Stmnt re Company's Gearing

British Assets Trust PLC
6 August 2001


British Assets Trust plc (the 'Company')

Announcement of Board's intention in relation to the gearing of the Company

The Board of British Assets Trust plc announces that, in the light of the
current favourable interest rate environment, it is considering the level of
the Company's gearing. 

The Board is therefore reviewing opportunities for increasing the borrowings
of the Company, and further details will be announced in due course.
The Board has also decided that the Company will redeem the outstanding units
of Equities Index Unsecured Loan Stock 2005 (EIULS) as it considers this form
of borrowing is no longer appropriate for the Company. The EIULS was issued in
1989 and, as less than 25% of the original units remain in issue, the Company
has the power to redeem the whole of the remaining units. Formal notice of
redemption will be issued in due course. 

For further information please contact:

Gordon J Humphries
Company Secretary, British Assets Trust plc
Enquiries:  Gordon Humphries,   Tel: [phone]