Interim Results

PRESS RELEASE

30 July 2003

THE LAW DEBENTURE CORPORATION p.l.c.

The Law Debenture Corporation p.l.c. today released to the London Stock
Exchange its Interim Report for the six months ended 30 June 2003, highlights
of which are as follows:

  * NAV per share up by 6.9% for the six months compared to 4.1% increase in
    the FTSE Actuaries All Share Index.
   
  * Gross revenue increased by 6.0%.
   
  * Trustee services profit before tax increased by 8.2%.
   
  * Earnings per share increased by 11.1%, but this rate of increase is
    unlikely to be continued for the year as a whole.
   
  * Interim dividend maintained at 2.66p per share. Final dividend expected to
    be at least maintained.
   
A copy of the preliminary announcement is attached.

Full copies of the Interim Report can be obtained from the company at the above
address or from the website www.lawdeb.co.uk.

For enquiries please contact:

Caroline Banszky

Managing Director [phone]

                  PRELIMINARY ANNOUNCEMENT OF INTERIM RESULTS                  

                FOR THE SIX MONTHS TO 30 JUNE 2003 (unaudited)                 

The Directors recommend an interim dividend of 2.66p on the ordinary shares for
the six months to 30 June 2003. The unaudited results for the period were as
follows:

Consolidated Statement of Total Return

                                     2003                       2002            
                                                                                
                          Revenue  Capital   Total  Revenue   Capital    Total  
                                                                                
                           £'000    £'000    £'000   £'000     £'000     £'000  
                                                                                
     Total capital gains/ _______- - 12,157  12,157 _______-   (12,689) (12,689)
  losses from investments                                                       
                                                                                
             UK Dividends    3,936        -   3,936    3,662          -    3,662
                                                                                
        Special Dividends        -                -      261                 261
                                                                                
       Overseas Dividends    1,089            1,089    1,102               1,102
                                                                                
   Income from securities      123  _______     123       66  _________       66
                                                                                
                             5,148   12,157  17,305    5,091   (12,689)  (7,598)
                                                                                
    Bank Deposit Interest      311              311      362                 362
                                                                                
      Trustee & other fee    6,893        -   6,893    6,276          -    6,276
                   income                                                       
                                                                                
Underwriting commission &      141 _______-     141       55  ________-       55
             other income                                                       
                                                                                
  Gross revenue & capital   12,493   12,157  24,650   11,784   (12,689)    (905)
                   losses                                                       
                                                                                
  Administrative Expenses  (6,090) _______- (6,090)  (5,901) _________-  (5,901)
                                                                                
 Return, including profit    6,403   12,157  18,560    5,883   (12,689)  (6,806)
   on ordinary activities                                                       
  before interest payable                                                       
             and taxation                                                       
                                                                                
         Interest payable  (1,226)  ______- (1,226)  (1,226) _________-  (1,226)
                                                                                
 Return, including profit    5,177   12,157  17,334    4,657   (12,689)  (8,032)
   on ordinary activities                                                       
          before taxation                                                       
                                                                                
                 Taxation    (534) _______-   (534)    (481) _________-    (481)
                                                                                
 Return, including profit    4,643   12,157  16,800    4,176   (12,689)  (8,513)
   on ordinary activities                                                       
           after taxation                                                       
                                                                                
    Dividends on ordinary  (3,114) _______- (3,114)  (3,110) _________-  (3,110)
                   shares                                                       
                                                                                
     Transfer to reserves    1,529   12,157  13,686    1,066   (12,689) (11,623)
                                                                                
Return per Ordinary share      4.0     10.4    14.4      3.6     (10.9)    (7.3)
                  (pence)                                                       
                                                                                

Management Commentary

Performance

Over the six months to 30 June 2003, our net asset value per share increased by
6.9% compared to a rise of 4.1% in the FTSE Actuaries All-Share Index. Gross
revenues rose by 6% in the first six months of the year. Earnings per share
rose by 11.1% but this rate of increase is unlikely to be achieved for the year
as a whole.

Dividends

The Board has declared an interim dividend for the year ending 31 December 2003
of 2.66p (2002: 2.66p) per share payable on 9 September 2003 to shareholders on
the register on 8 August 2003. Barring unforeseen circumstances, the directors
expect to recommend that the final dividend will at least equal that paid in
respect of 2002.

Investment trust

Following a low point in March, equities generally have enjoyed a vigorous
bounce. The second quarter of this year was the best one since the fourth
quarter of 1999. The global equity market has been led by cyclical consumer
goods, information technology and financials. These are the areas that were
most heavily sold down. There is much uncertainty, however, as to the strength
of the economic recovery, which has an unhealthy dependence on an already
overstretched US consumer. Meanwhile valuations, though much more reasonable
than at the top of the bull market, are not low by historical standards.

The UK appears to offer relatively good value. The competitive Far Eastern
economies should be well placed to take advantage of any global upturn, while
the longer term structural problems in Continental Europe mean growth there
will be harder to achieve. For this reason during the period our exposure to
European equities was reduced and the Far East was increased.

Trustee and related services

Trustee and related revenue rose by 9.8% compared with the first half of 2002.
Profit before tax was £1,627,000 compared with £1,504,000 for the previous half
year, an increase of 8.2%.

Once again, it has been a difficult start to the year in the international
capital markets and activity levels continue to be low. Nevertheless, we have
been busy both in dealing with the management of existing work and in taking on
new transactions. New schemes on which we are currently working include
standard bond asset backed issues, medium-term note programmes and more bespoke
transactions in the corporate finance arena. We continue to provide a diverse
range of services and to promote the advantages of the trustee concept in the
commercial environment.

We continue to be involved in a number of insolvencies and restructurings,
including British Energy. Certain instances have yielded further opportunities
where a new trustee role has been created. Marconi, which was mentioned in the
year end operating review, is such a case with both our London and New York
offices having taken on additional roles under the refinancing arrangements.

Our corporate services business, which is complementary to our core trustee
business, continues to grow. Our expertise in managing complex voting
structures is well known by the market and we have a continuing involvement in
the well publicised Carnival Corporation/P&O Princess Cruises Plc dual listed
company merger. Recently we were selected as the independent third party,
exercising votes on a discretionary basis in certain circumstances, in the
proposed merger between Clearnet and the London Clearing House.

The uncertainties surrounding company pension schemes continue to provide
opportunities for our pension trustee business. We have had a strong flow of
enquiries in the current year and we are hoping to stimulate further interest
through our new brochure. Our recent appointments have included the pension
schemes of the subsidiaries of two major oil companies.

Group Net Assets

                                   30 June 2003  30 June 2002     31 December
                                                                         2002
                                    (unaudited)   (unaudited)                
                                                                    (audited)
                                          £'000         £'000                
                                                                        £'000
                                                                             
Fixed Assets                                                                 
                                                                             
     Tangible                             1,397         1,221           1,264
                                                                             
     Investments                        244,024       282,356         232,313
                                                                             
     Other investments                      567      _______-       ________-
                                                                             
                                        245,988       283,577         233,577
                                                                             
Current                                                                      
Assets                                                                       
                                                                             
     Debtors                              8,912        11,262           8,997
                                                                             
     Short term cash investments         12,969        14,190          10,490
                                                                             
     Bank balances & short term           6,609         3,650           9,013
     deposits                                                                
                                         28,490        29,102          28,500
                                                                             
Current                                (12,195)      (14,910)        (13,860)
liabilities                                                                  
                                                                             
Net current assets                       16,295        14,192          14,640
                                                                             
Total assets less current               262,283       297,769         248,217
liabilities                                                                  
                                                                             
Long term liabilities                  (48,966)      (48,813)        (48,649)
                                                                             
Net Assets                              213,317       248,956         199,568
                                                                             
Net Assets per share                     182.2p        212.9p          170.5p
                                                                             

Analysis of the Investment Portfolio

By Geographical Location (£`000)

                    United     North     Europe   Japan    Pacific     Total   
                                                                               
                   Kingdom    America                                          
                                                                               
Investments 01       166,839     14,865   33,867    6,650     10,092    232,313
Jan                                                                            
                                                                               
Purchase               9,953      8,684      107        -      1,816     20,560
                                                                               
Sales proceeds       (9,471)    (6,594)  (5,039)        -          -   (21,104)
                                                                               
Appreciation           7,726      1,244    1,525      474      1,286     12,255
                                                                               
Valuation 30 June    175,047     18,199   30,460    7,124     13,194    244,024
                                                                               
% of Total              71.7        7.5     12.5      2.9        5.4      100.0

By Sector

                                                     As at           As at
                                                                          
                                               30 Jun 2003     31 Dec 2002
                                                                          
Resources                                             12.1            12.4
                                                                          
Basic Industries                                       5.8             5.6
                                                                          
General Industrials                                    4.7             4.8
                                                                          
Cyclical Consumer Goods                                0.6             0.5
                                                                          
Non-Cyclical Consumer Goods                           17.1            19.4
                                                                          
Cyclical Services                                     13.7            14.9
                                                                          
Non-Cyclical Services                                  5.6             4.9
                                                                          
Utilities                                              2.9             3.1
                                                                          
Information Technology                                 1.3             0.8
                                                                          
Financials                                            36.2            33.6
                                                                          
                                                     100.0           100.0

Group cash flow statement

For the six months 30 June 2003

                                      30 June 2003            30 June 2002     
                                                                               
                                       £'000     £'000          £'000     £'000
                                                                               
Net cash inflow from                             6,503                    4,947
operating activities                                                           
                                                                               
Servicing of Finance                                                           
                                                                               
Debenture interest paid              (1,225)                  (1,225)          
                                                                               
Bank interest paid                  _____(1)                ______(1)          
                                                                               
                                               (1,226)                  (1,226)
                                                                               
Tax                                               (13)                    (126)
                                                                               
Financial Investment                                                           
                                                                               
Purchase of investments             (21,110)                 (30,346)          
                                                                               
Sales of investments                 21,104                   29,196           
                                                                               
                                                   (6)                  (1,150)
                                                                               
Fixed Assets                                                                   
                                                                               
Purchases                                        (263)                     (96)
                                                                               
Payment of Ordinary Dividend                   (4,960)                  (4,953)
                                                                               
Management of Liquid                                                           
resources                                                                      
                                                                               
Decrease/increase in short                     (2,479)                    1,974
term                                                                           
                                                                               
deposits and investments                                                       
                                                                               
Financing                                                                      
                                                                               
Proceeds of increase in share                       63                      209
capital                                                                        
                                                                               
Decrease in cash for period                    (2,381)                    (421)

The interim dividend will be paid on 9 September 2003 to ordinary shareholders
on the share register at 8 August 2003.

By order of the board

Law Debenture Corporate Services Ltd

Secretary

Copies of this interim report are available from the Corporation's Registered
Office, and at www.lawdeb.com.