Interim Results - Part 2

3i Group PLC
23 November 2000



Part 2

BASIS OF PREPARATION AND INDEPENDENT REVIEW REPORT

BASIS OF PREPARATION

The  accounting policies used in the preparation of this Interim
report are the same as those used in the statutory accounts  for
the  year  to  31  March  2000.   The  Group  adopted  Financial
Reporting Standard 16 - Current Tax - (FRS16) for the year to 31
March  2000.   This gave rise to a change in accounting  policy.
The implementation of FRS16 had no effect on the brought forward
reserves  of the Group.  Certain comparative figures within  the
consolidated  revenue  statement  for  the  six  months  to   30
September  1999  have been restated to reflect the  adoption  of
FRS16.   The  six  month period is treated as a discrete  period
except in so far as tax in the revenue account is charged on the
basis of an estimated annual effective rate.

The  figures  for the year to 31 March 2000 have been  extracted
from the accounts filed with the Registrar of Companies on which
the  auditors issued an unqualified report.  This Interim report
does not constitute statutory accounts.

INDEPENDENT REVIEW REPORT TO 3i GROUP PLC

INTRODUCTION

We  have  been instructed by the Company to review the financial
information and we have read the other information contained  in
the  Interim  report  and  considered whether  it  contains  any
apparent  misstatements  or material  inconsistencies  with  the
financial information.

DIRECTORS' RESPONSIBILITIES

The   Interim   report,  including  the  financial   information
contained  therein,  is  the responsibility  of,  and  has  been
approved  by the Directors.  The Listing Rules of the  Financial
Services  Authority  require that the  accounting  policies  and
presentation applied to the interim figures should be consistent
with  those  applied in preparing the preceding annual  accounts
except  where  any  changes,  and  the  reasons  for  them,  are
disclosed.

REVIEW WORK PERFORMED

We conducted our review in accordance with guidance contained in
Bulletin  1999/4  issued  by the Auditing  Practices  Board.   A
review  consists  principally  of  making  enquiries  of   group
management  and applying analytical procedures to the  financial
information  and  underlying financial data and  based  thereon,
assessing whether the accounting policies and presentation  have
been  consistently applied unless otherwise disclosed.  A review
excludes  audit  procedures  such  as  tests  of  controls   and
verification  of  assets, liabilities and transactions.   It  is
substantially  less  in  scope  than  an  audit   performed   in
accordance  with  Auditing Standards and  therefore  provides  a
lower  level of assurance than an audit. Accordingly we  do  not
express an audit opinion on the financial information.

REVIEW CONCLUSION

On  the  basis  of our review we are not aware of  any  material
modifications  that should be made to the financial  information
as presented for the six months ended 30 September 2000.

ERNST &YOUNG
LONDON

22 November 2000

NOTE 1

The  statutory accounts for the year to 31 March 2000 were filed
with  the  Registrar  of  Companies  on  9  October  2000.   The
auditors' report on those statutory accounts was unqualified and
did  not contain any statements under Section 237 (2) or (3)  of
the Companies Act 1985.

NOTE 2

The  Interim  report 2000 will be posted to  shareholders  on  4
December  2000 and thereafter copies will be available from  the
Company  Secretary, 3i Group plc, 91 Waterloo Road,  London  SE1
8XP.

NOTE 3

The  interim  dividend will be payable on  10  January  2001  to
holders  of shares on the register on 8 December 2000.  The  ex-
dividend date will be 4 December 2000.

NOTE 4

Investment statistics referred to in this announcement relate to
investments made by 3i Group and third party co-investment funds
unless otherwise stated.

TEN LARGEST INVESTMENTS

At  30  September  2000, the Directors'  valuation  of  the  ten
largest  investments was a total of £1,021 million. The cost  of
these equity investments was £27 million.

Investment   Description of    First Cost  Proportion Directors'
            business        investe  £m   of equity  valuation
                               d in     shares held         £m
TeleCity     Internet and       1998                           
plc*         telecoms
            engineering
            services
Equity                                 1       30.4%        329
shares
                                                               
Morse plc*   Leading            1995                           
             technology
            integrator
Equity                                10       23.1%        163
shares
                                                               
Bookham      Integrated         1996                           
Technology   silicon
plc*         optical
             circuitry
Equity                                 3        3.3%        110
shares
                                                               
Actelion AG* Research and       1998                           
             development of
            advanced
            medicines
Equity                                 1        7.9%         81
shares
                                                               
Biosearch    Research and       1998                           
Italia SpA*  development of
             anti-infective
            drugs
Equity                                 6       21.9%         65
shares
                                                               
Virata       Electronic         1994                           
Incorpor-    component
ated*        manufacturer

Equity                                 2        2.5%         63
shares
                                                               
Content      Content            1989                           
Technologies security and
Holdings     policy
Limited      management
            services
Equity                                 -       17.8%         57
shares
                                                               
Weston       Needle-free        1993                           
Medical      medical device
Group plc*   manufacture

Equity                                 1       20.5%         52
shares
                                                               
Indigo-      Networked          1995                           
Vision       video
Group plc*   technology
             supplier
Equity                                 2       15.8%         52
shares
                                                               
TTP          Wireless           1988                           
Communica-   communications
tions plc

Equity                                 1       12.7%         49
shares

The  investment  information is in respect of 3i's  holding  and
excludes any co-investment by 3i managed funds.
*Quoted company (including secondary markets).

NEW INVESTMENT ANALYSIS

Analysis  of the equity, fixed income and loan investments  made
by  3i  Group  (excluding  third party  unquoted  funds).   This
analysis  excludes investments in joint ventures and non-venture
capital  investments  made in FTSE 350 companies.   The  tabular
representations below are for the 6 months to 30 September 2000.

Investment by FTSE category                                
(£m)
                                                           
                                  6 months to   6 months to
                                 30 September  30 September
                                         2000          1999
                                                           
1 Resources                                43             7
2 Industrials                              67            62
3 Consumer goods                          117            78
4 Services and utilities                  145           152
5 Financials                               19             7
6 Information technology                  310            94
Total                                     701           400
                                                           
Investment by product (£m)                                 
                                                           
1 Start ups                               118            27
2 Management buy-outs                     164            70
3 Management buy-ins                       21            44
4 Growth capital                          350           186
5 Share purchase                           35            56
6 Rescues                                  13            17
Total                                     701           400
                                                           
Number of investments by                                   
product
                                                           
1 Start ups                               120            39
2 Management buy-outs                      36            23
3 Management buy-ins                        9            18
4 Growth capital                          212           166
5 Share purchase                           26            19
6 Rescues                                  37            36
Total                                     440           301
                                                           
Investment by geography -                                  
including co-investment funds
(£m)
                                                           
1 UK own investment                       425           264
2 UK co-investment                         86            65
3 Continental Europe own                  239           128
investment
4 Continental Europe co-                  113            67
investment
5 Asia Pacific own investment               8             8
6 Asia Pacific co-investment                2             -
7 USA own investment                       29             -
Total                                     902           532

PORTFOLIO ANALYSIS

The Group's equity, fixed income and loan investments (excluding
third party unquoted funds) total £7,091 million at 30 September
2000.   The analyses below exclude investments in joint ventures
and  non-venture capital investments made in FTSE 350 companies,
30 September 2000, £198 million (March 2000: £201 million).  The
tabular representations are as at 30 September 2000.

Portfolio value by FTSE                                    
classification (£m)
                                                           
                                        At 30   At 31 March
                                    September          2000
                                         2000
                                                           
1 Resources                               237           185
2 Industrials                           1,215         1,247
3 Consumer goods                        1,400         1,138
4 Services and utilities                1,980         1,648
5 Financials                              274           251
6 Information technology                1,787         1,501
Total                                   6,893         5,970


Portfolio value by product (£m)                            

1 Start ups                               635           429
2 Management buy-outs                   1,507         1,523
3 Management buy-ins                      557           645
4 Growth capital                        3,164         2,333
5 Share purchase                          957           936
6 Rescues                                  73           104
Total                                   6,893         5,970

Portfolio value by geography                               
(£m)
                                                           
1 UK                                    5,161         4,668
2 Continental Europe                    1,430         1,049
3 Asia Pacific                             56            63
4 US                                      246           190
Total                                   6,893         5,970

US  comprises mainly technology investments made by our  offices
there together with investments in US companies acquired through
the realisation of European companies.


Continental Europe portfolio                               
value by location of business
(£m)
                                                           
1 Germany                                 492           459
2 France                                  256           203
3 Spain                                   206           135
4 Italy                                   170            71
5 Switzerland                             157            72
6 Benelux                                  57            59
7 Nordic                                   16             8
8 Other European*                          76            42
Total                                   1,430         1,049

*Other  European includes investments in countries where 3i  did
not have an office at the period end.


Portfolio value by valuation                               
method (£m)
                                                           
1 Imminent sale or flotation              259           241
2 Listed                                1,671         1,103
3 Secondary market                        608           483
4 Earnings                              1,087         1,226
5 Cost                                    853           626
6 Further advance                         259           143
7 Net assets                              153           144
8 Other                                   136           118
9 Loans and preference shares           1,867         1,886
Total                                   6,893         5,970


Analysis of total investment                               
portfolio owned or managed by
3i (£m)
                                                           
                                        At 30   At 31 March
                                    September          2000
                                         2000
                                                           
1 UK - owned*                           5,368         4,878
2 UK - managed**                        1,945         1,394
3 Continental Europe - owned            1,430         1,049
4 Continental Europe - managed            588           463
5 Asia Pacific - owned*                    85           134
6 Asia Pacific - managed                    3             1
7 USA - owned*                            272           241
Total                                   9,691         8,160

* Includes investments in joint ventures, FTSE 350 companies and
investment  properties  held as investment  assets  as  well  as
equity, fixed income and loan investments.
**  UK  managed  funds includes unquoted funds and  other  funds
managed by 3i.

TECHNOLOGY PORTFOLIO ANALYSIS

Analysis   of  the  Group's  equity,  fixed  income   and   loan
investments (excluding third party unquoted funds).  The tabular
representations below are as at 30 September 2000

Investment made during the                                 
period by sector (£m)
                                                           
                                  6 months to   6 months to
                                 30 September  30 September
                                         2000          1999
                                                           
1 Life sciences and healthcare             49            42
2 Communications and networking            74            57
3 Electronics and other                    35            18
technologies
4 e Business                               86            30
5 Software and computer                   221            66
services
Total                                     465           213
                                                           
Number of investments made                                 
during the period by sector
                                                           
1 Life sciences and healthcare             60            49
2 Communications and networking            43            27
3 Electronics and other                    46            22
technologies
4 e Business                               58            18
5 Software and computer                   106            55
services
Total                                     313           171
                                                           
Portfolio value by sector (£m)                             
                                        At 30   At 31 March
                                    September          2000
                                         2000
                                                           
1 Life sciences and healthcare            719           434
2 Communications and networking           878           457
3 Electronics and other                   346           286
technologies
4 e Business                              204           158
5 Software and computer                 1,255         1,044
services
Total                                   3,402         2,379
                                                           
Number of portfolio investments                            
by sector
                                                           
1 Life sciences and healthcare            164           164
2 Communications and networking           100            88
3 Electronics and other                   186           192
technologies
4 e Business                               89            60
5 Software and computer                   273           244
services
Total                                     812           748
                                                           
Technology portfolio value by                              
valuation method (£m)
                                                           
1 Imminent sale or flotation              197           171
2 Listed                                1,157           603
3 Secondary market                        581           471
4 Earnings                                142           168
5 Cost                                    673           449
6 Further advance                         238           143
7 Net assets                                2             2
8 Other                                    25            28
9 Loans and preference shares             387           344
Total                                   3,402         2,379