Interim Results

To: Stock Exchange For immediate release City editors 24 September 2002 Martin Currie Portfolio Investment Trust plc Interim results for the six months to 31 July 2002 Chairman's statement In the six months to 31 July 2002, the performance of the trust's NAV was narrowly ahead of that of the index. Tom Walker discusses performance in the manager's report. In the period, the company's net asset value per share (NAV) fell by 17.3%. The share price fell by 20.5% and so the discount has widened from 10.4% to 13.9%. Shareholders will have the opportunity to redeem their shares at NAV (less costs) in 2004. In the meantime, the company continues to use its share buyback powers and, between 31 January and 2 3 September, the company has repurchased 4,256,000 shares. The downturn in world equity markets accelerated over the summer months, with the UK stockmarket, as represented by the FTSE All-Share index, falling to levels last seen in 1996. At the end of the reporting period, the FTSE All-Share was down 27.9% since your company was formed in March 1999. Earnings per share rose by 27.7% to 1.06p. The sharp increase in the period is due largely to timing differences. The board has therefore declared an interim dividend of 0.5p per share, which is unchanged from last year's interim dividend and will be paid on 25 October 2002 to shareholders on the register at 4 October. In the short-term, the outlook for the market is unclear. Uncertainties about economies, corporate earnings, geopolitics and accounting standards mean that stockmarkets will remain volatile. The newsflow seems to be all bad at present and this has damaged confidence. As the news starts to improve, confidence will gradually return. That should allow the market to enjoy a recovery. Baroness Hogg has, as many shareholders will know, been appointed to a number of important public positions and has expressed a wish to stand down from the Board at the end of the year. She has been a significant contributor to the company's affairs and we wish her very well. 24 September 2002 Manager's report Performance It has been a terrible period for world equity markets. The FTSE All-Share index fell by 17.8% in the six months to 31 July 2002. After the lows reached shortly after 11 September, the market had rallied. Helped by better economic news, the market initially remained resilient to the bankruptcies and accounting scandals coming from the US. But that changed in June and July. In these last two months of the period, the market fell sharply. The worst performing sectors have been technology, telecoms, insurance and pharmaceuticals. Meanwhile, the best performing sectors have been ones with defensive qualities: tobacco, food producers and personal care/household products. Bad as the UK's stockmarket performance has been, other markets have suffered greater falls. Using the FT World index series in sterling terms, the US stockmarket fell by 26.5% and European markets (ex UK) fell by 19.3%. Incorporating the weakness in some emerging markets, the overall World index fell by 21.8%. Meanwhile, Japan fell by only 1.1%. Gilts produced positive returns and, in this environment, cash has been very attractive. The net asset value of our trust fell by 17.3% during the period. Our UK portfolio outperformed the benchmark and the value of our holding in Martin Currie Capital Return Trust fell by just 4.1% during the period. However, our exposure to the collapse in North America detracted from our relative performance. Outlook With data suggesting that global recovery is stalling, economic uncertainty has increased in the last few weeks. As a result, it is likely that interest rates will not rise and in some cases may fall further. The dividend yield on the UK stockmarket (FTSE All-Share) had risen to 3.3% by the end of July. In a low interest rate, low inflation environment, this yield is attractive. As it is an uncertain time for corporate earnings, a well-covered dividend is the factor most likely to underpin a company's share price. Companies with this characteristic make up an increasing proportion of our portfolio. Markets continue to be affected by investors' extreme nervousness. It will be difficult to identify when the market reaches its lowest point. However, we believe that in 12 months there will be less uncertainty and pessimism and the market will have begun to recover. 24 September 2002 For further information, please contact: Tom Walker or Michael Woodward Martin Currie Investment Management Ltd 0131 229 5252 twalker@martincurrie.com/mwoodward@martincurrie.com for the period ended 31 July 2002 2002 Revenue Capital Total £000 £000 £000 Loss on investments - realised - (6,424) (6,424) - unrealised - (42,498) (42,498) Currency losses - (65) (65) Income - Franked 3,531 - 3,531 - Unfranked 853 - 853 Investment management fee (350) (700) (1,050) Other expenses (240) (2) (242) Net return before finance costs and 3,794 (49,689) (45,895) taxation Interest payable and similar charges (395) (790) (1,185) Return on ordinary activities before taxation 3,399 (50,479) (47,080) Taxation on ordinary activities (73) - (73) Return on ordinary activities after taxation for the 3,326 (50,479) (47,153) financial period Interim dividends in respect of equity shares (1,558) - (1,558) Transfer to/(from) reserves 1,768 (50,479) (48,711) Return per ordinary share 1.06p (16.16p) (15.10p) An interim dividend for the period ended 31 July 2002 of 0.50p will be paid on 25 October 2002 to shareholders on the register on 4 October 2002. for the period ended 31 July 2001 2001 Revenue Capital Total £000 £000 £000 Losses on investments - realised - (17,260) (17,260) - unrealised - (35,080) (35,080) Currency gains - 403 403 Income - Franked 2,836 185 3,021 - Unfranked 1,083 - 1,083 Investment management fee (361) (722) (1,083) Other expenses (382) - (382) Net return before finance costs and taxation 3,176 (52,474) (49,298) Interest payable and similar charges (415) (830) (1,245) Return on ordinary activities before taxation 2,761 (53,304) (50,543) Taxation on ordinary activities (163) 76 (87) Return on ordinary activities after taxation for the 2,598 (53,228) (50,630) financial period Interim dividends in respect of equity shares (1,563) - (1,563) Transfer to/(from) reserves 1,035 (53,228) (52,193) Return per ordinary share 0.83p (17.03p) (16.20p) for the year ended 31 January 2002 2002 Revenue Capital Total £'000 £'000 £'000 Losses on investments - realised - (35,031) (35,031) - unrealised - (43,357) (43,357) Currency gains - 612 612 Income - Franked 5,333 185 5,518 - Unfranked 1,681 - 1,681 Investment management fee (769) (1,538) (2,307) Other expenses (599) - (599) Net return before finance costs and taxation 5,646 (79,129) (73,483) Interest payable and similar charges (841) (1,682) (2,523) Return on ordinary activities before taxation 4,805 (80,811) (76,006) Taxation on ordinary activities (213) 86 (127) Return on ordinary activities after taxation 4,592 (80,725) (76,133) for the financial year Dividends in respect of equity shares (4,689) - (4,689) Transfer from reserves (97) (80,725) (80,822) Return per ordinary share 1.47p (25.83p) (24.36p) 31 July 2002 31 July 2001 31 January 2002 Unaudited Unaudited Audited £000 £000 £000 £000 £000 £000 Fixed assets Investment at market value 256,760 347,079 305,221 Current assets Debtors 6,245 5,522 4,845 Cash in bank 17,832 8,332 21,622 24,077 13,854 26,467 Creditors Amounts falling due within (13,636) (25,895) (15,166) one year Net current assets/ 10,441 (12,041) 11,301 (liabilities) Total assets less current 335,038 316,522 liabilities 267,201 Creditors Amounts falling due after (35,598) (25,462) (35,575) one year Net assets 231,603 309,576 280,947 Capital and reserves Called up ordinary capital 15,583 15,629 15,629 Share premium account 159,208 159,208 159,208 Capital redemption reserve 434 388 388 Special distributable 142,346 142,979 142,979 reserve Capital (89,104) (11,128) (38,625) reserve Revenue reserve 3,136 2,500 1,368 Equity shareholders' funds 231,603 309,576 280,947 Net asset value per 74.31p 99.04p 89.88p ordinary share Period to 31 Period to 31 July Year to 31 July 2002 2001 January 2002 Unaudited Unaudited Audited £000 £000 £000 £000 £000 £000 Operating activities Net dividends and 3,762 3,973 6,756 interest received from investments Interest received from 259 419 735 deposits Investment management fee (1,084) (1,286) (2,558) Cash paid to and on (83) (114) (162) behalf of directors Bank charges (11) (28) (53) Other cash payments (946) (306) (499) Net cash inflow from 1,897 2,658 4,219 operating activities Servicing of finance Interest paid (1,567) (1,300) (2,196) Net cash outflow from (1,567) (1,300) (2,196) servicing of finance Taxation Net tax (paid)/received (2) - 22 Tax (paid)/received (2) - 22 Capital expenditure and financial investment Payments to acquire (59,666) (65,902) (119,964) investments Receipts from disposal of 59,302 57,261 128,088 investments Exchange differences 1 (40) (161) Net cash (outflow)/inflow (363) (8,681) 7,963 from capital expenditure and financial investment Equity dividends paid (3,127) (3,032) (4,595) Net cash (outflow)/inflow (3,162) (10,355) 5,413 before use of liquid resources and financing Financing Repurchase of ordinary (631) - - shares Movement in short-term - - (12,478) borrowings Movement in long term - - 10,000 borrowings Cash outflow from (631) - (2,478) financing (Decrease)/increase in (3,793) (10,355) 2,935 cash for the period

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