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Gartmore Split Cap (GTB)

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Monday 24 December, 2001

Gartmore Split Cap

Asset Value Statement

Gartmore Split Capital Opps Tst PLC
24 December 2001


GARTMORE SPLIT CAPITAL OPPORTUNITIES TRUST PLC  (The 'Company' or 'GSCOT')

ASSET VALUE STATEMENT


In common with other comparable split capital trusts, the value of GSCOT's
assets has been seriously affected over a prolonged period by falls in the
market prices of its investments in other investment trusts, in particular
investments in geared ordinary income shares.  The net asset value of the
Company's ordinary shares has suffered disproportionately by reason of its
structural gearing.  The net asset value per ordinary share as at 21st
December 2001 (the latest practicable date prior to this announcement) was
nil p.

The board has been conscious for some time that the falls in asset values
could affect the ability of the Company to pay dividends.  This arises from
section 264(1) of the Companies Act 1985, which provides that a public company
may only make a distribution at any time (a) if at that time the amount of its
net assets is not less than the aggregate of its called-up share capital and
undistributable reserves, and (b) if, and to the extent that, the distribution
does not reduce the amount of those assets to less than that aggregate.  For a
group with a two-company structure like GSCOT (with zero dividend preference
('ZDP') shares being issued by a subsidiary, GSCOT Securities PLC), the s.264
calculation is distorted by the fact that it has to be done by reference to
the Company alone, and in the Company's books the accrued entitlement of the
ZDP Shares is treated as a liability.  This would not be the case if the ZDP
Shares were issued by the Company.

The board with its advisers is actively considering steps which may be taken
in order to ensure the Company's dividend-paying ability on an ongoing basis,
with a view to putting proposals to shareholders. Any such proposals would be
likely to require the consent of the holders of ordinary shares as well as
that of the holders of ZDP shares.

As at 21st December 2001 the Company had called-up share capital of £458,776,
undistributable reserves of £nil and net liabilities of approximately £373,000. 
The next dividend on the ordinary shares is due to be declared by
reference to the Company's balance sheet as at 31st January 2002.
Accordingly, unless the Company's asset position improves prior to 31st
January 2002, the Company will require to suspend dividend payments pending
the implementation of the proposals referred to.  Suspension would be in the
expectation that any suspended dividend would be paid subsequently, at an
appropriate level, when the Company was in a position to do so.  The Company
currently continues to accumulate cash and revenue reserves for this purpose.

As a consequence of the falls in asset values referred to, the value of the
Company's net assets has fallen to less than half of its called up share
capital.  An extraordinary general meeting of the Company will accordingly be
convened in compliance with section 142 of the Companies Act 1985.

The board wishes to emphasise that the asset calculations referred to relate
only to the technical position under sections 264 and 142 of the Companies Act
and have no consequences for the Company's banking covenants.  As at 21st
December 2001 the Company's Total Debt as a percentage of its Net Asset Value
(as those terms are defined in the credit agreement with the Company's
bankers) was approximately 53per cent. compared to the covenant limit of 100
per cent.

Gartmore Investment Limited

Secretaries




                                                                                
                                                                                
                                                

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