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Fleming Claverhouse (01PH)

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Monday 11 December, 2000

Fleming Claverhouse

Issue of Equity

Fleming Claverhouse Inv Trust PLC
11 December 2000



11 December 2000


         THE FLEMING CLAVERHOUSE INVESTMENT TRUST PLC (THE 'COMPANY')


                 PROPOSED PLACING AND OFFER FOR SUBSCRIPTION

                            OF NEW ORDINARY SHARES




SUMMARY -THE ISSUE

The Board of the Fleming Claverhouse Investment Trust plc (the 'Company')
announces proposals for the Company to raise additional funds through a
Placing, to be carried out by Deutsche Bank, and Offer for Subscription
(together the 'Issue').

-   It is expected that there will be demand for New Ordinary Shares from
    Fleming Managed Growth PLC, an investment trust, also managed by Chase
    Fleming, which invests a large proportion of its portfolio in the Company.
    New Ordinary Shares will also be available to existing Shareholders and to
    new investors.

-   The Issue Price will be at a premium of 2.25 per cent. to the Net Asset
    Value per Share on the Calculation Date.

-   The proposed Issue is conditional on Shareholder approval at an
    Extraordinary General Meeting and on the admission of the New Ordinary
    Shares to the Official List by the UK Listing Authority and to trading on
    the London Stock Exchange.

A Shareholder Circular and an Issue Note are being published and posted to
Shareholders. A Shelf Document is also being made available.

REASONS FOR THE ISSUE

The performance of the Company since its launch and the premium to net asset
value at which the Ordinary Shares have, on average, traded suggest that, in
the opinion of the Directors, there would be support for an issue of
additional Shares in the Company. This support comes from two sources:

-   First, there is demand from Fleming Managed Growth ('FMG'). FMG is an
    investment trust which aims to provide long-term capital growth from
    investing in the range of investment trusts managed by Chase Fleming. As at
    5 December 2000, 38.7 per cent. of FMG's portfolio was invested in the
    Company's Ordinary Shares. Because of a recent issue of new shares by
    Fleming Managed Growth, FMG will, in turn, generate additional demand for
    the Company's Ordinary Shares. The level of this demand for the Company's
    Ordinary Shares is such that FMG is unlikely to be able to satisfy it by
    acquiring Shares in the secondary market, and would instead welcome the
    opportunity to acquire New Ordinary Shares issued by the Company.

-   Secondly, the Directors believe that in addition to issuing New Ordinary
    Shares to FMG, it is also worthwhile extending this opportunity to existing
    Shareholders and new investors. The premium at which the Company's Shares
    trade, on average, indicates that there is demand for a managed exposure to
    a portfolio of UK companies with the potential for long-term growth in
    profits and dividends.

The proceeds of the Issue will be invested in accordance with the Company's
investment policy. The Directors expect that the costs of the Issue will be
less than the aggregate premium at which the New Ordinary Shares are being
issued. If there is insufficient demand to cover the costs of the Issue, Chase
Fleming will meet the shortfall such that there is no reduction in the Net
Asset Value attributable to Shares held by existing Shareholders.

ADVANTAGES OF THE ISSUE FOR EXISTING SHAREHOLDERS

The advantages of the Issue are expected to be as follows:

-   an increase in the number of Ordinary Shares in issue should broaden the
    Shareholder base and improve the liquidity of the Ordinary Shares;

-   an increase in the size of the Company will result in the Company's fixed
    costs (such as operating expenses) being spread over a greater number of
    Ordinary Shares. As a result, the Company's total expense ratio will be
    reduced; and

-   issuing the New Ordinary Shares will produce a modest increase in the NAV
    per Ordinary Share attributable to the enlarged issued share capital
    immediately following the Issue. The Issue Price has been set at a level
    which, after payment of the costs of the Issue and the costs of investing
    the proceeds of the Issue, should produce such an increase.


THE NEW ORDINARY SHARES

The Directors expect to pay dividends in respect of the financial year ending
31 December 2000 which would amount to at least 7.45p per Ordinary Share.
These figures are estimated dividends only and are not intended to be, nor
should be taken as, forecasts of profits.

The first dividend for which the New Ordinary Shares will rank will be the
dividend expected to be paid on 1 March 2001 being the fourth interim dividend
in respect of the year ending 31 December 2000. The New Ordinary Shares issued
pursuant to the Proposals will rank pari passu in all respects with the
existing Ordinary Shares from the date of issue.

THE PLACING AND OFFER FOR SUBSCRIPTION

Deutsche Bank has entered into a placing and offer for subscription agreement
with the Company under which, inter alia, it has agreed to make the Offer for
Subscription and to use its reasonable endeavours to procure investors to
subscribe for New Ordinary Shares at the Issue Price pursuant to the Placing.
It is expected that the Placing will be with a small number of counterparties.
The Placing and Offer for Subscription are not being underwritten with respect
to any of the New Ordinary Shares and will close on 4 January 2001.

The Issue is of up to 25,000,000 New Ordinary Shares. However, it is not
expected that the maximum number of shares will be issued. On 5 December 2000
FMG issued 90.8m conversion shares of £1 each. By way of illustration only, if
FMG were to maintain its current weighting of 38.7 per cent. in the Company
this would generate demand for up to £35m of the Company's Shares to be
satisfied either through the Placing and Offer for Subscription or through the
secondary market.


EXTRAORDINARY GENERAL MEETING

An Extraordinary General Meeting of the Company will be held at 12.00 noon on
Wednesday, 3 January 2001. A special resolution will be proposed to grant the
Directors authority under Section 80 of the Companies Act 1985 to allot the
relevant securities and to allot them other than in accordance with the
pre-emption provisions of section 89 of the Companies Act 1985.

APPLICATION AND DEALINGS

Application has been made to the UK Listing Authority for the New Ordinary
Shares to be admitted to the Official List and to the London Stock Exchange
for such Shares to be admitted to trading on the London Stock Exchange. It is
expected that dealings in the New Ordinary Shares will commence on 10 January
2001.

ENQUIRIES
The Fleming Claverhouse Investment Trust plc                 020 7742 3408
Jonathan Latter

Chase Fleming Asset Management (UK) Limited
John Lipscomb                                                020 7742 3435
Natasha Ginks                                                020 7742 3413

Deutsche Bank                                                020 7545 8000
Simon Colson
Mark Bloomfield


This announcement, for which the directors of The Fleming Claverhouse
Investment Trust plc are solely responsible, has been approved by Deutsche
Bank, solely for the purposes of section 57 of the Financial Services Act
1986.

Deutsche Bank, which is regulated by The Securities and Futures Authority
Limited, is acting for The Fleming Claverhouse Investment Trust plc and is not
acting for any other persons and will not be responsible to such other persons
for providing the protections afforded to customers of Deutsche Bank or
advising them in relation to the proposals.

DEFINITIONS

Calculation  the date on which the Net Asset Value will be calculated, which is
Date         expected to be the close of business on 4 January 2001

Chase        The Chase Manhattan Corporation and its subsidiaries, subsidiary
Fleming      undertakings and associated companies

Deutsche     Deutsche Bank AG London
Bank

Directors    the board of directors of the Company

Issue Note   the Issue Note dated 8 December 2000 of the Company

Issue Price  an amount per New Ordinary Share equal to 102.25 per cent. of the
             NAV of an Ordinary Share on the Calculation Date

Net Asset    the net asset value of an Ordinary Share calculated in accordance
Value or NAV with the Company's accounting policies

New Ordinary the new Ordinary Shares to be issued pursuant to the Issue
Shares

Offer for    the offer for subscription to the public of the New Ordinary
Subscription Shares described in the Shelf Document and Issue Note

Ordinary     ordinary shares of 25p each in the capital of the Company
Shares

Placing      the conditional placing by Deutsche Bank of the New Ordinary
             Shares described in the Issue Note

Shareholders holders of Ordinary Shares

Shares       New Ordinary Shares or existing Ordinary Shares as the context may
             require

Shelf        the Shelf Document dated 8 December 2000 relating to the Company
Document     published on the website of the UK Listing Authority

UK Listing   the Financial Services Authority acting in its capacity as the
Authority    competent authority for the purposes of Part IV of the Financial
             Services Act 1986 (as amended)



                                                                                
                                                                                
                                                                     

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