Interim Results

Mercury Grosvenor Trust PLC
15 August 2000

                   MERCURY GROSVENOR TRUST plc
                               
    Interim Results for the six months ended 30th June 2000


* Net asset value per share up 17.9% in the six months to 30th June 2000 from
  346.5p to 408.7p, compared with a fall in the FTSE All-Share Index of 6.5%.

* Earnings per share of 11.4p compared with 2.3p for the corresponding period
  last year. 

* The Company's objective is to provide shareholders with long-term capital
  appreciation from investment in unquoted companies.


The Chairman, David Bucks, comments:

'I am pleased to report that the first six months of the year have been
another strong period for the Company.  

'The net asset value per share increased by 17.9%, from 346.5p to 408.7p. 
This performance compares with a fall of 6.5% in the FTSE All-Share Index and
an increase of 8.3% in the FTSE SmallCap Index, both in capital only terms.

'Earnings per share for the six months are also considerably higher at 11.4p,
compared with 2.3p in the same period of 1999.  The main reason for the
increase was the release of a provision against interest on the loan stock of
Priory Healthcare, which was received on the sale of that investment in
February 2000.

'During the period, the Company invested a total of £7.6 million and
realisations totalled £16.8 million. As a result of the net divestment of £9.2
million, the amount invested in gilts and held in cash at 30th June 2000 rose
to £24 million.  

'A £25 million revolving credit facility has been put in place, but to date
the Company has not needed to draw down on this facility, which is available
until March 2007 to finance investments and provide additional working capital
as required.

'The proposals to enable the Company to purchase its own shares and adopt new
Articles of Association were approved at the Extraordinary General Meeting
held on 18th April 2000.'

Commenting upon the outlook for the Company, Ian Armitage of Mercury Private
Equity, a division of Merrill Lynch Investment Managers, notes:

'Companies within the portfolio continue to enjoy generally benign economic
conditions and are, on the whole, performing in line with expectations.  Some
of those companies are in the process of negotiating sales or flotations, the
successful conclusion of which should result in a small number of realisations
during the second half of the year.  

'New investment activity in the United Kingdom buy-out market fell marginally
during the first six months of the year and we believe that it might remain
subdued.  By contrast, we believe that prospects for new investment in Germany
are good and are likely to improve further now that revisions to the German
capital gains tax regime have been finalised.  We remain very positive about
the prospects for private equity in Europe and with the high levels of
liquidity and our new operation in Germany, the Company is well placed to
capitalise on this potential.  Mercury Grosvenor Trust represents a useful
vehicle for the private investor to get an exposure to high growth companies.

'Since the period end Mercury Private Equity has agreed, subject to client and
regulatory approvals, detailed arrangements to become an independent
management company owned by its managers and staff.  The new company will
continue to manage funds for Merrill Lynch Investment Managers, including
Mercury Grosvenor Trust, under a delegation agreement.'


REVENUE STATEMENT
for the six months ended 30th June 2000
                                         Six months   Six months   Year ended
                                              ended        ended         31st
                                          30th June    30th June     December
                                               2000         1999         1999
                                    Note      £'000        £'000        £'000
                                         (unaudited)  (unaudited)    (audited)
                                                       (restated)   (restated)
                                                                              
                                    
Income                                6       4,639        1,024        3,901
Investment management fees            7        (221)        (169)        (360)
Other expenses                        8        (172)        (124)        (236)
                                            -------       -------     -------
Net return before finance costs and
  taxation                                    4,246           731       3,305
Interest payable and similar charges            (21)            -           -
                                            -------       -------     -------
Return on ordinary activities before
  taxation                                    4,225           731       3,305
Taxation on ordinary activities              (1,264)         (137)       (824)
                                            -------       -------     -------
Return on ordinary activities after
 taxation                                     2,961           594       2,481
Dividend in respect of equity shares  4         -               -      (2,075)
                                            -------       -------     -------
Transfer to reserves                          2,961           594         406
                                            =======       =======     =======

Return per ordinary share                    11.42p         2.29p       9.57p
                                            =======       =======     =======

Dividend per ordinary share                      -             -        8.00p
                                            =======       =======     =======


STATEMENT OF TOTAL RETURN PER ORDINARY SHARE

                                         Six months   Six months   Year ended
                                              ended        ended         31st
                                          30th June    30th June     December
                                               2000         1999         1999
                                         (unaudited)  (unaudited)    (audited)
                                 
Earnings per ordinary share                  11.42p        2.29p        9.57p

Capital return per ordinary share            50.77p       52.51p       87.17p
                                            -------      -------      -------
Total return per ordinary share              62.19p       54.80p       96.74p
                                            =======      =======      =======
                                                         

BALANCE SHEET
as at 30th June 2000
                                          30th June    30th June     31st Dec
                                               2000         1999         1999
                                              £'000        £'000        £'000
                                         (unaudited)  (unaudited)    (audited)
                                                                     
Fixed assets                                                         
Investments at valuation                     78,875       67,489       74,481
                                                                     
Current assets                                                       
Debtors                                       4,297       11,732        3,458
Government securities                        23,825        9,094       14,363
Cash at bank                                    147        2,620          163
                                            -------      -------      -------
                                             28,269       23,446       17,984
                                                                     
Creditors - amounts falling due within
  one year                                    1,153        9,873        2,602
                                            -------      -------      -------
Net current assets                           27,116       13,573       15,382
                                            -------      -------      -------
Net assets                                  105,991       81,062       89,863
                                            =======      =======      =======

Capital and reserves                                                 
Called up share capital                       6,483        6,483        6,483
Share premium account                        14,123       14,123       14,123
Capital reserves                                                     
  Capital redemption reserve                  1,061        1,061        1,061
  Capital reserve - realised                 63,668       43,415       60,882
  Capital reserve - unrealised               16,054       14,151        5,673
Revenue reserve                               4,602        1,829        1,641
                                            -------      -------      -------
Total equity shareholders' funds            105,991       81,062       89,863
                                            =======      =======      =======

Net asset value per ordinary share           408.7p       312.6p       346.5p
                                            =======      =======      =======


CASH FLOW STATEMENT
for the six months to 30th June 2000
                                         Six months   Six months   Year ended
                                              ended        ended         31st
                                          30th June    30th June     December
                                               2000         1999         1999
                                              £'000        £'000        £'000
                                         (unaudited)  (unaudited)    (audited)
                                                               
Net cash inflow from operating activities     2,402           89          828
                                                                    
Returns on investments and servicing of
  finance                                        (7)          17           52

Taxation                                          8           41          (38)
                                                                    
Capital expenditure and financial                                   
investment
  Purchase of fixed asset investments        (7,539)      (8,041)     (29,360)
  Proceeds from the sale of fixed asset
    investments                              16,820       16,969       40,487
                                                               
Equity dividends paid                        (2,075)      (1,284)      (1,284)
                                                                    
Financing                                    (9,625)      (5,154)     (10,505)
                                            -------      -------      -------
(Decrease)/increase in cash                     (16)       2,637          180
                                            =======      =======      =======


Reconciliation of operating profit to net cash inflow from
operating activities

                                         Six months   Six months   Year ended
                                              ended        ended         31st
                                          30th June    30th June     December
                                               2000         1999         1999
                                              £'000        £'000        £'000
                                         (unaudited)  (unaudited)    (audited)
                                                       (restated)   (restated)

Net income before interest payable and
  taxation                                    4,246          731        3,305
                                                                    
Fees capitalised                               (726)        (508)      (1,080)
                                                                    
Interest receivable                             (16)         (17)         (50)
                                                                    
(Increase)/decrease in accrued income          (831)          59         (939)
                                                                    
Increase/(decrease) in creditors                100          (34)         (12)
                                                                    
Effective yield adjustment                      162           18         (117)
                                                                    
Tax on investment income included
  within gross income                          (533)        (160)        (279)
                                            -------      -------      -------
Net cash inflow from operating activities     2,402           89          828
                                            =======      =======      =======

NOTES TO THE INTERIM ANNOUNCEMENT


1.   Principal activity

The principal activity of the Company remains that of an investment company
within the meaning of section 266 of the Companies Act 1985.


2.   Basis of preparation

The interim financial statements have been prepared on the basis of the
accounting policies set out in the Company's financial statements at 31st
December 1999.  Income and operating expenses have been accrued in accordance
with the same principles used in the preparation of the annual financial
statements, subject to note 3 below.  The taxation charge has been calculated
by applying an estimate of the annual effective tax rate to the profit for the
period.


3.   Taxation

The financial information contained in this interim statement follows the
requirements of FRS 16 'Current Tax' to show franked investment income net of
the related tax credits.  The figures for income and taxation in respect of
prior periods have been restated accordingly.  This change has no effect on
the net income or net asset values previously reported for those periods.


4.   Dividend

It is intended that dividends will be declared and paid annually in respect of
each accounting period.  A dividend of 8.00p per share, declared as a final
dividend, was paid on 28th April 2000 in respect of the year ended 31st
December 1999.


5.   Issued share capital

There were 25,933,170 ordinary shares in issue for the six months to 30th June
2000 (1999: 25,933,170).

6.   Income
                                         Six months   Six months   Year ended
                                              ended        ended         31st
                                          30th June    30th June     December
                                               2000         1999         1999
                                              £'000        £'000        £'000
                                         (unaudited)  (unaudited)    (audited)
                                                       (restated)   (restated)

                                                                
Income from investments:                                            
UK dividends                                     12          284          350
UK unfranked investment income                3,826          550        3,108
Stock dividends                                  22            -            -
Overseas dividends                               16            -            -
                                            -------      -------      -------
                                              3,876          834        3,458
                                            -------      -------      -------
Other income:                                                       
Gilt interest                                   659          158          375
Deposit interest                                 16           17           50
Other fees                                       88           15           18
                                            -------      -------      -------
                                                763          190          443
                                            -------      -------      -------
Total income                                  4,639        1,024        3,901
                                            =======      =======      =======


7.   Investment management fees

                               Revenue                         Capital
                ------------------------------ ------------------------------
                      Six        Six                 Six        Six        
                   months     months     Year     months     months      Year
                    ended      ended    ended      ended      ended     ended
                 30.06.00   30.06.99 31.12.99   30.06.00   30.06.99  31.12.99
                    £'000      £'000    £'000      £'000      £'000     £'000
               (unaudited)(unaudited)(audited)(unaudited)(unaudited) (audited)

Investment                                                         
management fees       188        144      306        564        432       919
Irrecoverable                                                      
VAT thereon            33         25       54         99         76       161
                    -----      -----    -----      -----      -----     -----
                      221        169      360        663        508     1,080
                    =====      =====    =====      =====      =====     =====

8.   Other expenses

                                         Six months   Six months   Year ended
                                              ended        ended         31st
                                          30th June    30th June     December
                                               2000         1999         1999
                                              £'000        £'000        £'000
                                         (unaudited)  (unaudited)    (audited)
                                                                
Custodian and administration fees                62           52           97
Other administration costs                      110           72          139
                                            -------      -------      -------
                                                172          124          236
                                            =======      =======      =======

9.   Capital commitments

As at 30th June 2000 the Company was committed to further investments of
£3,518,000 (31st December 1999: £3,894,000).


10.  Publication of non-statutory accounts

The financial information contained in this interim report does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985.  The
financial information for the six months ended 30th June 2000 and 30th June
1999 has not been audited.

The information for the year ended 31st December 1999 has been extracted from
the latest published audited financial statements, which have been filed with
the Registrar of Companies and restated to reflect the requirements of FRS 16
'Current Tax'.  The report of the auditors on those accounts contained no
qualification or statement under sections 237(2) or (3) of the Companies Act
1985. 


11.  Annual results

The Board expects to announce the results for the year ending 31st December
2000 at the end of February 2001; copies of the preliminary announcement can
be obtained from the Secretary on 020 7743 3000.  The annual report should be
available by mid- March 2001, with the Annual General Meeting being held in
mid- April 2001.



33 King William Street
London
EC4R 9AS