Dividend and Tax Update

European Assets Trust NV
03 November 2003





To:       RNS

From:     European Assets Trust NV

Date:     3 November 2003




Stock Exchange Announcement


  • Euro 6.1m (4.6 per cent) uplift in net asset value.

  • Tax clarity achieved

  • Dividend policy defined

  • 6 per cent yield level on net asset value
  • three equal dividend payments during the year




Background


European Assets Trust is a closed end investment company incorporated in the
Netherlands and its shares are listed on the London Stock Exchange and Euronext
Amsterdam Stock Market. The investment objective of the Company is to achieve
growth of capital through investment in quoted medium and smaller sized
companies in Europe, excluding the United Kingdom. Dutch regulations allow the
Company to distribute capital by way of dividends. A distribution policy has
been adopted that pays dividends mainly out of capital and as tax efficiently as
possible.


Borrowing facilities of up to 20 per cent of assets are available to take
advantage of investment opportunities and seek to enhance performance.


Shareholders are to be given a choice by having the opportunity to vote on the
continuation of the Company by June 2006, with the possibility to benefit from
the favourable Dutch tax regime then existing.


Dutch tax


The Board of European Assets Trust NV is pleased to announce an agreement that
has been reached with the Dutch Tax Authorities in respect of the Company's tax
position:


  • The Company is to receive a one off tax repayment (including interest)
    amounting to Euro 6.1m and this results in an increase in the Company's net
    asset value per share of Euro 0.33 or approximately 4.6 per cent.

  • The Company has received clarity in respect of the payment of dividends to
    shareholders without Dutch withholding tax applying. For most shareholders
    Dutch withholding tax is not expected to apply to distributions payable by
    the Company (see Note 1 below).


The Board, through its advisers, continues to seek the most advantageous
possible treatment for the Company and its shareholders in respect of Dutch tax.
Dutch Surtax continues and, based on advice, from 2006 investment companies in
the Netherlands should be able to distribute capital without Dutch corporate
taxes being levied on excessive distributions (Surtax).








Dividend


The level of dividend paid by the Company each year is determined by the Board
in accordance with the Company's distribution policy.


The Company's policy for determining the amount of the annual dividend is to
take the percentage yield level (set each year by the Board) and apply it to the
Company's net asset value at the end of the preceding financial year. The Board
intends, barring unforeseen circumstances, setting an annual yield level of 6
per cent on net asset value in future years to 2006. The pattern of dividend
payments is to change to achieve maximum tax efficiency. The Company intends
paying three dividends each year of equal amount in January, May and August. The
dividend amounts for the year are expected to be announced in early January each
year.




For further information contact:




Crispin Longden (Investment Manager)     Tel [phone]

Michael Campbell (Company Secretary)     Tel [phone]

ISIS Asset Management plc, Edinburgh


Wilbert van Twuijver (Managing Director) Tel [phone]

FCA Management BV, Rotterdam





Note 1


Distributions to shareholders which are made by the Company out of current year
capital gains (as well as brought forward capital gains) can be made free from
Dutch withholding tax.

Where the relevant dividend is deemed to come out of earnings (rather than
current year or brought forward capital gains) Dutch withholding tax will apply
where shareholders either:

 a. are not residents of the Netherlands, European Union member states or
    countries with which the Netherlands has concluded a double tax treaty or
 b. own 5 per cent or more of the Company's share capital and certain other
    conditions, including a three year holding period are met.

For shareholders not included in categories (a) or (b) above, no Dutch
withholding tax is expected to apply to dividends.

Individual circumstances may affect the general tax consequences described above
and professional advice should be sought in respect of questions relating to
taxation.


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