Equity Ptnrshp InvCo

Interim Results

Equity Partnership Inv Co PLC
28 April 2003


Preliminary Announcement of Results for the 6 month period to 31 January 2003

Chairman's Statement

The six months ended 31 January was a particularly uncertain and volatile period
for the global equity markets with the bear phase now entering its third year.
The UK equity market as measured by the FT Actuaries All Share Index fell by
16.02% to 1722.28 over the Company's first half year. Against this background
EPIC's investment portfolio fell in value by 3.96%. This translates into a
15.64% fall in the Net Asset Value of our Capital Shares. EPIC's performance
benchmark, rose by 3.48% over the six months.

The investment portfolio continues to generate income in excess of the Company's
Income Share requirements and over the past six months we have paid two interim
dividends amounting to a total of 5.075p, reflecting the inflation adjustment
target indicated in the prospectus. Income accumulating in the Company's
distributable reserve will act as a buffer against any possible future shortfall
in income generated by our investment portfolio and may offer the Managers some
flexibility to weight the portfolio more heavily in favour of growth equity
investments when the prospects for equity markets improve. Any income reserves
available at the end of the Company's life will be distributed to Capital
Shareholders once all obligations to the bank and the Income Shareholders have
been met in full.

Chairman's Statement(continued)

Against a background of sharp equity market falls it is disappointing but not
altogether surprising to see an investment company with an element of gearing
and a significant exposure to equity investments, struggling to achieve its
longer term objective of providing growth of 3% per annum above the 'risk free'
return on cash. Although the book value of the Sunrise I CDO has been written
down, in line with prudent mark to market accounting principles, we do not
believe this reflects a permanent diminution in value of the investment. Despite
the unhelpful economic environment, there have been no defaults in the portfolio
to date, and the debt continues to be serviced. The valuation has further
suffered from the continued decline in the US Dollar. Our private equity
portfolio is now substantially invested and is focused in a number of late
stage, pre IPO investments with the potential to make a significant contribution
to the Company's future performance.

EPIC's significant investment in The Equity Partnership continues to show
promise, which at the time of writing has already attracted approximately US$2
billion of funds for discretionary management. The Company received a second FSA
licence before Christmas which was closely followed by the successful launches
of EPIC Brand Investments, an AIM listed company investing in home and personal
care brands, and EPIC European, an equity fund hedging individual investments
against market movements with the objective of generating consistent returns
with low levels of volatility.

Chairman's Statement(continued)

Despite EPIC's relatively conservative bank and structural gearing, any leverage
is unhelpful during periods of falling markets, and despite a positive combined
total capital and income return since launch, the distributions to Income
Shareholders and the accumulating rolled-up interest liability on the Company's
bank debt have contributed to a decline in the assets attributable to Capital
Shareholders. However, the relatively limited extent of this decline against
such a severe fall in equity values I believe demonstrates the resilience of the
Company's capital structure and leaves Capital Shareholders well placed to
benefit from a potential recovery in equity valuations from their current
depressed levels.

Donald McCrickard

March 2003

Statement of Operations and Changes in Net Assets

For the period 1 August 2002 to 31 January 2003
                                                       1 August 2002 to   6 July 2001 to 31   6 July 2001 to 31
                                                       31 January 2003      January 2002     July 2002 (audited)
                                                         (unaudited)        (unaudited)

Income:                                                           £000's              £000's              £000's

Interest receivable                                                    1                  16                  28
Investment income                                                  1,988               1,130               3,639

Total income                                                       1,989               1,146               3,667

Amortisation-issue costs of income shares                            (32)                  -                (64)
Loan interest                                                       (476)              (416)               (873)
Investment management fees                                          (340)              (322)               (691)
Irrecoverable VAT                                                    (76)               (65)               (152)
Other administration fees and expenses                              (134)               (80)               (226)
Directors' fees                                                      (25)                (7)                (53)
Audit fees                                                            (8)                (8)                (15)

Total expenses:                                                   (1,091)              (898)             (2,074)
Net investment income                                                 898                248                1593

Gains on investments
Net realised gain on sale of investments                              576                265               2,160
Movement in unrealised gain/(loss) on revaluation of              (5,284)              4,170               (475)

(Loss)/gain on investments                                        (4,708)              4,435               1,685

Net (loss)/gain                                                   (3,810)              4,683               3,278

Dividends in respect of income shares                             (1,052)              (829)             (2,074)

Total (loss)/gain transferred to reserves                         (4,862)              3,854               1,204

Basic earnings per capital share (pence)                         (14.07)p             11.15p               3.48p

Diluted earnings per capital share (pence)                              -             11.12p               3.47p

Balance Sheet

As at 31 January 2003
                                                         31 January 2003   31 January 2002    31 July 2002
                                                           (unaudited)       (unaudited)        (audited)
                                                                £000's            £000's          £000's
Non-current assets
Available-for-sale investments                                  65,107            72,549          68,725

Current assets
Debtors and prepayments                                            213               364           3,334
Cash at bank and in hand                                           911                57               5

                                                                 1,124               421           3,339

Current liabilities
Creditors and accrued expenses                                 (1,602)             (918)         (2,406)
Dividends in respect of income shares                            (526)             (519)           (726)
                                                               (2,128)           (1,437)         (3,132)

Net current (liabilities)/assets                               (1,004)           (1,016)             207

Long term liabilities
Bank loan                                                     (13,750)          (13,750)        (13,750)
Interest rate SWAP liability                                     (987)                 -           (461)
Income shares                                                 (20,315)          (20,233)        (20,283)

                                                              (35,052)          (33,983)        (34,494)

Total assets less liabilities                                   29,051            37,550          34,438

Represented by:

Share capital                                                    3,456             3,456           3,456
Share premium                                                   30,240            30,240          30,240
Reserves                                                       (4,645)             3,854             742

                                                                29,051            37,550          34,438

Net asset value per capital share (pence)                       84.06p           107.19p          99.64p
Net asset value per income share (pence)                       100.00p           100.00p         100.00p

Statement of Changes in Equity

For the period from 1 August 2002 to 31 January 2003.

                                                                  31 January 2003     31 January 2002      31 July 2002
                                                                     (unaudited)         (unaudited)          (audited)
                                                                          £000's              £000's              £000's

Net assets at start of period                                             34,438                   -                   -

Capital share proceeds                                                         -              33,696              33,696

Net(loss)/profit for the period                                          (3,810)               3,854               3,278

Dividends payable                                                        (1,052)                   -             (2,074)

                                                                          29,576              37,550              34,900

Movement in hedge reserve

Movement in net unrealised loss on revaluation of cash flow                (525)                   -               (462)

Net assets at end of period                                               29,051              37,550              34,438

Statement of Cash Flow

For the period from 1 August 2002 to 31 July 2003

                                                             1 August 2002 to 31  6 July 2001 to 31   6 July 2001 to 31
                                                                January 2003        January 2003     July 2002 (audited)
                                                                 (unaudited)         (unaudited)
                                                                          £000's              £000's              £000's
Operating activities
Dividends received                                                           608                 729               1,467
Bond interest received                                                     2,681                  35                 617
Bank interest and commission received                                         47                  19                  46
Expenses paid                                                              (116)               (199)               (810)
Loan interest paid                                                          (12)                   -                   -
Payments under interest rate SWAP agreement                                 (89)                   -                (47)

Net cash flow inflow from operating activities                             3,119                 584               1,273

Investing activities
Purchase of investments                                                 (58,602)           (211,600)           (265,270)
Sale of investments                                                       57,100             143,706             197,685

Net cash outflow from investing activities                                 (961)            (67,894)            (67,585)

Financing activities
Proceeds on issue of capital shares                                            -              33,697              33,697
Proceeds on issue of income shares                                             -              20,231              20,218
Draw down of bank loan                                                         -              13,750              13,750
Dividends paid                                                           (1,252)               (311)             (1,348)

Net cash inflow from financing activities                                (1,252)              67,367              66,317

Increase in cash
Cash and cash equivalents at start of period                                   5                   -                   -

Cash and cash equivalents at end of period                                   911                  57                   5

P.P. Scales,


March 2003

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