Recommended proposals for voluntary liquidation

To: Stock Exchange For immediate release: 13 May 2005 Martin Currie High Income Trust plc · Recommended proposals for voluntary liquidation · Interim financial statements for the 6 months to 31 January 2005 Martin Currie High Income Trust plc (the "company") announces recommended proposals for voluntary liquidation. Included in this announcement are the company's interim financial statements for the six months to 31 January 2005. The directors of the company intend, as soon as practicable, to post a circular to shareholders which will contain a notice convening an extraordinary general meeting of the company ("EGM") at which resolutions will be proposed to commence the voluntary winding up of the company. In 2001 a severe fall in stock market prices caused a substantial reduction in the value of the company's investments which meant that the company's banking covenants were breached. To remedy this the company was required to sell investments in order to repay a substantial part of the company's bank loan from Bank of Scotland. Since then, further loan repayments have been made. The company's income was reduced by the sale of investments to make loan repayments, and was further reduced by the decision of several of the split capital investment companies in which the company held shares to suspend dividend payments. As a result, the company was obliged to cease paying dividends to shareholders, ordinary shares in the capital of the company were suspended from the Official List of the UK Listing Authority and from trading on the London Stock Exchange and the company had to continue to sell investments to meet operating costs, including interest payments on its bank loan. Throughout this difficult period, Bank of Scotland has supported the company by allowing it to continue to trade in the hope that, by August 2008, the earliest planned date when the directors are obliged to put to shareholders proposals for the continuation of the company, markets would have risen sufficiently to allow the company to repay some capital to shareholders if the company were wound up. Bank of Scotland has now informed the company that, due to the unlikely prospect of the value of the company's investments ever rising sufficiently to repay borrowings in full, it cannot continue to support it and has asked that the outstanding amounts under the bank loan be repaid. However, in a letter dated 12 May 2005 Bank of Scotland agreed, in return for the company paying to it substantially all of the proceeds of sale of the company's remaining investments, to forego its rights to proceed against the company for the full amount due to it. The company is therefore obliged as soon as practicable to dispose of its remaining investments and, subject to the retention of an amount sufficient to satisfy the known claims of other creditors and the costs of the voluntary winding up of the company pay the proceeds of disposal to the bank. The company has also agreed to pay to the bank any dividends or other assets received by the company in the period until the company is finally wound up, together with residual assets of the company at the end of the winding up of the company, provided that, in total, no more than the amount due to the bank on 12 May 2005 is paid to it. Given the compromise reached with Bank of Scotland, and the required disposal of the company's investments which will follow, it is in the opinion of the directors not practicable for the company to continue to trade. The directors are therefore proposing to convene an EGM at which resolutions will be proposed to appoint liquidators to wind up the company on a voluntary basis. The company's ordinary shares are listed on the Official List of the United Kingdom Listing Authority but this listing has been suspended since 25 July 2002. Shareholders should note that it is intended that the company's ordinary shares be delisted from the Official List. The circular relating to the winding up proposals will contain formal notice of the delisting. A further announcement will be made confirming the posting of the circular and the details of the EGM. MARTIN CURRIE HIGH INCOME TRUST plc Statement of total return (incorporating the revenue account*) for six months to 31 January 2005 Unaudited Revenue Capital Total £'000 £'000 £'000 Gains on - realised - 58 58 investments - unrealised - 412 412 Income - franked 74 - 74 - unfranked 1 - 1 Administrative expenses (99) - (99) _______ _______ _______ Net return before finance costs and (24) 470 446 taxation Interest payable and similar charges (163) - (163) _______ _______ _______ Return on ordinary activities before and (187) 470 283 after taxation _______ _______ _______ Transfer (from)/ to reserves (187) 470 283 _______ _______ _______ Return per ordinary share (0.50p) 1.25p 0.75p * The revenue column of this statement is the profit and loss account of the company. All revenue and capital items derive from continuing obligations MARTIN CURRIE HIGH INCOME TRUST plc Statement of total return (incorporating the revenue account*) for six months to 31 January 2004 Unaudited Revenue Capital Total £'000 £'000 £'000 Gains on - realised - 43 43 investments - unrealised - 72 72 Income - franked 84 - 84 - unfranked - - - Administrative expenses (57) - (57) _______ _______ _______ Net return before finance costs and 27 115 142 taxation Interest payable and similar charges (188) - (188) _______ _______ _______ Return on ordinary activities before and (161) 115 (46) after taxation Transfer (from)/to reserves (161) 115 (46) _______ _______ _______ Return per ordinary share (0.43p) 0.31p (0.12p) * The revenue column of this statement is the profit and loss account of the company. All revenue and capital items in the above statement derive from continuing operations. MARTIN CURRIE HIGH INCOME TRUST plc Balance Sheet As at 31 January 2005 As at 31 January 2004 (unaudited) (unaudited) £000 £000 £000 £000 Fixed assets Investments at bid value - 4,268 4,074 UK Current assets Debtors 10 101 Cash at bank 95 10 _______ _______ 106 111 Creditors Amounts falling due within (5,125) (5,108) one year _______ _______ Net current liabilities (5,020) (4,997) _______ _______ Net assets (752) (923) _______ _______ Capital and reserves Called up share capital 1,875 1,875 Capital - realised (14,661) (14,804) reserves - unrealised (7,725) (8,083) Revenue reserve (761) (431) Special reserve 20,520 20,520 _______ _______ Total shareholders' funds (752) (923) _______ _______ Net asset value per (2.01p) (2.46p) ordinary share of 5p MARTIN CURRIE HIGH INCOME TRUST plc Statement of cash flow for six months ended 31 January 2005 £000 £000 Operating activities Net dividends and interest received from 73 investments Other payments (59) _______ Net cash inflow from operating activities 14 Servicing of finance Interest paid (163) _______ Net cash outflow from servicing of finance (163) Taxation Net taxation recovered - _______ Net cash from taxation - Capital expenditure and financial investment Payments to acquire investments (248) Receipts from disposal of investments 472 _______ Net cash inflow from capital expenditure and 224 financial investment _______ Increase in cash for period 75 _______ MARTIN CURRIE HIGH INCOME TRUST plc Statement of cash flow for six months ended 31 January 2004 £000 £000 Operating activities Net dividends and interest received from 84 investments Other payments (52) _______ Net cash inflow from operating activities 32 Servicing of finance Interest paid (187) _______ Net cash outflow from servicing of finance (187) Taxation Net taxation recovered 2 _______ Net cash inflow from taxation 2 Capital expenditure and financial investment Payments to acquire investments (355) Receipts from disposal of investments 506 _______ Net cash inflow from capital expenditure and 151 financial investment _______ Decrease in cash for period (2) _______ - ends - For further information, please contact: Michael Woodward Martin Currie Investment Management 0131 229 5252 Ltd mwoodward@martincurrie.com

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