Final Results - Year Ended 30th September 1999

Mercury Keystone Investment Trust PLC
9 November 1999


          MERCURY KEYSTONE INVESTMENT TRUST plc

           PRELIMINARY ANNOUNCEMENT OF RESULTS
     in respect of the year ended 30th September 1999


* The consolidated net asset value per ordinary share, with net income
reinvested, rose by 17.9% compared with a rise in the FTSE All-Share Index of
23.7%, with net income reinvested.

* The directors propose a final dividend of 20.00p (net) per ordinary share
(1998:17.00p), making total ordinary dividend payments for the year of 30.00p
(net) per ordinary share (1998:25.00p). 

* Shareholder approval is being sought at the AGM to be held at 11.00 am on 13th
December 1999 for authority to buy back up to 14.99% of the Company's issued
ordinary share capital.

* Mercury Keystone Investment Trust plc is a fully qualifying investment for the
purposes of investment in the stocks and shares component of either a mini or
maxi ISA and is available through the Mercury maxi ISA with minimum investment
levels of £50 per month or £7,000 lump sum for the tax year 1999/2000.  The
Company is also available through the Mercury Savings Plan with minimum
investment levels of £75 per month or £1,000 lump sum.

The Chairman, Mr John Stancliffe, commented:

'During this year the FTSE All-Share Index rose by 23.7%, with net income
reinvested.  All the improvement came in the first part of the year led by the
strength of a small number of large capitalisation stocks, ten out of the total
of 791 stocks in the Index accounting for nearly 40% of its value.  The
portfolio was not fully represented in some of those areas that showed
particular strength, partly because this would have led to undue concentration
of investments and partly because some of the best performing shares during that
period appeared to be excessively priced. 

'The year was also notable for rapid changes in the popularity of different
market sectors and for an upsurge in speculative activity.  Notwithstanding
these trends, the Company's performance closely mirrored that of the market as a
whole over the second half of the year.  It remains the Board's policy to meet
the Company's objective of providing shareholders with long-term growth of
capital and income by holding a balanced portfolio of investments and not to be
influenced unduly by short-term swings in sentiment or by market weightings.'

Barry Woolf of Mercury Asset Management Ltd, the Investment Manager, comments
upon the outlook for the Company:

'Globally, there has been some rebalancing in growth between Western and Eastern
economies and recovery in Europe appears to be on a firmer footing.  There are,
of course, risks, not least the continuing strength of the US economy and the
burgeoning US trade deficit, which ultimately needs financing from capital
flows.  Notwithstanding these concerns, the prospect of a sustained growth and
low inflationary economic outlook is a favourable environment in which stock
markets are capable of making further headway.

'The past year has been difficult.  More importantly, it has been disappointing
for the Company's shareholders as relative performance has not lived up to the
long-term record.  Over the coming year our endeavours will be focused on
correcting this position.'


Contacts:      Ian Barby - Managing Director      0171 220 5224
               Investment Trusts
               Barry Woolf - Fund Manager         0171 280 2262
               Mercury Asset Management Ltd

               Andrew Waterworth                  0171 831 3113 
               Financial Dynamics


CONSOLIDATED REVENUE ACCOUNT 
for the year ended 30th September 1999

                                                                                
                          1999              1998
                                                                                
                         £'000            £'000
                                                                                
                      (audited)        (audited)


Income (Note 3)         8,601            7,899

Investment management fees
(Note 4)                 (748)            (671)

Operating expenses       (207)            (240)
                                                                                
                      -------            -------
Net return before
finance costs and
taxation                7,646            6,988

Finance costs          (1,522)          (1,055)
                                                                                
                     ---------          --------
Revenue from ordinary
activities before
taxation                6,124            5,933

Taxation on ordinary
activities               (903)          (1,203)
                                                                                
                      -------        ---------
Revenue on ordinary
activities after
taxation                5,221            4,730

Dividends in respect
of non-equity shares      (10)              (8)
                                                                                
                        -----           -----
Revenue attributable
to equity shareholders  5,211            4,722

Dividends in respect
of equity shares       (4,291)          (5,721)
                                                                                
                      --------          ---------
Transfer to/(from)
reserve (after aggregate  
dividends paid and
proposed of £4,291,000
(1998: £5,721,000))       920             (999)
                                                                                
                         =====          =====


STATEMENT OF TOTAL RETURN PER ORDINARY SHARE

                                                                                
                        1999              1998
                                                                                
                    (audited)         (audited)

Earnings per
ordinary share        36.44p                   33.13p

Capital return per
share                149.55p                  (32.21)p
                                                                                
                 ----------                  ----------
TOTAL RETURN PER
 ORDINARY SHARE      185.99p                   0.92p
                                                                                
                    ======                  ======


GEARING RATIOS - % OF NAV

Total borrowings      23.4%

Net borrowings
(Total borrowings,    20.0%
less bonds and net
current assets)


NET ASSET VALUE 30th September 1999     30th September 1998                     
                         (audited)                (audited)
Consolidated net
asset value  
per ordinary share      1179.66p                    1023.67p
                                                                                
                        ======                      =======

Notes

1. Basis of preparation

The accounts have been prepared under the historical cost convention, modified
to include the revaluation of investments, and are in accordance with section
230 of, and schedule 4 to, the Companies Act 1985 and with applicable accounting
standards and the Statement of Recommended Practice Financial Statements of
Investment Trust Companies ('SORP'), except the treatment of the management fee,
as detailed in the Annual Report.

2. Dividend

The preliminary results were approved by the Board on 9th November 1999. The
Directors will recommend to shareholders at the Annual General Meeting to be
held on 13th December 1999 a final dividend of 20.00p (1998: 17.00p) per
ordinary share to be paid on 16th December 1999 to ordinary shareholders on the
register of members at the close of business on 26th November 1999. The shares
will be quoted ex-dividend on 22nd November 1999.

3.   Income
                                                                                
                                                    1999               1998
                                                                                
                                                   £'000              £'000
Income from investments
- UK listed                                         7,453              6,414
- UK unlisted                                           -                 56
Fixed interest
-UK listed                                            191                399
                                                                                
                                                   ------             ------
                                                                                
                                                   7,644              6,869
                                                                                
                                                   ------            ------
Interest receivable and other income  
- Deposit interest                                    936              1,030
- Profit on investment dealing by 
   subsidiary undertaking                              21                  -
                                                                                
                                                   ------             ------
                                                                                
                                                     957              1,030
                                                                                
                                                   ------             ------
Total income                                        8,601              7,899
                                                                                
                                                    ====               ====


4.      Investment management fee

                             Revenue            Capital                Total

                       1999        1998     1999        1998       1999    1998
                      £'000       £'000    £'000        £'000     £'000   £'000


Investment 
  management fee        636         571      637          571     1,273   1,142

Performance related 
  fee on unquoted 
  portfolio               -          -        16          (15)       16    (15)

Irrecoverable
  VAT  thereon          112         100      114           97       226    197
                      -------     -------  -------      -------    ------- ----
                        748         671      767          653     1,515  1,324
                       =====       ====     ====         ====     ====   ====


5.      Publication of non - statutory accounts

The financial information contained in this announcement does not constitute
statutory accounts within the meaning of section 240 of the Companies Act 1985.
The 1999 annual report and financial statements will be filed with the Registrar
of Companies in due course.

The figures set out above have been reported upon with no qualification by the
auditors.  The comparative figures are extracts from the audited financial
statements of Mercury Keystone Investment Trust plc for the year ended 30th
September 1998, which have been filed with the Registrar of Companies. The
report of the auditors on those accounts contained no qualification or statement
under section 237 of the Companies Act. 

6.      Copies of the annual report will be sent to members shortly and will be
available from the registered office, c/o the Company Secretary, Mercury
Keystone Investment Trust plc, 33 King William Street, London EC4R 9AS.


9th November 1999
55 King William Street
London EC4R 9AS