Interim Results

Foreign & Colonial Eurotrust PLC
27 May 2002

Date: EMBARGOED UNTIL 00.01AM MONDAY 27 MAY 2002

Contact: Stephen White, F&C Management Limited, 020 7628 8000/Emma Chilvers,
Lansons Communications, 020 7294 3606



                        FOREIGN & COLONIAL EUROTRUST PLC

                   Unaudited Preliminary Statement of Results

                     for the half-year ended 31 March 2002



HIGHLIGHTS


  • Between the year end at 30 September 2001 and 31 March 2002, the net
    assets per share rose from 478.3 pence to 550.7 pence, an increase of 15.1%.
    This compares with a gain of 15.5% over the same period in the FTSE AW
    Europe ex UK Index.

  • In anticipation of a pickup in economic activity later this year we added
    to the portfolio a number of cyclical names in the steel, consumer durable
    and transport industries.

  • Overall, the economic background for the equity markets is favourable,
    although it may take more confirmation that the recovery is underway before
    investors commit themselves more fully and a convincing upward trend becomes
    established.



SUMMARY OF RESULTS
                                            31 March 2002        30 September 2001                 % change

Net assets                                       £414.39m                 £359.90m                   +15.14
Net asset value per share                         550.72p                  478.29p                   +15.14

Share price                                       506.50p                  438.50p                   +15.51


                                                                6 months to          6 months to
                                                              31 March 2002        31 March 2001                        
                                 
Earnings/(loss) per share                                           (0.59p)              (2.80p)



Chairman's Statement

Dear Shareholder,

Between the year-end at 30 September 2001 and 31 March 2002, the net assets per
share rose from 478.3p to 550.7p, an increase of 15.1%. This compares with a
gain of 15.5% over the same period in the FTSE AW Europe ex UK Index, which is
adjusted for the movement in the European currencies against sterling.

Review of Markets

Over the past six months, the continental European equity markets recovered
somewhat from the lows to which they had fallen in the aftermath of the
September 11th terrorist attacks. However, most of this advance took place in
the latter part of last year on relief that the political situation did not
deteriorate further, as from the beginning of 2002 the markets merely moved
sideways. Indeed, since then volumes on the exchanges fell considerably as
investors preferred to sit on the sidelines and await more concrete signs of any
recovery in economic activity. Certainly, the Argentinean devaluation, the Enron
scandal and the poor results coming from much of the telecom and technology
industries did little to encourage the taking of risk. Corporate activity was
also extremely limited. There were no major themes over the period within the
markets in terms of relative sector performances. Generally, the better
performers throughout were the more cyclical companies, including technology, on
hopes of an economic recovery later in the year. Oils held their ground as the
price of crude remained supported by the situation in the Middle East. By
contrast, the poorer performers included the telecoms on continuing balance
sheet concerns, the pharmaceuticals on patent worries and the banks as their
investment banking divisions suffered from the sluggish equity markets.

Portfolio Strategy

We made only limited changes to the portfolio during the period, still not
wishing to take major sector views given the uncertain outlook. That said, in
anticipation of a pickup in economic activity later this year we added a number
of cyclical names in the steel, consumer durable and transport industries. We
also took advantage of the setback in the insurance stocks following the
terrorist attacks to add to positions. We financed these purchases through
reducing our previously overweight positions in oil and pharmaceuticals. In the
case of the former, we felt that weaker demand in the short term and friction
between Russia and OPEC over production cuts would weigh on the price of crude.
In the case of the latter, we felt that relative valuations had been pushed to
extreme and that the earnings outlook for many of the majors in 2002 was dull
given the lack of new block-buster drugs and the rising threat from generic
drugs. The Company had only negligible gearing throughout the period.

Unaudited Figures

The revenue account for the period, as is usually the case at the interim stage,
shows a loss due to the fact that most European companies pay their annual
dividend in the summer months, while costs are incurred throughout. The interim
figures should thus not be taken as indicative of the revenue for the full year.
However, the loss this year is significantly lower than at the interim stage
last year. This is due to the lower management fee with the fall in value of the
portfolio compared to a year ago and the reduction in the rate agreed last year
with F&C, and to the almost negligible interest cost as a result of the cutting
of the gearing.



Outlook

Although the markets have made little progress of late, we remain optimistic for
the year ahead. Consumer confidence remains upbeat despite the problems of the
past year and business expectations are starting to improve again. While we may
have seen the low point in interest rates, it is likely that any increases in
rates in the months ahead as economies improve will still be modest. The outlook
for company profits in most industries, with the notable exception of technology
and telecommunications, is thus encouraging. Overall, this is a favourable
background for the equity markets, although it may take more confirmation that
the recovery is underway before investors commit themselves more fully and a
convincing upward trend becomes established.

Douglas McDougall

24 May 2002



Unaudited Balance Sheet
                                                                      31 March           31 March       30 September 
                                                                          2002               2001               2001
                                                                        £'000s             £'000s             £'000s
Fixed assets
Investments                                                            412,657            474,013            359,512
Current assets
Debtors                                                                  4,020              4,679              4,995
Taxation recoverable                                                       421                773                507
Cash at bank and short-term deposits                                    12,070             12,562              2,316
                                                                        16,511             18,014              7,818

Current liabilities
Creditors: amounts falling due within one year
Foreign currency loans                                                 (6,739)           (37,085)                  -
Other                                                                  (8,037)            (6,843)            (7,435)
                                                                      (14,776)           (43,928)            (7,435)

Net current assets/(liabilities)                                         1,735           (25,914)                383

Net assets                                                             414,392            448,099            359,895

Capital and Reserves
Called up Equity Share Capital                                          18,811             18,811             18,811
Share premium                                                          123,749            123,749            123,749
Capital reserves                                                       268,977            305,351            214,035
Revenue reserve                                                          2,855                188              3,300
Total equity shareholders' funds                                       414,392            448,099            359,895

Net asset value per ordinary share - pence                              550.72             595.52             478.29




The geographical distribution of investments at 31 March 2002 was: France -
37.0%; Germany - 14.8%; Netherlands - 11.7%; Switzerland - 7.8%; Italy - 6.8%;
Sweden - 6.5%; Spain - 6.1%; Finland - 4.4%; Denmark - 2.7%; United Kingdom -
1.3%; Greece - 0.9%.







Unaudited Statement of Total Return (incorporating the Revenue Account*) for the 6 months to 31 March


                                                                        2002                                       2001
                                        Revenue Capital £'000s         Total Revenue £'000s       Capital         Total

                                         £'000s                       £'000s                       £'000s        £'000s

Gains/(losses) on                             -         55,039        55,039              -      (66,855)      (66,855)
Investments
Exchange (losses)/gains                     (5)           (84)          (89)             20       (2,534)       (2,514)
Income                                    1,384              -         1,384          1,577             -         1,577
Management fee                          (1,149)              -       (1,149)        (2,103)             -       (2,103)
Other expenses                            (458)           (13)         (471)          (484)          (10)         (494)
Net return before finance costs
and taxation                              (228)         54,942        54,714          (990)      (69,399)      (70,389)
Interest payable and similar               (70)              -          (70)          (976)             -         (976)
charges
Return on ordinary activities
before taxation                           (298)         54,942        54,644        (1,966)      (69,399)      (71,365)
Taxation on ordinary activities           (147)              -         (147)          (140)             -         (140)
Return attributable to equity
shareholders                              (445)         54,942        54,497        (2,106)      (69,399)      (71,505)
Dividend on ordinary shares                   -              -             -              -             -             -
Amount transferred
(from)/to reserves                        (445)         54,942        54,497        (2,106)      (69,399)      (71,505)
Return per ordinary share - pence        (0.59)          73.02         72.43         (2.80)       (92.23)       (95.03)



* The revenue column of this statement is the profit and loss account of the Company.

All revenue and capital items in the above statement derive from continuing operations.



Unaudited Summarised Cash Flow Statement for the 6 months to 31 March
                                                                                          2002                      2001
                                                                                        £'000s                    £'000s
Net cash outflow from operating activities                                               (374)                   (1,622)
Interest paid                                                                             (66)                   (1,035)
Taxation (paid)/recovered                                                                 (61)                       167
Net cash inflow from purchases and sales of investments                                  1,636                    25,126
Equity dividends paid                                                                  (1,731)                   (1,279)
Net cash (outflow)/inflow before use of liquid resources                                 (596)                    21,357
and financing
Increase in short-term deposits                                                       (11,156)                  (10,693)
Net cash inflow/(outflow) from financing                                                 6,690                   (8,598)
(Decrease)/increase in cash during the period                                          (5,062)                     2,066





Notes

The Report and Accounts will be posted to shareholders in early June 2002.
Copies may be obtained during normal business hours from the Company's
Registered Office, Exchange House, Primrose Street, London EC2A 2NY.



By order of the Board

F&C Management Limited, Secretary

24 May 2002



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