Final Results

Edinburgh Dragon Trust PLC
18 October 2000


                         EDINBURGH  DRAGON  TRUST  PLC
              PRELIMINARY RESULTS FOR THE YEAR TO 31 AUGUST 2000

Edinburgh  Dragon  Trust's  objective  is  long-term  capital  growth  through
investment  in the Far East (excluding Japan and Australasia).  The  trust  is
managed  by  Edinburgh  Fund  Managers plc, a  subsidiary  of  Edinburgh  Fund
Managers  Group plc, the international fund management group with funds  under
management of £9 billion.

               Preliminary Results for Year Ended 31 August 2000
                                       
Net  asset  value  increased by 20.2% compared with  the  rise  of  2.3%  (in
 sterling terms) in the MSCI All Country Asia Free (excluding Japan) Index

Share price increased by 27.9% to 91.75p

Good  stock selection, particularly within the telecommunications,  low  risk
technology and outsourcing sectors in the first half of the year, was the main
contributor to the outperformance

Discount narrowed to 12.8% to the diluted net asset value

The long-term outlook for Asian economies remains positive

For further information please contact:-

Alistair Thompson, Investment Manager
Edinburgh Fund Managers plc                    0131 313 1000


Please note that past performance is not necessarily a guide to the future and
that  the  value of investments and the income from them may fall as  well  as
rise  and may be affected by exchange rate movements.  Investors may  not  get
back the amount they originally invested. Where investment is made in emerging
markets, their potential volatility may increase the risk to the value of  the
investment.


Chairman's Statement

Over the past year the net asset value of Edinburgh Dragon Trust has increased
by  20.2% from 89.36p to 107.39p and the share price has appreciated by  27.9%
to  91.75p,  a  discount  to  the  net asset value  of  14.6%.  This  positive
performance  is  well ahead of the 2.3% rise of the benchmark,  the  MSCI  All
Country Asia Free (ex Japan) Index.

The  outperformance was due to good stock selection, and in particular, to the
decision  taken  in  the first half of the year to increase  our  exposure  to
companies  in telecommunications, low risk technology and outsourcing,  mainly
in  Hong Kong and South Korea.  However, while the trust has  benefitted  from
global interest in technology, media and telecoms (the TMT' sectors), as  the
valuation  of  many of these stocks grew excessively, it was felt  prudent  to
switch  into  interest  rate  sensitive stocks, such  as  banks  and  property
companies.  Thus,  as  at  31 August 2000, the trust was  biased  towards  the
financial sector, with only a limited exposure to telecommunication companies.

As is increasingly the case in Asia, over the past year individual stockmarket
returns were very diverse. For example, the Shanghai B' share index rose  61%
in sterling terms, Hong Kong rose 40%, whilst the Philippines fell 31%.


Revenue Account
The  earnings  deficit per share increased from 0.37p to 1.00p.  Whilst  gross
revenue remained unchanged at £5.6 million, expenses rose from £2.1 million to
£3.1   million  reflecting  higher  investment  management  fees  (which   are
calculated  on  the  value of net assets). Administrative expenses  were  also
higher  primarily  due  to an increase in custodian fees  resulting  from  the
increased  value  of investments. The appreciation of the  US  dollar  against
sterling also led to a rise in interest charges on the long term borrowings.

The net result is that the revenue deficit, after taxation, has increased from
£0.9  million  to £2.3 million. However, since the objective of the  trust  is
long-term  capital growth, this negative shift in the revenue position  should
not be seen as a cause for concern.


Dividend
In  line  with our investment objective, it is again proposed that no dividend
be paid.

Marketing Initiative
The  board remains supportive of the Association of Investment Trust Companies
'its'  campaign aimed at raising investor awareness of the attractions of  the
investment  trust sector. The campaign appears to have started  well  and  the
initial  impact evidence is encouraging. The campaign is being funded  by  the
investment  trust  sector and, in the second year, the trust  will  contribute
£58,000 towards the campaign.

The  trust  also participates in the Edinburgh Fund Managers Investment  Trust
Initiative, which enables shareholders to invest in Edinburgh Dragon Trust  in
a  cost-effective  manner  through various saving  products  such  as  regular
savings schemes, ISAs and the Pension Scheme. Shareholders who wish additional
information  can  find it on the Edinburgh Fund Manager website  www.edfd.com.
Shareholders  can  also access up to date information on Dragon's  performance
and strategy through The Inside Line, a monthly publication also published  on
the website.

Share Buybacks
During  the  year  the  company  bought back  2,600,000  ordinary  shares  for
cancellation  at  an average price of 67.2p per share. The  narrowing  of  the
discount is attributed to both a greater interest in investment in the Pacific
region  and  the use of the share buy-back authority. Consequently your  board
continues  to  believe that the ability to buy-back shares is  beneficial  and
therefore  recommends  that  shareholders  vote  in  favour  of  the   buyback
resolution at this year's Annual General Meeting.


Warrants
During  the  year the company, as in previous years, purchased  and  cancelled
499,624 warrants 2005 (which were exercisable into ordinary shares at 60 pence
in  January each year). Should an appropriate opportunity arise in the future,
the trust intends to make further purchases of warrants for cancellation.


Future prospects
Having  enjoyed  a  rapid  recovery from the crisis  three  years  ago,  Asian
economies  are beginning to revert to more normal growth levels and this  will
be reflected in corporate earnings growth.

However,  the region faces a number of challenges that are likely to test  the
markets in the short term; the strong US dollar, the high oil price, a slowing
global economy and worries over demand for electronic goods.  Nonetheless, the
continuing emphasis on the themes of corporate restructuring, outsourcing  and
technology  should carry the region through in the longer  term.   Once  Asian
corporates can demonstrate that the return profiles of their businesses are at
the  beginning of a structural growth path, equity investors will be rewarded.
Some companies are expected to demonstrate this next year.

Currently, valuations look very reasonable and if the US Federal Reserve  were
to  reduce  interest  rates next year, Asian economies and  stockmarkets  will
benefit.  The  restructuring and reform progress and economic improvements  in
China  will benefit Hong Kong and your trust will continue to maintain a large
proportion of its assets in this market.


Annual General Meeting

The AGM will be held at Donaldson House, Edinburgh on 27 November 2000. At the
meeting shareholders will be given the opportunity to vote on the continuation
of  the  company.  Edinburgh  Dragon Trust is  the  largest  investment  trust
specialising  in  the  Pacific Basin and your board believes  that  it  offers
investors a broad and marketable exposure to the equity markets in the region,
a  region  which  your board believes continues to offer attractive  long-term
investment  opportunities. Recent contacts with the larger  shareholders  have
indicated their support for the company to continue in its present form.  Your
board thus recommends that shareholders vote in favour of the resolution.

If  the  continuation proposal is approved by shareholders, your board intends
to give shareholders a further opportunity to consider a similar resolution at
the AGM to be held in 2003.

Tony Cassidy
Chairman

18 October 2000
STATEMENT OF TOTAL RETURN
for  the  year ended 31  August  Revenue    Capital       Total
2000 (audited)
                                    £000       £000        £000
Realised gains on investments         -     21,920      21,920
Unrealised  gains  on                 -     24,914      24,914
investments
Currency losses                        -    (3,968)     (3,968)
Buyback of warrants                    -      (197)       (197)
Investment income                  4,425         -       4,425
Interest receivable                1,148         -       1,148
Other income                          65         -          65
Investment management fee         (2,321)        -      (2,321)
Administrative expenses             (763)        -        (763)
                                  ______     ______      ______
Net   return   before   finance    2,554     42,669     45,223
costs and taxation
Interest  payable  and  similar  (4,583)          -     (4,583)
charges
                                  ______     ______      ______
Return  on  ordinary activities  (2,029)     42,669      40,640
before taxation
Taxation                           (236)          -        (236)
                                  ______     ______      ______
Return  attributable to  equity  (2,265)     42,669      40,404
shareholders
                                  ______     ______      ______
Return per ordinary share        (1.00p)     18.76p      17.76p
                                  ______     ______      ______
Diluted   return  per  ordinary  (0.98p)     18.51p      17.53p
share
                                  ______     ______      ______

STATEMENT OF TOTAL RETURN
for  the year to 31 August 1999  Revenue    Capital       Total
(audited)
                                    £000       £000        £000
Realised losses on investments         -    (2,975)     (2,975)
Unrealised       gains       on        -   107,431     107,431
investments
Currency losses                        -      (882)       (882)
Buyback of warrants                    -          -           -
Investment income                  3,019          -       3,019
Interest receivable                2,533          -       2,533
Other income                          38          -          38
Investment management fee         (1,568)         -      (1,568)
Administrative expenses             (542)         -        (542)
                                  ______    _______     _______
Net   return   before   finance    3,480    103,574     107,054
costs and taxation
Interest  payable  and  similar   (4,337)          -     (4,337)
charges
                                  ______    _______     _______
Return  on  ordinary activities    (857)    103,574     102,717
before taxation
Taxation                            (12)          -         (12)
                                  ______    _______     _______
Return  attributable to  equity    (869)    103,574     102,705
shareholders
                                  ______    _______     _______
Return per ordinary share        (0.37p)     44.38p      44.01p
                                  ______    _______     _______
Diluted   return  per  ordinary      n/a        n/a         N/a
share
                                  ______    _______     _______



BALANCE SHEET  (audited)
                                            At 31 At 31 August
                                      August 2000         1999
                                             £000         £000
Fixed assets                                                  
Investments                               279,291      238,277
                                           ______       ______
                                                              
Current assets                             38,011       27,463
Current liabilities                         8,149        1,442
                                           ______       ______
Net current assets                         29,862       26,021
                                           ______       ______
Total    assets    less    current        309,153      264,298
liabilities
Creditors:  amounts  falling   due         65,045       58,822
after more than one year
                                           ______      _______
                                          244,108      205,476
                                           ______      _______
                                                              
Capital and reserves                                          
Called up share capital - equity           45,415       45,933
Reserves                                  198,693      159,543
                                          _______      _______
Total equity shareholders' funds          244,108      205,476
                                          _______      _______
                                                              
Net asset value per share                 107.39p       89.36p
                                                              
Diluted net asset value per share         105.26p       87.99p

CASHFLOW STATEMENT (audited)
                                     For the year  For the year
                                            ended         ended
                                        31 August     31 August
                                             2000          1999
                                             £000          £000
                                                               
Net cash inflow from operating              2,410         3,710
activities

Net cash outflow from servicing of         (4,454)       (4,276)
finance

Total tax paid                                (80)        1,161

Net cash inflow from financial             12,000       (49,563)
investment

                                          _______       _______
Net cash inflow before financing            9,876      (48,968)

Net cash outflow from financing            (1,989)      (3,582)
                                                               
Management of liquid resources             (3,627)      50,387
                                          _______       _______
INCREASE IN CASH                            4,260       (2,163)
                                          _______       _______


NOTES:
1. The accounts have been prepared in accordance with the Statement of
   Recommended Practice Financial Statements of Investment Trust Companies'.  
   The accounts are prepared under the same accounting policies used for the  
   year to 31  August  1999  except for the reporting of investment income.   
   Dividends received  from  UK  companies are now reported net of the  tax   
   credit  and therefore the figures in relation to 1999 have been restated.

2. The  directors  propose that no final dividend be paid in  respect  of  the
   year ended 31 August 2000.

3. The  statement of total return and the balance sheet set out above  do  not
   represent  full statutory accounts in accordance with Section  240  of  the
   Companies Act 1985. The financial information for the year ended 31  August
   1999  has been extracted from the Annual Report and Accounts of the company
   which  have  been  filed  with the Registrar of  Companies.  The  auditors'
   report  on those accounts was unqualified. The statutory accounts for  2000
   contain  an  unqualified  auditors' report and will  be  delivered  to  the
   Registrar  of  Companies  following the company's  Annual  General  Meeting
   which  will be held at Donaldson House, 97 Haymarket Terrace, Edinburgh  on
   Monday, 27 November 2000 at 11.00am.

4. The  Annual  Report will be posted to shareholders on 20 October  2000  and
   copies will be available from the registered office.


For Edinburgh Dragon Trust plc
Edinburgh Fund Managers plc, Secretary
David Holland
Assistant Company Secretary