Final Results

DRAFT 3

PRESS RELEASE

27 May 2005

                           SVM UK EMERGING FUND PLC                            

                   RESULTS FOR THE YEAR ENDED 31 MARCH 2005                    

Key Points

  * Following the change in investment objective the Fund's net asset value has
    risen 15.1% in the six month period to end March 2005, compared to a gain
    of 18.7% for the AIM Index
   
  * Net asset value per ordinary share is 37.02p
   
  * Portfolio now has a 66% exposure to AIM listed companies, reflecting the
    new investment stance
   
  * Revised strategy has opened up a broader range of investment potentials in
    what remains an attractive market for UK emerging companies
   
Ends

For further information, please contact:

David Stevenson SVM Asset Management 0131 226 6699

Roland Cross Broadgate Marketing 020 7726 6111

                           SVM UK EMERGING FUND PLC                            

                   RESULTS FOR THE YEAR ENDED 31 MARCH 2005                    

Commenting on the results, Chairman, Peter Dicks, said:

The last year saw several changes to the Fund. At the Annual General Meeting on
3 September 2004, shareholders voted in favour of a new investment objective,
together with a new name. The Managers are now able to hold investments in
unquoted, OFEX and Alternative Investment Market (AIM) companies and may also
invest up to 20% of the Fund in other securities and instruments. The Fund's
benchmark was also changed to the AIM Index, reflecting the new focus of the
portfolio.

These changes were introduced in time for the second half of the year and
therefore the Fund's overall performance should be considered in that light.
For the six month period to end March 2005, the Fund's net asset value has
risen 15.1% to 37.02p compared to a gain of 18.7% for the AIM Index. In
particular, in the quarter to 31 March 2005, the Fund rose 10.9% against a
benchmark gain of 8.4%. Over the full year, the net asset value rose 2.7%.

The Fund's second half performance was achieved despite a substantial
write-down in the carrying value of unquoted investments, which now account for
only 11% of the portfolio. The core of the Fund comprises 66% in AIM companies,
with 23% in OFEX companies. This also represents a significant change from a
year ago and reflects the new investment stance.

New investments made since the AGM have been key contributors to performance.
However, a number of the Fund's original holdings reported trading progress
during the year and these have been re-rated in a more positive stockmarket
environment for emerging companies. The relative maturity of these original
holdings is also reflected in the fact that six achieved AIM promotions during
the year, whilst another was taken over.

The revised strategy has opened up a much broader range of potential
investments to the Managers and the Board is encouraged by the progress which
has been achieved to date. Clearly, much has still to be done to redress the
Fund's longer term losses, but it now has greater flexibility to exploit
opportunities available to it, in what remains an attractive market for UK
emerging companies.

As required by the Company's Articles of Association, at the forthcoming Annual
General Meeting, an ordinary resolution will be proposed that the Company
should continue for a further five year period.

Peter Dicks

Chairman

27 May 2005

Summarised Statement of Total Return                                
                                                                    
                   Year to 31 March 2005     Year to 31 March 2004  
                        (unaudited)                                 
                                                   (audited)        
                                                                    
                  Revenue Capital   Total  Revenue  Capital    Total
                                                                    
                    £'000   £'000   £'000    £'000    £'000    £'000
                                                                    
Losses on sale of       -   (317)   (317)        -    (305)    (305)
investments                                                         
                                                                    
Movement in             -     435     435        -    (657)    (657)
unrealised                                                          
depreciation                                                        
                                                                    
                  ------- ------- -------  -------  -------  -------
                                                                    
Gains /(losses)         -     118     118        -    (962)    (962)
on investments                                                      
                                                                    
Income                  2       -       2        3        -        3
                                                                    
Investment              -       -       -        -     (22)     (22)
management fees                                                     
                                                                    
Other expenses       (66)       -    (66)     (89)        -     (89)
                                                                    
                  ------- ------- -------  -------  -------  -------
                                                                    
Return before        (64)     118      54     (86)    (984)  (1,070)
interest and                                                        
taxation                                                            
                                                                    
Bank overdraft        (1)       -     (1)        -        -        -
interest                                                            
                                                                    
                  ------- ------- -------  -------  -------  -------
                                                                    
Transfer to /        (65)     118      53     (86)    (984)  (1,070)
(from) reserves                                                     
                                                                    
                   ------ ------- -------  ------- --------  -------
                                                                    
Return per        (1.19p)   2.16p   0.97p  (1.58p) (18.02p) (19.60p)
ordinary share                                                      

                                             As at         As at
                                                                
                                       31 Mar 2005   31 Mar 2004
                                                                
                                       (unaudited)     (audited)
                                                                
                                             £'000         £'000
                                                                
Balance Sheet                                                   
                                                                
Investments                                  2,133         1,944
                                                                
Net current (liabilities) / assets           (112)            24
                                                                
                                           -------       -------
                                                                
Ordinary shareholders' funds                 2,021         1,968
                                                                
                                           -------       -------
                                                                
Net asset value per ordinary share          37.02p        36.04p
                                                                
Summarised Cash Flow Statement                                  
                                                                
Net cash outflow from operating               (68)          (92)
activities                                                      
                                                                
Returns on investment and servicing            (1)             -
of finance                                                      
                                                                
Capital expenditure and financial            (103)        ( 210)
investment                                                      
                                                                
                                           -------       -------
                                                                
Decrease in cash                             (172)         (302)
                                                                
                                           -------       -------

Notes

1. The results reflect the adoption in the Accounts of the 2003 Statement of
Recommended Practice (SORP) issued by the Association of Investment Trust
Companies.

2. Returns per Ordinary Share are based on 5,460,000 shares in issue during the
year (31 March 2004 - same). The number of shares in issue at 31 March 2005 was
5,460,000. (31 March 2004- same).

3. Due to the size of the company, the Investment Managers waived their fees
for the year to 31 March 2005.

4. The above figures do not constitute full group accounts in terms of Section
240 of the Companies Act 1985. The accounts for the year to 31 March 2004, on
which the auditors issued an unqualified report, have been lodged with the
Registrar of Companies. The annual report and accounts will be mailed to
shareholders and will be lodged with the Registrar of Companies towards the end
of May 2005. Copies will be available for inspection at 7 Castle Street,
Edinburgh EH2 3AH, the registered office of the Company.