Interim Results

Dunedin Enterprise Inv Trust PLC
12 December 2002


                                                       12 December 2002


                      DUNEDIN ENTERPRISE INVESTMENT TRUST
              INTERIM RESULTS FOR SIX MONTHS ENDED 31 OCTOBER 2002


Dunedin Enterprise Investment Trust PLC ('Dunedin Enterprise') specialises in
the provision of equity finance for management buyouts, management buyins and
growing businesses. The Trust is managed by Dunedin Capital Partners Limited,
the independent private equity house which invests in UK mid-market buyouts.

Highlights

  • Net asset value per share outperforms benchmark - net asset value per
    share down 12.7% to 285.1p (326.5p at 30 April 2002) against a fall of 30.7%
    by the FTSE Small Cap Index (excluding investment companies)

  • Net asset total return for the period was -10.0%

  • Share price down 9.9% to 223p

  • John Wood Group realised for £11.2 million, a total profit of £7.4 million
    over the original cost of £3.8 million

  • Total realisations of £16.9 million

  • Interim dividend maintained at 2.85p


Edward Dawnay, Chairman of Dunedin Enterprise, commented on the results:

'Dunedin Enterprise has taken a robust approach to difficult market conditions,
remaining true to its investment criteria.  It has concentrated on supporting
portfolio value and on driving through exits at a time when well-priced new
investment opportunities are relatively scarce.  The record on achieving
realisations in a tough market has been excellent.  A significant majority of
the larger companies in the portfolio, where the bulk of the portfolio value
resides, are trading more profitably than in previous years.  In addition, a
number of portfolio companies are paying down debt ahead of schedule and this
factor will help underpin future shareholder value growth.'


For further information please contact:
Peter Smaill                  Dunedin Capital Partners       0131 225 6699
Claire McCorquodale           Dunedin Capital Partners       0131 718 2313 /
                                                             07740 912043
Lesley Allan                  Hudson Sandler                 020 7796 4133
Wendy Baker                   Hudson Sandler                 020 7796 4133


Manager's Review

Overview

During the six months under review, economic uncertainty continued to affect
adversely the private equity market resulting in an unusually low flow of
quality investment opportunities at attractive prices.  In addition, the United
Kingdom stock market fell substantially over the summer with a consequential
effect on the portfolio valuation.   Against this background, your company
outperformed its benchmark over the half year.

Results

During the six months to 31 October 2002, net asset value per share fell by
12.7% from 326.5p to 285.1p, whilst the share price fell by 9.9% from 247.5p to
223p.  During the same period your company's benchmark, the FTSE Small Cap Index
(excluding investment companies), fell by 30.7%.  Over a five year period, the
total return for Dunedin Enterprise has been +8.1% compared to -12.0% for the
index.

Portfolio companies are typically valued by applying the price/earnings ratio of
similar quoted companies, discounted by a minimum of 25% to reflect the unlisted
nature of Dunedin Enterprise's portfolio of private equity investments, to the
profit before tax, interest and amortisation of goodwill of the portfolio
company.  This produces an enterprise value for the company from which debt and
preference share capital is deducted to establish a value per ordinary share.
Thus movements in stock market price/earnings ratios have a direct impact upon
the valuation placed on portfolio companies, irrespective of trading conditions
at portfolio companies.

The diminution in net asset value per share has occurred as a result of both the
sharp decrease in stock market values, resulting in reduced price/earnings
multiples used to value portfolio companies; and a material reduction in
profitability in a small minority of portfolio companies.  The combination of
reduced earnings and lower price/earnings multiples has created a double
negative effect on portfolio values.

Portfolio activity

A marked slowdown has taken place in management buyout activity in the United
Kingdom in the period under review.  The reduction in equity values following
the stock market fall during the summer vindicates your manager's caution
towards investing at a time when prices were still artificially high.  Low
interest rates have also meant that companies, which otherwise might have been
forced to sell non-core assets, have to date been able to hold on to them.
However, transaction flow is increasing as vendors' price expectations moderate
and larger companies are beginning to put non-core subsidiaries up for sale.

In the last Annual Report, your Chairman reported on the manager's ability to
achieve exits despite the poor economic conditions in the year to 30 April 2002.
As shareholders will know, John Wood Group listed on the London Stock Exchange
on 5 June 2002.  Dunedin Enterprise received a mix of cash and shares for its
investment.  By August 2002, your managers were successful in realising the
entirety of the investment for £11.2 million.  This represents an increase of
£0.6 million on the valuation at 30 April 2002 and a total profit of £7.4
million over the original cost of £3.8 million.  Your managers ensured that the
shares received were free of sale limitations and were thus able to sell at an
average price of 205p, as against the price ruling at 31 October 2002 of 160p.

An additional £5.7 million of proceeds from investments were received in the
half year, taking total realisations to £16.9 million.   One of the companies in
the portfolio fell into receivership during the period.  Full provision against
the cost of the investment had already been made at 30 April 2002.

Movement in share price and net asset value

Share price at the beginning of the period was 247.5p and at the end 223p.
Relative to comparable Investment Trusts specialising in private equity
investment, Dunedin Enterprise achieved top quartile share price performance in
the six month period.

Since 31 October 2002, Dunedin Enterprise' share price has fallen to 210.5p (as
at 11 December 2002).  This takes it to just below the median position relative
to our constituency of comparable Trusts.

In the period under review the discount of Dunedin Enterprise' share price to
underlying net asset value has on occasion fluctuated to a point where a share
buyback by Dunedin Enterprise would be advantageous to shareholders.  However,
your manager encountered limited appetite from the shareholder base for such
transactions at the wider levels of discount.  The manager was able,
nevertheless, to acquire a small parcel of shares at a price appreciably below
the average value in the period.

As previously described above, the net asset value of your company has decreased
by £13.0 million from £101.8 million to £88.8 million over the past six months.
The components of this decrease were:


                                                   £'m
Net asset value at 30 April 2002                 101.8
Unrealised valuation increases                     1.8
Unrealised valuation decreases                   (13.8)
Realised profit over opening valuation             0.5
Other costs charged to capital                    (1.5)
Net asset value at 31 October 2002                88.8


This decrease of 12.7% has to be seen in the context of the decline in prospects
for the smaller company sector in the United Kingdom as reflected in the
relevant index.

Investment income and dividend

Income from investments in the half year has reduced from £2.6 million in 2001
to £1.4 million in the current half year.  There are two reasons for this
reduction.  First, the successful programme of realisations has led to a
reduction of investment income which has been partially offset by increased bank
deposit income earned on the resultant cash balance.  Second, as a result of the
under-performance at certain portfolio companies, investment income due from
those companies has not been received.

The interim dividend has been maintained at 2.85p per ordinary share at a cost
of £887,545.  The interim dividend will be paid on 31 January 2003 to
shareholders on the register at close of business on 6 January 2003.  The
ex-dividend date is 2 January 2003.  It is the intention of the board to
recommend that the dividend for the full year be maintained.

Outlook

Although the economic outlook for the United Kingdom remains uncertain, with
lower growth forecast for the remainder of the current year and for next year,
the health of the portfolio is generally robust.

A significant majority of the larger companies in the portfolio, where the bulk
of the portfolio value resides, are trading more profitably than in previous
years.  In addition, a number of portfolio companies are paying down debt ahead
of schedule and this factor will help underpin future shareholder value growth.

A small number of portfolio companies are facing challenges due to the impact of
a reduction in global economic activity.  Some have sector specific problems,
where a return to normalised trading margins should allow recovery of value in
due course.  The valuation of your company's investment in these businesses has
been reduced to reflect current trading conditions.  Portfolio management has
been intensified and your manager has been instrumental in effecting management
change in companies that have under-performed their business plan.

Your managers are confident that, with an improving trading environment, these
investments are capable of producing superior returns for shareholders in
Dunedin Enterprise.

Well priced opportunities in the mid-size buyout and buyin market are being
vigorously pursued.


Dunedin Capital Partners Limited
11 December 2002


Group Statement of Total Return
(Unaudited and incorporating the revenue account)

                  Six months to 31 October 2002       Six months to 31 October 2001    Twelve months to 30 April 2002 
                Revenue   Capital         Total     Revenue     Capital       Total    Revenue     Capital      Total 
                £'000       £'000         £'000       £'000       £'000       £'000      £'000       £'000      £'000 

  Losses on         -     (11,500)     (11,500)          -     (10,122)    (10,122)         -      (8,267)    (8,267) 
  investments                                                                                                         
  Income from   1,354            -       1,354       2,642           -       2,642      5,076           -      5,076  
  investments                                                                                                         
                                                                                                                      
  Deposit         615            -         615         176           -         176        378           -        378  
  interest                                                                                                            
  Arrangement       6            -           6          90           -          90         90           -         90  
  fees                                                                                                                
  Investment     (343)     (1,030)      (1,373)      (383)     (1,149)      (1,532)      (733)     (2,200)    (2,933) 
  management                                                                                                          
  fee                                                                                                                 
  Other                       (36)        (225)        (165)         -        (165)      (361)          -       (361) 
  expenses       (189)                                                                                                
  Net return    1,443     (12,566)     (11,123)      2,360    (11,271)      (8,911)     4,450     (10,467)    (6,017) 
  before                                                                                                              
  finance                                                                                                             
  costs and                                                                                                           
  tax                                                                                                                 
  Interest       (164)       (492)        (656)      (180)       (540)        (720)      (335)     (1,005)    (1,340) 
  payable and                                                                                                         
  similar                                                                                                             
  charges                                                                                                             
  Return on     1,279     (13,058)     (11,779)      2,180    (11,811)      (9,631)     4,115     (11,472)    (7,357) 
  ordinary                                                                                                            
  activities                                                                                                          
  before tax                                                                                                          
  Tax on         (112)        112            -       (271)         271           -          -           -          -  
  ordinary                                                                                                            
  activities                                                                                                          
  Return        1,167     (12,946)     (11,779)      1,909    (11,540)      (9,631)      4,115    (11,472)    (7,357) 
  attributable                                                                                                        
  to equity                                                                                                           
  shareholders                                                                                                        
                                                                                                                      
  Dividend        888                                  892                              4,005                         
  cost                                                                                                                
  Basic           3.7p     (41.5p)      (37.8p)       6.4p     (38.7p)      (32.3p)      13.5p     (37.6p)    (24.1p) 
  return per                                                                                                          
  ordinary                                                                                                            
  share                                                                                                               
  Dividend       2.85p                                2.85p                             12.85p                        
  per                                                                                                                 
  ordinary                                                                                                            
  share                                                                                                               
 

Notes

1.   The revenue column of this statement represents the profit and loss account
     of the Group.

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

3.   Basic return per share is based on 31,185,963 ordinary shares, being the
     weighted average number of ordinary shares in issue during the half year.



Group Balance Sheet

                                                                               31October                        30 April
                                                                                    2002                            2002
                                                                 £'000             £'000           £'000           £'000

Fixed Assets

Listed Investments                                                                5,156                           7,057
Unlisted Investments                                                             71,618                          96,695
                                                                                 76,774                         103,752
Current Assets

Debtors                                                         1,476                             1,861
Cash at bank                                                   35,563                            22,904
                                                               37,039                            24,765
Creditors: amounts falling due
within one year                                                (1,471)                          (11,677)

Net current assets                                                               35,568                          13,088

Creditors: amounts falling due
after more than one year                                                        (23,552)                        (15,000)

Total equity shareholders' funds                                                 88,790                         101,840

Net asset value per share                                                         285.1p                          326.5p



Group Cash Flow Statement
                                                                                Six       Twelve months to
                                                                          months to
                                                                    31 October 2002               30 April
                                                                                                      2002
                                                                              £'000                  £'000

Net revenue before finance costs and taxation                                 1,443                  4,449
Decrease/(increase) in accrued income                                           111                   (672)
Increase in other debtors                                                         -                    (12)
Increase in creditors                                                            16                    111
Management fees charged to capital                                           (1,030)                (2,200)
Other expenses charged to capital                                               (36)                     -

Net cash inflow from operating activities                                       504                  1,676

Servicing of finance                                                           (656)                (1,619)

Taxation
Tax paid                                                                       (168)                     -
Tax recovered                                                                    54                    453

Financial Investment

Purchase of investments                                                      (1,260)               (11,084)
Sale of investments                                                          16,907                 34,183

Acquisitions

Cash consideration on purchase of Group Trust                                     -                 (7,500)
Deal costs incurred on purchase of Group Trust                                    -                   (995)

Equity dividends paid                                                        (3,119)                (3,772)

Financing

Purchase of ordinary shares                                                    (104)                (1,302)
Foreign currency loan                                                           501                      -

Cash on short term deposits assumed
on purchase of Group Trust                                                        -                  6,317

Increase in cash in the period                                               12,659                 16,357



Notes

          
1.   The directors recommend an interim dividend of 2.85p per share for six 
     months to 31 October 2002.  The dividend will be paid on 31 January 2003
     to shareholders on the register at close of business on 6 January 2003.  
     The ex-dividend date is 2 January 2003.

2.   The above summary of results for the six months ended 31 October 2002 does 
     not constitute statutory financial statements within the meaning of Section
     240 of the Companies Act 1985 and has not been delivered to the Registrar 
     of Companies.  The results for the year ended 30 April 2002 have been 
     extracted from the financial statements for that year, which have been 
     delivered to the Registrar of Companies; the auditors' report on those 
     financial statements under Section 235 of the Companies Act 1985 was 
     unqualified and did not contain a statement under Section 237(2) or (3) of 
     the Companies Act 1985.

3.   The interim report will be sent to shareholders in December 2002 and copies
     will be available to members of the public at the Company's Registered
     Office, 10 George Street, Edinburgh, EH2 2DW.



Ten Largest Investments

By value at 31 October 2002


                                                     Approx.                                         % of net assets
                                                  percentage            Cost of       Directors'
                                                   of equity         investment        valuation        at valuation
Company name                                              %*              £'000            £'000

Davenham Group Holdings Limited                         34.4              4,960           10,454                11.8
Letts Filofax Group Limited                             41.1              3,961            7,947                 9.0
Portman Holdings Limited                                16.8              2,516            6,340                 7.1
Latchways plc                                           18.8                180            5,145                 5.8
C.G.I. International Limited                            46.5              1,619            4,616                 5.2
Goals Soccer Centres Limited                            39.7              4,491            4,491                 5.1
Financiere MGE                                           1.3              3,672            3,860                 4.3
Thomson Brothers Limited                                44.6              3,535            3,398                 3.8
LGV1 Private Equity Fund                                 2.2              2,448            2,705                 3.0
Travel & General Holdings Limited                       25.9              3,240            2,569                 2.9
                                                                         30,622           51,525                58.0



*    'Approx. percentage of equity' relates to ordinary share capital of the 
     relevant company and assumes full exercise of outstanding options, warrants 
     and conversion rights.


Notes to Editors

1.   Dunedin Enterprise Investment Trust PLC floated in 1987 as Melville Street
     Investments.

2.   Dunedin Enterprise Investment Trust PLC is managed by Dunedin Capital
     Partners Limited. Dunedin Capital Partners Limited is an independent 
     private equity company owned by its directors.  The company specialises in 
     providing equity finance for management buyouts, management buyins and 
     growing businesses with a transaction size of £5 - 25 million. It operates 
     throughout the United Kingdom from its headquarters in Edinburgh and 
     offices in London.

     Dunedin Capital Partners is itself the result of a management buyout which 
     took place in 1996.  The team has recently doubled in size after an active 
     year in 2000.   In addition to managing Dunedin Enterprise Investment 
     Trust, Dunedin Capital Partners has raised £54 million for the Dunedin 
     Buyout Fund LP in 2001/02.


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