asset value) (2) (3)            0.31%         0.19%

Capital
net asset value per ordinary stock unit (at 31 January)                     £23.85        £33.14
price per ordinary stock unit (at 31 January)                               £21.28        £29.24
discount (at 31 January)                                                     10.8%         11.6%

                                                                            1 Year      10 Years
Returns
dividend growth                                                               1.5%          4.4%

capital growth - Alliance Trust net asset value                             -28.0%          3.0%
capital growth - FTSE All-Share Index                                       -31.0%          2.4%

total return - on Alliance Trust net assets (4)                             -25.9%          5.2%
total return - on Alliance Trust stock price (4)                            -24.9%          5.5%
total return - on FTSE All-Share Index (4)                                  -28.8%          5.4%

annual rate of inflation (RPI) *                                              2.9%          2.6%


Note:       1       Total dividend (including tax credit)

            2       The increase in yield and in the total expense ratio mainly reflects the
                    fall in capital values over the year.

            3       The total expense ratio before an additional pension contribution of
                    £328,000 was 0.28%

            4       These returns include income and capital movements and are approximately
                    equal to the annual compound movement in net assets/stock price/index added
                    to the net yield on the portfolio/stock price/index.

*           Source: Thomson Financial Datastream


DIVIDEND

Dividend growth continues to be an important element of the total returns we
provide. Having increased the interim dividend by 1p we are recommending a final
dividend of 40.5p, making a total annual dividend of 69.5p, an increase of 1.5%
on last year. The Company has significant revenue reserves and, despite an
uncertain economic environment and the possibility of lower dividend increases,
or even dividend cuts, from the companies in which we invest, we anticipate
being able to maintain our progressive dividend policy.

Subject to approval by the stockholders the final dividend on the Company's
ordinary stock is payable on Thursday, 1 May 2003 to stockholders registered on
11 April 2003. The dividends on the Company's preference stocks are also payable
on 1 May 2003 to stockholders registered on 11 April 2003 and the ex-dividend
date for all stocks is 9 April 2003.

CHAIRMAN'S STATEMENT

The last year has been a stormy one for capital markets, ending at a time of
great economic and geopolitical uncertainty. The valuation of our assets has
declined for the second year running, this time by 28%, although by contrast we
have been able to increase the dividend again. The 36 year run of consecutive
increases is particularly welcome in these times of falling interest rates and
generally reduced investment returns.

The reasons for the market turmoil combine genuine economic difficulty in
economies and companies world-wide with a major change in the perception of
equities as an investment. The bursting of the technology bubble at the start of
2000 started the process, which was accelerated by the events of 11 September
2001, various corporate scandals and, particularly in the last year, the
unravelling of many financial structures engineered at a time when equity growth
was taken for granted.

As an essentially equity fund, we have not been immune from the falls, but our
stocks have generally outperformed their markets. Diversification has reduced
exposure to specific risks in companies, industries or economies and we have
remained ungeared with significant sums held in cash and bonds.

Over the longer term the resilience of our approach is likely to more than make
up for the less volatile returns which might be expected over shorter periods.
Indeed the last year has seen many investment companies fail, or change their
financial structures, when the downside risks they had taken on began to
crystallise.

The hardship and political fallout caused by these problems has spawned a
plethora of investigations, consultation papers and proposals which cover many
of the areas in which we operate: investment trusts, pensions and the
distribution of savings products. It is to be hoped that common sense will
prevail and that the root of many of the problems in the marketplace - the
incentivised selling of long-term products on short-term criteria - which it has
been our policy to avoid, will be tackled without damaging the strengths which
companies such as our own have displayed for over a century.

One of these strengths is the ability to change with the times. We now do more
of our own investment research, the savings side of the business is innovative
and growing and we have made progress in improving communications between the
Company and its stockholders.

None of this would be effective without dedicated staff, committed managers and
a focussed board of directors. This year we have welcomed two new directors to
the Board. Christopher Masters brings us his insight and depth of management
experience. David Deards, with his banking and wealth management experience,
joins us as Finance Director. These appointments were predicated last year when
we asked stockholders to increase the size of the Board and are in anticipation
of the retirement of Gavin Suggett in 2004. We are asking stockholders to
approve these appointments at the AGM together with adjustments to Directors'
fees as explained in the Directors' Remuneration Report.

Next year we hope to be able to report a better valuation, but we are very
conscious of the many imponderables which lie in wait over the next 12 months.
These seem to affect just about every form of long-term savings and investment
and there has rarely been a better opportunity to preach the merits of investing
in a diversified trust.



RESULTS
                                                                             Per Ordinary Stock Unit

                                                                     Group                       Company

                                                                   2003           2002            2003         2002

Total earnings                                                   70.82p         74.36p          71.63p       74.80p
Dividend                                                          69.5p          68.5p           69.5p        68.5p
Net asset value                                                  £23.85         £33.14          £23.85       £33.14

Revenue Return                                                   £000           £000           £000         £000

Investment income                                              41,098         41,954         41,360       42,192
Other income                                                    7,228          7,963          2,255        2,759
                                                            -----------    -----------    -----------    ---------
                                                               48,326         49,917         43,615       44,951
                                                            -----------    -----------    -----------    ---------
Return before taxation                                         40,184         42,347         39,805       41,678
Taxation                                                        (4,104)        (4,419)        (3,607)      (3,882)
                                                            -----------    -----------    -----------    ---------
Return after taxation                                          36,080         37,928         36,198       37,796
Minority interest - equity                                        (289)          (352)            -            -
                                                            -----------    -----------    -----------    ---------
                                                               35,791         37,576         36,198       37,796
Dividends on preference stock - non-equity                         (97)           (97)           (97)         (97)
                                                            -----------    -----------    -----------    ---------
Return attributable to equity stockholders                     35,694          37,479        36,101       37,699
                                                            -----------    -----------    -----------    ---------
Amount absorbed by ordinary dividend                           (35,028)       (34,524)       (35,028)     (34,524)

Balance Sheet                                                      £000           £000           £000         £000

Investments at valuation                                      1,156,062      1,614,994      1,162,939    1,624,384
Net current assets                                               59,421         68,642         42,970       49,583
                                                            -----------    -----------    -----------    ---------
Total assets less current liabilities                         1,215,483      1,683,636      1,205,909    1,673,967

Long term liabilities                                            11,222         11,317          1,648        1,648

Equity stockholders' funds                                    1,202,061      1,670,119      1,202,061    1,670,119
Net asset value per ordinary stock unit                          £23.85         £33.14         £23.85       £33.14
Cash Flow Statement                                                £000           £000           £000         £000

Net cash inflow from operating activities                      51,577         54,045         40,163       41,970
Servicing of finance                                            (1,642)        (1,950)          (181)        (212)
Taxation paid                                                   (4,312)        (3,665)        (3,700)      (2,865)
Investment purchases settled                                  (163,274)      (177,324)      (149,670)    (171,028)
Investment sales settled                                      151,034         213,549       140,034       206,697
Equity dividends paid                                          (35,028)       (34,524)       (35,028)     (34,524)
Management of liquid resources                                    845         (47,543)        6,491       (38,983)
                                                            -----------    -----------    -----------    ---------
(Decrease)Increase in cash                                        (800)        2,588          (1,891)      1,055
                                                            -----------    -----------    -----------    ---------

The revenue return statement is the profit and loss account of the Company.

The financial information set out above does not constitute the Company's
statutory accounts for the years ended 31 January 2003 or 2002 but is derived
from those accounts.



Number of Issued Stock Units

Ordinary Stock Units of 25p                            50,400,000

4.25% Cumulative Preference Stock                         700,000

4% Cumulative Preference Stock                            650,000

5% Cumulative Preference Stock                            750,000

4% 'A' Cumulative Preference Stock                        100,000


Statutory accounts for 2002 have been delivered to the Registrar of Companies
and those for 2003 will be delivered following the Company's Annual General
Meeting. The auditor has reported on those accounts. The report was unqualified
and did not contain statements under Section 237 (2) or (3) of the Companies Act
1985.

The Report and Accounts will be available on the Company's website
www.alliancetrusts.com on 18 March 2003 and will be posted to stockholders on
Tuesday, 25 March 2003. It will also be made available to the public at the
Company's registered office, Meadow House, 64 Reform Street, Dundee DD1 1TJ and
at the offices of the Company registrar, Computershare Investor Services PLC,
Owen House, 8 Bankhead Crossway North, Edinburgh EH11 4BR on and after that
date.

The Company's Annual General Meeting will be held on Friday, 25 April 2003 at
11.30 a.m. at The Space, Dundee College, Old Glamis Road, Dundee.

In addition to the full annual report, up-to-date performance data, details of
new initiatives and other information about the Company can be found on our
website.

The press release summarising these results follows and questions should be
addressed to Gavin Suggett or Alan Young (telephone [phone], extension
2402).


PRESS RELEASE

Issued Tuesday, 18 March 2003

The Alliance Trust PLC

Final Results for the Year Ended 31 January 2003

  • Valuation down but assets outperformed the FTSE All-Share by 3%
  • Final dividend of 40.5p, making a total for the year of 69.5p
  • Dividend increased for 36th consecutive year
  • Savings business bucks the trend with positive net inflows and growth in
    investor numbers
  • Results show the merit of investing in a diversified trust.

The Alliance Trust PLC, the 115 year old investment trust company, today
announced its final results for the year ended 31 January 2003. It has not been
immune to falls in the markets but the outperformance against the FTSE All-Share
shows the benefits of a conservatively run, self-managed investment trust with a
low expense ratio and no gearing.

Commenting on the results, Gavin Suggett, Chief Executive, said:

' We believe we are fulfilling what our investors want in these volatile times,
which is a diversified fund capable of weathering storms. This relative
outperformance has no doubt contributed to the continued growth of Alliance
Trust Savings in a difficult savings market and we are very pleased to report an
increase in investor numbers through our products to over 35,300. Our
self-invested personal pension has shown a 39% increase in pension investors and
the ISA a 10% increase. This speaks for itself when many other providers are
seeing retail investors fleeing'.

Alan Young, Investment Director, added:

'Our stocks have generally outperformed their markets and diversification has
reduced exposure to specific risks in companies, industries and economies. We
have remained ungeared with 6% held in cash and bonds but we are now beginning
to take advantage of some attractive buying opportunities for individual stocks
in the depressed equity markets to optimise the benefit of any recovery.'

Notes to editors

1.        The Alliance Trust was incorporated in 1888 and still operates from Dundee. It employs its own staff and
          has assets of £1,206m. Its shares are listed on the London Stock Exchange and it has a very high
          proportion of private investors with over 35,000 investors alone in one nominee in its PEPs, ISAs,
          Investment Plans and Self-Invested Personal Pensions.

2.        Alliance Trust Savings Ltd, the banking and financial services subsidiary, which provides these products,
          is authorised and regulated by the FSA. It has over £800m of client assets.

3.        In recent years, much effort has been put into strengthening the investment team, which now numbers 6
          investment managers supported by a number of analysts. The emphasis is on fundamental research and a
          stock driven philosophy.

4.        The 115th Annual General Meeting will be held on 25th April 2003. The venue is 'The Space', the home of
          the Scottish School of Contemporary Dance, which is situated in Dundee. The AGM will include a question
          and answer session and a presentation by David Deards, the new finance director. Stockholders will have
          ample opportunity to meet the directors and investment managers over refreshments. The meeting will start
          at 11.30 am, with registration and coffee from 10.45 am. For the convenience of stockholders a courtesy
          coach will leave Dundee Railway Station carpark shortly after 10.30 am.


ENDS


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