Final Results, etc

EDINBURGH DRAGON TRUST PLC
14 October 1999

                                       
                          EDINBURGH DRAGON TRUST PLC
                      PRELIMINARY RESULTS FOR THE YEAR TO
                                31 AUGUST 1999

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 over £7 billion.

                                  Highlights
                                       
Share price increased by 112.6% to 71.75p

The trust's discount has narrowed from 24.7% to 19.7%

 Net  asset value increased by 99.4% compared with the rise of 118.3%  in
 the MSCI All Country Asia Free excluding Japan Index. During the second half,
 the NAV rose by 55.2% compared to a rise of 48.1% in the benchmark index

 The  outlook for the region remains volatile yet company valuations  are
 attractive and any setbacks should be viewed as investment opportunities

For further information, please contact:-

Alistair Thompson   Divisional Director
               Edinburgh Fund Managers plc        0131 313 1000
Mike Balfour        Chief Investment Officer,
               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
                                       
After two years of negative returns from Asian stockmarkets, it is pleasing to
be  able  to  report  on  a substantial recovery in the last  financial  year.
However markets still have some way to go until they attain the levels seen in
the middle of this decade.

Performance
In  the  interim report covering the six months to February 1999, the  trust's
net  asset value appreciated by 28.5% compared with the rise of 47.5%  in  its
benchmark, the MSCI All Country Asia Free ex Japan Index. Over the second  six
months  to August, the net asset value (undiluted) has risen by 55.2% compared
with  a rise in the benchmark index of 48.1%. The net asset value for the year
as  a whole appreciated by 99.4% compared to a rise of 118.3% respectively  in
the benchmark.

As I explained in the interim report, the trust's relatively poor showing in
the first half of the financial year was due to maintaining a high level of
cash as markets began to recover towards the end of 1998. By the date of the
interim report, however, we were in a more fully invested position and
subsequent months have seen the utilisation of some of the gearing available
to us. Thus, by the end of August 1999 the trust was 16.1% geared, a striking
difference from the 20.6% net cash position of twelve months earlier. This use
of gearing was beneficial in the second half of the year.

A feature of the last twelve months has been the volatility which was
exhibited by the markets. This is described in more detail in the Manager's
Report contained in the Annual Report, however it is worth highlighting the
range of individual market returns, from 9.1% for Sri Lanka to 260.3% for
South Korea, with Hong Kong achieving a return of 92.6%, all in sterling
terms.

Over the twelve months to 31 August 1999, the trust's share price rose by
112.6% to 71.75 pence per share. The discount at which the trust's shares
trade to its net asset value has decreased from 24.7% to 19.7%. The narrowing
of the discount is attributed to both a greater interest in investment in the
region and the operation of the share buy-back authority. Consequently your
board continues to believe that having the ability to buy-back shares is of
benefit to shareholders and therefore recommends that shareholders vote in
favour of the resolution at this year's Annual General Meeting

Revenue Account
Gross revenue fell from £7.0 million to £5.6 million. Dividend income was £0.1
million lower reflecting falls in dividends declared, offset by an improvement
in  the  average  exchange rate for Asian currencies. Interest receivable  was
£1.3  million  lower  due to the reduction in cash on deposit  as  funds  were
committed to investments.

Expenses rose from £2.0 million to £2.1 million reflecting higher investment
management fees due to the higher asset value. Administrative expenses were
also higher primarily due to an increase in custodian fees resulting from the
increased value of investments. Interest charges were also higher due to the
rising value of the dollar against sterling.

The net result is that the trust has moved from a revenue surplus of £0.8
million to a deficit of £0.9 million. However, shareholders will appreciate
that 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.

Warrants
Previous  years  have seen the trust purchase and cancel outstanding  warrants
(which are exercisable into ordinary shares at 60 pence in January each year).
No  warrants have been bought back by the trust in the last twelve  months  as
they  have  traded at a premium that would have been dilutive to shareholders'
funds  if  such  purchases  had  been made.  Nevertheless  if  an  appropriate
opportunity were to arise in the future, the trust would make such purchases.

Corporate Governance
The  company  is  committed to high standards of corporate governance  and  an
appropriate statement appears in the Annual Report. Close attention is paid to
best  practice  applicable to investment trusts and the  board  will  actively
implement any changes which it believes are appropriate.

The AITC Marketing Campaign
The  Association  of Investment Trust Companies has commenced  a  major  media
campaign to raise the public's awareness of the benefits of investment  trusts
with  a  view to creating more demand for shares in the sector. The  board  is
supportive  of  the  campaign which has been funded by  the  investment  trust
industry  as  a whole, broadly according to size. Edinburgh Dragon  Trust  has
agreed  to contribute £115,000 in the first year, reducing to £57,500  in  the
second year and £28,750 in year three.

The campaign, in conjunction with the marketing initiative set up by our
manager, Edinburgh Fund Managers, will enable private shareholders to acquire
shares in the trust in a simple, cost-effective manner.

Future Prospects
Although  Asian  markets have performed well in the last twelve  months,  they
are,  in the main, still well below their peak levels. In sterling terms,  the
trust's benchmark index is some 35% below its high achieved late in 1993.

Throughout the region economic growth has returned with even the most
depressed countries showing signs of new vigour. Increased exports have
initially paved the way for expansion but consumer confidence is now becoming
a factor as the first indications of domestic growth emerge. Some
infrastructure spending has also been planned and this, rather than capital
investment in new plant and equipment, should help to maintain the current
momentum.

Politics remain a concern since the initial reforms, which helped focus
attention on the important issues, now need to be fully implemented. Further
reforms may be necessary in due course. Back-sliding is all too possible and
markets will be watching carefully for any such happenings.

Overall momentum is still with the markets despite some dark clouds on the
horizon. Volatility will remain a feature not least because of the
unpredictability of Year 2000 concerns. However, company valuations remain
attractive and any setbacks should be viewed as opportunities to make further
investments.

In conclusion, your board believes that the return of economic growth in the
region offers good prospects for your trust with a diversified portfolio
biased towards quality growth stocks.

Tony Cassidy
Chairman


STATEMENT OF TOTAL RETURN
for the year ended 31 August 1999 (audited)
                                 Revenue    Capital       Total
                                    £000       £000        £000
Realised losses on investments         -     (2,975)     (2,975)
Unrealised       gains       on        -    107,431     107,431
investments
Currency losses                        -       (882)       (882)
Investment income                  3,042          -       3,042
Interest receivable                2,533          -       2,533
Other income                          38          -          38
Investment management fee         (1,568)         -      (1,568)
Administrative expenses             (542)         -        (542)
Advisory costs                         -          -           -
                                                               
Net   return   before   finance    3,503    103,574     107,077
costs and taxation
Interest  payable  and  similar   (4,337)         -      (4,337)
charges
                                                               
Return  on  ordinary activities     (834)   103,574     102,740
before taxation
Taxation                             (35)         -         (35)
                                                               
Return  attributable to  equity     (869)   103,574     102,705
shareholders
                                                               
Return per ordinary share         (0.37p)     44.38p      44.01p
                                                               
______________________________________________________________________________
STATEMENT OF TOTAL RETURN
for the year to 31 August 1998 (audited)
                                 Revenue    Capital       Total
                                    £000       £000        £000
Realised losses on investments         -    (44,793)    (44,793)
Unrealised losses on                   -    (68,045)    (68,045)
investments
Currency losses                        -     (2,313)     (2,313)
Investment income                  3,165          -       3,165
Interest receivable                3,802          -       3,802
Other income                          14          -          14
Investment management fee         (1,481)         -      (1,481)
Administrative expenses            ( 484)         -        (484)
Advisory costs                         -       (337)       (337)
                                                               
Net   return   before   finance    5,016   (115,488)   (110,472)
costs and taxation
Interest  payable  and  similar   (4,188)         -      (4,188)
charges
                                                               
Return  on  ordinary activities      828   (115,488)   (114,660)
before taxation
Taxation                             (43)         -         (43)
                                                               
Return  attributable to  equity      785   (115,488)   (114,703)
shareholders
                                                               
Return per ordinary share           0.31p   (44.97p)    (44.66p)
                                                               
______________________________________________________________________________

BALANCE SHEET  (audited)
                                      At 31       At 31 August
                                      August 1999         1998
                                             £000         £000
Fixed assets                                                  
Investments                               238,277       84,151
                                                              
Current assets                             27,463       79,820
Current liabilities                         1,442        1,171
                                                              
Net current assets                         26,021       78,649
                                                              
Total    assets    less    current        264,298      162,800
liabilities
Creditors:  amounts  falling   due         58,822       56,447
after more than one year
                                                              
                                          205,476      106,353
                                                              
                                                              
Capital and reserves                                          
Called up share capital - equity           45,933       47,323
Reserves                                  159,543       59,030
                                                              
Total equity shareholders' funds          205,476      106,353
                                                              
                                                              
Net asset value per share                  89.36p       44.82p
                                                              
Diluted net asset value per share          87.99p          n/a



NOTES:
1.    The  accounts  have been prepared in accordance with  the  Statement  of
      Recommended Practice Financial Statements of Investment Trust       
      Companies.  The same  accounting  policies used for the year to 31
      August  1998  have been applied.
2.    The  directors propose that no final dividend be paid in respect of  the
      year ended 31 August 1999.
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 1998  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  1999 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
      Tuesday, 30 November 1999 at 11.00am.
4.   The  Annual  Report will be posted to shareholders on 29 October  1999   
     and copies will be available from the registered office.


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