Interim Management Statement

Baillie Gifford Shin Nippon PLC
05 November 2007

                        BAILLIE GIFFORD SHIN NIPPON PLC

           Interim Management Statement - 3 months to 31 October 2007



Baillie Gifford Shin Nippon PLC aims to pursue long-term capital growth
principally through investment in small Japanese companies which are believed to
have above average prospects for capital growth.



Review of the Period


•    Over the period, the Company's net asset value (at par) fell by 6.9% 
     compared to a fall in the benchmark of 4.6% while the share price fell 
     by 5.6%

•    Changes in the Top 10 Equity Holdings were due to market movements.





           Sector Analysis of Total Assets                             Top Ten Equity Holdings

Name                             % of     % of total      Name                         % of     % of total
                                total     assets at                                   total      assets at
                              assets at    31/07/07                                 assets at    31/07/07
                               31/10/07                                              31/10/07

Manufacturing and machinery      33.7        33.1         Shinko Plantech              4.7          3.8
Commerce and services            20.2        20.1         Nabtesco                     3.7          3.2
Retail                           12.7        12.6         Juki                         3.2          3.2
Real estate and construction     10.8        11.0         Moshi Moshi Hotline          3.2          2.7
Financials                       5.4         7.9          Aruze                        3.2          2.2
Info. comm. and utilities        8.1         8.1          Tecmo                        2.8          2.3
Chemicals and other materials    2.0         2.0          Suruga Corp                  2.7          2.3
Electricals and electronics      3.4         2.9          Modec                        2.5          2.7
Pharmaceuticals and food         1.9         1.5          Funai Zaisan Consultants     2.5          3.3
Net liquid assets                1.8         0.8          Message                      2.5          2.0
Total                           100.0       100.0         Total                        31.0        27.7



Performance


                                                                  %
                         3 Months               1 Year               3 Years              5 Years
Share Price                   -5.6                 -15.0                 15.9                99.4
Nav (Par)                     -6.9                 -12.0                 11.4                76.3
Benchmark                     -4.6                 -11.9                 5.3                 71.0

Source: Fundamental Data Ltd/HSBC/Baillie Gifford & Co.  Capital only.

Benchmark - a composite index comprising the Tokyo Second Section Index, the
TOPIX Small Index and the JASDAQ Index, weighted by market capitalisation, in
sterling terms.



Past performance is not a guide to future performance

                                          General Information


                                                             31/10/07                  31/07/07
Annual management fee (based on net assets)                   1.00%                     1.00%
Share Price                                                   168.0p                    178.0p
Total assets (before deduction of bank loans)                 £68.7m                    £72.8m

Total borrowings (loans at par)                              £12.11m                   £11.99m
Net asset value per share (at par)                            182.1p                    195.5p
Discount of share price to net asset value (at par)            7.7%                      9.0%
Potential Gearing (at par)                                    21.4%                     19.7%
Actual Gearing (at par)                                       19.3%                     18.4%

Total borrowings (loans at fair)                             £12.23m                   £11.96m
Net asset value per share (at fair)                           181.7p                    195.5p
Discount of share price to net asset value (at fair)           7.5%                      9.0%
Potential Gearing (at fair)                                   21.7%                     19.7%
Actual Gearing (at fair)                                      19.6%                     18.4%







This interim management statement and up to date NAV and share price information
is available on the Managers' website www.bailliegifford.com.



For further information contact:-  Anzelm Cydzik on 0131 275 3276


                      This information is provided by RNS
            The company news service from the London Stock Exchange             WGUPMGGA