Interim Results

PRESS RELEASE

17 November 2006

                           SVM UK EMERGING FUND plc                            

           Unaudited results for the six months to 30 September 2006           

KEY POINTS

  * Net asset value rose by 2.7% to 50.82p as at 30 September 2006, compared to
    an fall of 14.9% in the FTSE AIM Index, the company's benchmark index.
   
  * Net asset value up 58.0% against rises of 12.11% in AIM Index and 39.5% in
    FTSE 100 Index since remit changed in September 2004.
   
  * Cash freed up prior to the May market correction has been deployed into the
    recent small cap market weakness.
   
  * Well placed to take advantage of the increased size and reach of the AIM
    index.
   
                                   - Ends -                                    

For further information, please contact:

Donald Robertson SVM Asset Management 0131 226 6699

Roland Cross Broadgate 020 7726 6111

                           SVM UK EMERGING FUND PLC                            

                             Chairman's Statement                              

           Unaudited results for the six months to 30 September 2005           

Commenting on the results for the six months to 30 September, Chairman, Peter
Dicks, said:

"The last few months has seen a significant shift in investor risk appetite and
a rush to the perceived safety of large companies. As a result, there has been
a marked de-rating of smaller companies against larger ones, which can be
starkly demonstrated by the performances of the relevant indices - FTSE 100
(for large companies) and FTSE AIM (for small companies). In the six months to
the end of September 2006, the FTSE 100 rose by 1.6% against a fall of 14.9% in
the AIM Index, the Fund's benchmark index.

Against this background, I am pleased to report another positive six months for
the Company both on an absolute and relative basis. At 30 September 2006, the
asset value per share was 50.82 pence. This rise of 2.7% compares credibly
against the substantial fall of 14.9% in the FTSE AIM Index, a near 18
percentage point out-performance. The end of September also saw the second
anniversary of the change in the Fund's investment remit and name. Over this
period, the asset value has increased by 58.0% against rises of 12.1% in the
AIM Index and 39.5% in the FTSE 100 Index.

When markets corrected in mid May, the initial mark-down was indiscriminate and
many "risky" asset classes (emerging markets, minor currencies, smaller
companies and commodities) were hit aggressively. Subsequently, when sentiment
returned, smaller companies appear to have been left behind. There is no single
reason for the relative weakness, more a combination of a number of factors.
The glut of questionable new issues, the demise of the internet gaming sector
and perceived regulatory concerns have been particularly unhelpful. However,
the AIM market continued to be the market of choice for small companies
globally. With in excess of 1,500 companies capitalised at £75bn, there is no
shortage of investment opportunities but one has to be very careful as a
substantial number of these companies offer limited attractions.

Having freed up cash in late April and early May, the Fund was well positioned
to take advantage of the weaknesses in prices to source fresh investments at
attractive prices. During the six months, profits were booked through
realisations in Ashley House, Billing Services (formerly United Clearing), Fun
Technologies and Petrel Resources while new investments have been made in
financial company Impax Group, commodity company Monto Minerals and on-line
research company Toluna.

The Board and the Managers believe that the Fund should continue to extend the
recent out-performance and is well placed to deliver long term capital growth."

Peter Dicks

Chairman

17 November 2006

SVM UK Emerging Fund plc

Summarised Unaudited Income Statement                                      
                                                                           
                     Six months to 30 September  Six months to 30 September
                                2006                        2005           
                                                                           
                      Revenue  Capital    Total   Revenue  Capital    Total
                                                                           
                        £'000    £'000    £'000     £'000    £'000    £'000
                                                                           
Gains / (losses) on         -      179      179         -    (340)    (340)
sale of investments                                                        
                                                                           
Movement in                 -     (69)     (69)         -      605      605
unrealised                                                                 
depreciation                                                               
                                                                           
                     -------- -------- --------  -------- -------- --------
                                                                           
Gains on investments        -      110      110         -      265      265
                                                                           
Income                      3        -        3         -        -        -
                                                                           
Investment                  -        -        -         -        -        -
management fees                                                            
                                                                           
Other expenses           (20)        -     (20)      (29)        -     (29)
                                                                           
                     -------- -------- --------  -------- -------- --------
                                                                           
Return before            (17)      110       93      (29)      265      236
interest and                                                               
taxation                                                                   
                                                                           
Bank overdraft           (18)        -     (18)      (12)        -     (12)
interest                                                                   
                                                                           
                     -------- -------- --------  -------- -------- --------
                                                                           
Transfer from            (35)      110       75      (41)      265      224
reserves                                                                   
                                                                           
                     -------- -------- --------  -------- -------- --------
                                                                           
Return per ordinary   (0.65p)    2.01p    1.36p   (0.75p)    4.85p    4.10p
Share                                                                      

.

Unaudited Balance Sheet                     As at        As at
                                                              
                                     30 September 30 September
                                                              
                                             2006         2005
                                                              
                                            £'000        £'000
                                                              
Investments                                 2,645        2,157
                                                              
Net current assets                            130           88
                                                              
                                        ---------    ---------
                                                              
Ordinary shareholders' funds                2,775        2,245
                                                              
                                        ---------    ---------
                                                              
Net asset value per ordinary share         50.82p       41.12p
                                                              
.                                                             
                                                              
Summarised Unaudited Cash Flow      Six months to   Six months
Statement                                                   to
                                                              
                                     30 September 30 September
                                                              
                                             2006         2005
                                                              
                                            £'000        £'000
                                                              
Net cash flow from operating                 (42)         (51)
activities                                                    
                                                              
Capital expenditure and financial             131          281
investment                                                    
                                                              
Servicing of finance                         (18)         (12)
                                                              
                                         --------     --------
                                                              
Movement in cash                               71          218
                                                              
                                         --------     --------

Notes

1. The accounts have been prepared in accordance with applicable accounting
standards and the 2005 Statement of Recommended Practice (SORP) issued by the
Association of Investment Trust Companies

2. Return per share is based on a weighted average of 5,460,000 (2005 - same)
ordinary shares in issue during the period. Total return per share is based on
the total return for the period of £75,000 (2005 - £224,000). Capital return
per share is based on net gains during the period of £110,000 (2005 - £
265,000). Revenue return per share is based on the revenue loss after taxation
for the period of £35,000 (2005 - £41,000). The number of shares in issue at 30
September 2006 was 5,460,000 (2005 - same).

3. Due to the size of the Company, the Investment Managers waived their fees
for the period to 30 September 2005 and 2006.

4. The above figures do not constitute full accounts in terms of Section 240 of
the Companies Act 1985. The accounts for the year to 31 March 2006, on which
the auditors issued an unqualified report, have been lodged with the Registrar
of Companies. The interim report will be mailed to shareholders towards the end
of November 2006. Copies will be available for inspection at 7 Castle Street,
Edinburgh, the registered office of the Company.

ENDS