Subsidiary Denied Tax Benefits

Fleming Indian Investment Trust PLC
6 April 2000

         The Fleming Indian Investment Trust plc

 
The  Company has been notified by  the  Indian Tax

authorities  that, for the financial   year  ended

March 1997,  its  subsidiary,  Fleming  Indian

Investment  Co. (Mauritius) Limited,  is to be

denied the benefits of the double  taxation  treaty

between  India  and  Mauritius. Yesterday  those

same tax authorities  are  reported  as putting  on

hold  any further action  against  Mauritius based

investment companies pending a detailed

examination.  Clearly the situation is confused.  In

any event  the  Directors strongly disagree  with

the  basic contention that   Fleming  Indian

Investment   Company  (Mauritius)  Limited is not a 

resident of  Mauritius and intend  to  use  the full 

appeal process  to  refute  the Indian Tax authorities'

claim.



Should  Fleming  Indian  Investment  Company

(Mauritius) Limited be denied the benefits available

under the double taxation  treaty between India and

Mauritius it would  be assessed  as  liable to

Indian Tax on its capital  gains. The  Board  has

received advice from its  tax  advisors, Arthur

Andersen, that, for the financial  year  to  31st

March, 1997, no capital gains tax liability has

arisen.


The  Company  will make a further announcement  when

the situation  has been clarified.  The Company's

net  asset value  is published daily and the Board

have been advised that no adjustment is required at

this stage.




Fleming Investment Trust Management Limited -

Secretary 6th April, 2000

Linda Field -  London    0171 880 3426