Interim Results

Templeton Emerging Markets IT PLC
17 December 2001


PRELIMINARY ANNOUNCEMENT



TEMPLETON EMERGING MARKETS INVESTMENT TRUST PLC

('TEMIT') ('the Company')







Interim Results for the six months to 31 October 2001

The Company today announced its interim results for the period to 31 October
2001.





CHAIRMAN'S STATEMENT

To Shareholders:

Emerging markets have been affected in the last six months by concerns over
the U.S. economy and slowing global growth as discussed in the Investment
Review on page 8. In addition, the dramatic events in the United States on 11
September 2001 had a global impact and increased the uncertainty surrounding
the world markets.

At 31 October 2001 your Company had net assets of £545.9 million, compared
with £619.0 million at 30 April 2001 and £629.1 million at 31 October 2000.
Undiluted net asset value per share at the half-year stage was 119.6p, down
11.8% since the last financial year end. Over the same period the MSCI
Emerging Markets Free Index, on a total return basis, fell by 18.8% and the S&
P/IFCI Composite Index also declined by 17.9%.

As a result of our assessment that there had been a shift in valuations for a
number of emerging market stocks, we decided to make major changes in the
portfolio composition. This necessitated substantial sales of existing
positions during August and September in preparation for purchases of newly
identified investment opportunities. Thus as at 31 October 2001 the Company
had higher cash levels and was 64.3% invested in equities compared to 90.1% at
30  April 2001.

As shown on page 6 the largest country weightings at 31 October 2001 were
China, South Africa and Mexico. The Far East and Pacific regions had the
largest exposure at 29.4% (23.8% at 30 April 2001), followed by Latin America
at 11.7% (29.3% at 30 April 2001), with sub-Saharan Africa, Emerging Europe
and the Middle East accounting for the remainder of the assets.

At 31 October 2001, the discount to net asset value was 22.0% and the share
price was 93.2p, down 17.9% from six months ago. Since 31 October 2001 the
discount has narrowed to 14.63% as at 17 December 2001.

Despite increased concerns over the U.S. economy and slowing growth globally,
we believe that the key reasons favouring emerging markets investment are
still intact. We are continuing our search for value to build positions in
equities which we deem to be trading at appealing prices.

The Honourable Nicholas F Brady

17 December 2001







STATEMENT OF TOTAL RETURN
                                        For the six months to 31 October 2001

                                         Revenue        Capital          Total
                                           £'000          £'000          £'000
                                     (unaudited)    (unaudited)    (unaudited)

INCOME
(Losses)/gains on investments                  -       (77,469)       (77,469)
Investment income                          7,440              -          7,440
Interest income                            3,215              -          3,215
                                          10,655       (77,469)       (66,814)
EXPENSES
Administrative expenses                  (4,407)              -        (4,407)

RETURN BEFORE TAXATION                     6,248       (77,469)       (71,221)

Taxation                                 (1,946)              -        (1,946)

RETURN AFTER TAXATION                      4,302      (77, 469)       (73,167)
Dividend in respect of equity shares           -              -              -

TOTAL RETURN FOR THE PERIOD                4,302       (77,469)       (73,167)
Return per ordinary share                  0.94p       (16.98p)       (16.04p)


Note: The capital element of returns is not distributable.

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

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

STATEMENT OF TOTAL RETURN (CONTINUED)


For the six months to 31 October 2000       Year to 30 April 2001 Restated
    Revenue     Capital        Total     Revenue        Capital          Total
      £'000       £'000        £'000       £'000          £'000          £'000
(unaudited) (unaudited)  (unaudited)   (audited)      (audited)      (audited)
          -   (106,297)    (106,297)           -      (113,570)      (113,570)
      6,785           -        6,785      15,307              -         15,307
      3,183           -        3,183       3,647              -          3,647
      9,968   (106,297)     (96,329)      18,954      (113,570)       (94,616)

    (5,321)           -      (5,321)    (10,007)              -       (10,007)
      4,647   (106,297)    (101,650)       8,947      (113,570)      (104,623)
    (1,273)           -      (1,273)     (2,692)              -        (2,692)
      3,374   (106,297)    (102,923)       6,255      (113,570)      (107,315)
          -           -            -     (5,628)              -        (5,628)
      3,374   (106,297)    (102,923)         627      (113,570)      (112,943)

      0.72p    (22.84p)     (22.12p)       1.36p       (24.64p)       (23.28p)



Dividend Policy

In accordance with the Company's stated policy, no interim dividend is
declared for the period.

(A dividend of 1.25 pence per Ordinary Share was paid for the year ended 30
April 2001.)

Restated Figures for the Year to 30 April 2001

Following clarification of the treatment of bond interest the results for the
year to 30 April 2001 have been restated to reflect an item of capital that
had been treated as income. The effect of the restatement is as follows:

Statement of Total Return
Reduction in interest income                                         £1,992,000
Reduction in taxation charge                                           £598,000
Reduction in losses on investments                                   £1,992,000

Balance Sheet
Reduction in creditors                                                 £598,000
Increase in capital reserve - realised                               £1,992,000
Decrease in revenue reserves                                         £1,394,000







BALANCE SHEET

                                                As at         As at       As at
                                           31 October    31 October    30 April
                                                 2001          2000        2001
                                                £'000         £'000    Restated
                                          (unaudited)   (unaudited)       £'000
                                                                      (audited)

FIXED ASSETS
Investments                                   351,148       561,845     557,774

CURRENT ASSETS
Debtors                                        17,654        23,859      10,550
Current asset investments                     200,774        20,039      45,429
Cash                                            2,195        32,103      16,207
                                              220,623        76,001      72,186

CREDITORS: amounts falling due within        (25,884)       (8,361)    (10,473)
one year

NET CURRENT ASSETS                            194,739        67,640      61,713

TOTAL ASSETS LESS CURRENT LIABILITIES         545,887       629,485     619,487

PROVISION FOR LIABILITIES AND CHARGES            (21)         (358)       (456)

NET ASSETS                                    545,866       629,127     619,031

CAPITAL AND RESERVES
Called-up share capital                       114,081       114,081     114,081
Share premium account                         275,308       275,306     275,306
Capital redemption reserve                      3,655         3,655       3,655
Capital reserve - realised                    205,128       292,278     257,176
Capital reserve - unrealised                 (69,888)      (72,296)    (44,467)
Revenue reserve                                17,582        16,103      13,280

SHAREHOLDERS' FUNDS (all equity)              545,866       629,127     619,031

Net asset value per ordinary share (in
pence)
- Basic                                        119.62        137.87      135.66
- Fully diluted                                   n/a        137.04      135.21







The Restatement at 30 April 2001 is explained on page 3.

CASH FLOW STATEMENT


                                     For the six   For the six months   For the
                                       months to   to 31 October 2001      year
                                      31 October                £'000     to 30
                                            2001                          April
                                                          (unaudited)      2001
                                           £'000                       Restated
                                     (unaudited)                          £'000
                                                                      (audited)

Reconciliation of operating profit
to net cash inflow
from operating activities
Operating activities                       6,248                4,647     8,947
Decrease in debtors                           17                   34        22
(Increase)/decrease in accrued           (3,309)                2,457       259
income
(Decrease) in creditors                    (262)                (145)     (125)
Increase/(decrease) in provisions             63                    -      (36)

Net cash inflow from operating             2,757                6,993     9,067
activities

Cash flow statement
Net cash inflow from operating             2,757                6,993     9,067
activities
Taxation                                   (692)                (309)   (1,739)
Financial investments                    144,862             (57,519)  (48,794)
                                         146,927             (50,835)  (41,466)

Dividends paid                           (5,704)              (5,104)   (5,104)
                                         141,223             (55,939)  (46,570)

Management of liquid resources         (155,267)                9,830  (15,631)
Financing                                      2             (17,932)  (17,932)

(Decrease) in cash                      (14,042)             (64,041)  (80,133)

Reconciliation of net cash flow to
movement in net funds
(Decrease) in cash in the period        (14,042)             (64,041)  (80,133)
Cash inflow/(outflow) from increase/
(decrease) in liquid resources           155,267              (9,830)    15,631
Movement in net funds                    141,225             (73,871)  (64,502)
Foreign exchange translation and             108                (114)        11
other differences
Opening net funds                         61,636              126,127   126,127
Closing net funds                        202,969               52,142    61,636



The unaudited interim financial information, which does not comprise full
statutory accounts in terms of the Companies Act 1985, has been prepared on
the basis of the accounting policies in the statutory accounts for the year
ended 30 April 2001. The statutory accounts, which have been filed with the
Registrar of Companies, received an unqualified audit report and did not
contain a statement under section 237(2) or (3) of the Companies Act 1985.

GEOGRAPHIC ASSET DISTRIBUTION


                    AS AT 31 OCTOBER 2001          AS AT 30 APRIL 2001
COUNTRY             %                              %
China               8.05                           0.95
South Africa        6.35                           15.13
Mexico              6.01                           13.57
Korea (South)       5.44                           7.96
Thailand            4.49                           6.33
Hong Kong           4.17                           5.70
Brazil              3.54                           6.64
Turkey              3.41                           6.91
Hungary             3.32                           1.20
Indonesia           3.14                           2.41
Singapore           2.30                           2.76
Argentina           2.15                           2.37
Russia              1.92                           1.58
Greece              1.80                           0.67
India               1.61                           1.38
Poland              1.57                           5.08
Egypt               1.38                           1.49
Philippines         1.21                           1.20
Finland             0.68                           0.17
Malaysia            0.66                           0.58
Estonia             0.41                           0.37
Croatia             0.30                           0.53
Czech Republic      0.28                           1.29
Austria             0.14                           0.00
Taiwan              0.00                           1.43
Pakistan            0.00                           0.99
Venezuela           0.00                           0.73
Columbia            0.00                           0.37
Israel              0.00                           0.21
Chile               0.00                           0.08
Slovak Republic     0.00                           0.01
Liquid Assets       35.67                          9.91
                    100.00                         100.00







TOP TWENTY HOLDINGS

As at 31 October 2001


Company                              Country   Industry                 Market
                                                                        Value

                                                                        £'000s

China Petroleum & Chemical Corp., H  China     Integrated Oil & Gas     18,815

South African Breweries PLC          South     Brewers                  17,340
                                     Africa

SK Telecom Co. Ltd.                  South     Wireless                 13,979
                                     Korea     Telecommunication
                                               Services

Kimberly Clark de Mexico SA de CV, A Mexico    Paper Products           10,387

Cemex SA                             Mexico    Construction Materials   10,274

Hellenic Telecommunications          Greece    Integrated               9,830
Organisation SA (OTE)                          Telecommunication
                                               Services

Samsung SDI Co. Ltd.                 South     Electronic Equipment &   9,261
                                     Korea     Instruments

PT Telekomunikasi Indonesia TBK, B   Indonesia Integrated               8,957
                                               Telecommunication
                                               Services

Quilmes Industrial SA, ADR, B        Argentina Brewers                  8,701

Polski Koncern Naftowy Orlen SA      Poland    Oil & Gas Refining &     8,591
                                               Marketing

MOL Magyar Olaj-Es Gazipari Rt.      Hungary   Integrated Oil & Gas     8,528

PetroChina Co. Ltd., H               China     Integrated Oil & Gas     8,093

Telefonos de Mexico SA (TELMEX), L,  Mexico    Integrated               7,983
ADR                                            Telecommunication
                                               Services

Tupras-Turkiye Petrol Rafineleri AS  Turkey    Oil & Gas Refining &     7,865
                                               Marketing

Gedeon Richter Ltd.                  Hungary   Pharmaceuticals          7,492

Siam Commercial Bank, 5.25%, cvt.    Thailand  Banks                    7,351
pfd., fgn.

Companhia Paranaense De              Brazil    Electric Utilities       7,312
Energia-Copel, B, pfd.

Fraser and Neave Ltd.                Singapore Brewers                  7,133

Remgro Ltd.                          South     Industrial Conglomerates 6,808
                                     Africa

Centrais Eletricas Brasileiras SA    Brazil    Electric Utilities       6,628
(Eletrobras), B, pfd.

Top 20 Holdings - 35.05% of Net                                         191,328
Assets







INVESTMENT REVIEW

This is the semi-annual report for the Templeton Emerging Markets Investment
Trust PLC covering the six-month period ending 31 October 2001.

Overview

Many emerging markets suffered during the last six months as a result of
increased concerns over the US economy and for that matter, slowing growth
globally. The debt problems experienced by Argentina and Turkey also led to
lower investor confidence. The horrific attacks in New York and Washington
D.C. on 11 September disrupted virtually every facet of normal day-to-day life
in the United States and had a global impact. International capital markets
were affected, with many key Exchanges temporarily closed, and increased
volatility in prices of commodities, currencies and other market assets. The
subsequent war on terrorism and the anthrax scare have also led to greater
uncertainty. It does not seem an easy task for the U.S., but we remain
optimistic that the Middle East conflicts may be resolved.

Portfolio Changes & Investment Strategies

In such an environment, we discovered more opportunities in a number of
markets, which in our opinion had excessively corrected, not due to a lack of
improving fundamentals or economic breakdown but due to panic selling and a
general loss of interest. While many investors stayed on the sidelines, we
used the downturn to build positions in equities we deemed were trading at
appealing valuations.

During the period, efforts aimed at restructuring the portfolio resulted in
the divestment of complete holdings in Israel, Pakistan, Taiwan, Chile,
Colombia, Venezuela and the Slovak Republic. The Fund also reduced its
exposure to South Africa, as we believed that some of the companies had
exceeded their fair value as a result of share price appreciations experienced
during the period. For example, sales included Astral Food Limited where
returns of over 38% were experienced. As a result, cash levels rose from the
25.96% recorded at the beginning of the quarter to 35.67% as of end October
2001. However, the cash level has been reduced to single-digit at the time of
writing. While our objective is always to be fully invested in the best
possible opportunities available in the market place, cash levels will always
increase when we are moving from one position to another. In fact because of
our value strategy, we have begun using our cash to take advantage of the
recent downturn in many stock markets to accumulate undervalued stocks around
the world.

The Company's exposure to China-related stocks was augmented as we believe
that China's imminent entry into the World Trade Organisation and the hosting
of the Olympic Games in 2008 could lead to greater opportunities for earnings
growth for Chinese companies. Exposure to Hungarian companies also increased,
as they are trading at attractive multiples. Economic recovery in Hungary is
also well on its way with sustainable growth and improving inflation. As a
result of the positive corporate changes in Indonesia, exposure to that nation
was increased.

On the other hand, holdings in Korea and Hong Kong were decreased as some of
the holdings there continued to under perform due to their export dependence.
Exposure to Mexico also fell due to a reduction in firms that are expected to
be impacted by a downturn in the US economy. Holdings in Brazil were also
reduced as contagion from Argentina continued to impact Brazilian stock
markets.

Within the top 10 holdings, Telekomunikasi (Indonesia), Kimberly Clark
(Mexico), Korean companies, SK Telecom and Samsung SDI, OTE Hellenic
Telecommunications (Greece), Quilmes (Argentina) and China Petroleum &
Chemical (Hong Kong 'H' share) replaced Samsung Electronics (Korea), Cheung
Kong (Hong Kong), Banacci (Mexico), South African  companies, Sasol and Anglo
American Corp., Banco Bradesco (Brazil) and Tupras  (Turkey).

Political Climate

In Asia, the Constitutional Court acquitted Thai Prime Minister Thaksin
Shinawatra of graft charges. This single event removed the political
uncertainty that had hindered his administration since it took office and
should now allow Thaksin to concentrate on implementing key reforms. In
Indonesia, Vice-President Megawati Sukarnoputri took over the presidency after
the Parliament voted to remove Abdurrahman Wahid. Both of those South East
Asian nations have undergone tremendous strains, both politically and
economically, but we expect the new governments to work towards the swift
implementation of key reforms to expedite recovery and attract foreign
investment.

In May, the US Secretary of State, Colin Powell toured Africa and commended
South Africa for its progress on the democracy front and said that he
supported free trade with Africa and democracy on the continent. Furthermore,
the government plans to strengthen the protection given to landowners. We
believe that the government is moving in the right direction and hope that the
implementation of much needed reforms is accelerated.

Moving to Latin America, in December 2001, the International Monetary Fund
(IMF) refused to disburse additional loans to Argentina due to the
non-compliance with the agreement signed in December 2000. These funds were
critical for the country to keep on servicing interest and principal
maturities, given that Argentina has been out of the voluntary financial
markets since the end of 1999. It should be noted that the negotiation with
the IMF is not dead, and that the organisation has asked Argentina to make
some fiscal adjustments in order to unlock the funds that were due in
December. However, political disagreements continue to bar the implementation
of the adjustments. Furthermore, with the opposition Peronist party's
strengthened position in Congress (it has now replaced the government alliance
as the largest party in the Lower House in the 14 October elections), greater
pressure may be upon on President Fernando de la Rua. In addition, the
government also partially froze bank accounts by limiting withdrawal and
transfers for the next three months in an attempt to prevent excessive
outflows of funds from the financial system. In Brazil, the presidential
elections scheduled for next year may divert attention away from the
implementation of much needed reforms. Energy rationing during the first few
months of the period also exerted pressure on the nation. Though as a result
of higher reservoir levels, the government announced that it would ease the
energy rationing measures from November onwards.

In Europe, Poland's elections saw the Democratic Left Alliance (SLD) emerge
victorious. However, in order to gain a majority position, the SLD formed a
coalition government with the Polish Peasant Party (PSL) and the Labor Union
(UP), the establishment of which could lead to greater stability and greater
power to implement policy changes. As a result of Russia's robust 2000 growth
and higher revenues due to 10-year high oil prices last year, the nation
announced that it was prepared to repay its loans to the International
Monetary Fund ahead of schedule. International credit agencies, Fitch and
Standard & Poor's, raised their respective ratings and outlook for Russia as
the country's macro-economic performance and pace of structural reforms
continue to impress the markets.

Economic Conditions

Despite slowing economic growth and exports, we expect Asia to continue to
attract foreign investment. Most Asian economies should continue to benefit
from lower interest rates in the US and improving regional cooperation
initiatives. Continued recovery, albeit slower than seen after the Asian
crisis, along with active reforms and restructuring should further result in
expanded domestic demand. During August, South Korea repaid the final
instalment of its loan from the International Monetary Fund ahead of schedule.
This clearly signals a strengthening economy on the right track. The economy
grew 2.7% year-on-year in the second quarter of 2001, faster than many of its
regional counterparts.

Most Latin American economies suffered as a result of the uncertainty in
Argentina, although an agreement to provide US$8 billion in additional loans
to Argentina from the IMF provided some temporary relief to investors. The
closure of the financial markets in the US resulted in great volatility across
Latin America and all international markets for that matter. However, we
believe that over the longer term, markets should be able to recover. As a
result of the crisis in Argentina and the energy crisis and rationing,
Brazilian GDP grew just 0.8% year-on-year in the second quarter of 2001 and
actually fell 1% quarter-on-quarter.

In Eastern Europe, aspirations of convergence to European Union standards
continued to push most markets to thrive towards positive change. Concerns
over slowing economic growth led Poland's Central Bank to cut key interest
rates by 150 basis points in October, its fifth cut this year. This could
augur well for companies with debt, as it would lead to lower interest
payments, thus allowing companies to divert funds elsewhere. For the first
half of 2001, Poland's trade deficit reduced to US$7.1 billion from US$9
billion a year earlier.

In line with slowing global growth, South Africa's GDP grew 2.5% in the second
quarter, slightly slower than the 2.7% growth recorded in the first quarter.

Outlook

Despite the dramatic events of 11 September, we believe that the key reasons
favouring emerging markets investments are still intact. Indeed, as a result
of the panic selling in September, we find that many markets are exhibiting
strong fundamentals and are at low levels when compared to their historical
highs. Our high levels of liquidity enable us to invest in stocks at low
prices because of positioning of the portfolio during the six months. As we
continue our search for bargains, we have made every attempt to mitigate some
of the risks by focusing on companies that do not rely on exports to the US
but instead on the respective domestic economies for earnings and growth. Of
course, if the whole world is in recession, there is no escaping the
repercussions but by positioning the portfolios defensively we can outperform
and preserve assets under management.

Thank you for your continued interest and support.

Dr. Mark Mobius, Ph.D.

Director

17 December 2001

Copies of the Interim Report will shortly be sent to shareholders.

For information please contact Richard Locke/William Simmonds at Cazenove &
Co. Ltd (0207 588 2828). No representation or warranty is made by Cazenove &
Co. Ltd as to the accuracy or completeness of the information contained in
this announcement and no liability will be accepted for any loss arising from
its use. These figures have been prepared by Franklin Templeton Investments
and are their sole responsibility.





End of Announcement.