Final Results

F&C Latin American Inv Trust PLC
16 March 2006



Date:                15 March 2006


Contacts:   Peter Burnell. Chairman, F&C Latin American Investment Trust PLC 
            0771 476 7647

            Jonathan Ruck Keene, Head of Investment Trusts, MLIM 
            020 7743 2178

            Will Rogers, UBS 
            020 7568 2939


F&C LATIN AMERICAN INVESTMENT TRUST PLC

Unaudited Preliminary Statement of Results
for the year ended 31 December 2005


Highlights


  • In the year ending 31 December 2005, the fully diluted net asset value
    (cum income) per share total return was +39.8%, whilst the share price
    increased by +46.3% on a total return basis. This compares to an increase of
    50.4% in the benchmark index.



  • Over three years, the fully diluted net asset value per share produced a
    total return of +272.2%, whilst the share price increased by +300.3% on a
    total return basis. This compares to an increase of +269.7% in the benchmark
    index. This was the best performance in our peer group.



  • Latin American stock markets enjoyed another very strong year as the
    region's long term economic outlook continued to brighten, with corporate
    earnings and cashflow growing rapidly and global conditions remaining very
    supportive to the region's stock markets.



  • The Company's dividend income has continued to increase significantly over
    the period. The Board is pleased to declare a second interim dividend of
    6.50 cents (2005: 3.00 cents) per share payable on 19 May 2006 which
    represents a 80% increase in the total dividend for the year.



  • The Board has conducted a review of the Company's management arrangements
    and has concluded that it would be in the best interests of shareholders as
    a whole to appoint Merrill Lynch Investment Managers ('MLIM')  with effect
    from 31 March 2006.



  • The Board proposes to change the Company's name to Merrill Lynch Latin
    American Investment Trust PLC.



  • The Board has reviewed the terms of the discount control mechanism and is
    proposing at the time of the AGM to make a substantial tender offer followed
    by ongoing measures with the intention of maintaining the discount at a
    consistently low level.



  • The bi-annual Continuation Vote will take place at the Annual General
    Meeting to be held on 8 May 2006. The Board recommends shareholders to vote
    in favour of the Company continuing as an investment trust under the
    management of MLIM.



SUMMARY OF RESULTS


                                                                       31 Dec               31 Dec                    %
                                                                         2005                 2004               Change
Attributable to equity shareholders

Net assets                                                          US$403.3m            US$302.3m                +33.4

Net asset value per ordinary share -                              543.95cents        **433.26cents                +25.6

Basic cum income

Net asset value per ordinary share -                                      n/a                  n/a                +26.8

Basic total return*

Net asset value per ordinary share -                              543.95cents        **390.12cents                +39.4

Diluted cum income

Net asset value per ordinary share -                                      n/a                  n/a                +40.8

Diluted total return

Share price                                                       484.00cents          335.50cents                +44.3

Share price - total return*                                               n/a                  n/a                +46.3

Return attributed to equity shareholders (Revenue)                      $8.0m                $4.2m                +90.5

Earnings per share (revenue)                                       10.98cents            5.80cents                +89.3

Annual dividends per share                                          9.00cents            5.00cents                +80.0



* total return figures include income distributed during the year

** restated to reflect changes in accounting standards


Chairman's statement



The Latin American stockmarkets enjoyed another very strong year in 2005 as the
region's long term economic outlook continued to brighten and corporate earnings
and cashflow grew rapidly. The global environment also continued to be extremely
supportive to both the underlying economics of the Latin American region and to
sentiment in Latin American stock markets. In particular, the region benefited
from another year of strong global GDP growth, the continued upward march in the
majority of commodity prices, low consumer price inflation across the G7
economies, high levels of global liquidity, a very robust risk appetite and
substantial inflows into the global emerging markets asset class. These
extremely favourable conditions enabled Latin America to be the best performing
region both in the emerging market asset class and in the world for the third
consecutive year. This helped your Company's shares produce a total return of
46.3% over the year. Over the last three years, your shares have produced a
total return of 300.3% in US dollars.



Investment performance



The fully diluted, cum income Net Asset Value per share (''fully diluted NAV''),
which shows our investment performance net of the smoothed dilutive impact of
the warrants (which expired on 31 July 2005), gave investors a total return of
40.8% in US dollars over the year, while the benchmark index, the MSCI Emerging
Markets Latin America Index rose by 50.4% in US dollars over the same period.
This underperformance was the result of our choosing to take a defensive stance
at the beginning of the year.



While we did not do as well as our peer group in 2005, our outperformance in
2003 and 2004 ensured that your Company has been the best performer over the
past three years. Over this period, our fully diluted NAV total return was
272.2% making us the best performer in our peer group and comparing favourably
with the benchmark index's 269.7% return. This was achieved despite substantial
dilution from our warrants, a problem which our competitors and the index did
not have to confront.  Without the impact of the warrants our undiluted NAV
would have risen by 296.6% over this period.



Since the end of the financial year, our performance has continued to be good.
From 31 December 2005 to 9 March 2006, our fully diluted NAV has risen by 11.5%,
against our benchmark index's 10.8% appreciation, whilst the share price has
risen by 17.3%, with the discount narrowing further to 6.2%.



Performance attribution



While our NAV performance in 2005 was solid, the underperformance resulted from
the adoption of what turned out to be an overly conservative bias in the
Company's stock selection and asset allocation. This stance was compounded by
moving from a geared position to holding net cash. We believed that the domestic
economy in Brazil was poised to slow down in 2005, contrary to market
expectations at the start of last year and, in addition, we were conscious of
rising political risk across the region. We expected that these two factors
would trigger a correction in the local stock markets in 2005 after such strong
performance in 2003 and 2004. Many of these negative factors did actually occur
but Brazil's ability to continue to improve its balance sheet in 2005 and the
amount of liquidity and risk appetite in the global backdrop surprised us.



The largest contributor to our NAV underperformance during 2005 resulted from
holding an average level of 5.85% net cash during a period when the market,
against our expectations, continued to move up strongly. Elsewhere, Mexican
stock selection detracted from performance because the Company was positioned in
some relatively defensive companies which had strong fundamentals, little
downside risk and which we believed would be able to appreciate in almost all
market scenarios. In the end they struggled to keep up with last year's bull
market. We avoided the more speculative part of the market because we expected
to see a correction during the year as we neared 2006's presidential elections
and economic growth slowed. Whilst we had a bad year in our Mexican segment last
year, it needs to be emphasised that we have generally done extremely well in
this market in the past. Our relative performance also suffered from our
overweight position in Chile last year where we felt the risk/reward trade off
was very favourable in absolute terms. Chile did appreciate by 21.6% during the
year but this underperformed the regional benchmark's return. Brazilian stock
selection continued to add value where our Brazilian portfolio rose by 59.9%
which was ahead of the benchmark's 57.1% return. We also benefited from having
no exposure to Venezuela during the year.



Over the three year period, our outperformance was produced by positive stock
selection and to a lesser extent by using tactical gearing. Our Brazilian
portfolio appreciated by 393.3% compared to the Brazilian benchmark's 364.1%
appreciation and our Mexican portfolio rose by 222.6% compared to the 199.2%
market return. Our gearing policy also added value with an averaged geared
position of 5.99% throughout the period.




Regional review



The region's stockmarkets all benefited from the very high levels of global risk
appetite and liquidity in 2005 which facilitated substantial inflows into the
emerging markets asset class. Whilst the regional economic newsflow was
generally constructive throughout most of 2005, GDP growth was somewhat
disappointing; however this was offset by a significant improvement in the
sovereign balance sheets of the key economies.



In Brazil, GDP growth decelerated from 4.9% in 2004 to 2.3% in 2005 due to a
sharper than expected monetary tightening cycle which triggered a mild recession
in its domestic economy whilst its export sector continued to perform
exceptionally well. Brazilian corporates however continued to grow their
cashflow and earnings rapidly as many benefited from the continued strength in
global commodity prices. Brazil's sovereign balance sheet also continued to
improve and as a result Brazilian risk premiums fell. The fall in risk premiums,
strong profit growth and currency strength helped the stockmarket produce
another very strong year.



In Mexico, GDP growth decelerated from 4.4% in 2004 to 3% in 2005. An increase
in interest rates, rising political tension and weakness in the US auto industry
all contributed to this slightly disappointing result. Mexican corporates
however continued to grow their earnings and cashflow rapidly and this
underpinned the strong performance by its stockmarket.



In Chile, the economy grew by approximately 6% which was line with last year's
6.1% growth rate. Chilean corporates also produced another year of strong
earnings and cashflow growth and this helped a continued rally in its
stockmarket. The presidential election went well with the incumbent party's
candidate, Michelle Bachelet, winning as expected.



In the Andean bloc, the political environment held back market progress with
president Chavez in Venezuela continuing to unnerve investors. Political
uncertainty also grew in Peru as its April 2006 presidential election drew
nearer. Colombia continued to do well over the year as its security situation
improved further and its GDP grew by approximately 5% .



Prospects and gearing



As discussed, we felt that there was a high probability that the region's stock
markets would experience a correction in the first half of last year and built
up an average net cash position of 7.2% during that period. This cautious stance
held back our performance in this period, and after reassessing the region's
fundamentals at the beginning of the second half of the year, we moved back to
close to a fully invested position by increasing the size of the positions in
the stocks in which we had the most conviction. In particular, we became more
positive on Brazil and moved back to an overweight position, adding a
substantial amount of money to some very promising and inexpensive opportunities
in the Brazilian logistics and consumption sectors, which had produced
lacklustre performance in the first half of the year. These stocks went on to
produce very good absolute and relative performance for us in the second half of
the year and have continued to do very well in early 2006. Our net cash averaged
5.85% over the full year. We ended the year at close to fully invested, with
1.1% net cash and have continued to operate at close to these levels in 2006.



As we enter 2006, we remain optimistic about Brazil's outlook and expect to see
a marked acceleration in its domestic economy, further improvements in its
balance sheet and believe that all of the major credit agencies will upgrade its
rating by at least one further notch in 2006. We are very pleased to note that
Standard and Poors recently increased Brazil's credit rating to two notches
below investment grade at the end of February 2006. We continue to run our
overweight position in Brazil. We also continue to believe that the risk /
reward balance in Chile is favourable and remain overweight in this market. We
expect the Mexican market to underperform in the first half of the year as  its
election approach  and are consequently underweight this market but remain
bullish on Mexico's prospects over the long term.



We see another year of double digit cashflow and earnings growth across the
region and can still find many companies to invest into where we can see value.
We are avoiding stocks which we feel have become overvalued in the bull market
and have moved underweight in some of the index heavy weights with many of our
overweight positions focused in the mid cap section of the market. Overall we
can see plenty of opportunities for another year of positive absolute returns,
but are cognisant of the very sharp run up that we have enjoyed over the last
three years.  We are making all of our investments with a firm eye to each one's
downside risk, and are avoiding the more speculative parts of the market.



There is a growing sense in the region that the long term outlook for its
economies is being polarised into two distinctive groups. One group which
includes Brazil, Chile, Mexico and to a large extent Colombia, has continued to
embrace pro market policies and is part of the way through very deep rooted
changes to their macroeconomic fundamentals. This has materially improved the
long-term outlook for this group's sovereign balance sheets, balance of
payments, inflation rates and consequently risk premiums, currencies and
interest rates. The long term economic prospects for this group, which
constitutes over 90% of the weight in the MSCI Latin American index, is
currently looking very favourable.



There is another group of countries which includes Venezuela, Bolivia and to a
lesser extent Argentina where populist governments have made a comeback or have
become more deeply entrenched and  controversial economic polices are being
conducted in these countries. There is a risk that these countries remain locked
into their historic pattern of boom bust cycles. We do not believe that any of
the first group of countries will enter the second group in the foreseeable
future and would urge our shareholders not to extrapolate the direction in
Venezuelan and Bolivian economic policy to the rest of the region. In any region
of the world, there will be winners and losers amongst the countries located in
that region and there is absolutely no reason why all of the countries in Latin
America will follow one direction.



Investment policy and dividends



The Company continued to enjoy significant dividend inflows from its investments
during the year. This positive background combined with the Board's revised
accounting policy (regarding the apportionment of management fees and capital
costs) announced and discussed in last year's financial reports have enabled the
Company to continue to increase its dividend payout. The Board declared an
initial interim dividend of 2.5 cents per share that was paid on 4 November 2005
and are pleased to declare an additional interim dividend of 6.5 cents per share
making a total of 9.0 cents per share for the year. No final dividend is
expected to be paid. This represents an increase of 80% over the previous year.
The Board expects the Company to continue paying dividends over the long term
and believes that this should help make us a more attractive investment to our
shareholders.



Warrants



We passed the final subscription date for our warrants on 31 July 2005 and in
accordance with the terms of the warrant particulars, the Board appointed Law
Debenture Trust Corporation plc to exercise the 425,927 warrants which had not
been exercised by warrant holders at the final subscription date. In total
10,374,850 warrants were exercised in 2005 injecting US$10,374,850 of new cash
into your Company.



Discount and discount control mechanisms



The cum income NAV discount ('discount') started 2005 at 14.0% and fluctuated in
a volatile range throughout the period reaching lows of 8-9% in March and
October and highs of close to 15% during the steep regional rally in the middle
of the UK summer. The discount ended the period at 11.0%.  In early 2006, our
discount has continued to narrow further and has recently been as low as 6%.



The discount control mechanism was not triggered in the 60 day period ending 31
March 2005 because the average discount in this period was below the 13.5%
trigger level. It was however triggered in the 60 day period to the end of
September 2005 and the Company repurchased and cancelled 6,010,863 shares.
Outside of the tender offer we did not repurchase any shares over the period.



The Board has reviewed the terms of the discount control mechanism and is
proposing to introduce more active measures to maintain a much narrower discount
on the Company's shares.



To this end the Company will make a substantial tender offer at a tight discount
shortly after the forthcoming EGM to approve the tender. The Board intends that
this will be followed by semi-annual tender offers as and when necessary to keep
the discount within the target range. It is also intended to pursue a more
active share repurchase policy than hitherto.



Detailed proposals with regard to the tender offer will be announced shortly.



Management

Rupert Brandt, our Fund Manger since the beginning of 2003 announced in January
that he would be leaving F&C on 31 March 2006 to join an investment boutique.
Rupert produced very strong results over his three year period as the overall
fund manager, supported by an able team of Latin American specialist assistants,
and our thanks are due to all of them. We wish him well in his future
activities.



Following the announcement of Rupert's decision the Board conducted a thorough
review of the management arrangements. As a result, management companies with
expertise in the sector, including F&C, were invited to submit proposals.
Following a detailed review the Board has appointed Merrill Lynch Investment
Managers to take over the management of the portfolio with effect from 31 March
2006. The arrangements agreed provide for a management and administration fee of
0.8% per annum of NAV for the period up to the AGM in 2007 and 1% per annum
thereafter, compared to the present fees of 1.5% up to US$200m and 1% on the
balance plus a separate administration fee of US$130,000.



Your Board is convinced that MLIM's considerable expertise in, and commitment
to, the Investment Trust sector, a strong track record in Latin America, proven
distribution capability and very favourable terms will provide a strong platform
for the Company going forward.



It is with genuine regret that we have decided to end our association with F&C
who were co-founders of the Company and our thanks are due to them for their
services as manager over the past 16 years.



Future of your Company



At the Annual General Meeting the biannual resolution for the continuation of
the Company in its present form will be put to shareholders. Regular meetings
with many of our shareholders lead us to believe that there is continued demand
for a well managed Latin American closed end regional fund given the volatile
nature of the region's stock markets. Your company remains the biggest and most
liquid Latin regional fund in its peer group. Given our strong performance over
the last three years and encouraging prospects for the region's economies and
stock markets over the medium term future, we have no hesitation in again
recommending that shareholders should vote to support the continuation of the
Company in its present form under the management of Merrill Lynch



Annual General Meeting



The AGM will be held at 12.15 pm on Wednesday, 8 May 2006 Merrill Lynch's
offices at 33 King William Street, London EC4R 9AS. We hope that as many
shareholders as possible will attend. This will be followed immediately by the
EGM to approve the tender offer. Following the EGM there will be a presentation
by the new Managers discussing the outlook for 2006.



Peter Burnell

Chairman


BALANCE SHEET

at 31 December                                                                       2005                          2004
                                                                                             (Restated)*    (Restated)*
                                                                  US$'000s       US$'000s       US$'000s       US$'000s

Fixed assets
Investments held at fair value                                                    397,649                       299,952
Current assets
Debtors                                                              2,489                         7,379
Cash at Bank                                                         4,582                         8,693
                                                                     7,071                        16,072
Creditors: amounts falling due within one year:
Bank loans                                                               -                      (11,250)
Other                                                              (1,444)                       (2,462)
                                                                   (1,444)                      (13,712)
Net current assets                                                                  5,627                         2,360
Total assets less current liabilities                                             403,276                       302,312
Creditors: amounts falling due after more than one year:
Non-equity redeemable shares                                                         (24)                          (24)
Net assets                                                                        403,252                       302,288
Capital and reserves
Called up share capital                                                             7,413                         6,977
Share premium account                                               11,655                        63,880
Capital redemption reserve                                           1,573                           972
Special reserve                                                     32,837                             -
Warrant reserve                                                          -                         3,484
Non-distributable reserve                                            4,356                           872
Capital reserves                                                   338,691                       223,346
Revenue reserve                                                      6,727                         2,757
                                                                                  395,839                       295,311
                                                                                  403,252                       302,288
Net asset value per ordinary share
Basic - cents                                                                      543.95                        433.26
Diluted - cents                                                                    543.95                        390.12

* Restated for changes in accounting policy.


INCOME STATEMENT


(incorporating the Revenue Account)**
for the year ended 31 December                                         2005                                  2004
                                            Revenue     Capital       Total     Revenue      Capital        Total
                                                                                         (Restated)*  (Restated)*
                                           US$'000s    US$'000s    US$'000s    US$'000s     US$'000s     US$'000s

Gains on investments held at fair value           -     118,684     118,684           -      100,790      100,790
Exchange losses                                 (2)       (176)       (178)        (30)        (960)        (990)
Income                                       12,218           -      12,218      10,037            -       10,037
Management fee                              (1,132)     (3,395)     (4,527)     (3,703)            -      (3,703)
Other expenses                              (1,133)        (38)     (1,171)     (1,039)         (31)      (1,070)
Net return before finance costs

and Taxation                                  9,951     115,075     125,026       5,265       99,799      105,064
Interest payable and similar charges           (37)       (109)       (146)       (831)            -        (831)
Return on ordinary activities

before Taxation                               9,914     114,966     124,880       4,434       99,799      104,233
Taxation on ordinary activities             (1,848)         379     (1,469)       (220)        (100)        (320)
Return attributable to equity

shareholders                                  8,066     115,345     123,411       4,214       99,699      103,913
Return per ordinary share

(basic) - cents                               10.98      157.08      168.06        5.80       137.12       142.92
Return per ordinary share

(diluted) - cents                             10.36      148.18      158.54        5.33       126.20       131.53

* Restated for a change in accounting policy (see note 1)

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

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

A Statement of Total Recognised Gains and Losses is not required as all gains
and losses of the Company have been reflected in the above statement.



RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

AT 31 DECEMBER


                             Called    Share    Capital                             Non                           Total
                                 up
                              Share  Premium Redemption  Special  Warrant Distributable  Capital  Revenue Shareholders'
                            Capital  Account    Reserve  Reserve  Reserve       Reserve Reserves  Reserve         Funds
                           US$'000s US$'000s   US$'000s US$'000s US$'000s      US$'000s US$'000s US$'000s      US$'000s

Balance brought forward 31

December 2003 (as             7,400   61,544        313        -    4,356             -  146,273        -       219,886
previously stated)


Non-equity shares treated      (24)        -          -        -        -             -        -        -          (24)
as liability

Add back accrued dividend
at 31 December 2003               -        -          -        -        -             -        -      413           413


Less investment valuation         -        -          -        -        -             -  (2,595)        -       (2,595)
restatements


Balance at 31 December
2003
(restated)                    7,376   61,544        313        -    4,356             -  143,678      413       217,680


Dividends paid during 2004        -        -          -        -        -             -        -  (1,870)       (1,870)
Shares repurchased by the
company
during 2004                   (659)    2,336        659        -        -             - (20,031)        -      (17,695)


Shares issued on
conversion of
warrants                        260        -          -        -    (872)           872        -        -           260


Return attributable to equity

Shareholders in 2004 (as
previously stated)                -        -          -        -        -             -  102,432    4,214       106,646


Less investment valuation         -        -          -        -        -             -  (2,733)        -       (2,733)
restatements

Balance at 31 December
2004                          6,977   63,880        972        -    3,484           872  223,346    2,757       302,288
(restated)


Dividends paid during 2005        -        -          -        -        -             -        -  (4,096)       (4,096)

Shares repurchased by the
Company during 2005           (601)        -        601 (28,725)        -             -        -        -      (28,725)


Shares issued on
conversion of
warrants                      1,037    9,337          -        -  (3,484)         3,484        -        -        10,374


Transfer of share premium
to special reserve                - (61,562)          -   61,562        -             -        -        -             -


Return attributable to
equity
shareholders                      -        -          -        -        -             -  115,345    8,066       123,411


Balance carried forward 31
December 2005                 7,413   11,655      1,573   32,837        -         4,356  338,691    6,727       403,252


CASH FLOW STATEMENT


for the year ended  31 December                                                      2005                          2004
                                                                  US$'000s       US$'000s       US$'000s       US$'000s
Operating activities
Investment income received                                          12,498                         9,485
Interest received                                                      457                            27
Investment management fees paid                                    (4,460)                       (3,654)
Cash paid to and on behalf of Directors                              (236)                         (260)
Other cash payments                                                (1,435)                         (610)
Net cash inflow from operating activities                                           6,824                         4,988
Servicing of finance
Interest paid                                                        (129)                       (1,249)
Cash outflow from servicing of finance                                              (129)                       (1,249)
Taxation
Overseas tax paid                                                  (2,084)                         (616)
Taxation paid                                                                     (2,084)                         (616)
Financial Investment
Purchase of equities and other investments                       (271,301)                     (194,175)
Sales of equities and other investments                            296,470                       235,114
Capital expenses                                                      (34)                          (31)
Net cash inflow from financial investment                                          25,135                        40,908
Equity dividends paid                                                             (4,096)                       (1,870)
Net cash inflow before use of liquid resources

and financing                                                                      25,650                        42,161
Management of liquid resources
Financing
Net loans repaid                                                  (11,250)                      (18,250)
Purchase of ordinary shares                                       (28,725)                      (20,031)
Warrants exercised                                                  10,390                         2,581
Net cash outflow from financing                                                  (29,585)                      (35,700)
Increase/(decrease) in cash                                                       (3,935)                         6,461



Notes

1) Changes in Accounting Policies.

With effect from 1 January 2005, the Company has adopted the following Financial
Reporting Standards (FRS);

FRS 21 (Events after the Balance Sheet date) - Dividends paid by the Company are
accounted for in the period in which the Company is liable to pay them.
Previously, the Company accrued dividends in the period in which net revenue, to
which those dividends related, was accounted for.

FRS 25 (Financial Instruments: Disclosure and Presentation) and FRS 26
(Financial instruments: Measurement) - The Company has designated its assets and
liabilities as being measured at 'fair value through profit or loss'. The fair
value of fixed asset listed investments is deemed to be the bid value of those
investments at the close of business on the relevant date. Previously, all
listed investments were valued at mid value. Fixed asset investments which are
not listed are stated at Directors' best estimate of fair value. There have been
no other changes to accounting policies during the period. The accounts for the
year ended 31 December 2004 have been restated to give effect to the above
changes. Notes 2, and 4 further explain the restatements.



2) Return per share
                                                        Year ended                       Year ended
                                                  31 December 2005                 31 December 2004
                                                                                         (restated)

                                                          US$'000s                         US$'000s
Total return                                               123,411                          103,913
Revenue return                                               8,066                            4,214
Capital return                                             115,345                           99,699
Weighted average

ordinary shares in

issue                                                   73,431,788                       72,708,083

Dilutive potential                                       4,411,650                        6,295,485

Weighted average

ordinary shares in

issue for diluted returns                               77,843,438                       79,003,568


                                                                                         Year ended
                                                                                   31 December 2004
As  previously stated                                                                        £'000s

Total return                                                                                100,501
Capital return                                                                               99,837



The total and capital returns for the year to 31 December 2004 have been reduced
by US$138,000 (0.19 cents per share). This reflects the effect of the reduction
in valuation of investments, as a result of the change in accounting policy, at
1 January 2004 by US$2,595,000 and 31 December 2004 by US$2,733,000.



3) Dividend

The Directors propose to pay a second interim dividend of 6.5 cents per ordinary
share will be paid on 19 May 2006 to shareholders on the register at 18 April
2006.


4) Restatement of opening balances



A reconciliation is given between the closing balances in the 31 December 2004
Accounts and the restated balances following the adoption of revisions to
UKGAAP.

Balance Sheet
                                                Previously reported
                                                        31 Dec 2004                                    Restated
                                                           US$'000s            Adjustment           31 Dec 2004
Notes                                                                            US$'000s              US$'000s
              Fixed assets

a             Investments held at fair value                302,685               (2,733)               299,952
              Current assets

              Debtors                                         7,379                     -                 7,379
              Cash at bank                                    8,693                     -                 8,693
                                                             16,072                     -                16,072
              Creditors :amounts falling

              due within one year

              Foreign currency loans                       (11,250)                     -              (11,250)
b             Other                                         (4,555)                 2,093               (2,462)
                                                           (15,805)                 2,093              (13,712)
              Net current assets                                267                 2,093                 2,360
              Total assets less current
              liabilities
                                                            302,952                 (640)               302,312
              Creditors: amounts falling due
              after more than one year

              Non-equity redeemable shares                        -                  (24)                  (24)

c                                                                 
              Net assets                                    302,952                 (664)               302,288

              Capital and reserves

c             Called up share capital                         7,001                  (24)                 6,977

              Share premium account                          63,880                                      63,880

              Capital redemption reserve                        972                     -                   972
              Warrant reserve                                 3,484                                       3,484
              Non distributable reserve                         872                                         872

a             Capital reserves                              226,079               (2,733)               223,346

b             Revenue reserve                                   664                 2,093                 2,757
              Total shareholders' funds -
              equity                                        302,952                 (664)               302,288
                                                            
              Net asset value per ordinary
              share (basic) - cents                          434.18                (0.92)                433.26
                                                             

              Net asset value per ordinary
              share (diluted) - cents                        390.92                (0.80)                390.12


Notes to the restatement of opening balances

a)   Effect of revaluation of fixed asset investments from mid to bid value.

b)   Effect of not recognising the proposed dividend declared after the balance
     sheet date.

c)   Effect of reclassifying non-equity share capital as a liability.

The above financial information comprises non-statutory accounts within the
meaning of Section 240 of the Companies Act 1985.


The financial information for the year ended 31 December 2004 has been extracted
from published accounts (except as restated) for the year ended 31 December 2004
which have been delivered to the Registrar of Companies and on which the report
of the auditors was unqualified.


The Report will be posted to shareholders during April 2006 . Copies may be
obtained during normal business hours from the Company's Registered Office,
Exchange

House, Primrose Street, London EC2A 2NY.


By order of the Board

F&C Management Limited - Secretary

15 March 2006



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