Redemption of Equity Index Linked Loan Stock 2004

Fidelity Special Values PLC
20 December 1999

Equity Index Linked Loan Stock 2004 (the 'Stock')

Following the implementation of legislation withdrawing the ability of many
investors to reclaim tax in respect of dividends, interest on the Stock for
the six month period ended on 30 June 1999 was paid on the basis that the
return to Stockholders should equal the yield from investment in the FT-SE
Actuaries All-Share Index (the 'Index'), without any supplement to reflect the
UK taxation benefits that, for many investors, had been withdrawn.

At the time of the June interest payment, the Board set aside a sum equal to
the additional interest that would have been paid if that interest payment had
included an uplift to reflect the tax credits that had been available before
the legislative changes.

The Board's action referred to in the previous paragraph followed discussions
with Royal & Sun Alliance Trust Company Limited, the Trustee for the
Stockholders, which was then in the course of reviewing the terms of the Trust
Deed constituting the Stock and taking its own independent legal advice.

Following receipt by the Trustee of advice from leading counsel that the
legislative changes have resulted in a discontinuance of the Index as
contemplated by the Conditions of the Stock, the Board has agreed to accept
that advice and has decided to exercise the Company's right under Condition
3(B)(ii)(a)(i) of the Stock to redeem the entire Stock as at the Redemption
Date (31 January 2000). In the meantime interest will continue to accrue on
the Stock, up to and including the Redemption Date, without taking into
account the reduction in the yield from the Index available to most investors
as a result of the tax changes.

In all the circumstances the Board and the Trustee have agreed that the Stock
will be redeemed at the rate of £31.2508 per unit of Stock, being the Capital
Value  thereof based on the value of the Index as at the close of business on
16 December 1999 - the day on which the Board agreed to accept such legal
advice.  This sum will be paid on or before the Settlement Date (7 February
2000)to Stockholders whose names appear on the register of Stockholders on 6
January 2000.

Stockholders will accordingly also receive separate interest payments, in
respect of the six month period ending 31 December 1999 and the month of
January 2000, based on the position if the Government's change has not been
introduced; and Stockholders who received the interest payment in respect of
the period to 30 June 1999 will receive in respect of each 100 Units of Stock
(and so in proportion in respect of any greater or lesser holding of Units of
Stock) an additional amount of £8.68, being the sum set aside by the Board at
that time and interest thereon on the basis of a six month sterling time
deposit.

It is the intention of the Board that the Company will replace approximately
70% of the loan stock with bank borrowings so that the Company will continue
to be geared. Further details of these borrowings will be announced in due
course.

Enquires: Barbara Powley - Fidelity Investments International 01737 836883