Final Results

Baillie Gifford Japan Trust PLC
04 October 2002



                      THE BAILLIE GIFFORD JAPAN TRUST PLC

                     Results for the year to 31 August 2002


The Baillie Gifford Japan Trust PLC outperformed its benchmark over the year
with a particularly strong second half. Japanese markets were relatively
resilient while the economy enjoyed a cyclical rebound. The Managers are
increasingly confident about the long term investment outlook.
      
  •   Performance

      Over the year Baillie Gifford Japan outperformed its benchmark (75% TOPIX and 25% Tokyo Stock
      Exchange Second Section in sterling terms): NAV per share fell by 17.3% while the benchmark fell by
      18.4%.

      The second half performance was particularly strong: NAV rose by 2.6% compared to a 1.8% fall in the
      benchmark, representing a 4.4% out-performance.

      Out-performance was largely driven by good stock selection in the Electrical and electronics,
      Commerce and services and Chemicals sectors.

      Longer term relative performance has also been good. Net asset value per share rose by 7.6% over 5
      years and by 42.0% over 10 years while over the same periods the benchmark fell by 19.4% and showed
      no change respectively.

      Japanese Economy

      While earnings fell sharply in 2001, companies acted quickly to reduce capacity and a marked rebound
      in earnings is forecast for the current year driven by a recovery in exports and industrial
      production. This is confirmed by the fact that GDP grew at an annualised rate of 2.6% quarter on
      quarter April to June while Ministry of Finance figures have shown corporate profits rising for
      three successive quarters.

      Recent policy announcements suggest that genuine reform of the banking system is becoming more
      likely.

  •   Outlook


      Japanese market valuations look attractive against global markets. There are opportunities amongst
      well managed companies with good growth prospects.




The Baillie Gifford Japan Trust PLC aims to pursue long-term capital growth
principally through investment in medium to smaller sized Japanese companies.
ISA, PEP Transfer and Share Plan are available.

The Company is managed by Baillie Gifford & Co., the leading independent
Edinburgh based fund management group with around £18 billion under management
and advice.

4 October 2002

                                    - ends -



For further information please contact:

Sarah Whitley, Manager

The Baillie Gifford Japan Trust PLC              0131 222 4000

Mike Lord, Director

Broadgate Marketing                              020 7726 6111

Baillie Gifford & Co. is regulated by the FSA.


                      THE BAILLIE GIFFORD JAPAN TRUST PLC


The following is the unaudited preliminary statement for the year to 31 August
2002 which was approved by the Board on 4 October 2002. The Directors of The
Baillie Gifford Japan Trust PLC are recommending to the Annual General Meeting
of the Company to be held on 27 November 2002 that no dividend be paid for the
year ended 31 August 2002.



                      THE BAILLIE GIFFORD JAPAN TRUST PLC

                           STATEMENT OF TOTAL RETURN

               (unaudited and incorporating the revenue account*)


                                                                                          
                                                 for the year ended                       for the year ended
                                                   31 August 2002                            31 August 2001
                                                  
                                         Revenue       Capital         Total         Revenue       Capital        Total
                                         
                                          £'000         £'000          £'000          £'000         £'000         £'000
Realised losses on investments                -        (11,001)       (11,001)                     (1,404)       (1,404)
Unrealised losses on investments              -         (5,284)        (5,284)            -       (66,604)      (66,604)
Currency gains/(losses) (note 1)              -            162            162             -          (982)         (982)
Income                                       808              -            808           866             -           866
Investment management fee                  (847)             -           (847)       (1,168)            -        (1,168)
Other administrative expenses              (202)             -           (202)         (207)            -          (207)
Net return before finance costs
and taxation                               (241)       (16,123)       (16,364)         (509)      (68,990)      (69,499)
Finance costs of borrowings                (116)             -           (116)         (135)            -          (135)
Return on ordinary activities
before taxation                            (357)       (16,123)       (16,480)         (644)      (68,990)      (69,634)
Tax on ordinary activities                 (120)             -           (120)         (127)            -          (127)
Return on ordinary activities
after taxation                             (477)       (16,123)       (16,600)         (771)      (68,990)      (69,761)
Transfer from reserves                     (477)       (16,123)       (16,600)         (771)      (68,990)      (69,761)
Return per ordinary share                (0.75p)       (25.40p)       (26.15p)       (1.21p)     (108.22p)     (109.43p)
(note 3)

* The revenue column of this statement is the profit and loss account of the
Company.

All revenue and capital items in the above statement derive from continuing
operations.


                      THE BAILLIE GIFFORD JAPAN TRUST PLC

                            SUMMARISED BALANCE SHEET                               

                               at 31 August 2002

                                  (unaudited)


                                                                              31 August 2002       31 August 2001
                                                                                       £'000                £'000
NET ASSETS
Listed overseas equities                                                              79,180              91,047
Unlisted equities - traded on the Japanese OTC market                                  6,957               5,624
Unlisted equities - Directors' valuation                                               1,317               1,434
Total fixed asset investments                                                         87,454              98,105
Net liquid assets                                                                      5,223               8,449
Total assets (before deduction of bank loans)                                         92,677             106,554
Bank loans (note 4)                                                                 (14,176)             (11,007)
                                                                                      78,501              95,547
CAPITAL AND RESERVES
Called-up share capital                                                                3,167               3,188
Capital reserves                                                                      81,842              98,390
Revenue reserve                                                                      (6,508)              (6,031)
EQUITY SHAREHOLDERS' FUNDS                                                            78,501              95,547
NET ASSET VALUE PER ORDINARY SHARE                                                    124.0p              149.9p
Ordinary shares in issue                                                          63,335,000          63,750,000







                      THE BAILLIE GIFFORD JAPAN TRUST PLC

                                            SUMMARISED CASH FLOW STATEMENT

                                                      (unaudited)
                                                                            Year to                     Year to

                                                                        31 August 2002              31 August 2001
                                                                     £'000         £'000         £'000         £'000
NET CASH OUTFLOW FROM OPERATING ACTIVITIES                                            (284)                       (625)
NET CASH OUTFLOW FROM SERVICING OF FINANCE                                            (119)                       (152)
TOTAL TAX PAID                                                                        (119)                       (125)
FINANCIAL INVESTMENT
Acquisitions of investments                                          (50,387)                    (67,371)
Disposals of investments                                              43,198                      81,036
Realised currency loss                                                  (433)                     (1,740)
NET CASH (OUTFLOW)/INFLOW FROM FINANCIAL INVESTMENT                                 (7,622)                     11,925
NET CASH (OUTFLOW)/ INFLOW BEFORE FINANCING                                         (8,144)                     11,023
FINANCING
Shares purchased for cancellation                                       (446)                          -
Bank loans drawn down                                                   9,440                      5,175
Bank loans repaid                                                     (5,676)                    (19,835)
NET CASH INFLOW/(OUTFLOW) FROM FINANCING                                             3,318                     (14,660)
DECREASE IN CASH                                                                    (4,826)                     (3,637)
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
Decrease in cash in the year                                                        (4,826)                     (3,637)
Net cash flow from bank loans                                                       (3,764)                     14,660
Exchange movement on bank loans                                                        595                         758
MOVEMENT IN NET DEBT IN THE YEAR                                                    (7,995)                     11,781
NET DEBT AT 1 SEPTEMBER                                                             (2,772)                    (14,553)
NET DEBT AT 31 AUGUST                                                              (10,767)                     (2,772)




                      THE BAILLIE GIFFORD JAPAN TRUST PLC

                                             TWENTY LARGEST EQUITY HOLDINGS

                                                   at 31 August 2002

                                         
       Name                              Business                                             Market value    % of total
                                                                                                     £'000        assets
      Tostem Inax Holdings               Housing materials                                           3,142           3.4
      CSK Corporation                    Computer services                                           2,613           2.8
      Kyocera                            Electronic components                                       2,571           2.8
      Bandai                             Maker of toys, cartoons and character goods                 2,507           2.7
      Yamada Denki                       Consumer electronic retailer                                2,507           2.7
      Konica                             Film and electronics                                        2,300           2.5
      Takuma                             Waste incinerator manufacturer                              2,267           2.5
      Nippon Broadcasting System         Radio and TV broadcasting                                   2,231           2.4
      NTT DoCoMo                         Mobile telecommunications                                   2,185           2.4
      NTT                                Telecommunications                                          2,172           2.3
      Tokyo                              Diversified conglomerate                                    2,144           2.3
      Seino Transportation               Trucking                                                    2,130           2.3
      QP Corporation                     Food manufacturer                                           2,103           2.3
      Diamond Lease                      Leasing services                                            2,073           2.2
      Takeda Chemical Industries         Pharmaceuticals                                             1,967           2.1
      Hokuetsu Paper Mill                Paper manufacturer                                          1,910           2.1
      Promise                            Consumer finance                                            1,904           2.1
      Okumura                            Construction and civil engineering                          1,847           2.0
      USS Company                        Second-hand car auctioneer                                  1,808           2.0
      Canon                              Printers and copiers                                        1,793           1.9
                                                                                                    44,174          47.8





                      THE BAILLIE GIFFORD JAPAN TRUST PLC


                                     NOTES
                                                                                     31 August 2002       31 August 2001
                                                                                              £'000                £'000
1.     Currency gains/(losses)
       Realised exchange differences                                                          (729)              (2,377)
       Movement in unrealised exchange differences                                              891               1,395
                                                                                                162                (982)
2.     No dividend will be declared.

3.     Return per ordinary share
       Revenue return                                                                         (477)               (771)
       Capital return                                                                      (16,123)            (68,990)

       Return per ordinary share is based on the above totals of revenue and capital and on 63,485,946
       (2001 - 63,750,000) ordinary shares, being the weighted average number of ordinary shares in issue during the
       year.

4.     Bank loans of £14.2 million (Y2.6 billion) have been drawn down under yen loan facilities which are repayable
       between August 2006 and August 2007 (31 August 2001- £11.0 million (Y1.9 billion)).

5.     During year 415,000 ordinary shares with a nominal value of £20,750 were bought back for a total consideration of
       £446,000, in accordance with the authority granted at the AGM in November 2001. At 31 August 2002 the Company had
       authority to buy back a further 9,126,135 shares.

6.     The financial information set out above does not constitute the Company's statutory accounts for the year ended
       31 August 2002. The financial information for 2001 is derived from the statutory accounts for 2001, which have
       been delivered to the Registrar of Companies. The Auditors have reported on the 2001 accounts, their report was
       unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The statutory
       accounts for 2002 will be finalised on the basis of the financial information presented in this preliminary
       announcement and will be delivered to the Registrar of Companies following the Company's Annual General Meeting.













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