Interim Results

Foreign&Colonial Enterprise Tst PLC
9 August 2000


FOREIGN & COLONIAL ENTERPRISE TRUST PLC
UNAUDITED RESULTS FOR THE HALF YEAR
TO 30 JUNE 2000

SUMMARY
                           30 Jun       31 Dec       % change to
                             2000         1999       30 Jun 2000
                     
Shareholders' Funds       £304.3m       £299.2m            +1.7%
Net Assets per Share       323.6p        318.1p            +1.7%
Share price                291.5p        323.0p            -9.8%


KEY POINTS

 Shareholders' funds increased by 1.7% to £304.3 million

 Investments made and new commitments totalled £74.3 million 

 Realisations from the investment portfolio totalled £34.6 million 


Commenting on the results, John Sclater, Chairman, said:

'In the six months to 30 June 2000 the net assets attributable to shareholders
of Foreign & Colonial Enterprise Trust ('FACET') rose by 1.7% to £304.3
million (323.6p per share).   FACET's share price fell by 9.8% to 291.5p. 
These movements compare with the fall of 6.6% in the FTSE All-Share Index in
the period.

At 31 December 1999 FACET's share price was at a premium of 1.5% to underlying
net asset value.  Following the fall in the share price the shares had moved
to a discount of 9.9% on 30 June 2000.  This was against the trend for other
investment trusts in our sector, where the average discount to net assets for
investment trusts specialising in unquoted investments (excluding 3i) narrowed
from 12.3% to 4.2%.


The Investment Portfolio

Underlying the relatively small overall movement in net asset value in the
period there were some substantial changes in the valuations of individual
investments.

The largest investment at the beginning of the year was Computacenter in which
FACET held 5.8 million shares with a value of £59.5 million.  The
Computacenter share price has been highly volatile, moving from £10.18 on 31
December 1999 to a peak of £15.02 in February and subsequently falling to
£3.78 on 30 June 2000.  We believe that this volatility was partly a
reflection of the general volatility in the technology sector and partly the
consequence of a trading statement released in June.  We sold 1.0 million
Computacenter shares between March and May at an average price of £13.39,
generating £13.4 million in proceeds.  Taking into account the share sales,
the overall negative effect of Computacenter on FACET's net asset value was
£27.8 million in the period.  By a small margin Computacenter remained FACET's
largest investment at 30 June 2000 with a value of £18.3 million.

While the recent share price performance of Computacenter is disappointing, it
should be put into a longer term context.  Since FACET first invested in
Computacenter in 1985 the total cost of its investments in the company has
been £2.3 million.  This compares with the total of £69.3 million which has so
far been realised in cash from the investment and the overall value of £87.6
million taking into account the valuation of the residual holding at 30 June
2000.

Elsewhere in the investment portfolio there were overall net realised and
unrealised gains of £31.8 million which more than compensated for the fall in
the value of Computacenter.  The most significant movements in the unquoted
portfolio were in SBJ Group, where the valuation has increased by £8.1
million, and in Clinovia where the valuation was increased by £6.0 million to
reflect the gain realised from its sale in early July.


New Investments and Realisations

In the six months to 30 June 2000 £34.7 million was invested in cash and a
further £39.6 million was committed to the investment portfolio.  There has
been a significant increase in the rate of investment, with overall
commitments to the investment portfolio in the period exceeding the total
amount invested in the whole of 1999.  This reflects both a stronger flow of
new investment opportunities and the widening of FACET's investment policy
which was described in the 1999 annual report.

Cash realisations from the investment portfolio totalled £34.6 million of
which £13.4 million came from the sales of Computacenter shares described
above.  A total of £7.9 million was realised from the unquoted portfolio.

Liquidity

FACET's liquid assets are available both for new investments and to meet
undrawn commitments to the existing portfolio which totalled £52.6 million at
30 June 2000 compared with £15.9 million at the beginning of the year.  At 31
December 1999 FACET had net liquid assets of £88.1 million.  At 30 June 2000
this total was little changed at £87.7 million, but the composition had
changed significantly.  In the 1999 annual report we stated that we might
index part of FACET's surplus liquidity to the UK stockmarket.  We have now
done this by investing £60.3 million in a portfolio designed to track the FTSE
350.  This portfolio was established in March and was valued at £58.7 million
at 30 June 2000. 

Outlook

We believe that FACET's net asset value performance in the first half of the
year has been satisfactory in generally difficult markets.  The share price
has, however, been weak.  Following a further fall since 30 June 2000 the
share price has moved to a significant discount to underlying net assets for
the first time in over four years.  At the Annual General Meeting in April
shareholders gave the Company powers to buy back up to 14.9% of its shares,
and we shall begin to use these powers if we believe that it is in
shareholders' interests to do so.

We have been encouraged by the increase in the rate of investment in the first
six months of the year and the resulting greater exposure to unquoted
companies.  We shall continue to look for attractive new investments in the
second half.  Looking beyond any short term movements in quoted markets, we
remain confident in the overall prospects for the portfolio.'


For further information, please contact:

James Nelson / William Eccles
F&C Ventures       Tel:  [phone]



FOREIGN & COLONIAL ENTERPRISE TRUST PLC

UNAUDITED RESULTS FOR THE HALF YEAR TO 30 JUNE 

Consolidated Assets                                   30 Jun         31 Dec
                                                    2000     1999      1999
                                                  £'000s   £'000s    £'000s
                     
Listed investments                               109,888  108,861   136,460
Unlisted investments at directors' valuation     106,718   63,623    74,654
Portfolio investments                            216,606  172,484   211,114
Zero coupon preference shares                     12,228   11,995    12,008
FTSE 350 Index fund                               58,695        -         - 
Total investments                                287,529  184,479   223,122
Net current assets                                21,422   80,601    80,934
Total assets less current liabilities            308,951  265,080   304,056
Minority interest                                 (4,619)  (1,197)   (4,862)
Net assets attributable to ordinary shareholders 304,332  263,883   299,194
                     
Net asset value per share                         323.6p   280.6p    318.1p


Geographical distribution of investments     Continental    North 
at 30 June 2000                           UK      Europe  America     Total
                                           %           %        %         %
                            
Listed                                   40%           -       1%       41%
Unlisted                                 45%         12%       2%       59%
                                         85%         12%       3%      100% 



Consolidated Statement of Total Return                30 Jun         31 Dec
(incorporating the Revenue Account)                 2000     1999      1999
                                                  £'000s   £'000s    £'000s
Revenue Return                     
Income                                             3,707    4,300     8,525
Investment management fee                           (676)    (561)   (1,200)
Other expenses                                      (430)    (225)   (1,002)
Net return before finance costs and taxation       2,601    3,514     6,323
Interest payable and similar charges                 (16)     (29)      (54)
Return on ordinary activities before tax           2,585    3,485     6,269
Tax on ordinary activities                          (263)    (952)   (1,409)
Return attributable to equity shareholders         2,322    2,533     4,860
Dividends in respect of ordinary shares(equity)        -        -    (4,044)
Transfer to reserves                               2,322    2,533       816
                     
Capital Return                     
Gains on investments                               4,220    9,860    51,912
Investment management fee                         (2,029)  (1,684)   (3,600)
Other expenses                                      (212)     173       209
Tax on ordinary activities                           614      522     1,089
                                                   2,593    8,871    49,610
Minority interests                                   222      (76)   (3,787)
Net capital return                                 2,815    8,795    45,823
Total Return                                       5,137   11,328    46,639
                     
Revenue return per ordinary share                  2.47p    2.70p     5.17p
Capital return per ordinary share                  2.99p    9.35p     8.72p
Total return per ordinary share                    5.46p   12.05p    53.89p
 


Consolidated Cash Flow Statement                        30 Jun       31 Dec
                                                    2000     1999      1999
                                                  £'000s   £'000s    £'000s
                     
Net cash inflow from operating activities            129    1,385     2,546
Returns on investments and servicing of finance      (30)       -       (58)
Taxation                                               -       (2)     (239)
Acquisitions and disposals                       (60,363)   3,272     6,698  
Equity dividends paid                             (4,044)  (4,044)   (4,044)
Management of liquid resources                    48,512   20,363    27,378
Net cash outflow before financing                (15,796)  20,974    32,281
Financing                                             13      (71)     (147)
(Decrease)/increase in cash                      (15,783)  20,903    32,134
                     
Reconciliation of net cash flow to movement in net debt                     
                     
(Decrease)/increase in cash                      (15,783)  20,903    32,134
Cash inflow from change in liquid resources      (48,512) (20,363)  (27,378)
Change in net liquid funds resulting from cash 
flows                                            (64,295)     540     4,756
Exchange difference                                  524      173       209
Movement of net liquid funds                     (63,771)     713     4,965
Net liquid funds at 1 January                     84,760   79,795    79,795
Net liquid funds 30 June/31 December              20,989   80,508    84,760
                     
Reconciliation of operating profit to net cash flow from operating activities 
                   
                     
Net revenue on ordinary activities before taxation 2,585    3,485     6,269
Add back interest payable                             16       29        54
Income before interest payable and taxation        2,601    3,514     6,323
Decrease/(increase) in debtors                       288     (135)     (243)
(Decrease)/increase in creditors                    (226)     (10)      622
Income capitalised                                  (304)       -         -
Tax on investment income within income              (201)    (300)     (556)
Management fee charged to capital                 (2,029)  (1,684)   (3,600)
Net cash inflow from operating activities            129    1,385     2,546  

 
The abridged financial statements at 31 December 1999 have been compiled from
the latest published accounts.  Those accounts have delivered to the Registrar
of Companies: the report of the auditors thereon was unqualified.

Copies of the interim Report will be posted to all shareholders on or around
23 August 2000 and copies may be obtained during normal business hours from
the Company's registered office, Exchange House, Primrose Street, London, EC2A
2NY thereafter.

By order of the Board                                        Registered Office
Foreign & Colonial Management Limited                           Exchange House
Secretary                                                      Primrose Street
                                                               London EC2A 2NY
                                                            Tel: [phone]
       
       

EDITORS' NOTE

Foreign & Colonial Enterprise Trust PLC ('FACET')

FACET is a UK listed investment trust whose investment objective is to provide
shareholders with long term capital growth through investment in unquoted and
smaller quoted companies.

F&C Ventures Limited - The Manager

F&C Ventures, the manager of Foreign & Colonial Enterprise Trust PLC, has a
long established position in the private equity market and extensive
experience of making unquoted investments.  It invests in companies at all
stages of development with particular emphasis on finance for expansion,
acquisitions and management buy-outs.