Final Results

Standard Life Euro Pri Eqty Tst PLC
3 December 2001


3 December 2001


STANDARD LIFE EUROPEAN PRIVATE EQUITY TRUST PLC


PRELIMINARY RESULTS FOR THE PERIOD TO 30 SEPTEMBER 2001

  Highlights of the period


* The Company's investment objective is to achieve long term capital gains
  through investment in a diversified portfolio of private equity funds
  investing predominantly in Europe.

* The Company's ordinary shares were admitted to the London Stock Exchange on
  29 May 2001, following a £79.3 million institutional placing and the £80.7
  million acquisition of 19 European private equity fund interests from The
  Standard Life Assurance Company ('Standard Life'). The Company's opening net
  assets were £157.9 million, equivalent to 98.7p per ordinary share.

* Against a difficult macro-economic and market background the Company has
  performed well. Over the period to 30 September 2001 the net asset value per
  ordinary share fell by 4.4% to 94.3p. This compares with falls of 18.0% and
  21.1% respectively in the FTSE All-Share index and MSCI Europe index
  (sterling adjusted) over the same period. The Company's net assets as at 30
  September 2001 were £151.0 million.

* The Board recommends a final dividend of 0.45p per ordinary share, to be paid
  on 5 February 2002 to shareholders on the Company's share register as at 11
  January 2002. The Company is unlikely to pay regular dividends when it
  becomes more fully invested.

* As at 30 September 2001, the Company had £71.6 million invested in 25 private
  equity fund interests and held £79.4 million in cash, money market holdings
  and other net assets.

* The Company will pursue an over-commitment strategy to allow it to become
  fully invested on a cash basis. In the period to 30 September 2001 the
  Company made a total of £104.4 million of new commitments to six private
  equity funds.


  Quote from Scott Dobbie CBE, Chairman:-

  'The European macro-economic environment has undoubtedly deteriorated over
  recent months. It is often at such times, when expectations and valuations
  have fallen, that some of the best buy-out opportunities are to be found.
  With the Company holding substantial liquid assets and the Board and the
  Manager pursuing an over-commitment strategy, I believe that the Company will
  be well placed to benefit from such circumstances.'

  For further information please contact:-



* Jonny Maxwell/Peter McKellar of Standard Life Investments (Private Equity)
  Limited  (0207 568 8757 between 10.00a.m. and 2.00p.m. on 3 December 2001,
  otherwise 0771 248 5331 or 0771 516 0690)


                             CHAIRMAN'S STATEMENT


Company launch and objective

This is my first Chairman's statement following the admission of the Company's
ordinary shares to trading on the London Stock Exchange on 29 May 2001 and I
would like to welcome all shareholders to the Company.

The investment objective of the Company is to achieve long term capital gains
through investment in a diversified portfolio of private equity funds investing
predominantly in Europe.


Performance and dividend

The period under review, whilst short, saw dramatic changes at a global
macro-economic level and in the valuation of quoted equities. I am pleased to
report that against such a background the Company performed well. Over the
period from 29 May to 30 September 2001, the net asset value per ordinary share
fell by 4.4% from an opening net asset value per share of 98.7p to 94.3p. The
income generated on the cash raised at the time of the Company's listing allows
the Board to recommend a final dividend of 0.45p per ordinary share, to be paid
on 5 February 2002 to shareholders on the Company's share register as at 11
January 2002. The Company is unlikely to pay regular dividends when it becomes
more fully invested.

While the Company does not have a defined benchmark, the 4.4% fall in net asset
value over the period to 30 September 2001 compares with falls of 18.0% and
21.1% respectively in the FTSE All-Share index and the MSCI Europe index
(sterling adjusted) over the period. The Company's out-performance is
principally attributable to its significant cash and money market holdings and
the focus of the portfolio on buy-out as opposed to venture capital funds.
Further, a substantial proportion of the private equity assets acquired by the
Company on listing continue to be valued at or below the original cost of
investment.


Valuation and cashflow

On listing the Company acquired an existing portfolio of 19 European private
equity fund interests from Standard Life for £80.7 million, satisfied wholly
through the issue of ordinary shares. In the period to 30 September 2001 this
portfolio of fund interests generated £7.5 million of distributions, of which 
£1.2 million was realised gains.

Since listing the Company has made new commitments totalling £104.4 million to
six private equity funds, which are expected to be drawn down over the next 3-4
years. Of these new commitments five were to buy-out funds and one was to a
venture capital fund. In the period to 30 September 2001, £1.8 million was
drawn down from these new fund commitments and £3.5 million was drawn down from
the outstanding commitments of £18.4 million assumed in the acquisition of the
portfolio of fund interests from Standard Life.

In undertaking the valuation of the Company's portfolio of 25 private equity
fund interests, the Company used the most recent valuation of each fund
prepared by the relevant fund manager, adjusted where necessary for subsequent
cash flows. Of the 25 fund interests held by the Company 22 of the funds were
valued by their fund managers as at 30 September 2001. The closing value of the
Company's portfolio of fund interests as at 30 September 2001 was £71.6 million
- £8.1 million less than the initial valuation on listing. This reduction
reflected write-downs and write-offs by fund managers of some of the underlying
investments in their respective funds. The majority of these adjustments
related either to technology investments, or to more traditional buy-outs where
there had been a deterioration in trading. There was little impact on the
portfolio from foreign exchange movements.

The aggregate closing cash and money market holdings of the Company as at 30
September 2001 were £81.6 million, slightly higher than the £79.3 million
raised at the time of the Company's listing. This small increase is largely due
to the Company's new commitments being to recently launched funds and to
private equity fund managers exhibiting caution in concluding transactions
until the outlook for corporate profitability is clearer. The increase also
demonstrates the ability of the portfolio of fund interests to generate
distributions in difficult market conditions.


Over-commitment strategy

The Company's objective of maximising shareholder returns will be best achieved
by seeking, over time, to be fully invested on a cash basis.  The current level
of cash, anticipated distributions and the time-lag between commitment and
investment of monies means that the Manager must pursue a policy of
over-commitment. Accordingly, the amount of new commitments being made by the
Company will exceed its existing cash and money market holdings. The Board
closely monitors the level of new commitments being made by the Company and its
capacity for over-commitment. Subject to suitable investment opportunities
being identified and the Board and the Manager being satisfied with on-going
cash flows, we expect to make a similar amount of new commitments during the
next year as were made in the period to 30 September 2001.


Share capital reduction and buy-back authority

Immediately prior to listing, special resolutions were passed authorising the
cancellation of part of the Company's share premium account and granting the
Company authority to make market purchases of up to 14.99% of the ordinary
shares in issue. On 27 September 2001 the Company obtained Court approval for
the cancellation of £79.8 million of its share premium account and the transfer
of such sum to a special reserve. The Board is proposing to renew the authority
to make market purchases of up to 14.99% of the ordinary shares in issue at the
forthcoming annual general meeting of the Company.

In considering whether to utilise this authority, the Board will have regard to
the supply and demand balance in the Company's ordinary shares in the market,
the prevailing level of the Company's share price relative to its net asset
value and the volatility of any discount. No purchases will be made unless they
result in an increase in the net asset value of the remaining ordinary shares.


Marketing

Since receiving advice that the ordinary shares of the Company are eligible for
inclusion in ISAs, the Company has been working with the Standard Life group to
establish an appropriate ISA product in its ordinary shares. It is anticipated
that this will be marketed by Standard Life Investments (Mutual Funds) Limited
from early 2002. The Board and the Manager believe that the launch of an ISA
will generate retail interest in the Company's ordinary shares and broaden the
shareholder base.

The Company became a member of the Association of Investment Trust Companies on
1 October 2001.


Outlook

The European macro-economic environment has undoubtedly deteriorated over
recent months. It is often at such times, when expectations and valuations have
fallen, that some of the best buy-out opportunities are to be found. With the
Company holding substantial liquid assets and the Board and the Manager
pursuing an over-commitment strategy, I believe that the Company will be well
placed to benefit from such circumstances. As for the existing portfolio of
private equity fund interests, while fund managers' valuations may be affected
by the severity and length of any economic downturn, we do anticipate further
distributions and realised gains being generated.


Scott Dobbie CBE
Chairman




STATEMENT OF TOTAL RETURN

For the period 9 March 2001 to 30 September 2001




                                                  Revenue  Capital        Total
                                                    £'000    £'000        £'000

Net realised gains on investments                       -    1,151        1,151
Unrealised depreciation on investments                  -  (8,141)      (8,141)

LOSSES ON INVESTMENTS                                   -  (6,990)      (6,990)


Currency losses on cash balances                        -     (12)         (12)
Income from investments                             1,268        -        1,268
Interest receivable on short term deposits            105        -          105
Investment management fee                            (22)    (195)        (217)
Administrative expenses                             (116)     (16)        (132)

RETURN ON ORDINARY ACTIVITIES BEFORE TAXATION       1,235  (7,213)      (5,978)
Taxation                                            (369)       57        (312)

RETURN ON ORDINARY ACTIVITIES AFTER TAXATION          866  (7,156)      (6,290)
Dividend in respect of ordinary shares              (720)        -        (720)

Transfer to/(from) reserves                           146  (7,156)      (7,010)

RETURN PER ORDINARY SHARE                           0.54p  (4.47p)      (3.93p)

DIVIDEND PER ORDINARY SHARE                         0.45p




BALANCE SHEET

As at 30 September 2001


                                                               £'000     £'000



FIXED ASSETS
Investments                                                            150,599

CURRENT ASSETS
Debtors                                                          303
Cash and short term deposits                                   2,603
                                                               2,906


CREDITORS: Amounts falling due within one year               (1,940)


NET CURRENT ASSETS                                                         966


TOTAL ASSETS LESS CURRENT LIABILITIES                                  151,565


CREDITORS: Amounts falling due after more than one year                  (605)

                                                                       150,960


CAPITAL AND RESERVES
Called up share capital                                                    355
Share premium                                                           77,775
Special reserve                                                         79,840
Capital reserve - realised                                                 985
Capital reserve - unrealised                                           (8,141)
Revenue reserve                                                            146


TOTAL SHAREHOLDERS' FUNDS                                              150,960


ANALYSIS OF SHAREHOLDERS' FUNDS

Equity interests (ordinary shares)                                     150,925
Non-equity interests (founder shares)                                       35

                                                                       150,960

NET ASSET VALUE PER EQUITY SHARE                                        94.33p


CASHFLOW STATEMENT

For the period 9 March 2001 to 30 September 2001


                                                               £'000     £'000

NET CASH INFLOW FROM OPERATING ACTIVITIES                                1,023

NET CASHFLOW FROM SERVICING OF FINANCE                                       -

NET CASHFLOW FROM TAXATION                                                   -

FINANCIAL INVESTMENT
Purchase of investments                                      (84,082)
Disposal of investments                                         7,238

NET CASH OUTFLOW FROM FINANCIAL INVESTMENT                            (76,844)

ORDINARY DIVIDENDS PAID                                                      -

NET CASH OUTFLOW BEFORE USE OF LIQUID RESOURCES AND                   (75,821)
FINANCING

FINANCING
Issue of ordinary shares                                       79,255
Issue of founder shares                                            35
Expenses of issue                                               (854)

NET CASH INFLOW FROM FINANCING                                          78,436

INCREASE IN CASH                                                         2,615



Notes :-

1. Standard Life European Private Equity Trust PLC is an investment company
   managed by Standard Life Investments (Private Equity) Limited the ordinary
   shares of which are admitted to listing by the UK Listing Authority and to
   trading on the London Stock Exchange and which seeks to conduct its affairs
   so as to qualify as an investment trust under section 842 of the Income and
   Corporation Taxes Act 1988. The Board of Standard Life European Private
   Equity Trust PLC is independent of Standard Life.
2. The Company was incorporated on 9 March 2001 and commenced business on 29
   May 2001.
3. The Directors recommend that a final dividend of 0.45p per ordinary share be
   paid on 5 February 2002 to shareholders on the Company's share register as
   at the close of business on 11 January 2002.  The ex-dividend date for the
   final dividend is 9 January 2002.
4. The statutory accounts for the period ended 30 September 2001 contain an
   unqualified audit report and will be delivered to the Registrar of Companies
   following the Company's Annual General Meeting, which will be held at 1
   George Street, Edinburgh on 28 January 2002 at 12.00 noon.
5. The statement of total return (incorporating the revenue account), balance
   sheet and cashflow set out above do not represent full accounts in
   accordance with section 240 of the Companies Act 1985. The accounts have
   been prepared in accordance with the Statement of Recommended Practice 
   'Financial Statements of Investment Trust Companies'.
6. The revenue column of the statement of total return represents the revenue
   account of the Company. Other than the acquisition of 19 European private
   equity fund interests from Standard Life no operations were acquired or
   discontinued during the period. The investment management fee and financing
   costs are allocated 10% to revenue and 90% to capital.
7. The report and accounts will be posted to shareholders on 20 December 2001
   and copies will be available from the Company Secretary - Edinburgh Fund
   Managers plc, Donaldson House, 97 Haymarket Terrace, Edinburgh EH12 5HD.



for Standard Life European Private Equity Trust PLC,

Edinburgh Fund Managers plc,

Company Secretary

END