Final Results

CHAIRMAN'S STATEMENT The total return on the net assets of Temple Bar during 2007 was -4.3%, which compares with a total return for the FTSE All-Share Index of 5.3%. This is a disappointing outcome, due mainly to the fund manager's reluctance to invest in the mining sector, the underperformance of a number of retailers and the poor performance of the small part of the portfolio invested in smaller companies. In contrast a very satisfactory performance was achieved in relation to income from the portfolio and the Board is recommending a final dividend of 21.07p, to produce a total increase for the year of 6.0%. This dividend will be payable on 31 March 2008 to shareholders on the register at 14 March 2008. This is the 24th consecutive year in which the dividend has been increased. The revenue reserve, which, after adjusting for the proposed final dividend for 2007, amounts to £15.6m, should provide shareholders with additional comfort regarding the security of the dividend. Post-tax earnings increased by 9.9%. The proposed dividend was more than covered by net earnings generated on the portfolio during the year. Discount to Net Asset Value In recent years the Temple Bar share price has traded reasonably closely to its net asset value. However, the price of Temple Bar shares ended the year at a 12.5% discount to their underlying asset value adjusted for the market value of the Company's debt. It is perhaps more relevant that the average discount at which the shares traded during the year rose from 3.5% to 6.6%. While this undoubtedly reflects the underlying performance of the assets, discounts widened in 2007 both for the UK Income & Growth sector and for investment trusts as a whole. The Board monitors the discount position on a regular basis and, in conjunction with its brokers, is prepared to undertake share buy backs in order to contain the level of the discount. With the assistance of its broker, the Manager continues to communicate closely with our largest shareholders and investment intermediaries. The Manager also seeks to keep our smaller investors fully informed with the production of monthly factsheets and detailed manager commentaries. These can be found on the Company's website, www.templebarinvestments.com. Investment Policies - International Investment It is a new requirement of the UK Listing Authority's Listing Rules that companies should provide more details on the investment policies and strategies that are put in place to facilitate achievement of their stated investment objectives. The only material development from the policies that have been in place for some years is the flexibility now afforded to the investment manager to invest up to 10% of the portfolio in companies whose shares are listed on the stock exchanges of developed countries other than the UK. The rationale for this change is a recognition that, increasingly, the jurisdiction in which a company lists its shares bears no relation to the location of its business activities. I should emphasise that it is not expected that this additional flexibility will be significantly utilised in the immediate future. VAT In June 2007 the European Court of Justice ruled that investment trust management fees should be exempt from VAT. This decision has now been accepted in principle by HM Revenue & Customs, although some procedural matters remain to be resolved. The result is that future management fees will not be subject to VAT. The Company has taken appropriate steps to reclaim the relevant VAT that has been paid on past management fees, although the actual amount remains uncertain. Accordingly we have not recognised any asset in the financial statements. Board In September 2007 Gary Allen retired from the Board for health considerations. He had been a valued director since his appointment in 2001, bringing much knowledge and experience to board deliberations. I am particularly grateful for his services as Chairman of the audit committee and as Senior Independent Director. Richard Jewson has succeeded him in both of these roles. We wish Gary a speedy recovery from his illness. In due course the Board will seek to appoint an additional director. Outlook The dislocation in banking markets, although highly publicised, had a limited effect on stock markets in 2007. It clearly impacted on the valuation of bank shares and in the UK market precipitated investor flight from smaller companies. However, the FTSE 100 ended the year just 6.8% from its all-time peak. This rather paradoxical outcome reflects investors' belief that the developing economies can continue to grow strongly almost regardless of the outcome for the more mature economies. This theme of 'emerging market decoupling' is likely to be severely tested during 2008 and may generate significant market volatility. Our manager, as always, favours investment in the areas of the market which are more out of favour in the belief they will recover strongly. His contrarian beliefs have been challenged by the experiences of 2007 but he remains confident in the underlying integrity of value investing. Annual General Meeting The annual general meeting will be held at 2 Gresham Street, London EC2V 7QP on Monday 31 March 2008 at 11 a.m. In addition to the formal business of the meeting our portfolio manager, Alastair Mundy, will provide a review of the past year and comment on the outlook. There will also be an opportunity for shareholders to meet informally with the directors at the conclusion of the AGM. I look forward to welcoming as many of you as possible. Shareholders who are unable to attend the meeting are encouraged to use their proxy votes. 12 February 2008 John Reeve TWENTY LARGEST INVESTMENTS as at 31 December 2007 Total assets Valuation less current liabilities COMPANY £'000 % Royal Dutch Shell 54,424 9.76 BP 48,813 8.75 Vodafone 47,654 8.54 HSBC 39,857 7.15 GlaxoSmithKline 35,302 6.33 Unilever 33,158 5.95 UK Treasury 4% 2009 27,159 4.87 BT 19,207 3.44 AstraZeneca 17,578 3.15 HBOS 14,542 2.61 Reuters 12,039 2.16 Wolseley 12,023 2.16 Legal & General 11,754 2.11 Aviva 11,306 2.03 Signet 10,796 1.94 Centrica 9,033 1.62 ITV 8,284 1.49 British American Tobacco 8,084 1.45 Lloyds TSB 7,866 1.41 Daily Mail & General Trust 7,306 1.31 436,185 78.23 Consolidated income statement for the year ended 31 December 2007 2007 2006 Revenue Capital Revenue Capital return return Total return return Total £'000 £'000 £'000 £'000 £'000 £'000 Investment income 20,989 - 20,989 20,410 - 20,410 Other operating income 1,535 - 1,535 390 - 390 Total income 22,524 - 22,524 20,800 - 20,800 (Losses)/gains on investments (Losses)/gains on fair value through profit or loss assets - (37,522) (37,522) - 69,689 69,689 22,524 (37,522) (14,998) 20,800 69,689 90,489 Expenses Management fees (890) (1,335) (2,225) (921) (1,382) (2,303) Other expenses (442) (1,165) (1,607) (426) (1,172) (1,598) Profit before finance costs and tax 21,192 (40,022) (18,830) 19,453 67,135 86,588 Finance costs (1,831) (2,747) (4,578) (1,833) (2,749) (4,582) Profit before tax 19,361 (42,769) (23,408) 17,620 64,386 82,006 Tax - - - - - - Profit for the year 19,361 (42,769) (23,408) 17,620 64,386 82,006 EARNINGS PER SHARE (BASIC & DILUTED) 33.19p (73.31)p (40.12)p 30.20p 110.36p 140.56p The total column of this statement represents the Group's Income Statement prepared in accordance with IFRS. The supplementary revenue return and capital return columns are both prepared under guidance issued by the Association of Investment Companies. All items in the above statement derive from continuing operations. No operations were acquired or discontinued during the year. There are no minority interests. Consolidated statement of changes in equity for the year ended 31 December 2007 Ordinary Share Capital Capital share premium reserve reserve Retained Total capital account realised unrealised earnings equity £'000 £'000 £'000 £'000 £'000 £'000 BALANCE AT 1 JANUARY 14,585 5,083 333,041 92,083 24,829 469,621 2006 CHANGES IN EQUITY FOR 2006 Profit for the year - - 49,441 14,945 17,620 82,006 14,585 5,083 382,482 107,028 42,449 551,627 Dividends paid to equity - - - - (16,499) (16,499) shareholders BALANCE AT 31 DECEMBER 14,585 5,083 382,482 107,028 25,950 535,128 2006 CHANGES IN EQUITY FOR 2007 Profit for the year - - 28,551 (71,320) 19,361 (23,408) 14,585 5,083 411,033 35,708 45,311 511,720 Dividends paid to equity - - - - (17,380) (17,380) shareholders BALANCE AT 31 DECEMBER 14,585 5,083 411,033 35,708 27,931 494,340 2007 Consolidated balance sheet as at 31 December 2007 31 December 2007 31 December 2006 £'000 £'000 £'000 £'000 NON-CURRENT ASSETS Investment held at fair value through 554,576 579,105 profit or loss CURRENT ASSETS Cash and cash equivalents 3,412 15,750 Other receivables 2,808 4,335 6,220 20,085 TOTAL ASSETS 560,796 599,190 CURRENT LIABILITIES Other payables (3,084) (705) TOTAL ASSETS LESS CURRENT LIABILITIES 557,712 598,485 NON-CURRENT LIABILITIES Interest bearing borrowings (63,372) (63,357) NET ASSETS 494,340 535,128 EQUITY ATTRIBUTABLE TO EQUITY HOLDERS Ordinary share capital 14,585 14,585 Share premium 5,083 5,083 Capital reserve - realised 411,033 382,482 Capital reserve - unrealised 35,708 107,028 Retained earnings 27,931 25,950 494,340 535,128 TOTAL EQUITY 494,340 535,128 NET ASSET VALUE PER SHARE 847.33p 917.25p Consolidated cash flow statement for the year ended 31 December 2007 2007 2006 £'000 £'000 £'000 £'000 CASH FLOWS FROM OPERATING ACTIVITIES (Loss)/profit before tax (23,408) 82,006 Adjustments for: Purchases of investments¹ (182,309) (168,918) Sales of investments¹ 169,316 172,514 (12,993) 3,596 (Losses)/gains on investments 37,522 (69,689) Financing costs 4,578 4,582 Operating cash flows before 5,699 20,495 movements in working capital Increase/(decrease) in accrued (222) 505 income and prepayments Decrease in receivables 1,749 4,113 Increase/(decrease) in 2,379 (14,958) payables NET CASH FLOW FROM OPERATING 9,605 10,155 ACTIVITIES BEFORE AND AFTER INCOME TAX CASH FLOWS FROM FINANCING ACTIVITES Interest paid on borrowings (4,559) (4,559) Bank interest paid (4) (10) Equity dividends paid (17,380) (16,499) NET CASH USED IN FINANCING (21,943) (21,068) ACTIVITIES NET DECREASE IN CASH AND CASH (12,338) (10,913) EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 15,750 26,663 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 3,412 15,750 ¹ Purchases and sales of investments are considered to be operating activities of the Company, given its purpose, rather than investing activities. Dividend The directors will recommend to shareholders at the annual general meeting to be held on 31 March 2008 that a final dividend of 21.07p per ordinary share be paid on 31 March 2008 to shareholders on the Register at the close of business on 14 March 2008. Notes The figures set out above are derived from the audited consolidated accounts of Temple Bar Investment Trust Plc and its subsidiaries for the years ended 31 December 2006 and 31 December 2007. The 2007 accounts will be sent to shareholders shortly. The financial information contained in this announcement does not constitute full accounts within the meaning of section 254 of the Companies Act 1985. The 2007 accounts, on which the report of the auditors is unqualified, will be filed with the Registrar of Companies in due course. The audited accounts for the year ended 31 December 2006 on which the report of the auditors was unqualified and did not contain a statement under either Section 237(2) or 237 (3) of the Companies Act 1985, have been filed with the Registrar of Companies. 12 February 2008 Contact: Alastair Mundy Telephone 020 7597 2000 Investec Investment Management Limited

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