Dividend Declaration

British Assets Trust PLC
21 June 2001


Ordinary dividends

In accordance with the Company's articles of association, its capital
structure simplifies on 30 September 2001.  Growth shares will convert into
ordinary shares on a one for one basis on that date and warrantholders will
have the opportunity to exercise their warrants into ordinary shares between 1
July 2001 and 30 September 2001 at a subscription price of 101p.  As a result,
the only shares in issue after 30 September 2001 will be ordinary shares.

However, as stated in previous communications with shareholders, the ordinary
shares arising from the conversion of the growth shares will not rank for any
dividends relating to the year ended 30 September 2001.  Similarly, the
ordinary shares arising from the exercise of the warrants will also not rank
for any dividends relating to the year.  It was therefore stated in the
Interim Report for the six months ended 31 March 2001 that the third and
fourth interim dividends would be paid as usual in October and January, but by
reference to a record date in June 2001.  Ordinary shareholders on the
register on the record date, and only those shareholders, will be entitled to
receive the third and fourth interim dividends.  The first dividend to be
received by shareholders whose shares arise from the conversion of growth
shares or the exercise of warrants will, therefore, be the first interim
dividend for the year ended 30 September 2002, which is expected to be paid in
April 2002.

The Board has, therefore, declared a third interim dividend of 1.304p per
ordinary share, to be paid on 8 October 2001 to those ordinary shareholders on
the register on 29 June 2001, and a fourth interim dividend of 1.414p per
ordinary share, to be paid on 7 January 2002 to those ordinary shareholders on
the register on 29 June 2001.  The ex-dividend date for both dividends will be
27 June 2001.


Special dividend

As a result of the approval granted today by the shareholders of Investors
Capital Trust ('ICT') of the proposals for a reorganisation of capital and
placing of new shares, the Company will be able to realise its holding in ICT
at a small discount to net asset value.  At 31 March 2001 the Company's
investment in ICT was its largest holding, representing 32.7% of its total
investments.  In future the investment performance of the Company's UK
portfolio will be determined solely by returns from direct equity holdings
rather than being partly dependent on changes in the discount to net asset
value of the shares of ICT.  The approval of the proposals will also mean that
the Company will receive a special interim dividend of 3.44p per ICT income
annuity share held, resulting in additional earnings per ordinary share for
the year ended 30 September 2001 of approximately 0.9p, over and above what
would have been expected had the ICT proposals not been made.

 The Board has decided to pass some of the benefit of this additional income
to shareholders by way of a special interim dividend of 0.5p per ordinary
share, to be paid on 8 October 2001 to those ordinary shareholders on the
register on 29 June 2001. The ex-dividend date will be 27 June 2001.  The
balance of the additional income will be retained by the Company to bolster
revenue reserves and provide adequate cover for future dividends. 

This brings the total dividends for the year ended 30 September 2001 to 5.826p
per ordinary share, an increase of 11.7% compared to the year ended 30
September 2000.  The total dividend, excluding the special interim dividend,
is 5.326p per ordinary share, representing an increase of 2.1% which is
slightly ahead of the current rate of inflation.

For future years, it is intended that greater emphasis will be placed on
maximising the total return objective of the Company and, whilst the Board
will seek to maintain a progressive dividend policy, from the current base of
5.326p per ordinary share, future dividends will be dependent upon the rate of
revenue growth within the investment portfolio, and the level of dividend
cover.