Final Results

SchroderJapan Growth Fund PLC
26 September 2003

                                                               26 September 2003

Press Release
                              Preliminary Results


The Directors of Schroder Japan Growth Fund plc announce the unaudited
preliminary results for the year ended 31 July 2003.

                                                   For the year ended                    For the year ended
                                                      31 July 2003                          31 July 2002
                                                Revenue     Capital       Total      Revenue     Capital       Total
                                                  £'000       £'000       £'000        £'000       £'000       £'000

Losses on investments                                 -     (3,591)     (3,591)            -    (20,349)    (20,349)
Realised exchange rate losses                         -       (190)       (190)            -       (319)       (319)
Realised exchange gains on the loan                   -           -           -            -         412         412
facility
Unrealised exchange gains on the loan                 -         738         738            -         680         680
facility
Income                                            1,297           -       1,297        1,227           -       1,227
Investment management fee                       (1,008)           -     (1,008)      (1,142)           -     (1,142)
Administrative expenses                           (326)           -       (326)        (350)           -       (350)
Deficit before finance costs and                   (37)     (3,043)     (3,080)        (265)    (19,576)    (19,841)
taxation
Interest payable                                  (297)           -       (297)        (312)           -       (312)
Deficit on ordinary activities before             (334)     (3,043)     (3,377)        (577)    (19,576)    (20,153)
taxation
Tax on ordinary activities                        (155)           -       (155)        (181)           -       (181)
Deficit attributable to equity                    (489)     (3,043)     (3,532)        (758)    (19,576)    (20,334)
shareholders
Deficit per ordinary share-pence                (0.39)p     (2.43)p     (2.82)p      (0.61)p    (15.66)p    (16.27)p




                                                                     Year ended 31 July 2003   Year ended 31 July 2002
Abridged Cash Flow Statement                                                   £'000                    £'000

Net cash outflow from operating activities                                      (43)                    (324)

Net cash outflow from returns on investments and                               (302)                    (320)
servicing of finance

Total tax paid                                                                 (154)                    (185)

Net cash (outflow)/ inflow from financial investment                         (3,217)                    2,839

Net cash (outflow)/inflow                                                    (3,716)                    2,010


                                                                       As at 31 July 2003        As at 31 July 2002
Assets                                                                         £'000                    £'000

Listed investments                                                           108,973                  109,255

Net current assets                                                               869                    4,857

Creditors: amounts falling due after one year                               (20,643)                 (21,381)

Net Assets                                                                    89,199                   92,731


Net asset value per share - undiluted pence                                   71.36p                   74.18p

Net asset value per share - diluted pence                                        N/A                      N/A



The principal investment objective of the Company is to achieve capital growth
from an actively managed portfolio principally comprising securities listed on
the Japanese stockmarkets, with the aim of achieving growth in excess of the TSE
First Section Total Return Index over the longer term.

Notes

The above financial information is unaudited and does not amount to statutory
accounts under Section 240 of the Companies Act 1985 (as amended). The
information given for the financial year ended 31 July 2003 does not constitute
the Company's statutory accounts for that financial year. Statutory accounts for
the financial year ended 31 July 2002 have been reported on by the Company's
auditors and delivered to the Registrar of Companies. The report of the auditors
was unqualified and did not contain a statement under Section 237(2) or (3) of
the Companies Act 1985.

The statutory accounts for the year ended 31 July 2003 will be finalised on the
basis of the financial information presented by the Directors in this
preliminary announcement and will be delivered to the Registrar of Companies
following the Company's Annual General Meeting.

This announcement is prepared on the basis of the accounting policies as set out
in the most recent published set of annual financial statements.


Statement by the Chairman, Mr Jeremy Hill:

Key Events


  • Decrease of 3.8% in undiluted net asset value per share (from 74.18p per
    share to 71.36p pence per share) throughout the year ended 31 July 2003
    compared with a negative total return from the Company's benchmark Index of
    4.9% in sterling terms.

  • Continued out-performance against the Company's benchmark Index and AITC
    peer group average during the year under review.

Performance

During the year ended 31 July 2003, the net asset value of the Company decreased
by 3.8%, compared with a negative total return of 4.9% produced by the Tokyo
Stock Exchange First Section Total Return Index 'TSE', the Company's benchmark
Index.

These figures do not reflect the underlying volatility in Japanese equities
during the year under review. The 16.3% decrease in undiluted net asset value
during the first six months of the year, which stood at 62.09p per share at 31
January 2003, has been balanced by a recovery in the second half of the year, as
the Japanese market has rallied strongly. The undiluted net asset value reached
71.36p per share at 31 July 2003. Since the end of the financial year, the rally
has continued and the net asset value increased to 83.24p as at 18 September
2003.

Share and Warrant Purchases

The Company has powers to buy-back its own shares and warrants. The share
buy-back facility is one of a number of tools that may be used to enhance
shareholder value and to reduce the discount volatility. During the year, the
Directors have not utilised the authority given to them and no purchases have
been made. Your Board believes that there are other tools which may be used to
address the discount of the Company's shares, in particular sustained good
performance, which can have as much effect.

A resolution to renew the share buy-back authority is included in the Notice of
the Annual General Meeting.

Gearing

The Company has maintained its loan facilities with Allied Irish Banks plc and
ING Bank NV amounting to Yen 2.5 billion repayable on 29 August 2004 and Yen 1.5
billion repayable on 30 April 2005 respectively. At 31 July 2003, the gearing
ratio (borrowings less cash and short-term deposits as a percentage of net
assets) was 21.8%.

Outlook

The market has risen sharply since the year-end, on a newfound enthusiasm about
the prospects for economic recovery. While these prospects inevitably are
unclear, we believe that there is a strong likelihood of corporate profits
rising materially over the next two years unless the economy weakens
significantly. On this basis, and given the Investment Manager's confidence in
the relative appeal of the Company's portfolio, we continue to take advantage of
the Company's gearing facility.

Annual General Meeting

The Annual General Meeting will be held on Wednesday 12 November 2003 and
shareholders are invited to attend. The meeting will follow our usual format,
which includes a presentation on the prospects for the Japanese economy and
investment strategy



Jeremy Hill

Chairman



Annual Report and Accounts

The Annual Report and Accounts will be mailed to registered shareholders at
their registered addresses in October 2003. Copies of the Annual Report and
Accounts will be made available at the Company's registered office, 31 Gresham
Street, London, EC2V 7QA.



Enquiries:       Schroder Investment Management Limited

John Spedding     (0207 658 3206)

26 September 2003


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