Annual Results

Pantheon Intl Participations PLC
27 September 2000



                 PANTHEON INTERNATIONAL PARTICIPATIONS PLC
                      PRELIMINARY ANNOUNCEMENT OF RESULTS

26 September 2000

The Board of Pantheon International Participations PLC today announces the
unaudited results for the year ended 30 June 2000.

 
CHAIRMAN'S STATEMENT 

The year under review has been one of great change and achievement for the
Company and its shareholders. I am pleased to report that the Net Asset Value
of the Company grew by 48%, from 405.6 pence per ordinary share to 599.9 pence
per share. The total return per share was 251.9 pence. It should be noted
that, whilst total assets increased to £161.3 million, a further £50 million
was also returned to shareholders during the year.

Results

The performance of the portfolio during the year was very strong. The private
equity portfolio showed gains of over 70% of its opening value, whilst
realised gains totalled over £28 million. The Company's returns from primary
fund investments have exceeded 37.4% per annum in the USA, reflecting the
exceptional returns that US venture fund managers have achieved on technology
and Internet investing. However, the portfolio is broadly diversified and is
not subject to the same level of risk as pure technology portfolios.

Reorganisation

The Company completed a major capital reorganisation in May 2000, in the
creation of a new, flexible capital structure of Ordinary Shares and
Participating Loan Notes (PLNs). 

This structure, together with commitments from institutions to subscribe for
over £31 million of further PLNs in the future, allowed the Board to return
£50 million of surplus cash to shareholders. 

The reorganisation was carried out to improve net asset growth. Since
inception, it has been necessary to keep a significant proportion of the
Company's assets as cash in order to meet the outstanding commitments as they
fall due. This has reduced the growth of net assets, because the return earned
on this cash has been significantly less than that from the private equity
investments. The new structure will allow the Company to be more efficient and
will reduce the difference between the growth in net assets per share (17% per
annum) and the return on private equity investments (29%) since the Company's
formation in 1987.

Market Commentary & Outlook

The private equity market continues to grow with little impairment of the
significant out-performance of other asset classes. The flexibility of the
Company's new capital structure will enable the Company to benefit by
supporting the very best private equity managers, as well as exploiting any
rationalisation caused by over-optimistic investors through the secondary
markets. A portfolio foundation which is laid by a strategic new fund
programme, properly diversified by geography, stage of funding and sector,
will provide low volatility and a firm base for institutions' or individuals'
exposure to the private equity markets. The Company will benefit greatly from
its relationship with the new $418 million Pantheon Global Secondary Fund.

Activities

The Company has been active in both primary and secondary investing during the
year. The Company has been making commitments to new funds since 1994,
achieving a return of 27.5%. Accordingly the Board has agreed a strategic new
fund programme for global private equity amounting to £75 million per annum
over the next three years. 

The increase in the size of the programme means that the Company will now make
investments directly in private equity funds in the USA and Europe, rather
than through fund of funds vehicles, managed by Pantheon Ventures, as in the
past. However, investment in the Asian region will continue to be through
these vehicles because of the limited size of this element of the programme. 

A total of £36.1 million of secondary purchases, including outstanding
commitments, were completed during the year. This includes one substantial
portfolio purchase. 

The rate of distributions from the Company's investments has continued to
grow, reaching £59.8 million in the year - almost double that in the previous
year.

Post Balance Sheet Event

I am also pleased to report that, after the year-end, the Company was able to
complete the purchase of a portfolio of 15 funds for a cost of £23.1 million,
which was acquired for additional PLNs issued to the vendors. This deal
demonstrates the increased flexibility available to the Company following the
capital reorganisation.

Dividend

The Board has recommended a final dividend of 2.0p per share, payable on 30
November 2000 to holders of shares on 27 October 2000. Subject to approval of
this dividend by shareholders, an interest payment of 2.0p per PLN will be
paid on 30 November 2000 to holders of PLNs on the register at close of
business on the record date. The final dividend is being paid to meet
investment trust regulations; the Company's aim remains capital growth and
shareholders should not expect regular dividends.

The Board

Alain Lefebvre, having reached the age of 70, will be retiring from the Board
at the AGM. He has been a member of the Board since the Company was formed in
1987 and I would like to thank him for his wise counsel and valued
contribution. 

The Board has appointed Richard Crowder as a director and he will seek
appointment at the AGM. He has been involved with the investment and private
equity industries for many years, and he brings this valuable experience to
the existing strengths of the Board.

Annual Meeting & Presentation

The Annual General Meeting of the Company will take place at 12.00 noon on 23
November 2000 at Chatham House. Afterwards, the Board has arranged a
presentation to explain the progress of the Company in more detail. The
Directors and the management team look forward to meeting you informally after
the meeting. 

L. G. Stopford Sackville
Chairman
26 September 2000



                PANTHEON INTERNATIONAL PARTICIPATIONS PLC
                Statement of Total Return of the Company
                  (incorporating the revenue account*):

                                                                  ** Restated
                                       1 July 1999                1 July 1998
                                   to 30 June 2000            to 30 June 1999
                          Revenue  Capital   Total   Revenue  Capital   Total
                           £'000s   £'000s  £'000s    £'000s   £'000s  £'000s


Gains on investments            -   67,121  67,121         -   13,867  13,867
Currency (losses)/gains         -     (196)   (196)        -       83      83

Income (see note)           4,644        -   4,644     4,047        -   4,047
Investment management fee  (2,179)    (266) (2,445)   (2,036)       -  (2,036)
Other expenses               (967)       -    (967)     (717)       -    (717)
Capital reorganisation costs    -   (1,734) (1,734)        -        -       -
                          -------  ------- -------   -------  ------- -------
Return on ordinary
 activities before 
 financing costs and tax    1,498   64,925  66,423     1,294   13,950  15,244
Interest payable             (124)       -    (124)        -        -       -
Revaluation of participating 
 loan notes                     -   (4,907) (4,907)        -        -       -
                          -------  ------- -------   -------  ------- -------
Return on ordinary 
 activities before tax      1,374   60,018  61,392     1,294   13,950  15,244
Tax on ordinary activities   (416)       -    (416)      (98)       -     (98)
                          -------  ------- -------   -------  ------- -------
Return on ordinary 
 activities after tax 
 for the financial year       958   60,018  60,976     1,196   13,950  15,146
Dividends in respect of 
 ordinary shares             (354)       -    (354)     (679)       -    (679)
                          -------  ------- -------   -------  ------- -------
Transfer to reserves          604   60,018  60,622       517   13,950  14,467
                          =======  ======= =======   =======  ======= =======


Return per ordinary share 
- Basic                      3.96p  247.98p 251.94p     3.52p   41.11p  44.63p
- Diluted                    3.69p  231.32p 235.01p     3.48p   40.55p  44.03p



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

** The accounts have been prepared using accounting standards and policies
   adopted at the previous year end, with the exception of income and taxation
   which have been calculated in accordance with Financial Reporting Standard
   No: 16, Current Taxation. This change in presentation has no effect on the
   revenue return per ordinary share on ordinary activities after tax. The
   comparative figures have been restated to reflect this change.

All revenue and capital items in the above statement derive from continuing
operations.

No operations were acquired or discontinued in the year.


Note: Income for the year ended 30 June 2000 was made up of dividends and
      interest received from shares and securities of £4,173,000 (1999:
      £3,960,000) and other income of £471,000 (1999: £87,000).


 
                PANTHEON INTERNATIONAL PARTICIPATIONS PLC
                       Balance Sheet of the Company 
              
                                                      As at 30 June       
                                                 2000                1999
                                               £'000s              £'000s

Fixed assets              
Investments                                   150,049             140,696
Investment in subsidiary undertaking                1                   -
                                              -------             -------
                                              150,050             140,696
Current assets
Debtors                                        10,458               4,720
Cash at bank                                    5,687               1,479
                                              -------             -------
                                               16,145               6,199
                                              -------             -------
Creditors: amounts falling due 
 within one year                                4,868               1,106
                                              -------             -------
Net current assets                             11,277               5,093
                                              -------             -------
Total assets less current liabilities         161,327             145,789
                                              =======             =======


Creditors: amounts falling due 
 after one year
Participating loan notes                       36,836                   -

Capital and reserves
Called-up share capital                        11,870              16,968
Share premium                                       -              32,525
Capital reserve - realised gains               53,826              75,587
Capital reserve - unrealised gains             56,583              19,101
Revenue reserve                                 2,212               1,608
                                              -------             -------
Total equity shareholders' funds              124,491             145,789
                                              -------             -------

Amounts attributable to shareholders and 
 participating loan note holders              161,327             145,789
                                              =======             =======

Number of ordinary 67p shares 
 in issue (1999: 50p shares)***            17,715,805          33,936,363
Number of warrants in issue                 5,238,632           5,242,545
              

Net asset value per share:
 - basic                                        702.7p              429.6p
 - fully diluted                                599.9p              405.6p

Adjusted redemption value per 
 participating loan note                        591.8p                  -


*** In a circular dated 31 March 2000 the Company announced a proposed
    reorganisation of capital, the issue of 6,224,471 participating loan notes
    (PLNs) and a return of surplus cash to shareholders. Following
    shareholder and court approval of these proposals, £50 million in cash was
    returned to shareholders by the cancellation of 2,946 out of every 10,000
    ordinary shares and a bonus issue of £31,929,046 in value of PLNs at an
    issue price of 512.96p was made to shareholders. As a result, the ordinary
    share capital was reorganised into 17,715,805 ordinary shares of 67p each.



                PANTHEON INTERNATIONAL PARTICIPATIONS PLC
                           Cashflow Statement 
              
                                                    Year ended 30 June       
                                                 2000                1999
                                               £'000s              £'000s

Cash flow from operating activities:
Investment income received                      5,287               2,153
Deposit interest received                         461                  89
Investment management fees paid                (1,862)             (1,892)
Secretarial fees paid                             (62)                (74)
Other cash payments                              (946)               (772)
                                              -------             -------
Net cash inflow/(outflow) from 
 operating activities                           2,878                (496)
                                              -------             -------

Capital expenditure and
Financial investment:
Purchases of investments                      (58,377)            (15,109)
Purchases of government securities            (98,261)            (87,896)
Disposals of investments                       51,610              30,276
Disposals of government securities            157,180              72,258
Realised currency gains                           250                  81
                                              -------             -------
Net cash inflow/(outflow) from capital
 expenditure and financial investment          52,402                (390)
                                              -------             -------

Equity dividends paid                            (679)                  -
                                              -------             ------- 

Financing:
Return of capital to shareholders             (50,000)                  -
Proceeds of Warrant conversion                     10                   -     
                                                -------             -------
Net cash outflow from financing               (49,990)                  -
                                              -------             -------
Increase/(decrease) in cash                     4,611                (886)
                                              =======             =======


On 30 July 2000 the Directors recommended a final dividend of 2.0p per share
(1999: 2.00p) payable on 30 November 2000 to shareholders on the register at
close of business on 27 October 2000. Subject to approval of this dividend by
shareholders, an interest payment of 2.0p per PLN will be paid on 30 November
2000 to holders of PLNs on the register at the close of business on the record
date.


The above financial information does not constitute statutory accounts as
defined in Section 240 of the Companies Act 1985.  The comparative financial
information for the year ended 30 June 1999 is taken from the full accounts,
which have been delivered to the Registrar of Companies and contained an
unqualified audit report and did not contain statements under s.237(2) or (3)
of the Companies Act 1985. Statutory financial statements for the year ended
30 June 2000 will be delivered to the Registrar. 


PRIVATE EQUITY PORTFOLIO:


Geographical analysis
                                         %

USA                                   59.0
UK                                    21.0
Continental Europe                    13.0
Asia                                   5.6
Latin America                          1.0
Eastern Europe                         0.4
                                     -----
                                     100.0
                                     =====


Stage analysis
                                         %

Development                           36.0
Balanced                              20.0
Large Buyout                          16.0
Mid size Buyout                       11.0
Early                                  9.0
Other                                  6.0
Direct Quoted Shares                   2.0
                                     -----
                                     100.0
                                     =====



Sector analysis
                                         %

Communications and Media              17.0
Manufacturing                         15.0
Software                              13.0
Consumer Related (not E-commerce)     11.0
Other Services                         9.0
Biotechnology, Medical and Healthcare  9.0
Computer Hardware and Electronics      7.0
Software and Tools for the Internet    5.0
Other Services                         4.0
E-commerce                             4.0
Industrial Services                    3.0
Energy Related                         3.0
                                     -----
                                     100.0
                                     =====