Final Results

Baillie Gifford Shin Nippon PLC
2 March 2001


                       BAILLIE GIFFORD SHIN NIPPON PLC

                   Results for the year to 31 January 2001

                                 2 March 2001

Salient points

  * Over the year to 31 January 2001, the Company was ranked second out of
    five in the Japanese small-company sector by the AITC whose size-weighted
    sector average NAV fell by 56%. In comparison diluted NAV per share for
    Shin Nippon fell 44.5% to 158.9p, giving up some of the 257.4% increase
    achieved in the year to 31 January 2000. These figures compared to
    sterling adjusted falls of 23.3% in the Tokyo Stock Exchange Second
    Section Index over one year and a 139.8% rise in that index for the
    previous year to January 2000.
  * A difficult year for all investors in Japan particularly in smaller
    companies. Market sentiment was affected by signs of weakening economic
    momentum, political unpopularity, concerns about the banking sector and
    bankruptcies in the retail and life assurance sectors. Worries about
    recession in the USA has also been a negative influence.
  * Effective gearing reduced. The Company started the year with an
    effective gearing of 14% which was reduced during the course of 2000. At
    the end of January 2001 Shin Nippon held net cash of 4% of assets,
    reflecting the current cautious outlook.
  * Share buy-backs. The Company received authority to buy back 4,767,643
    shares (equivalent to 14.99% of issued share capital) at an EGM in August
    2000. The Company bought back 350,000 ordinary shares for a total
    consideration of £457,000, adding 0.2% to net asset value per share at an
    average discount to NAV of 18.8%.
  * The Board remains optimistic in the medium-long term. The outlook for
    investment in smaller Japanese companies remains optimistic. The Company
    believes that this area of the market possesses many companies
    unencumbered by the debt problems of their larger peers whilst having more
    exposure to genuine growth areas of the economy.
  * Changes to the Board. Gavin Gemmell has decided to retire from the Board
    at the AGM on 8 May 2001 following his retirement as Senior Partner at
    Baillie Gifford at the end of April. He has been on the Board since the
    inception of the Company and has made a major contribution to the Trust
    over the last sixteen years. The Board has resolved to appoint Sarah
    Whitley, a Partner of Baillie Gifford, as a Director with effect from 1
    May 2001. She will stand for election at the AGM on 8 May 2001.
  * Diluted NAV per share fell 22.0% in the six months to 31 January 2001
    compared to a sterling adjusted fall of 15.7% in the Tokyo Stock Exchange
    Second Section Index.

Baillie Gifford Shin Nippon PLC aims to achieve capital growth through
investment in smaller Japanese companies including those quoted on the
Over-The-Counter market. The Company has total assets of £61 million. An ISA
and Share Plan are available.

The Company is managed by Baillie Gifford & Co., the leading independent
Edinburgh based fund management group with around £22 billion under management
and advice.

                                   - ends -

                   For further information please contact:

Sarah Whitley, Manager,

Baillie Gifford Shin Nippon PLC     0131 222 4000

Mike Lord, Director,

Broadgate Marketing     020 7726 6111



Baillie Gifford & Co. is regulated by IMRO.

                       BAILLIE GIFFORD SHIN NIPPON PLC

The following is the unaudited preliminary statement for the year to 31
January 2001 which was approved by the Board on 1 March 2001. The Board of
Baillie Gifford Shin Nippon PLC are recommending to the Annual General Meeting
of the Company to be held on 8 May 2001 that no dividend be paid for the year
ended 31 January 2001.



                          STATEMENT OF TOTAL RETURN
             (unaudited and incorporating the revenue account*)         
                                                     
                     For the year ended              For the year ended         

                      31 January 2001                 31 January 2000           
                  Revenue  Capital    Total       Revenue   Capital   Total   
                  £'000    £'000      £'000       £'000     £'000     £'000 
  
  (Losses)/gains  -        (40,180)   (40,180)    -         68,973    68,973  
  on investments                                                              
  Currency        -        (963)      (963)       -         (1,322)   (1,322) 
  losses (note                                                                
  1)                                                                          
  Income          418      -          418         415       -         415     
  Investment      (636)    -          (636)       (694)     -         (694)   
  management fee                                                              
  Other           (177)    -          (177)       (150)     -         (150)   
  administrative                                                              
  expenses                                                                    
  Net return      (395)    (41,143)   (41,538)    (429)     67,651    67,222  
  before                                                                      
  finance costs                                                               
  and taxation                                                                
  Finance costs   (345)    -          (345)       (255)     -         (255)   
  of borrowings                                                               
  Return on       (740)    (41,143)   (41,883)    (684)     67,651    66,967  
  ordinary                                                                    
  activities                                                                  
  before                                                                      
  taxation                                                                    
  Tax on          (55)     -          (55)        (47)      -         (47)    
  ordinary                                                                    
  activities                                                                  
  Return on       (795)    (41,143)   (41,938)    (731)     67,651    66,920  
  ordinary                                                                    
  activities                                                                  
  after taxation                                                              
  Transfer        (795)    (41,143)   (41,938)    (731)     67,651    66,920  
  (from)/to                                                                   
  reserves                                                                    
  Return per      (2.50p)  (129.37p)  (131.87p)   (2.30p)   212.71p   210.41p 
  ordinary share                                                              
  (note 3)                                                                    
 
There was no dilution of the above returns in either year.

* 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.

                       BAILLIE GIFFORD SHIN NIPPON PLC

                           SUMMARISED BALANCE SHEET

                              at 31 January 2001

                                 (unaudited)
                                                                   
                                                                      
                                               31 January         31 January
                                               2001               2000
                                               £'000              £'000
NET ASSETS                                     36,972             68,529

Listed overseas equities
Unlisted - traded on the OTC/Nasdaq            10,213             37,196
Japan markets
- Directors' valuation                         753                -
Total equities                                 47,938             105,725

Net liquid assets                              13,243             3,382
Total assets (before deduction of bank         61,181             109,107
loans)
Bank loans (note 4)                            (11,183)           (16,714)
                                               49,998             92,393
CAPITAL AND RESERVES
Called-up share capital                        3,146              3,181
Capital reserves                               49,890             91,455
Revenue reserve                                (3,038)            (2,243)
Equity shareholders' funds                     49,998             92,393

Net asset value per ordinary share (note 5):
Basic                                          158.9p             290.5p
Diluted (FRS14)                                158.9p             286.3p
Fully diluted                                  158.9p             283.9p

Ordinary shares in issue (note 6)              31,455,492         31,805,357



                       BAILLIE GIFFORD SHIN NIPPON PLC
                       SUMMARISED CASH FLOW STATEMENT

                                (unaudited)
                                                  Year to        Year to
                                                  January     31 January
                                                    2001           2000
                                               £'000 £'000       £'000 £'000
NET CASH OUTFLOW FROM OPERATING ACTIVITIES            (483)             (206)
NET CASH OUTFLOW FROM SERVICING OF FINANCE            (359)             (192)
TOTAL TAX (PAID)/REPAID                                (55)              67
FINANCIAL INVESTMENT

Acquisitions of investments                  (36,309)           (26,370)

Disposals of investments                      53,248             22,182

Realised currency loss                          (300)              (274)
NET CASH INFLOW/(OUTFLOW) FROM FINANCIAL
INVESTMENT
                                                    16,639            (4,462)

NET CASH INFLOW/(OUTFLOW) BEFORE FINANCING          15,742            (4,793)
FINANCING

Shares repurchased                             (129)             -

Net proceeds from bank loans (repaid)/drawn  (6,194)             7,755
down
NET CASH (OUTFLOW)/INFLOW FROM FINANCING            (6,323)            7,755
INCREASE IN CASH                                     9,419             2,962
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN
NET FUNDS/(DEBT)
Increase in cash in the period                       9,419             2,962
Net outflow/(inflow) from bank loans                 6,194            (7,755)
Exchange movement on bank loans                       (663)           (1,107)
MOVEMENT IN NET FUNDS/(DEBT) IN THE PERIOD          14,950            (5,900)
NET DEBT AT 1 FEBRUARY 2000                        (12,973)           (7,073)
NET FUNDS/(DEBT) AT 31 JANUARY 2001                  1,977           (12,973)


                       BAILLIE GIFFORD SHIN NIPPON PLC

                        TWENTY LARGEST EQUITY HOLDINGS

                              At 31 January 2001


                                                           Market          % of
                                                            value         total
Name                     Business                           £'000        assets
Yamada Denki             Consumer electronics retailer         2,663        4.4
Aiful                    Consumer loans and business           2,248        3.7
                         finance
Aeon Credit Service      Credit card company                   2,121        3.5
Fast Retailing           Casual wear retailer                  2,118        3.5
Nissin                   Consumer loans and business           1,653        2.7
                         finance
Hirose Electric          Electrical and optical                1,620        2.6
                         connectors
Koa                      Electronic resistor                   1,605        2.6
                         manufacturer
Kose                     Cosmetics                             1,594        2.6
Hokuto                   Mushroom cultivator                   1,376        2.2
People                   Operator of fitness clubs             1,362        2.2
Nippon Thompson          Needle roller bearings                1,360        2.2
Yamaichi Electronics     Test sockets for integrated           1,243        2.0
                         circuits
Fuji Machinery           Automated assembly machines           1,218        2.0
Manufacturing
* Venture Link           Franchise support and                 1,178        1.9
                         development
* Taiyo Ink              Maker of specialist inks              1,155        1.9
Manufacturing
Resorttrust              Time-share resorts                    1,066        1.7
Koei                     Games software                          991        1.6
Nidec                    Specialist industrial                   982        1.6
                         components
Sanix                    Pest control and waste disposal         979        1.6
* Eneserve Corporation   Alternative power generation            956        1.6
                                                              29,488       48.1

* Denotes unlisted holdings traded on the OTC/Nasdaq Japan markets.

BAILLIE GIFFORD SHIN NIPPON PLC

                                    NOTES

                                              31 January 2001    31 January 2000

                                                        £'000              £'000

    1.     Currency losses

     Realised exchange differences                       (64)         360
     Movement in unrealised exchange differences         (899)        (1,682)
                                                         (963)        (1,322)


    2. No interim dividend will be declared.

    3.     Return per ordinary share

     Revenue return                                      (795)       (731)
     Capital return                                      (41,143)    67,651


    Return per ordinary share is based on the above totals for revenue and
    capital and on 31,802,043 (2000 - 31,805,357) ordinary shares, being the
    weighted average number of ordinary shares in issue during the year.

    4.     Bank loans of £11.2 million (Y1.9 billion) have been drawn down
    under yen loan facilities which are repayable between July 2002 and May
    2005 (31 January 2000 - £16.7 million (Y2.9 billion)).

    5.     Net asset value per ordinary share is based on net assets of £
    49,998,000 (2000 - £92,393,000) and 31,455,492 (2000 - 31,805,357)
    ordinary shares, being the number of ordinary shares in issue at each year
    end.



    The diluted net asset per ordinary share is calculated in accordance with
    FRS 14 'Earnings per share' The calculation determines the potential
    number of dilutive shares which would be issued on the exercise of
    warrants by reference to the price of the ordinary shares at the year end.
    Under this method there was no dilution at 31 January 2001 as the share
    price was less than the exercise price of the warrants. The diluted net
    asset value at 31 January 2000 was 286.3p, based on net assets of £
    92,393,000, 32,276,208 ordinary shares and a share price of 246p.

         The fully diluted net asset value per ordinary share is calculated on
    the assumption that the warrants in issue were fully exercised at the year
    end at 200p each. Under this method there was no dilution at 31 January
    2001. The fully diluted net asset value at 31 January 2000 was 283.9p
    based on net assets of £97,429,000 and 34,323,388 ordinary shares. The
    2,517,896 outstanding warrants are exercisable at 200p on 30 April in any
    of the remaining years 2001 to 2005.

6.At the EGM in August 2000 shareholders granted the Company authority to
purchase shares in the market up to 4,767,643 ordinary shares (equivalent to
14.99% of its issued share capital at that date). During the year 350,000
ordinary shares with a nominal value of £35,000 were bought back for a total
consideration of £457,000 and were subsequently cancelled. At 31 January 2001
the Company had authority to buy back a further 4,417,643 shares. During the
year 135 ordinary shares were issued in respect of warrants exercised on 2 May
2000.




    7.     The financial information set out above does not constitute the
    Company's statutory accounts for the year ended 31 January 2001. The
    financial information for 2000 is derived from the statutory accounts for
    2000, which have been delivered to the Registrar of Companies. The
    Auditors have reported on the 2000 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 2001 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.