Repayment of Loan

EDINBURGH DRAGON TRUST PLC

REPAYMENT OF U$15m 7.56% LOAN REPAYABLE MAY 2007

23 FEBRUARY 2004

The  Board  of Edinburgh Dragon Trust plc (the "Company") announces  the
repayment  of the Company's US$15m, 7.56% loan for value on 20  February
2004.

The Board regularly reviews the borrowing facilities of the Company. The
Board,  in conjunction with the Company's manager and financial adviser,
believe  that  the US$80m, 7.26% loan notes repayable in  December  2008
provide  an  adequate  gearing  facility  for  the  manager  in  current
conditions. Currently (as at 20 February 2004 and with an exchange  rate
of  £/US$1.88), the Company has borrowings of £50.5m, representing 23.7%
of shareholders' funds of £212.7m. These borrowings are offset by £31.6m
invested in short-dated US Treasury stocks or cash equivalents, creating
effective gearing of 8.9% of shareholders' funds.

Following  repayment  of the US$15m 7.56% loan, the Company's  borrowing
facilities  will represent 20.0% of shareholders' funds. For many  years
the Board has approved a strategy whereby the manager has discretion  to
operate the portfolio with effective gearing of up to a maximum  of  20%
of shareholders' funds. The Board will continue to monitor the Company's
gearing strategy and, if appropriate, will approve additional gearing in
the form of short-term bank borrowings.

The  cost  of the early repayment of the loan, £1.1m or 0.5p per  share,
will be charged against the Company's capital reserve.

For further information please contact:

Jeremy Whitley, Edinburgh Fund Managers
Tel. [phone]

Tom Durie, Close Brothers Securities
Tel. [phone]