Interim Results

Baillie Gifford Japan Trust PLC
5 April 2001





                     THE BAILLIE GIFFORD JAPAN TRUST PLC

                Results for the six months to 28 February 2001

                                 5 April 2001



Salient points

  * Net asset value fell by 33.1% while the Company's benchmark index fell
    by 25.1% in sterling terms as the market shifted towards a more value
    oriented approach.

  * Reduced exposure to technology. The Company's weighting in technology
    related areas and exposure to equities were both reduced during the period
    and cash was increased due to deterioration in expectations for the market
    as a whole and the down turn in the global technology sector.

  * Japan's economy expanded by 1.7% in 2000. Most of the growth came from
    the private sector and, in particular, corporate capital spending as
    Japanese companies invested heavily in IT to catch up on global standards.

  * Improved outlook. After worsening economic news the Bank of Japan
    reinstated its zero interest rate policy. It is also planning to introduce
    an implicit inflation target and is aiming to boost the money supply.
    Meanwhile the government is developing plans to reduce the banking
    sector's exposure to the stockmarket. The pace of merger and acquisition
    activity and meaningful restructuring have increased recently. The Board
    believes all these actions increase the chance of significant positive
    change in Japan.

  * Fully invested. The Board believes the Japanese market is now more
    reasonably valued and the Company has moved to a fully invested position.

  * Gearing. The company is planning to arrange a new fixed 5 year yen bank
    loan to enable it to take advantage of the improving prospects for
    equities in the longer term and the current low interest rates in Japan.





- ends -

                                                                        -/more



The Baillie Gifford Japan Trust PLC aims to pursue long-term capital growth
principally through investment in medium to smaller sized Japanese companies.

The Company is managed by Baillie Gifford & Co., the leading independent
Edinburgh based fund management group with over £20 billion under management
and advice.







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 IMRO.



                     THE BAILLIE GIFFORD JAPAN TRUST PLC

                                Interim Report

The six month period to 28 February 2001 has proved a difficult time for
investment in Japan and the net asset value per share has fallen by 33.1% over
the period. The Company's benchmark index fell by 25.1% in sterling terms as
the market shifted towards a more value oriented approach. We did reduce the
weighting in the technology related areas, but our overweight position there
did adversely affect performance. The share price declined further than the
net asset value as the discount on the shares widened and moved closer to the
sector average. During the period we have increased the net cash position and
reduced our exposure to equities because of the deterioration in profits
expectations for the market as a whole and the downturn in the global
technology sector. We repaid some bank borrowings in November 2000 and ended
the period with net cash of 9% of shareholders funds.

Japan's economy expanded by 1.7% in 2000, with most of the growth coming from
the private sector and particularly corporate capital spending as Japanese
companies spent to begin to catch up on global standards of IT investment. It
is likely therefore that the expansion in this area will be more muted in the
current year. There has also been some interesting evidence that consumer
demand is expanding modestly. However, the sudden change in economic
conditions in the United States towards the end of last year was almost
instantly transmitted to Japan and the economy began to weaken in January and
February. Industrial production fell sharply, but companies seem to be cutting
back output quickly and, therefore, overall inventory positions are so far
under control. Confidence within Japan has deteriorated as shown by the Bank
of Japan's business confidence survey, which fell sharply in March,
particularly for large manufacturers. Forecasts for growth for the current
year are being downgraded to below 1%, but obviously the final outcome depends
on external as well as internal factors.

There have been some encouraging developments recently in Japan. In response
to the worsening economic news the Bank of Japan reversed its August 2000 rate
rise at its March policy meeting and reinstated the zero interest rate policy.
It also plans to introduce an implicit inflation target and is aiming to boost
the money supply. With the central bank having taken action, the onus of
further change is now placed on the government who are currently developing a
plan to reduce the banking sector's exposure to the stockmarket. Details are
being finalised at the moment and the package will be announced shortly. The
pace of merger and acquisition activity and meaningful restructuring have
increased recently and are positive for the longer term. These actions
together do, we believe, increase the chance of significant positive change in
Japan at a time when the market is reasonably valued. We have therefore moved
to a fully invested position. The Company is planning to arrange a new fixed 5
year yen bank loan to enable it to take advantage of the improving prospects
for equities in the longer term and the current low interest rates in Japan..



                                                         By order of the Board

                                                         Baillie Gifford & Co.

                                                                  4 April 2001

The following is an interim statement for the six months ended 28 February
2001 which has been neither reviewed nor audited by the auditors. This
statement is being printed and will be sent to all shareholders on 18 April
2001. Copies will be available for inspection at the Registered Office of the
Company or may be obtained on request from the Managers and Secretaries after
that date.

                     THE BAILLIE GIFFORD JAPAN TRUST PLC

                          STATEMENT OF TOTAL RETURN

              (unaudited and incorporating the revenue account*)


               for the six months   for the six months    for the year ended  
                            ended                ended        31 August 2000    
                 28 February 2001     29 February 2000                          
             Revenue Capital Total Revenue Capital Total Revenue Capital Total
                                                                         
               £'000  £'000  £'000   £'000  £'000  £'000   £'000  £'000  £'000  
  
  Realised         -   1,570   1,570     -  22,060 22,060      -  48,117 48,117
  gains on                              
  investments                                                                 
  Unrealised       - (55,061)(55,061)    -  33,348 33,348      -  (9,192)(9,192)
  (losses)/           
  gains on                                                                      
  investments                                                                 
  Currency         -    (685)   (685)    -    (491)  (491)     -  (2,524)(2,524)
  losses                                                           
  (note 1)                                                                    
  Income         383       -     383   334       -    334    866       -    866
  Investment    (624)      -    (624) (918)      -   (918)(1,751)      - (1,751)
  management                                                
  fee                                                                         
  Other         (104)      -    (104) (123)      -   (123)  (227)      -   (227)
  administrative                                                                

  expenses                                                                    
  Net return    (345)(54,176)(54,521) (707) 54,917 54,210 (1,112) 36,401 35,289
  before               
  finance                                                                     
  costs and                                                                   
  taxation                                                                    
  Finance       (106)      -    (106) (172)      -   (172)   (360)     -   (360)
  costs of                                                                    
  borrowings                                                                  
  Return on     (451)(54,176)(54,627) (879) 54,917 54,038  (1,472)36,401 34,929
  ordinary           
  activities                                                                  
  before                                                                      
  taxation                                                                    
  Tax on         (55)      -     (55)  (50)      -    (50)   (125)     -   (125)
  ordinary                                                                    
  activities                                                                  
  Return on     (506)(54,176)(54,682) (929) 54,917 53,988  (1,597)36,401 34,804
  ordinary              
  activities                                                                  
  after                                                                       
  taxation                                                                    
  Transfer      (506)(54,176)(54,682) (929) 54,917 53,988  (1,597) 36,401 34,804
  (from)/to           
  reserves                                                                    
                                          
  Return per   (0.79)(84.98) (85.77)(1.45)+ 86.14+ 84.69+ (2.51)+  57.10+ 54.59+
   ordinary                                   
  share  
  (pence)                                    
  (note 3)                                                                    



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

+ Restated for five for one share split (see note 5).

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

                     THE BAILLIE GIFFORD JAPAN TRUST PLC

                           SUMMARISED BALANCE SHEET

                             at 28 February 2001

                                 (unaudited)


                                                                    31 August
                                                                         2000
                                                       28
                                            February 2001
                                                    £'000               £'000
NET ASSETS
Listed overseas equities                           95,759             165,805
Unlisted equities - traded on the                   4,727              14,347
Japanese OTC market
Total fixed asset investments                      100,486            180,152
Net liquid assets                                   16,051             11,581
Total assets (before deduction of                  116,537            191,733
bank loans)
Bank loans (note 4)                                (5,911)            (26,425)
                                                  110,626             165,308
CAPITAL AND RESERVES
Called-up share capital                             3,188               3,188
Capital reserves                                  113,204             167,380
Revenue reserve                                    (5,766)             (5,260)
EQUITY SHAREHOLDERS' FUNDS                        110,626             165,308
NET ASSET VALUE PER ORDINARY SHARE                 173.5p               259.3p+
Ordinary shares in issue (note 5)              63,750,000           63,750,000+

+ Restated for five for one share split (see note 5).

                     THE BAILLIE GIFFORD JAPAN TRUST PLC
                       SUMMARISED CASH FLOW STATEMENT

                                (unaudited)                            
                                              Six months to          Year to
                                                28 February   31 August 2000
                                                       2001
                                             £'000    £'000     £'000     £'000
NET CASH OUTFLOW FROM OPERATING ACTIVITIES             (430)             (1,067)
NET CASH OUTFLOW FROM SERVICING OF FINANCE              (93)               (356)

TOTAL TAX PAID                                          (54)                (23)

FINANCIAL INVESTMENT                        

Acquisitions of investments                 (29,794)           (87,110) 

Disposals of investments                     56,001            100,559
                                             
Realised currency (losses)/gains             (1,364)               217

NET CASH INFLOW FROM FINANCIAL INVESTMENT            24,843              13,666
                                                     

NET CASH INFLOW BEFORE FINANCING                     24,266              12,220
FINANCING                                   

Net (outflow)/inflow from bank loans        (19,835)                12
(repaid)/drawn down
Shares purchased for cancellation                 -               (881)
NET CASH OUTFLOW FROM FINANCING                     (19,835)               (869)
INCREASE IN CASH                                      4,431              11,351
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN
NET FUNDS/(DEBT)

Increase in cash in period                    4,431             11,351
Net outflow/(inflow) from bank loans         19,835                (12)
Exchange movement on bank loans                 679             (3,158)
MOVEMENT IN NET FUNDS/(DEBT)                         24,945               8,181
NET DEBT AT 1 SEPTEMBER 2000                        (14,553)            (22,734)
NET FUNDS/(DEBT) AT 28 February 2001                 10,392             (14,553)

                                                     



                     THE BAILLIE GIFFORD JAPAN TRUST PLC
                        TWENTY LARGEST EQUITY HOLDINGS

                              at 28 February 2001
                       Business                                 Market     % of
                                                                 value    total
 Name
                                                                 £'000   assets
Promise                Consumer finance                          4,887      4.2
Fast Retailing         Casual wear retailer                      4,467      3.8
Fuji Heavy Industries  Maker of Subaru brand automobiles         3,973      3.4
Yamada Denki           Consumer electronics retailer             3,408      2.9
NTT DoCoMo             Mobile telephone services                 3,312      2.8
Takeda Chemical        Pharmaceutical manufacturer               3,281      2.8
Industries
Nippon Broadcasting    Radio and TV broadcasting                 3,200      2.7
Systems
Yamatake Corporation   Control systems                           3,192      2.7
Noritz                 Kitchen and bath manufacturer             3,171      2.7
Tokyu                  Diversified conglomerate                  3,130      2.7
Kyocera                Telecoms equipment and electronic         3,005      2.6
                       components
Rohm                   Specialist semiconductors                 2,943      2.5
Sumitomo Bakelite      Specialist electronic materials           2,778      2.4
Nippon Electric Glass  Specialist glass                          2,733      2.3
Bandai                 Toys and character goods                  2,681      2.3
Kobayashi              Household products                        2,602      2.2
Pharmaceutical
Rengo                  Cardboard manufacturer                    2,596      2.2
Kokuyo                 Office furniture and supplies             2,567      2.2
Minebea                Miniature bearings                        2,550      2.2
Sanwa Bank             City bank                                 2,529      2.2
                                                                63,005     53.8





                     THE BAILLIE GIFFORD JAPAN TRUST PLC

                                    NOTES
                                           29 February 2000      31 August 2000
                         28 February 2001             £'000               £'000
                                    £'000
 1. Currency losses

     Realised exchange           (2,000)                (104)              646
     differences
                                                        
     Movement in                  1,315                 (387)           (3,170)
     unrealised exchange
     differences
                                                        
                                   (685)                (491)           (2,524)

 2. No interim dividend will be declared.


 3.  Return per ordinary share

     Revenue return                (506)                (929)           (1,597)

     Capital return             (54,176)              54,917            36,401


    Return per ordinary share is based on the above totals of revenue and
    capital and on 63,750,000 (29 February 2000 and 31 August 2000 -
    63,750,000) ordinary shares, being the weighted average number of ordinary
    shares in issue during the period (see note 5).


 4. A bank loan of £5.9 million (Y1.0 billion) has been drawn down under a yen
    loan facility which is repayable in November 2001 (31 August 2000 - £26.4
    million (Y4.1 billion)).

 5. At the AGM in November 2000 shareholders approved a resolution to
    sub-divide each of the Company's ordinary shares of 25p each into five
    ordinary shares of 5p each, which increased the number of ordinary shares
    in issue from 12,750,000 to 63,750,000. The net asset value per share and
    the return per share figures for the prior periods have been restated.

 6. At the AGM shareholders also approved the renewal of the Company's
    authority to buy back its own ordinary shares in respect of 9,556,125
    ordinary shares of 5p each (equivalent to 14.99% of its share capital at
    that date). No ordinary shares were bought back in the period under review
    and, therefore, at 28 February 2001 the Company's authority to buy back
    its own shares remained unchanged at 9,556,125 ordinary shares of 5p each.


 7. The financial information for the year ended 31 August 2000 has been
    extracted from the full accounts, which have been filed with the Registrar
    of Companies and which contain an unqualified Auditor's Report.

 8. The accounting policies applied in calculating the interim figures are
    consistent with those used in the Annual Financial Statements. The Interim
    Report was approved by the Board on 4 April 2001.