Interim Results

Fidelity Japanese Values PLC
4 August 2000



FIDELITY JAPANESE VALUES PLC

Announcement of unaudited interim results
for the six months ended 30 June 2000


Extract from the Interim Report

CHAIRMAN'S STATEMENT

Performance - Six months ago I drew attention to the extraordinary rise in the
Japanese market in 1999 and cautioned that in the short-term investors may
succumb to taking profits. Profit taking, together with a large number of
IPOs, a change in sentiment towards the technology, media and
telecommunications sectors (TMT)and a sharp decline in the NASDAQ, caused
markets in Japan to decline in the second quarter of the year.  This has had a
marked influence on the performance of your Company.

Last year, the undiluted net asset value of your Company rose by 340%. In
comparison, during the first half of 2000 the net asset value has declined by
20.5%. This performance compares with a decline of 0.4% in our stated
benchmark, the TSE Second Section Index (TSE 2).  However, only 16% of our
portfolio is invested in the TSE 2, while 47% is invested in TSE First Section
(TSE 1) companies and 23% in OTC companies (in all cases smaller companies). 
The nature of markets in Japan has evolved such that there are a significant
number of smaller companies listed on each of the exchanges and our portfolio
distribution between them emerges as a consequence of stock selection.  We
therefore use all three indices as reference points for monitoring and
comparing our own performance.

As you will read in the Investment Manager's Report, TMT stocks continue to
account for a large part of the portfolio of the Company. This reflects the
strong growth prospects for such companies in Japan, many of which are leaders
in their sector. However, despite these prospects, the shares of these
companies (including those in our own portfolio) suffered significantly during
the second quarter and caused our net asset value to underperform the indices.
We do however remain optimistic about their longer-term prospects and continue
to hold a significant proportion of the portfolio in TMT stocks. 

Purchase of Shares and Warrants - During the six months to 30 June 2000, the
Company has purchased and cancelled 600,000 warrants. The Company has also
purchased and cancelled a total of 400,000 shares in the period. Full details
of these purchases are set out in the Notes to the Accounts in the interim
report. Purchases are made within guidelines laid down by the Board and are
only made if they will result in an uplift in the fully-diluted net asset
value. 

Outlook - The short-term outlook continues to be clouded by poor economic and
corporate news.  There is some speculation that the Bank of Japan will end its
zero interest rate policy, with the prospect of rising interest rates. 
Investors continue to be frustrated at the pace of macro-reforms in the
financial and other sectors.  However, we remain really rather optimistic
about Japanese markets in general and our portfolio of Japanese smaller
companies in particular.

Fidelity's analysts and investment managers continue to monitor the
performance and prospects of all the companies that we hold.  These companies,
together with many others, are not only reporting good earnings progress but
also improving prospects for the future.  The decline in share prices in
Japan, particularly those in our portfolio, against a background of rising
corporate earnings, means that there has been a fall in price to earnings
ratios which has significantly improved the potential of the underlying
portfolio.  We therefore remain optimistic about our medium to long-term NAV
performance.

Alex Hammond-Chambers
Chairman


INVESTMENT MANAGER'S REPORT

Performance Review - Over the period under review the net asset value of the
Company fell by 20.5%.  This decline compares with a fall of 4.8% in the TSE1,
0.4% in the TSE 2 and 18.9% in the Nikkei OTC Index (all sterling adjusted). 
As commented on in the Chairman's Statement, all three indices have influenced
our performance.

However, the portfolio is not constructed on the basis of any index but rather
on a 'bottom-up' basis by selecting individual companies whose prospects we
regard as excellent.  A significant proportion of the portfolio is invested in
TMT stocks about whose prospects we remain confident but whose recent share
price performance has been poor; this has been the reason for the
underperformance against the indices.

Japanese Economy and Stockmarket - The economic environment in Japan has
improved over the last six months. The economy grew at an annualised rate of
10% during the first quarter this year. Although this sharp rise is a rebound
from the technical recession in the second half of last year, it shows that a
recovery in the private sector is gathering momentum. Private domestic demand
was stronger than generally expected largely due to rises in consumption,
corporate capital spending and housing sales. 

However, the magnitude of recovery for smaller to medium-sized businesses has
been limited compared to that for larger corporations. According to the Bank
of Japan's latest Tankan survey, business sentiment for smaller companies
improved only marginally, and the capital spending plans by smaller companies
are still lower than the previous year's level.  Having said that, corporate
profits generally from both larger and smaller companies are rising and we
expect will continue to rise against a background of economic improvement and
corporate restructuring.

Portfolio Review - The holdings in TMT companies, whose stock prices fell
sharply during the period, detracted from the performance of the Company.
These included Hikari Tsushin and InterQ.  The share price of other companies
that are considered to represent the 'New Japan' also declined, including
OBIC, Softbank, Sony and Business Consultants. The holdings in the shares of
certain other technology manufacturers, including THK, Toyoda Gosei, Cosel and
Takasago Electric, performed well. However, they could not offset the sharp
declines in the share prices of our TMT-related investments.  

In the course of the management of our portfolio, we undertake frequent
reviews of the profits growth prospects of companies. This enables us to stay
ahead of the market consensus and uncover investment opportunities in superior
growth companies at attractive prices.  This research work continues to
underline the attractive prospects for those companies in our portfolio.

Outlook - Looking ahead over the next few years, we believe that TMT-related
businesses, both manufacturers and non-manufacturers, will remain the key
drivers of growth in Japan. Although there are risk factors, such as a
potential slowdown in the US economy or a cyclical downturn in electronics
demand, many Japanese TMT companies have strong technological advantages that
should enable them to grow their global market share and profits. Indeed it is
from these that we select our portfolio of TMT investments.  The global
economic climate can change quickly and applications for new technologies are
spreading at an accelerating speed.  

Although TMT companies with strong profits growth potential remain our
preferred investments, we continue to look for companies that meet our stock
picking criteria, regardless of their businesses. We pay particular attention
to a company's competitiveness and the attractiveness of its market niche.
Such companies are often able to deliver strong growth in shareholder value.
The focus remains on in-depth company research in order to determine the
profits growth potential of companies within the smaller companies universe.
We are confident that this will lead to superior long-term performance for
shareholders in the Company. 

Fidelity Investments International

Enquiries:

Barbara Powley - Fidelity Investments International - 01737 836883



FIDELITY JAPANESE VALUES PLC

STATEMENT OF TOTAL RETURN (incorporating the revenue account)
for the six months ended 30 June - unaudited


                                    2000                        1999
                       revenue   capital    total    revenue  capital   total
                         £'000     £'000    £'000      £'000    £'000   £'000

(Losses)/gains 
on investments (1)           -   (35,705) (35,705)         -   61,339  61,339
Income                     486         -      486        297        -     297
Investment management 
fee                       (982)        -     (982)      (504)       -    (504)
Other expenses            (267)        -     (267)      (132)       -    (132)
Exchange gains (2)           -       384      384          -       81      81
Repurchase of warrants
for cancellation (3)         -       (76)     (76)         -        -       -

Net return before finance
costs and taxation        (763)  (35,397) (36,160)      (339)  61,420  61,081

Interest payable          (368)        -     (368)      (227)       -    (227)
Exchange (losses)/
gains on borrowings          -    (1,200)  (1,200)         -      128     128

Return on ordinary
activities before tax   (1,131)  (36,597) (37,728)      (566)  61,548  60,982

Tax on ordinary 
activities                 (71)        -      (71)       (46)       -     (46)

Return on ordinary
activities after tax
for the period transferred
to reserves (4)         (1,202)  (36,597)  (37,799)     (612)  61,548  60,936
  
Return per ordinary 
share (5)               
Basic                   (1.14p)  (34.85p)  (35.99p)   (0.58p)  58.47p  57.89p
Fully-diluted           (0.96p)  (29.16p)  (30.12p)        -        -       -


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



BALANCE SHEET
                                       30.06.00       31.12.99       30.06.99
                                      unaudited        audited      unaudited
                                          £'000          £'000          £'000

Investments                             171,096        208,104        115,210 

Current Assets
Debtors                                     412            839          6,183
Cash at bank                              7,405          7,222          5,026

Creditors - amounts falling due
within one year  
Fixed rate unsecured loan               (10,051)             -              -
Other creditors                          (1,244)        (1,064)        (6,916)

Net current (liabilities)/assets         (3,478)         6,997          4,293

Total assets less current liabilities   167,618        215,101        119,503

Creditors - amounts falling due
after more than one year                
Fixed rate unsecured loans              (20,046)       (28,896)       (16,250)

Total net assets                        147,572        186,205        103,253

Capital and reserves
Called up share capital                  26,230         26,318         26,318
Share premium account                         -              -         64,619
Capital redemption reserve                  100              -              -

Other reserves
Other reserve                            64,098         64,619              -
Warrant reserve                          10,200         10,525         10,525
Capital reserve - realised               10,741        (10,693)       (45,516)
Capital reserve - unrealised             42,064        100,095         50,847
Revenue reserve                          (5,861)        (4,659)        (3,540)

Total equity shareholders' funds        147,572        186,205        103,253

Net asset value per ordinary share (7)  
Basic                                   140.65p        176.88p        98.08p
Fully-diluted                           134.03p        164.07p             -


The above statements have been prepared on the basis of the accounting
policies set out in the most recently published set of annual financial
statements.  

The balance sheet as at 31 December 1999 has been extracted from the accounts
for the year ended 31 December 1999 which have been delivered to the Registrar
of Companies and on which the auditors gave an unqualified report.

CASH FLOW STATEMENT
for the six months ended 30 June - unaudited

                                                         2000            1999
                                                        £'000           £'000
Operating activities
Investment income received                                403             184
Investment management fee paid                           (985)           (355)
Other cash payments                                      (464)           (194)

Net cash outflow from operating activities             (1,046)           (365)

Interest paid                                            (368)           (230)

Tax recovered                                               1               -

Financial investment
Purchase of investments                               (40,713)        (25,911)
Exchange gains                                            266               2
Disposal of investments                                42,835          25,185

Net cash inflow/(outflow) from financial investment     2,388            (724)

Net cash inflow/(outflow) before financing                975          (1,319)

Financing
Cost of share repurchases                                (583)              -
Proceeds of conversion of warrants                         49               -
Cost of warrant repurchases                              (376)              -

Net cash outflow from financing                          (910)              -

Increase/(decrease) in cash                                65          (1,319)


Notes to the Accounts

1.  (Losses)/gains on investments - including realised and unrealised gains
and losses on exchange and investments.

2.  Exchange gains - Attributable to other assets and liabilities, excluding
borrowings.

3.  Warrant buy backs and exercises - During the period, the Company purchased
600,000 warrants for cancellation.  On 2 May 2000, 49,676 ordinary shares of
25p per share were issued and allotted, fully paid at a price of 100p,
following an exercise of warrants.  As at 30 June 2000 there were 20,400,074
warrants in issue (30 June 1999 : 21,049,750).

4.  Return on ordinary activities - Attributable to equity shareholders.

5.  Return per ordinary share - Basic returns per ordinary share are based on
the loss on ordinary activities after taxation of £1,202,000 (1999 : £612,000)
and on the capital depreciation in the period of £36,597,000 (1999 :
appreciation of £61,548,000) and on 105,017,723 ordinary shares (1999 :
105,272,851), being the weighted average number of shares in issue during the
period.  According to the provisions of FRS14, the fully-diluted returns have
been calculated on the assumptions that the warrants in issue were converted
on the first day of the financial period on a weighted average basis for the
period over which they were outstanding, and that the proceeds from conversion
have been used by the Company to purchase its own shares at a fair market
price.

6.  AITC SORP - These accounts have been prepared in accordance with the AITC
Statement of Recommended Practice (SORP) issued in December 1995.

7.  Net asset value per share - The basic net asset value per ordinary share
is based on net assets of £147,572,000 (31.12.99 : £186,205,000, 30.06.99 :
£103,253,000) and on 104,922,726 ordinary shares (31.12.99 and 30.06.99 :
105,273,050), being the number of ordinary shares in issue at the period end. 
The fully-diluted net asset value per ordinary share has been calculated on
the assumption that the outstanding warrants of 20,400,074 at 30 June 2000
(31.12.99 and 30.06.99 : 21,049,750) were exercised on that date.  The basis
of calculation is considered more appropriate than the basis given in FRS14 as
it is consistent with the calculation of fully-diluted net asset value which
is prepared in accordance with guidelines laid down by the Association of
Investment Trust Companies and is provided to the London Stock Exchange on an
ongoing basis.

8.  Share repurchases - The Company made the following repurchases of shares
for cancellation in the period:

                      number of    price per    discount to    uplift in
                         shares        share            NAV          NAV

25 February 2000        250,000      145.00p          15.9%       0.053p
28 February 2000        150,000      147.00p          17.7%       0.037p

As at 30 June 2000, the total number of shares in issue was 104,922,726 (1999
: 105,273,050).

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