Final Results

European Assets Trust NV
01 March 2005

               
To:            RNS
From:          European Assets Trust NV
Date:          1 March 2005


RESULTS FOR YEAR ENDED 31 DECEMBER 2004
          
•    Over the year, the Company's assets rose by 19.9 per cent in sterling
     total return* terms compared to a 25.6 per cent rise for the benchmark 
     index.

•    Net asset value total return* of +108.2 per cent since December 1997
     (portfolio refocused), compared with a 72.8 per cent rise for the benchmark
     index.

•    6 per cent annual dividend yield level on net asset value to 2006.

•    13 per cent increase in annual dividend for 2005 compared with 2004. First 
     dividend for 2005 of €0.175 paid in January and two further dividends of
     €0.175 each to be paid in 2005.

The Chairman's Statement follows:

2004 results

I am pleased to report that in 2004 European Assets Trust was able to build on
the strong gains recorded in the preceding year.  The net asset value rose by
19.9 per cent in Sterling total return* terms following an increase of 48.5 per
cent in 2003.  The HSBC Smaller Europe (ex UK) Index returned 25.6 per cent in
2004.  The difference between the performance of the Trust and the Index
reflects the Managers' preference for companies with a steady earnings growth
profile rather than those recovering from earlier losses or enjoying a
short-lived cyclical peak in profits.  This insistence on earnings consistency
has delivered rewards over the longer term period.  Since 1997, the date the
portfolio was re-focused on the small to mid-sized company asset class, European
Assets Trust's net asset value has appreciated by 108.2 per cent in Sterling
total return* terms compared with an increase of 72.8 per cent for the benchmark
index.

The performance of both European Assets Trust and the HSBC Smaller Europe (ex
UK) Index in 2004 was again markedly better than that of large companies in
Europe as measured by the FT/S&P World Europe (ex UK) Index which rose,  in
total return terms, by only 13.8 per cent.  The year began and ended on a
particularly firm note for European smaller company stocks.  Both periods shared
a common positive characteristic - buoyant earnings growth which ensured that
valuations remained attractive.  The companies' ability to display strong
earnings power can be put down to a combination of two factors.  Management was
able to exert good control over operating costs, and firms prospered from
favourable export growth even with a strengthening Euro currency.  During the
late spring and early summer months stock markets registered some concern that
strong economic growth in the US would persuade the Federal Reserve Bank to
ratchet interest rates sharply higher.  Adding to these fears was the surging
oil price which only served to remind investors of the unabated threat to
supplies from acts of terrorism.  Terrorism also proved that it could exert an
impact on Europe's political scene with the Madrid bombing directly affecting
the outcome of the Spanish general election.  However, the capacity of companies
to deliver sound earnings even in these more difficult circumstances set the
stage for a strong finish for European stock markets in the last three months of
the year.  This late surge accelerated as the oil price retreated from its
recent high level and the US monetary authorities made it clear that the pace of
interest rate rises would be 'measured'.

Distribution

The level of dividend paid by the Company each year is determined by the Board
in accordance with the Company's distribution policy.  The Board has stated
that, barring unforeseen circumstances, it will pay out an annual dividend for
the years to 2006 equivalent to 6 per cent of the net asset value of the Company
at the end of the preceding year.

In accordance with this policy, the Board has already announced that for 2005
the total dividend will be Euro 0.525 per share.   This dividend, which
represents an increase of 13 per cent on the 2004 level, is to be paid in three
equal instalments of Euro 0.175 per share in January, May and August.  The
January dividend was paid to shareholders on 26 January 2005.  The Board
believes that this distribution policy is an attractive feature for
shareholders.

Gearing

The Company has banking facilities to allow the Managers to gear the portfolio
within the 20 per cent of assets level permitted under the Articles.  The
facilities are Euro denominated and flexible, allowing the Managers to draw down
amounts for such periods as they wish on a fixed or variable rate basis.  The
Managers made limited use of the borrowing facilities during most of 2004,
largely due to concerns over the sustainability of the profits recovery for many
companies in the asset class.  Late on in the year, as it became clear that
earnings growth was moving onto a more solid footing the gearing level rose in
order to fund the introduction of several new stocks to the portfolio.  These
companies are likely to benefit from the current motors of European growth -
rising capital spending and consumer demand.

Dutch Tax

I am very pleased to report that the Dutch parliament has approved a bill to
abolish Dutch surtax from 1 January 2005.  This is one year earlier than had
previously been indicated. Dutch surtax applied to 'excessive distributions' as
defined in the relevant legislation and the Company had borne some Dutch surtax
in previous years.  The Board works with its advisers to ensure that Dutch tax
is minimised.

Shareholder Value

The performance of the Company's share price was again better than the net asset
value.  Over the year, the share price total return* came to 22.4 per cent on a
Sterling basis.   The share price discount to net asset value narrowed over the
year from 12.0 per cent to 10.8 per cent at 31 December 2004 and has since
narrowed further to 9 per cent.

The Board continues to seek opportunities to enhance shareholder value in the
interests of all shareholders.

Management Company

The Board noted the merger of the Company's investment manager, ISIS Asset
Management plc with F&C Group Limited in October 2004 to form F&C Asset
Management plc.  The Board will look for opportunities to extend the research
capabilities from the enlarged organisation.

Outlook

The Board continues to believe that the outlook for European companies in
general and smaller companies in particular remains rosy.  Prospects for
economic growth on the Continent are improving as capital spending and consumer
demand lend strength to the export-led recovery.  Eurozone governments,
temporarily freed from the constraints of the Stability & Growth Pact, have been
able to soften the blow of necessary labour and pensions reform with tax cuts. 
At ground level, companies have been striking eye-catching deals with workforces
to boost productivity.  As for the universe of smaller companies from which
European Assets Trust makes its portfolio selection, earnings growth has
established a firm hold.  Moreover, management has made considerable progress to
improve return on capital invested, rewarding long-term shareholders with better
cashflow generation and rising dividend payouts.  In recognition of this trend,
smaller companies are now attracting attention as targets for a public or
private takeover.

It is the stated policy of the Board that, not later than 30 June 2006,
shareholders are given the opportunity to vote on the continuation of the
Company.

The Board is firmly of the opinion that European Assets Trust has attractions
for investors given its ability to pay a good level of dividend (6 per cent on
asset value) and its potential to deliver capital growth from a focused
portfolio of high quality small and medium sized Continental European companies.

* capital performance with dividends added back


FINAL RESULTS (AUDITED) FOR 12 MONTHS TO 31 DECEMBER 2004
                                                                   31 December          31 December
                                                                          2004                 2003
BALANCE SHEET                                      Note                  €'000                €'000

Investments
Securities                                           1                 164,591              141,575
Net current assets                                                       6,601                1,430
                                                                      _________            _________

Total assets less current liabilities                                  171,192              143,005

Loan                                                                   (10,000)                   -
                                                                      _________            _________


Equity shareholders' funds                                             161,192              143,005
                                                                      _________            _________

Net asset value per ordinary share                   2                   €8.75                €7.78
Expressed in Sterling                                                     620p                 548p


REVENUE ACCOUNT FOR YEAR ENDED
                                                                   31 December          31 December
                                                                          2004                 2003
                                                                         €'000                €'000
Income
Securities                                           3                   2,274                1,964
Deposit interest                                                           112                  270
Securities lending                                                         160                  135
                                                                      _________            _________
Total income                                                             2,546                2,369
                                                                      _________            _________

Movements in investments
     
     -    realised                                                       6,553               (1,133)
     -    unrealised                                                    19,939               33,778
                                                                      _________            _________
                                                                        26,492               32,645
                                                                      _________            _________
Expenses and interest

Administration expenses                                                 (2,038)              (1,822)
Interest charges                                                          (234)                (237)
                                                                      _________            _________
Total expenses                                                          (2,272)              (2,059)
                                                                      _________            _________


Net income before tax (surcharge) and benefits                          26,766               32,955
Corporation tax (surcharge)/benefit                                       (311)                  23
Exceptional tax benefit                                                      -                5,978
                                                                      _________            _________
Net income                                                              26,455               38,956
                                                                      _________            _________


Earnings per share                                                       €1.44                €2.12
Dividends per share                                  4                  €0.465                €0.37


STATEMENT OF CASH FLOWS FOR THE YEAR ENDED


                                                                          31 December          31 December
                                                                                 2004                 2003
                                                                                €'000                €'000


Cash flow from investment activities
Dividends, interest and other income                                            2,592                2,374
Purchases of securities                                                       (70,582)             (56,660)
Sales of securities                                                            74,823               61,407
Administrative expenses                                                        (1,981)              (1,921)
Net interest charges                                                              (79)                (223)
                                                                             _________            _________
                                                                                4,773                4,977
                                                                             _________            _________
Cash flows from financial activities
Dividends                                                                      (8,269)              (6,566)
Refund of dividend withholding tax                                              3,357                    -
Loan facility                                                                  10,000              (10,000)
                                                                             _________            _________
                                                                                5,088              (16,566)
                                                                             _________            _________
Cash at bank
Net increase/(decrease) for the year                                            9,861              (11,589)
Balance as at 1 January                                                          (991)              10,598
                                                                             _________            _________
Balance as at 31 December                                                       8,870                 (991)
                                                                             _________            _________


Notes.
     
1.   Securities are valued at market price.
     
2.   Based on 18,420,953 shares in issue (2003 - 18,386,067).  During the year 
     the Company issued 34,886 shares through its scrip dividend option.
     
3.   Income is stated after deduction of irrecoverable withholding taxes.
     
4.   A dividend of €0.175 was announced on 6 January 2005 and paid on 26 January 
     2005.  This dividend was paid from capital reserves.  During 2005, a total 
     distribution of €0.525 per share will be payable in equal instalments in
     January, May and August.
     
5.   In 2004 the Company changed its accounting principles in line with the 
     revised Dutch Guideline 615, applicable starting the financial year 2004. 
     This has led to a change of presentation in the revenue account and to a 
     change in definition of net income.  All revaluations, both realised and 
     unrealised are now recorded in the revenue account.  Furthermore, since all 
     revaluations flow through the revenue account, no expenses have been 
     charged to the capital reserve. The comparative figures for 2003 have been 
     changed accordingly.
          
6.   These are not the full accounts.  The full accounts for the year to 31
     December 2004 will be sent to shareholders and will be available for 
     inspection at the Company's registered office, FCA Management BV, Weena 
     327-329, PO Box 1370, 3000 BJ

     Rotterdam and from the investment managers at F&C Asset Management, 
     80 George Street, Edinburgh, EH2 3BU.
     
7.   A General Meeting to adopt the 2004 Report & Accounts will be held on 
     28 April 2005 in Amsterdam.


For further information, please contact:

Crispin Longden, F&C Asset Management plc, Fund Manager           0131 465 1000
Michael Campbell, F&C Asset Management plc, Company Secretary     0131 465 1000


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