Dividend Declaration

European Assets Trust NV
23 December 2002


To:   RNS

From: European Assets Trust NV ('EAT')

Date: 23 December 2002


Dividend Declaration
      
2003 Dividend

As indicated at the time of the interim results earlier this year, based on
present tax advice, the Board is declaring an advance dividend payment in
respect of the 2003 year. The amount of this advance dividend will be Euro 0.25
per share and it will be made payable to shareholders on 2 January 2003 which
will be the ex dividend date. Dividend vouchers will be despatched to allow
shareholders to actually receive the dividend on 16 January 2003. The advance
dividend is paid out of brought forward capital reserves.


The level of dividend paid by the Company each year is determined by the Board
in accordance with the Company's dividend policy. The amount of the annual
dividend is arrived at by taking the percentage yield level (which is set each
year by the Board) and applying it to the Company's net asset value at the end
of the preceding year. This is consistent with the policy adopted for the past
two years and reflects the payment of dividends from capital.


In determining the rate of dividend the Board has regard to the interests and
views of shareholders as a whole. The Board announced last year that the yield
on ordinary income shares of UK split capital investment trusts was no longer an
appropriate yardstick for the Company's dividend objective which has been
restated accordingly. The Board gives consideration to a number of factors
including:


  • continuing to offer a competitive dividend yield.

  • the Company's portfolio and capital structure.

  • the level of the Company's reserves. Dividends have been funded entirely
    from capital reserves.

  • prevailing market conditions. The Board regularly monitors market
    conditions, which have deteriorated over the past two years, and considers
    the effect of dividend funding requirements on the management of the
    Company's investments and the value and liquidity of the investment
    portfolio.

  • shareholders to be given a choice by having the opportunity to vote, as
    previously indicated, on the continuation of the Company by June 2006, such
    that a distribution of assets could be made with minimum possible tax
    liabilities arising within the Company.


As indicated above, based on present tax advice and consistent with last year,
there will be an advance dividend payment in respect of the 2003 year. This
advance dividend amounts to 4 per cent of the present net assets of the Company.


In view of market conditions the Board is not determining the full amount of the
2003 dividend at the present time. The Board will declare before the end of May
2003 a further and final dividend amount for 2003 of at least 2 per cent of the
Company's net asset value at the end of 2002. Such further dividend is expected
to be made payable in equal monthly instalments from July 2003 to December 2003
inclusive.


Shareholders can receive new shares in the Company in place of the cash dividend
by giving notice to the Company's UK registrars (dividends are re-invested into
shares of the Company at net asset value).


Against a background of sharply declining equity markets, the value of the
Company's investments has suffered. The Managers, however, continue to see
attractive buying opportunities in quoted medium-sized companies across the
European Continent. To seek to take advantage of this, gearing levels will be
increased gradually where opportunities arise.


Dutch Taxation


The following general guidance is based on present tax advice received by the
Company and will be subject to shareholders' individual tax circumstances.
Shareholders should consult their own professional advisers with regard to their
individual tax position.


As it will be made payable on the first working day of 2003, Dutch withholding
tax should not apply to the advance dividend.


For the monthly dividends payable from July 2003, Dutch withholding tax should
not apply for almost all shareholders (since the yield threshold level of 4 per
cent has been exceeded, beyond which Dutch tax surcharge of 20 per cent of the
excessive dividends applies instead to the Company up to 2006). Shareholders for
whom Dutch withholding tax could apply to these monthly dividends if they are
deemed to be paid out of earnings (i.e. income and current year's capital gains)
are those either:


 a. 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 (a) or (b) above, no Dutch withholding tax is
expected to apply for 2003 dividends.


For further information contact:

Crispin Longden, Fund Manager
Michael Campbell, Fund Company Secretary

ISIS Asset Management plc                    Tel [phone]
Investment Managers




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