Interim Results

Baillie Gifford Japan Trust PLC
28 March 2002



                      THE BAILLIE GIFFORD JAPAN TRUST PLC

                 Results for the six months to 28 February 2002

During a period of generally weak Japanese stockmarket performance, The Baillie
Gifford Japan Trust PLC underperformed its comparative index by 2.5%. The
comparative index fell by 16.9%.

The Japanese stockmarket has shown some signs of recovery since the end of
February and the Managers are confident that the portfolio is well positioned to
benefit from any improvement in economic conditions.


   •  Performance: Over the six months to 28 February 2002 NAV per share fell by 19.4% compared with a
      decline of 16.9% in the Company's comparative index (75% TOPIX and 25% Tokyo Stock Exchange Second
      Section in sterling terms). The main reason for the below average performance was exposure to
      disappointing investments in the retail sector.

      Over the longer term the Company's performance record is good, ranking 2nd out of 7 in its sector
      over 5 years.

      Japanese Economy: The Japanese economy suffered prolonged recession in 2001. There are now signs
      that conditions are improving in the wake of a recovery in the USA. However, recovery in Japan is
      likely to be slower than in other major economies. Additionally, the banking sector's bad debt
      problems have yet to be fully tackled.

      Corporate Activity: During the period, corporate profits in Japan fell sharply. Consequently many
      companies are now restructuring in a more determined fashion than in the past. The Manager, Sarah
      Whitley, sees good value in the Japanese market especially when asset values, cash flow and the
      recovery potential for well run companies are taken into account.

      Outlook: The Board remains cautiously optimistic about the prospects for investment in Japan despite
      the country's inherent economic and political challenges. The Manager anticipates an improving trend
      in profits over the coming twelve months.




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 around £22 billion under management
and advice.

28 March 2002







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



                      THE BAILLIE GIFFORD JAPAN TRUST PLC


                                 Interim Report


Over the six months to 28 February 2002 the Japanese stockmarket was generally
weak as was the yen, which depreciated by 8.8%. As a result the net asset value
per share of Baillie Gifford Japan fell by 19.4%, which compares with a decline
of 16.9% in the Company's benchmark index. The underperformance relative to the
index is attributable to poor performance of the holdings in the retail sector,
principally Fast Retailing, with the rest of the portfolio performing in line
with the indices.


The Japanese economy suffered a prolonged recession in 2001 with three
successive quarters of declining activity. Overall the economy contracted by
0.5% during the year. The industrial economy has fallen the furthest, with the
service side of the economy remaining relatively flat. However there are now
signs that the worst of the declines may be over and that the nascent recovery
in the global economy will support industrial activity in Japan going forward.
Exports have shown some signs of improvement in January and February and
inventories have fallen sharply. Nonetheless economic recovery in Japan is
likely to be later and slower than that in other major economies, despite the
Bank of Japan's loosening of monetary policy over the past year.


Corporate profits in Japan have also fallen sharply and companies are beginning
to restructure more aggressively. Previous rounds of restructuring have
essentially been cost cutting, but the focus is increasingly on the size of the
balance sheet and trying to improve the return earned on assets. Significant
changes of attitude have been signalled by companies which were rivals tying up
and by large companies becoming more aggressive in their wage negotiations with
their employees. The scrapping of capacity has accelerated with the latest data
showing that 4.1% had been eliminated over the past year. The benefits of these
changes will only be shown in profits as the economy recovers. Company results
for the year ending March 2002 will be very weak, both operationally but also as
companies take asset write downs. However there could be a strong recovery in
the following fiscal year, particularly in the technology sector. Japanese
shares remain relatively inexpensive against their asset bases and their current
cash flow and also, we feel, against reasonable expectations of earnings in the
future.


Conversely in the political arena prospects for reform are less encouraging than
before. Mr Koizumi the Prime Minister has failed to capitalise on his initial
popularity and the general enthusiasm for reform that his surprise election
generated. Although he has achieved some success in the reform of the public
corporations, no other major policy initiatives have been successful. At the end
of January 2002 he sacked the extremely popular foreign minister Makiko Tanaka
after a row with a now disgraced Diet member and his popularity then fell
sharply. The immediate effect has been that government policy has focused on the
avoidance of a financial crisis rather than a resolution of the bad debt problem
in the banking system.


At the beginning of February the market seemed to discount the fading prospects
for difficult but necessary reform and instead concentrated on the benefits to
Japanese companies of a global recovery, no immediate economic disruption from a
large spate of bankruptcies and the seasonal improvement in equity demand, aided
by changes in short-selling regulations. There remain concerns about the banking
system in Japan and the measures needed for its resolution but this is for the
moment in the background. The market has bounced sharply, particularly since the
end of the month. We have invested most of the borrowings of Y1.8 billion (£9.5
million) in the market during March, particularly in companies that will benefit
from the global recovery and a rise in their profits in 2003


By order of the Board

Baillie Gifford & Co

27 March 2002






The following is the interim statement for the six months ended 28 February 2002
which has been neither reviewed nor audited by the auditors. This statement is
being printed and will be sent to all shareholders on 11 April 2002. 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 ended        for the six months ended             for the year ended

                               28 February 2002                28 February 2001                   31 August 2001
                         Revenue   Capital    Total       Revenue   Capital    Total      Revenue   Capital     Total

                         £'000    £'000     £'000        £'000     £'000     £'000        £'000      £'000      £'000
Realised (losses)/gains
on investments                 -    (5,502)   (5,502)           -     1,570     1,570           -     (1,404)    (1,404)
Unrealised losses on           -   (13,065)  (13,065)           -   (55,061)  (55,061)          -    (66,604)   (66,604)
investments
Currency gains/(losses)        -       320       320            -      (685)     (685)          -       (982)      (982)
(note 1)
Income                       314         -       314          383         -       383         866          -        866
Investment management       (417)        -      (417)        (624)        -      (624)     (1,168)         -     (1,168)
fee
Other administrative        (109)        -      (109)        (104)        -      (104)       (207)         -       (207)
expenses
Net return before           (212)  (18,247)  (18,459)        (345)  (54,176)  (54,521)       (509)   (68,990)   (69,499)
finance costs and
taxation
Finance costs of             (55)        -       (55)        (106)        -      (106)       (135)         -       (135)
borrowings
Return on ordinary
activities before           (267)  (18,247)  (18,514)        (451)  (54,176)  (54,627)       (644)   (68,990)   (69,634)
taxation
Tax on ordinary              (46)        -       (46)         (55)        -       (55)       (127)         -       (127)
activities
Return on ordinary
activities after            (313)  (18,247)  (18,560)        (506)  (54,176)  (54,682)       (771)   (68,990)   (69,761)
taxation
Transfer from reserves      (313)  (18,247)  (18,560)        (506)  (54,176)  (54,682)       (771)   (68,990)   (69,761)
Return per ordinary
share (note 3)            (0.49p)  (28.68p)  (29.17p)      (0.79p)  (84.98p)  (85.77p)     (1.21p)  (108.22p)  (109.43p)
                          

* 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 28 February 2002

                                  (unaudited)


                                                                28 February 2002         28 February          31 August

                                                                                                2001              2001
                                                                           £'000               £'000             £'000
NET ASSETS
Listed overseas equities                                                  74,705             95,759             91,047
Unlisted equities - traded on the Japanese OTC market                      4,754              4,727              5,624
- Directors' valuation                                                     1,335                  -              1,434
Total fixed asset investments                                             80,794            100,486             98,105
Net liquid assets                                                          5,411             16,051              8,449
Total assets (before deduction of bank loans)                             86,205            116,537            106,554
Bank loans (note 4)                                                       (9,509)            (5,911)           (11,007)
                                                                          76,696            110,626             95,547
CAPITAL AND RESERVES
Called-up share capital                                                    3,174              3,188              3,188
Capital reserves                                                          79,866            113,204             98,390
Revenue reserve                                                           (6,344)            (5,766)            (6,031)
EQUITY SHAREHOLDERS' FUNDS                                                76,696            110,626             95,547
NET ASSET VALUE PER ORDINARY SHARE                                        120.8p             173.5p             149.9p
Ordinary shares in issue (note 5)                                    63,475,000         63,750,000         63,750,000




                                         THE BAILLIE GIFFORD JAPAN TRUST PLC
                                            SUMMARISED CASH FLOW STATEMENT

                                                      (unaudited)
                                                         for the six months  for the six months to     for the year
                                                                 to
                                                          28 February 2002     28 February 2001             to
                                                                                                        31 August
                                                                                                           2001
                                                        £'000                   £'000                   £'000

NET CASH OUTFLOW FROM OPERATING ACTIVITIES                        (262)                   (430)                   (625)
NET CASH OUTFLOW FROM SERVICING OF FINANCE                         (20)                    (93)                   (152)
TOTAL TAX PAID                                                     (47)                    (54)                   (125)
FINANCIAL INVESTMENT
Acquisitions of investments                                    (22,395)                (29,794)                (67,371)
Disposals of investments                                        20,766                  56,001                  81,036
Realised currency losses                                          (610)                 (1,364)                 (1,740)
NET CASH (OUTFLOW)/ INFLOW FROM FINANCIAL INVESTMENT            (2,239)                 24,843                  11,925
NET CASH (OUTFLOW)/INFLOW BEFORE FINANCING                      (2,568)                 24,266                  11,023
FINANCING
Net outflow from bank loans repaid                                (568)                (19,835)                (14,660)
Shares purchased for cancellation                                 (291)                      -                       -
NET CASH OUTFLOW FROM FINANCING                                   (859)                (19,835)                (14,660)
(DECREASE)/INCREASE IN CASH                                     (3,427)                  4,431                  (3,637)
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET
(DEBT)/ FUNDS
(Decrease)/increase in cash in the period                       (3,427)                  4,431                  (3,637)
Net outflow from bank loans                                         568                 19,835                  14,660
Exchange movement on bank loans                                     930                    679                     758
MOVEMENT IN NET (DEBT)/ FUNDS IN THE PERIOD                     (1,929)                 24,945                  11,781
NET DEBT AT START OF PERIOD                                     (2,772)                (14,553)                (14,553)
NET (DEBT)/ FUNDS AT END OF PERIOD                              (4,701)                 10,392                  (2,772)




                                          THE BAILLIE GIFFORD JAPAN TRUST PLC



                                             TWENTY LARGEST EQUITY HOLDINGS

                                                  at 28 February 2002

                                                                                              Market value
                                                                                                              % of total
Name                                      Business                                                   £'000
                                                                                                                  assets
Takeda Chemical Industries                Pharmaceuticals                                            3,356           3.9
Tostem Inax Holdings                      Housing materials                                          3,044           3.5
Fuji Heavy Industries                     Maker of Subaru brand automobiles                          2,622           3.0
Funai Electric                            Outsourced consumer electronics manufacturer               2,588           3.0
Yamatake Corporation                      Control systems                                            2,587           3.0
Nippon Broadcasting System                Radio and TV broadcasting                                  2,526           2.9
Konica                                    Digital imagery                                            2,400           2.8
Yamada Denki                              Consumer electronics retailer                              2,315           2.7
Promise                                   Consumer finance                                           2,248           2.6
Takuma                                    Waste incinerator manufacturer                             2,179           2.5
CSK Corporation                           Computer services                                          2,138           2.5
Noritz                                    Kitchen and bath manufacturer                              2,122           2.5
Bandai                                    Maker of toys, cartoons and character goods                2,108           2.4
Aiful                                     Consumer finance                                           2,082           2.4
Kyocera                                   Electronic components                                      2,034           2.4
NTT DoCoMo                                Mobile telecommunications                                  2,027           2.4
Venture Link                              Franchise support and development                          2,025           2.3
QP Corporation                            Food manufacturer                                          1,957           2.3
Kobayashi Pharmaceuticals                 Household products                                         1,861           2.2
Tokyu                                     Diversified conglomerate                                   1,826           2.1
                                                                                                    46,045          53.4


                      THE BAILLIE GIFFORD JAPAN TRUST PLC


                                     NOTES
                                                             28 February 2002         28 February              31 August

                                                                        £'000                2001                   2001

                                                                                            £'000                  £'000
1.     Currency gains/(losses)
       Realised exchange differences                                    (906)             (2,000)                (2,377)
       Movement in unrealised exchange differences                      1,226               1,315                  1,395
                                                                          320               (685)                  (982)

2.     No interim dividend will be declared

3.     Return per ordinary share
       Revenue return                                                   (313)               (506)                  (771)
       Capital return                                                (18,247)            (54,176)               (68,990)

       Return per ordinary share is based on the above totals of revenue and capital and on 63,622,376 (28 February 2001
       and 31 August 2001 - 63,750,000) ordinary shares, being the weighted average number of ordinary shares in issue
       during the period.


4.     Bank loans of £9.5 million (Y1.8 billion) have been drawn down under yen loan facilities which are repayable in
       August 2006 (28 February 2001 - £5.9 million (Y1.0 billion); 31 August 2001 - £11.0 million (Y1.9 billion)).


5.     During the period the Company bought back 275,000 ordinary shares with a total nominal value of £13,750 for a
       consideration of £291,000. The Company's authority to buy back its own ordinary shares was last renewed at the
       AGM in November 2001 in respect of 9,541,135 ordinary shares (equivalent to 14.99% of its share capital at that
       date). At 28 February 2002 the Company had authority to buy back a further 9,366,135 shares.


6.     The financial information for the year ended 31 August 2001 has been extracted from the full accounts, which have
       been filed with the Registrar of Companies and which contain an unqualified Auditor's Report.


7.     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 27 March 2002.



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