Interim Results

JPMorgan Fleming Mercantile IT PLC
25 September 2007



                       LONDON STOCK EXCHANGE ANNOUNCEMENT

                JPMORGAN FLEMING MERCANTILE INVESTMENT TRUST PLC

                                INTERIM RESULTS


INTERIM MANAGEMENT REPORT


Performance, Market Review and Outlook

The Company's net asset value total return in the first half was +2.9% which was
ahead of the return of +2.5% from our small and mid cap benchmark index, the
FTSE All-Share (excluding FTSE 100 constituents and investment trusts).

This represents a solid performance in the difficult and volatile market which
followed a period of strong performance. The recent stock market setback was
caused by fears of a global liquidity crisis resulting from the collapse of the
US mortgage-backed securities market. This in turn led to rapid de-leveraging by
hedge funds as they tried to stem losses. As a result of the ensuing market
turmoil we expect that risk will be more appropriately priced. Before the market
turmoil can come to an end, however, we still need to see further evidence of
where the US mortgage-backed securities losses have been sustained in what is a
complex global picture.

Meanwhile, the portfolio currently has no gearing. Given recent market
volatility, the Board has adjusted the policy on gearing to give the Investment
Managers flexibility to operate within a range of 90%-120% invested. The
Investment Managers are using the market volatility to buy attractive companies
at low prices. The UK corporate sector remains strong and the companies
confident, with reported profits generally in line with, or ahead of,
expectations. Within the portfolio, the Investment Managers continue to
emphasise companies with growth or value characteristics. Since the end of the
reporting period, the Investment Managers have continued to reduce the exposure
to some areas of the economy, in particular for the time being to house
builders.


Dividends

A second interim dividend of 5.50 pence per share has been declared by the
Board, payable on 1st November 2007 to shareholders on the register as at the
close of business on 5th October 2007. Together with the first interim dividend
of 5.50 pence paid on 1st August 2007, this brings the total dividend for the
year to date to 11.00 pence (2006: 9.00 pence). The Board has again increased
the level of the first two interim dividends in order to distribute income to
shareholders more evenly throughout the year.


Share Repurchases

The Board has maintained its active approach towards share repurchases in order
to enhance the net asset value and minimise the absolute level and volatility of
the discount on the Company's shares. In the six months to 31st July 2007,
17,398,801 shares were repurchased for cancellation at a total cost of £233.6m.
Those purchases added approximately 22.6p to the net asset value per share. The
discount, with debt at fair value, has ranged between 7.6% and 12.3% in the
period from 1st February to 21st September 2007, with the average discount
during the period 9.9%.


VAT Case

As shareholders will be aware, in 2004 the Association of Investment Companies
('AIC') launched an appeal, with JPMorgan Claverhouse Investment Trust plc, for
VAT to be removed from the payment of investment trust management fees. In June
of this year, the European Court of Justice found in favour of the AIC,
confirming that investment trust management fees should be exempt from VAT in
the same way as unit trusts and open ended investment companies. We now await HM
Revenue and Customs' response to this judgement, anticipating that a change in
the law will allow refunds of unrecovered VAT from previous years to be made.
This may take some time but once the amount of such refunds, and the timing of
repayments, has been determined a further announcement will be made to
shareholders.


Principal Risks and Uncertainties

The principal risks and uncertainties faced by the Company fall into five broad
categories: investment and strategy; accounting, legal and regulatory; corporate
governance and shareholder relations; operational; and financial. Information on
each of these areas is given in the Business Review within the Annual Report and
Accounts for the year ended 31st January 2007.


Related Parties Transactions

During the first six months of the current financial year, no transactions with
related parties have taken place which have materially affected the financial
position or the performance of the Company during the period.


Directors' Responsibilities

The Board of Directors confirms that, to the best of its knowledge:


i) the condensed set of financial statements contained within the half yearly
financial report has been prepared in accordance with the Accounting Standards
Board's Statement 'Half-Yearly Financial Reports'; and


ii) the interim management report includes a fair review of the information
required by 4.2.7R and 4.2.8R of the UK Listing Authority Disclosure and
Transparency Rules.



For and on behalf of the Board
Hamish Leslie Melville
Chairman


25th September 2007




For further information, please contact:

Jonathan Latter
For and on behalf of
JPMorgan Asset Management (UK) Limited - Secretary
020 7742 6000




JPMorgan Fleming Mercantile Investment Trust plc
Unaudited figures for the six months ended 31st July 2007

Income Statement

                                  (Unaudited)                   (Unaudited)                       (Audited)
                          Six months ended 31st July    Six months ended 31st July       Year ended 31st January 
                                     2007                          2006                            2007
                           Revenue  Capital      Total   Revenue   Capital     Total   Revenue   Capital     Total
                             £'000    £'000      £'000     £'000     £'000     £'000     £'000     £'000     £'000

Gains from investments
held at fair value
through profit or loss           -    8,187      8,187         -    56,094    56,094         -   377,824   377,824
                            
Net foreign currency losses      -     (15)       (15)         -      (13)      (13)         -      (56)      (56)
Income from investments     28,656        -     28,656    22,688         -    22,688    42,099         -    42,099

Other interest receivable
and similar income           2,538        -      2,538     1,349         -     1,349     3,394         -     3,394      
                           _______  _______     ______   _______   _______    ______   _______   _______   _______


Gross return                31,194    8,172     39,366    24,037    56,081    80,118    45,493   377,768   423,261

Management fee             (2,269)  (2,269)    (4,538)   (1,913)   (1,913)   (3,826)   (3,961)   (3,961)   (7,922)

Other administrative      
expenses                     (504)        -      (504)     (455)         -     (455)     (821)         -     (821)
                           _______  _______     ______   _______   _______    ______   _______   _______   _______

Net return on ordinary
activities before finance
costs and taxation          28,421    5,903     34,324    21,669    54,168    75,837    40,711   373,807   414,518
Finance costs              (2,763)  (2,763)    (5,526)   (2,907)   (2,907)   (5,814)   (5,668)   (5,668)  (11,336)
                           _______  _______     ______   _______   _______    ______   _______   _______   _______

Net return on ordinary
activities before
taxation                    25,658    3,140     28,798    18,762    51,261    70,023    35,043   368,139   403,182

Taxation                         -        -          -         -         -         -         -         -         -
                            ______  _______     ______    ______   _______    ______   _______   _______   _______

Net return on ordinary
activities after taxation   25,658    3,140     28,798    18,762    51,261    70,023    35,043   368,139   403,182
                            ======  =======     ======    ======   =======    ======   =======   =======   =======

Return per share (note 3)   21.97p    2.69p     24.66p    14.54p    39.72p    54.26p    27.51p   289.06p   316.57p



All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or discontinued in the period.

The 'Total' column of this statement is the profit and loss account of the
Company and the 'Revenue' and 'Capital' columns represent supplementary
information. The 'Total' column represents all the information that is required
to be disclosed on a 'Statement of Total Recognised Gains and Losses' ('STRGL').
For this reason a STRGL has not been presented.





JPMorgan Fleming Mercantile Investment Trust plc
Reconciliation of Movements in Shareholders' Funds


For the six months ended 31st July 2007 (unaudited)

                                        Called up                  Capital
                                            share       Share   redemption     Capital      Revenue             
                                          capital     premium      reserve     reserve      reserve      Total          
                                            £'000       £'000        £'000       £'000        £'000      £'000          

At 31st January 2007                       31,264      23,459        5,506   1,639,238       44,381  1,743,848
Shares bought back and cancelled          (4,350)           -        4,350   (233,601)            -  (233,601)
Total return from ordinary activities           -           -            -       3,140       25,658     28,798
Dividends appropriated in the period            -           -            -           -     (19,776)   (19,776)
                                          _______     _______     ________    ________     ________   ________
At 31st July 2007                          26,914      23,459        9,856   1,408,777       50,263  1,519,269
                                          =======     =======     ========    ========     ========   ========



For the six months ended 31st July 2006 (unaudited)

                                        Called up                  Capital
                                            share       Share   redemption     Capital      Revenue             
                                          capital     premium      reserve     reserve      reserve      Total          
                                            £'000       £'000        £'000       £'000        £'000      £'000          
At 31st January 2006                       33,123      23,459        3,647   1,346,761       38,004  1,444,994
Shares bought back and cancelled          (1,637)           -        1,637    (65,132)            -   (65,132)
Total return from ordinary activities           -           -            -      51,264       18,762     70,023
Dividends appropriated in the period            -           -            -           -     (17,352)   (17,352)
                                          _______     _______     ________    ________     ________   ________
At 31st July 2006                          31,486      23,459        5,284   1,332,890       39,414  1,432,533
                                          =======     =======     ========    ========     ========   ========


For the year ended 31st January 2007 (audited)

                                        Called up                  Capital
                                            share       Share   redemption     Capital      Revenue             
                                          capital     premium      reserve     reserve      reserve      Total          
                                            £'000       £'000        £'000       £'000        £'000      £'000          
 At 31st January 2006                      33,123      23,459        3,647   1,346,761       38,004  1,444,994
Shares bought back and cancelled          (1,859)           -        1,859    (75,662)            -   (75,662)
Total return from ordinary activities           -           -            -     368,139       35,043    403,182
Dividends appropriated in the period            -           -            -           -     (28,666)   (28,666)
                                          _______     _______     ________    ________     ________   ________
At 31st January 2007                       31,264      23,459        5,506   1,639,238       44,381  1,743,848
                                          =======     =======     ========    ========     ========   ========




JPMorgan Fleming Mercantile Investment Trust plc
Unaudited figures for the six months ended 31st July 2007


Balance Sheet                                             (Unaudited)        (Unaudited)             (Audited)
                                                       31st July 2007     31st July 2006     31st January 2007
                                                                £'000              £'000                 £'000
Fixed assets
Investments at fair value through profit or loss            1,624,441          1,610,457             1,778,500


Current assets
Debtors                                                         4,779             19,027                31,112
Cash and short term deposits                                   88,719             26,336               129,733
                                                              _______            _______               _______
                                                               93,498             45,363               160,845

Creditors: amounts falling due within one year               (22,009)           (46,722)              (18,884)
                                                               ______             ______               _______

Net current assets / (liabilities)                             71,489            (1,359)               141,961
                                                              _______            _______               _______
Total assets less current liabilities                       1,695,930          1,609,098             1,920,461

Creditors: amounts falling due after more than one year     (176,661)          (176,565)             (176,613)
                                                              _______            _______               _______
Total net assets                                            1,519,269          1,432,533             1,743,848
                                                              =======            =======               =======
Capital and reserves
Called up share capital                                        26,914             31,486                31,264
Share premium                                                  23,459             23,459                23,459
Capital redemption reserve                                      9,856              5,284                 5,506
Capital reserve                                             1,408,777          1,332,890             1,639,238
Revenue reserve                                                50,263             39,414                44,381
                                                              _______            _______               _______
Shareholders' funds                                         1,519,269          1,432,533             1,743,848
                                                              =======            =======               =======
Net asset value per share (note 4)                           1,411.2p           1,137.5p              1,394.4p


Cash Flow Statement                                       (Unaudited)        (Unaudited)             (Audited)
                                                     Six months ended   Six months ended            Year ended
                                                            31st July          31st July          31st January
                                                                 2007               2006                  2007
                                                                £'000              £'000                 £'000

Net cash inflow from operating activities                      27,236             18,315                35,244
Net cash outflow from servicing of finance                    (5,472)            (5,784)              (11,258)
Net cash inflow from capital expenditure and
financial investment                                          190,943            112,425               222,389
Dividends paid                                               (19,776)           (17,352)              (28,666)
Net cash outflow from financing                             (233,926)           (73,364)              (87,906)
                                                              _______            _______                ______
(Decrease) / increase in cash for the period                 (40,995)             34,240               129,783
                                                              =======            =======                ======


Notes to the Accounts


1. Financial Statements

The information contained within the financial statements in this half-yearly
report has not been audited or reviewed by the Company's auditors.

The figures and financial information for the year end 31st January 2007 are
extracted from the latest published accounts of the Company and do not
constitute statutory accounts for that year. Those accounts have been delivered
to the Registrar of Companies and included the report of the auditors which was
unqualified and did not contain a statement under either section 237(2) or 237
(3) of the Companies Act 1985.


2. Accounting policies

The accounts have been prepared in accordance with United Kingdom Generally
Accepted Accounting Practice ('UK GAAP') and with the Statement of Recommended
Practice 'Financial Statements of Investment Trust Companies' dated 31st
December 2005.

All of the Company's operations are of a continuing nature.

The accounting policies applied to these interim accounts are consistent with
those applied in the accounts

for the year ended 31st January 2007.



3. Dividends
                                                          (Unaudited)        (Unaudited)             (Audited)
                                                     Six months ended   Six months ended            Year ended
                                                       31st July 2007     31st July 2006     31st January 2007
                                                                £'000              £'000                 £'000

Unclaimed dividends refunded to the Company                       (5)               (43)                  (43)
Fourth quarterly dividend of 11.5p paid 1st May
(2006: 9.0p)                                                   13,742             11,728                11,728
                                
First quarterly dividend of 5.5p paid 1st August
(2006: 4.5p)                                                    6,039              5,667                 5,667
                                                              
Second quarterly dividend of 4.5p paid
1st November                                                      N/a                N/a                 5,667
Third quarterly dividend of 4.5p paid 1st February                N/a                N/a                 5,647
                                                              _______            _______               _______
                                                               19,776             17,352                28,666
                                                              =======            =======               =======

A second quarterly dividend of 5.5p per share, amounting to £5,921,000, has been
declared payable in respect of the six months ended 31st July 2007.


4. Effective Tax Rate

The Company's effective tax rate is nil, as deductible expenses exceed taxable
income.



5. Return per share
                                                        (Unaudited)        (Unaudited)             (Audited)
                                                   Six months ended   Six months ended            Year ended
                                                     31st July 2007     31st July 2006     31st January 2007
                                                              £'000              £'000                 £'000
Return per share is based on the following:

Revenue return                                               25,658             18,762                35,043
Capital return                                                3,140             51,261               368,139
                                                            _______            _______               _______
Total return                                                 28,798             70,023               403,182
                                                            =======            =======               =======

Weighted average number of shares in issue              116,758,372        129,061,878           127,359,350

Revenue return per share                                     21.97p             14.54p                27.51p
Capital return per share                                      2.69p             39.72p               289.06p
                                                            _______            _______               _______
Total return per share                                       24.66p             54.26p               316.57p
                                                            =======            =======               =======



6. Net asset value per share

Net asset value per share is calculated by dividing shareholders' funds by the
number of shares in issue as at 31st July 2007 of 107,659,958 (31st July 2006:
125,939,176 and 31st January 2007: 125,058,759).


JPMORGAN ASSET MANAGEMENT (UK) LIMITED




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