Interim Results

Graphite Enterprise Trust PLC
19 September 2002


                         GRAPHITE ENTERPRISE TRUST PLC
                      UNAUDITED RESULTS FOR THE HALF YEAR
                                TO 30 JUNE 2002


SUMMARY

                                                                30 Jun            31 Dec       % change to
                                                                  2002              2001       30 Jun 2002

Shareholders' Funds                                            £253.5m          £262.3m          -2.1%*

Net assets per share                                            274.7p           280.5p          -2.1%

Share Price                                                     216.0p           228.5p          -5.5%

FTSE All-Share Index                                           2,523.9          2,263.1         -10.3%



* Adjusted for share buy-backs


KEY POINTS


•        Net assets per share fell by 2.1% compared with a fall in the FTSE
         All-Share Index of 10.3%.

•        Realisations from the investment portfolio totalled £27.1 million of
         which £21.3 million was from quoted disposals.


•        Additions to the unquoted portfolio totalled £13.1 million.


•        At 30 June 2002 66.8% of net assets were invested in or committed to
         unquoted investments.  Quoted investments represented 10.1% of net 
         assets.



Commenting on the results, John Sclater, Chairman, said:


'Overall Performance

In the six months to 30 June 2002 the net assets of Graphite Enterprise Trust
PLC (the 'Enterprise Trust' or the 'Company') fell by 2.1% to 274.7p per share
(£253.5 million).  The share price fell by 5.5% to 216.0p.  These movements
compare with falls in the FTSE All-Share Index and in the FTSE SmallCap Index of
10.3% and 10.4% respectively.  The discount of the share price to the underlying
net asset value widened from 18.5% to 21.4% in the period.



Investment Activity

The main focus of the Enterprise Trust's activity in the first half of the year
was on the disposal of quoted holdings.  Overall £27.1 million was realised from
the investment portfolio of which £21.3 million was from quoted disposals.  In
particular the holdings in Computacenter and in Intermediate Capital Group were
reduced, realising a total of £16.5 million.  A total of 2.8 million
Computacenter shares were sold at an average price of 350p, generating £9.8
million.  In the case of Intermediate Capital Group 0.8 million shares were sold
at an average price of 824p, generating £6.7 million.  There were no substantial
disposals from the unquoted portfolio.



The Enterprise Trust made no investments in the quoted portfolio, but added a
total of £13.1 million to the unquoted portfolio, mostly in scheduled draw downs
from investments in funds.



Performance of the Investment Portfolio

The investment portfolio fell in value by £6.4 million or 3.4% in the period.
Overall the quoted portfolio fell in value by £4.2 million or 8.2%, although the
substantial quoted disposals generated a small surplus over their opening
values.



There were a number of valuation movements in the unquoted portfolio, both
positive and negative, although none of them was substantial.  The overall
movement was a fall of £2.1 million or 1.5% in the period.



Balance Sheet and Liquidity

In the six months to 30 June the redeployment of the Enterprise Trust's assets
of the last three years continued.  At the end of the period the quoted
portfolio accounted for 10.1% of net assets, its lowest level for a number of
years.  By contrast, the unquoted portfolio rose once again to 49.5% of net
assets, with investment commitments representing a further 17.3%.  The balance
of 40.4% was held in liquid assets.  These are available both to meet the
outstanding investment commitments and to make new investments.  At 30 June,
with the exception of short-term debtors and creditors, they were held entirely
in cash or cash funds.



Share Buy Backs

In the uncertain markets of the last year the discount of the Enterprise Trust's
share price to its underlying net asset value has fluctuated considerably.
Towards the end of 2001 we took advantage of the combination of a high discount
and surplus liquidity to begin to buy back shares.  In the first half of 2002 we
bought back a further 1.2 million shares.  We shall consider further buy backs
if they will enhance the net asset value for the remaining shareholders without
threatening the Company's long term liquidity requirements.


Outlook

In a difficult environment both in the stock market and in some sectors of the
economy we have been pleased with the resilience of the investment portfolio.
While there have inevitably been some underperforming investments, overall
performance has been relatively robust and this has continued in the period
since 30 June.



Levels of activity in the private equity market have been unusually low, with a
notable shortage of high quality investment opportunities.  Whenever they are
able to do so, vendors appear to be deferring disposals until market conditions
become more stable and positive.



Since 30 June the Enterprise Trust has made two new unquoted investments to
which it has committed a total of £9.3 million and it has committed a further
£10.8 million to the purchase of the unquoted portfolio of Graphite Private
Equity Trust.  There have been no significant disposals and no valuation
movements in the unquoted portfolio.  At 31 August 2002 net assets were 268.8p
per share (£248.1 million).  This represents a fall of 4.2% in the first eight
months of the year compared with a fall of 18.9% in the FTSE All-Share Index.



We expect the level of disposals to remain subdued until there is some recovery
in the volume of stock market flotations and in corporate finance activity
generally.  In the meantime the Enterprise Trust remains well placed to take
advantage of any increase in the flow of new investment opportunities.



For further information, please contact:


Rod Richards / William Eccles                  Tel:  [phone]
Graphite Capital Management Limited


                         GRAPHITE ENTERPRISE TRUST PLC

                 UNAUDITED RESULTS FOR THE HALF YEAR TO 30 JUNE


Consolidated Assets                                                        30 Jun                   31 Dec
                                                                            2002       2001           2001
                                                                          £'000s     £'000s         £'000s

Listed investments                                                        26,059     69,504         50,042

Unlisted investments at directors' valuation                             127,327    146,648        123,699

Portfolio investments                                                    153,386    216,152        173,741

FTSE 350 Index fund                                                            -     44,212              -

Total investments                                                        153,386    260,364        173,741

Net current assets                                                       103,948     15,187         91,773

Total assets less current liabilities                                    257,334    275,551        265,514

Minority interest                                                        (3,797)    (4,221)        (3,247)

Net assets attributable to ordinary shareholders                         253,537    271,330        262,267

Net asset value per share                                                 274.7p     288.5p         280.5p

Geographical distribution of portfolio investments                    Continental        North
at 30 June 2002                                                 UK         Europe      America       Total
                                                                 %              %            %           %

Listed                                                          17              -            -          17

Unlisted                                                        63             18            2          83

                                                                80             18            2         100


Consolidated Statement of Total Return                               30 Jun                         31 Dec
                                                                       2002         2001              2001
(incorporating the Revenue Account)                                  £'000s       £'000s            £'000s

Revenue Return

Income                                                                3,321        2,829             6,571

Investment management fee                                             (564)        (615)           (1,182)

Other expenses                                                        (324)        (408)             (812)

Net return before finance costs and taxation                          2,433        1,806             4,577

Interest payable and similar charges                                    (6)          (5)               (5)

Return on ordinary activities before tax                              2,427        1,801             4,572

Tax on ordinary activities                                            (585)            -             (456)

Return attributable to equity shareholders                            1,842        1,801             4,116

Dividends in respect of ordinary shares  (equity)                         -            -           (4,021)

Transfer to reserves                                                  1,842        1,801                95


Capital Return
(Losses)/gains on investments                                       (6,355)     (37,891)          (40,624)
                                                                                                  
Investment management fee                                           (1,691)      (1,846)           (3,546)
                                                                                                   
Other expenses                                                          558        (127)             (276)
                                                                                                     
Tax on ordinary activities                                              507            -               456
                                                                                       
                                                                    (6,981)     (39,864)          (43,990)
                                                                                                  
Minority interests                                                    (936)        (572)           (2,553)

Net capital return                                                  (7,917)     (40,436)          (46,543)
                                                                                                  
Total Return                                                        (6,075)     (38,635)          (46,448)

Revenue return per ordinary share                                     1.97p        1.92p             4.38p

Capital return per ordinary share                                   (8.47p)     (43.00p)          (49.50p)

Total return per ordinary share                                     (6.50p)     (41.08p)          (45.12p)

Consolidated Cash Flow Statement                                     30 Jun                        31 Dec
                                                                       2002        2001              2001
                                                                     £'000s      £'000s            £'000s

Net cash flow from operating activities                                  72       (121)               545
                                                                                  
Returns on investments and servicing of finance                         (6)         (5)               (5)

Taxation                                                                  -           -                 -

Acquisitions and disposals                                            9,912      10,042           105,892

Equity dividends paid                                               (4,021)     (4,044)           (4,044)
                                                                    
Management of liquid resources                                     (15,379)           -          (45,227)

Net cash (outflow)/inflow before financing                          (9,422)       5,872            57,161

Financing                                                           (4,194)       (223)           (3,398)

(Decrease)/increase in cash                                        (13,616)       5,649            53,763

Reconciliation of net cash flow to movement in net debt

(Decrease)/increase in cash                                        (13,616)       5,649            53,763

Cash inflow from change in liquid resources                          15,379           -            45,227

Change in net liquid funds resulting from cash flows                  1,763       5,649            98,990

Exchange difference                                                     558       (127)             (276)

Movement of net liquid funds                                          2,231       5,522            98,714

Net liquid funds at 1 January                                       100,874       2,160             2,160

Net liquid funds 30 June/31 December                                103,195       7,682           100,874

Reconciliation of operating profit to net cash flow from
operating activities

Net revenue on ordinary activities before taxation                    2,427       1,801             4,572

Add back interest payable                                                 6           5                 5
                                                                                                        
Income before interest payable and taxation                           2,433       1,806             4,577
                                                                                                    
Decrease in debtors
                                                                        273         820             1,011
Increase/(decrease) in creditors                                      (249)         218               232

Income capitalised                                                        -       (744)           (1,142)

Tax on investment income within income                                (694)       (375)             (587)
                                                                                                    
Management fee charged to capital                                   (1,691)     (1,846)           (3,546)

Net cash inflow from operating activities                                72       (121)               545
                                                                         

The abridged financial statements at 31 December 2001 have been compiled from
the latest published accounts.  Those accounts have been delivered to the
Registrar of Companies: the report of the auditors thereon was unqualified.


Copies of the Interim Report will be posted to all shareholders on or around 30
September 2002 and copies may be obtained during normal business hours from the
Company's registered office, Berkeley Square House, Berkeley Square, London W1J
6BQ thereafter.

By order of the Board                               Registered Office
Graphite Capital Management Limited                 Berkeley Square House
Secretary                                           Berkeley Square
                                                    London W1J 6BQ
                                                    Tel: [phone]

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