Final Results

Templeton Emerging Markets IT PLC
26 July 2002

Preliminary Announcement - 26 July 2002

                TEMPLETON EMERGING MARKETS INVESTMENT TRUST PLC

                           ("TEMIT") ("the Company")



                             YEAR TO 30 APRIL 2002



The Company today announced its annual results for the year to 30 April 2002.




CHAIRMAN'S STATEMENT


At 30 April 2002, your Company had total assets of £666.2 million, compared with
£619.0 million at 30 April 2001. Undiluted net asset value per share at year-end
was 146.24 pence, an increase of 7.8% over the year. The share price at 30 April
2002 was 125.0 pence, compared with 113.5 pence at the end of last year, an
increase of 10.1%. Over the same period, the MSCI Emerging Markets Free Index,
on a total return basis, rose 8.3%, and the S&P/IFCI Composite Index increased
by 10.4%. The Manager's Report and Portfolio Review (pages 8 to 10) give a
detailed analysis of the Company's performance over the year.

At year-end, 97.4% of the Company's net assets were invested in equities, with
the remaining 2.6% being held in fixed income securities and working capital.
While the general policy of the Manager is to be fully invested, during the four
months ended 30 November 2001 the Company had higher levels invested in fixed
income securities. This temporary position was as a result of our assessment
that there had been a shift in valuations for a number of emerging market stocks
leading to a decision to make major changes in the portfolio.

The Board of Directors has proposed a cash dividend of 1.25 pence per Ordinary
Share. The dividend will be paid on 20 September 2002 to Shareholders on the
register at the close of business on 16  August 2002, subject to the approval of
Shareholders at the Annual General Meeting, which will be held on 19  September
2002.

The global macroeconomic environment during much of the past year was extremely
challenging. During the first half of the period, this was reflected in severe
market volatility worldwide and falling equity valuations in many markets also
prompted by September 11. However lately many emerging market countries began to
benefit from falling interest rates, favourable political trends, a stronger
global economy and rising commodity prices. This improved economic outlook
helped support emerging market equities, which generally performed well during
the second six months.

Last year, the Directors renewed the authority from Shareholders to buy back
shares and during the year 751,114 shares were bought back at a cost of
£897,969. The decision to continue with the programme of buying back shares was
influenced by the favourable implication of the effect on the net asset value
per share. At 30 April 2002, the discount was 14.5%, compared with 16.3% at the
previous year-end.

The portfolio is managed using the value style of investing. This requires a
detailed research of stocks and only those which are trading at less than their
assessed value are purchased. In this regard, the current state of several of
the emerging markets provides that opportunity. This style has served our longer
term investors well. While inevitably we have had some difficult years, since
inception, the net asset value of TEMIT has risen by 334% in sterling terms
compared with a comparable rise of 207% in the MSCI Emerging Markets Free Index
and 181% in the S&P/IFCI Composite Index.

Messrs Hung, Trefgarne and Mobius will be retiring from the Board with effect
from the conclusion of the forthcoming Annual General Meeting. They have all
served on the Board since inception of the Company. Mr Mobius will of course
continue as investment manager of the Company. I would like to thank them for
their invaluable input and counsel in the past 13 years.

The Honourable Nicholas Brady

26 July 2002

Indices above are shown on a total return basis. Sources: Franklin Templeton
Investments and Datastream.

MANAGER'S REPORT AND PORTFOLIO REVIEW

DR J B MARK MOBIUS 30 April 2002


Performance Attribution Explanation

The Company's performance during the year ended 30 April 2002 was affected by
its underweight positions in Korea and Malaysia. The Korea and Malaysia markets
gained 65% and 43%, respectively, while the overall benchmark index increased by
+8%. While the Company's exposure to Korea was substantially increased during
the year, the market's initial recovery was faster than we had anticipated. As a
result, the Company's positions in Korea only partially benefited from the
initial recovery. A lack of substantial improvements in corporate governance and
the implementation of solid economic policies in Malaysia led us to hold an
underweight position. Going forward, we believe that our disciplined,
value-orientated approach will continue to generate superior returns for our
shareholders.

Difference between NAV performance and benchmark performance
Country                    Asset Allocation       Stock Selection       Currency Effect                Total
                                          %                     %                     %                    %
Israel                                  2.3                   0.0                   0.0                  2.3
Greece                                  1.9                   0.4                   0.0                  2.3
South Africa                            0.0                   2.0                  -0.4                  1.6
Brazil                                  0.8                   0.3                   0.0                  1.1
Argentina                              -0.2                   3.3                  -2.2                  0.9
China                                  -0.7                   1.4                   0.0                  0.7
Indonesia                               0.8                  -0.1                   0.0                  0.7
Chile                                   0.6                   0.0                   0.0                  0.6
India                                   0.4                   0.0                   0.0                  0.4
Mexico                                 -0.2                   0.6                   0.0                  0.4
Thailand                                0.4                  -0.1                   0.0                  0.3
Philippines                             0.0                   0.3                   0.0                  0.3
Finland                                -0.1                   0.3                   0.0                  0.2
Venezuela                               0.0                   0.1                   0.0                  0.1
Estonia                                 0.0                   0.1                   0.0                  0.1
Taiwan                                  0.3                  -0.2                   0.0                  0.1
Croatia                                 0.0                   0.0                   0.0                  0.0
Slovak Republic                         0.0                   0.0                   0.0                  0.0
Austria                                 0.0                   0.0                   0.0                  0.0
Sri Lanka                               0.0                   0.0                   0.0                  0.0
Portugal                                0.0                   0.0                   0.0                  0.0
Jordan                                  0.0                   0.0                   0.0                  0.0
Hungary                                 0.4                  -0.4                   0.0                  0.0
Colombia                                0.0                  -0.1                   0.0                 -0.1
Peru                                   -0.1                   0.0                   0.0                 -0.1
Spain                                  -0.1                   0.0                   0.0                 -0.1
Pakistan                                0.0                  -0.2                   0.0                 -0.2
Turkey                                 -0.6                   0.5                  -0.1                 -0.2
Singapore                              -0.2                  -0.1                   0.0                 -0.3
Egypt                                  -0.4                   0.1                   0.0                 -0.3
Czech Republic                          0.0                  -0.3                   0.0                 -0.3
Poland                                 -0.3                  -0.1                   0.0                 -0.4
Hong Kong                              -0.7                   0.2                   0.0                 -0.5
Russia                                 -0.2                  -0.8                   0.0                 -1.0
Malaysia                               -1.7                   0.1                   0.0                 -1.6
Korea                                  -1.0                  -4.9                   0.0                 -5.9
Cash                                                                                                    -1.6
Effect of Buy-Ins                                                                                        0.0
                                                                                  Total                 -0.5




Portfolio Changes

The technology crash and reduced export demand, especially from the United
States, for electronic components caused share prices to fall substantially
during the first half of the period. As a result, the Company was able to
increase its exposure to companies with strong manufacturing expertise and
superior technology at cheap prices in Taiwan and Korea. In addition, many
Taiwanese companies are benefiting from investments on the mainland as well as
the gradual opening of trade and transport links between mainland China and
Taiwan.

We increased our holdings in China "H" and "Red Chip" companies, as we believe
that a great number of these companies are well positioned to benefit from
China's accession into the World Trade Organization (WTO), strong domestic
growth as well as its low cost manufacturing ability and cheap resources.
Divestments in markets such as Finland, Israel, Slovakia, Colombia, Chile and
Venezuela as well as selective sales in South Africa, Mexico and Poland allowed
the Company to increase its exposure to Asia. As of 30 April 2002, 57.14% of the
Company's investments were in Asia compared to 38.86% as of 30 April 2001.
Maintaining its relative exposure to Eastern Europe, the Company increased its
holdings in Hungary while its assets in Poland decreased.

As of 30 April 2002, the largest portion of the Company's holdings by asset
value could be found in South Korea (10.39%), followed by South Africa (10.20%),
China (8.37%) and Hong Kong (7.89%). By industry, the integrated
telecommunications services and the financials sectors dominated the portfolio.
The top 10 holdings included South African Breweries (South Africa), China
Petroleum & Chemical Corp. (China "H" shares), Telekomunikasi (Indonesia), Cemex
(Mexico), Samsung SDI (Korea), Gold Fields (South Africa), Siam Commercial Bank
(Thailand), Korea Electric Power (Korea), Gedeon Richter (Hungary) and KT Corp.
(Korea).

Economic Conditions & Political Climate

Latin America

In Latin America, attention was focused on Argentina as the government closed
its financial markets for five trading days in April 2002 and installed its
sixth economic minister in 12 months. The government has been in talks with the
International Monetary Fund for fresh aid. We believe that the introduction of
numerous provincial currencies will make it difficult for the government to
implement stringent monetary policies and spending cuts, both of which are
essential to pulling the country out of four years of recession. We will
continue to monitor the situation and look for investment value.

Mexico's proximity to the U.S. and the NAFTA agreement should enable it to
benefit from the anticipated recovery in the U.S. later this year. Mexico's
macroeconomic stability and tight fiscal policy provides one of the best
opportunities in Latin America. Aimed at improving minority rights protection,
the country revealed a new takeover code. The new rules are expected to give all
shareholders equal rights to replace those which previously favoured majority
shareholders. Further boosting investor confidence, international ratings
agency, Standard & Poor's upgraded the country's sovereign debt to investment
grade. We believe that Mexico's strengthening economy could continue to attract
investors wishing to maintain exposure to the emerging markets asset class.

In Brazil, the presidential elections scheduled for this year may divert
attention away from the implementation of needed reforms. However, over the
long-term, we expect Brazil to continue working towards economic recovery and
attracting foreign investment. Brazil's improving trade and fiscal accounts
could also allow the country to benefit from greater capital inflows provided
there is a stable political environment.

Asia

Taiwan, particularly its electronics sector, has started to see a recovery in
sales and earnings mainly due to the increase in outsourcing orders from the
U.S. and Europe. We expect exports to be a key driver of growth in 2002 and
2003. On the other hand, Korea, in addition to the electronics recovery,
continues to benefit from the improvement in consumer confidence driven by the
World Cup and Asian Games. In Taiwan's elections, President Chen Shui-bian's
Democratic Progressive Party replaced the Kuomintang as the largest party in the
legislature with 87 out of 225 seats. Greater political stability has already
begun to lead to an inflow of funds into the island's stock market.

Confident of Korea's recovery and economic policies, Moody's Investors Service
raised the country's sovereign rating from Baa2 to A3. Citing improved domestic
demand and industrial production, the government also raised its 2002 growth
forecast to 5.0%-5.9% from 4.0%-4.9%. Southeast Asian markets such as Indonesia
and Thailand have also recorded strong performances over the last twelve months
with the MSCI Indonesia and Thailand Free indices gaining 97% and 23%, in U.S.
dollars, respectively.

In early November, Hu Jintao, Vice President of the mainland Chinese Government
and Vice Chairman of the Central Military Commissions made his first visit to
England, France, Germany and several other countries in Europe to promote trade
and bilateral relationships. A similar trip to the U.S. followed in April. It is
widely expected that Hu is to succeed President Jiang Zemin as the new leader
when Jiang retires from the Politburo Standing Committee in 2002-2003. Hu's
trips were seen as intending to expose him to Western leaders, which would in
turn lead to a smooth transition of leadership.

Eastern Europe

Eastern Europe was the top performing region, with the MSCI Emerging Markets
Eastern Europe Index gaining 36.45% in £' sterling terms during the period. The
main driver for all Eastern European markets has been the "convergence story".
Continued support in the form of additional loans from the IMF and the World
Bank should allow Turkey to work towards the implementation of key reforms. We
believe that Turkey's increasing importance to the Western world should provide
it with the much-needed support to pull itself out of an economic crisis.

South Africa

On the African continent, expansionary fiscal policies in the form of lower
taxes and higher government investment and expenditure could allow South African
GDP growth to remain higher than the global average. A strengthening domestic
economy should further support the country's recovery. We continue to favour the
South African market because of its sound judicial and regulatory structures, as
well as the adherence of the listed companies to accepted codes of corporate
governance. We find that South African companies are well managed and they not
only enjoy a good domestic market but also an expanding market in Africa and
other parts of the world.

Outlook

Although a recovery in the U.S. economy is expected in the second half of 2002,
we are already seeing signs of a pick-up in a number of markets in which we are
active. We believe that improving macroeconomic performances in many countries,
combined with a steady reduction in the risk associated with emerging markets,
low interest rates, and of course a clear improvement in investor sentiment
towards emerging market investing should allow emerging markets to perform
better. Overall, we believe that the discipline imposed by our ground-up, value
orientation has guided us well and we expect this strategy to bring long-term
benefits to our investors.

Manager

Templeton Asset Management Ltd. ("TAML"), part of Franklin Templeton Investments
(with over US$275.8 billion in assets under management as of 30 April 2002), has
over 15 years of investment experience in emerging markets and approximately
US$7.6 billion (as of 30 April 2002) in assets under management. TAML currently
has 25 portfolio managers/analysts located in 11 emerging markets, Moscow
(Russia), Warsaw (Poland), Istanbul (Turkey), Johannesburg (South Africa), Hong
Kong (China), Singapore, Shanghai (China), Seoul (Korea), Mumbai (India), Rio de
Janeiro (Brazil), and Buenos Aires (Argentina). Moreover, TAML's Emerging
Markets Team receives support from approximately 6,500 employees of Franklin
Templeton Investments.

J Mark Mobius, Ph.D.

26 July 2002



PORTFOLIO ANALYSIS by geography

Geographical analysis

(by country of incorporation)

As at 30 April 2002
                                                                    Cost                        Market Value
Country                                                            £'000                               £'000
Korea (South)                                                     55,029                              69,200
South Africa                                                      55,605                              67,922
China**                                                            55,525                              55,744
Hong Kong*                                                        52,987                              52,551
Mexico*                                                           38,565                              52,519
Taiwan                                                            44,406                              46,665
Thailand                                                          35,715                              41,170
Turkey                                                            49,983                              34,768
Brazil*                                                           29,763                              31,302
India                                                             29,599                              29,047
Indonesia                                                         20,684                              28,686
Hungary                                                           22,143                              26,760
Russia*                                                           18,507                              25,305
United Kingdom***                                                 20,728                              20,756
Argentina*                                                        15,713                              16,458
Poland                                                            11,507                              11,684
Greece                                                            10,861                              10,325
Philippines                                                        9,804                               8,879
Malaysia                                                           5,515                               7,133
Singapore                                                          5,329                               6,790
Portugal                                                           5,904                               6,012
Croatia*                                                           3,656                               4,787
Austria                                                            3,692                               4,083
Estonia                                                            2,511                               3,897
Egypt                                                              5,618                               3,764
Czech Republic                                                     3,205                               3,670

TOTAL INVESTMENTS                                                612,554                             669,877
OTHER NET LIABILITIES                                                                                (3,660)
TOTAL SHAREHOLDERS' FUNDS                                                                            666,217


*Includes U.S. listed stocks

**Includes Hong Kong listed stocks

***Includes fixed income stocks



Geographical asset distribution
     Country                      As at 30 April 2002                                As at 30 April 2001

Korea (South)                            10.39%                                             7.96%
South Africa                             10.20%                                             15.14%
China                                    8.37%                                              0.95%
Hong Kong                                7.89%                                              5.71%
Mexico                                   7.88%                                              13.59%
Taiwan                                   7.00%                                              1.43%
Thailand                                 6.18%                                              6.34%
Turkey                                   5.22%                                              6.92%
Brazil                                   4.70%                                              6.65%
India                                    4.36%                                              1.38%
Indonesia                                4.31%                                              2.41%
Hungary                                  4.02%                                              1.20%
Russia                                   3.80%                                              1.59%
United Kingdom                           3.12%                                              7.35%
Argentina                                2.47%                                              2.37%
Poland                                   1.75%                                              5.09%
Greece                                   1.55%                                              0.67%
Philippines                              1.33%                                              1.20%
Malaysia                                 1.07%                                              0.58%
Singapore                                1.02%                                              2.77%
Portugal                                 0.90%                                              0.00%
Croatia                                  0.72%                                              0.53%
Austria                                  0.61%                                              0.00%
Estonia                                  0.58%                                              0.37%
Egypt                                    0.56%                                              1.49%
Czech Republic                           0.55%                                              1.29%
Pakistan                                 0.00%                                              0.99%
Venezuela                                0.00%                                              0.73%
Colombia                                 0.00%                                              0.37%
Israel                                   0.00%                                              0.22%
Finland                                  0.00%                                              0.17%
Chile                                    0.00%                                              0.07%
Slovak Republic                          0.00%                                              0.01%
Liquid Assets                            -0.55%                                             2.46%







PORTFOLIO ANALYSIS by industry

Industrial analysis

As at 30 April 2002

                                                                                 % of                   % of
                                                                            Total Net              Total Net
Industry Classification                                                        Assets                 Assets
                                                                                 2002                   2001

CONSUMER DISCRETIONARY
Automobile Manufacturers                                                         1.79                   1.32
Broadcasting & Cable TV                                                             -                   0.18
Casinos & Gaming                                                                 1.07                   0.63
Department Stores                                                                0.25                      -
Distributors                                                                        -                   0.18
General Merchandise Stores                                                          -                   0.19
Homebuilding                                                                     0.23                   0.10
Hotels                                                                           0.03                   0.18
Household Appliances                                                             0.37                   0.53
Motorcycle Manufacturers                                                            -                   0.03
Speciality Stores                                                                   -                   0.36

                                                                                 3.74                   3.70
CONSUMER STAPLES
Agricultural Products                                                               -                   0.10
Brewers                                                                          7.67                   6.04
Food Distributors                                                                   -                   0.03
Food Retail                                                                      1.80                   0.38
Household Products                                                                  -                   0.07
Packaged Foods                                                                   3.02                   3.67
Soft Drinks                                                                      0.91                      -
Tobacco                                                                          0.55                   0.38

                                                                                13.95                  10.67
ENERGY
Integrated Oil & Gas                                                             7.24                   1.91
Oil & Gas Exploration & Production                                               0.82                   2.97
Oil & Gas Refining & Marketing                                                   3.19                   3.80

                                                                                11.25                   8.68
FINANCIALS
Banks                                                                           11.10                  16.18
Consumer Finance                                                                 0.53                      -
Diversified Financial Services                                                   1.90                   0.31
Life & Health Insurance                                                          0.27                   2.26
Multi Sector Holdings                                                            0.09                   2.72
Real Estate Management & Development                                             2.45                   4.35

                                                                                16.34                  25.82
HEALTH CARE
Pharmaceuticals                                                                  2.66                   1.13
                                                                                 2.66                   1.13

INDUSTRIALS
Aerospace & Defence                                                              0.22                   0.16
Airlines                                                                            -                   0.13
Building Products                                                                   -                   0.17
Construction & Farm Machinery                                                       -                   1.43
Electrical Components & Equipment                                                   -                   0.87
Heavy Electrical Equipment                                                          -                   0.11
Highways & Railtracks                                                            0.42                      -
Industrial Conglomerates                                                         5.06                   3.71
Industrial Machinery                                                             1.07                      -
Marine Ports & Services                                                          1.29                   0.07
Trading Companies & Distributors                                                    -                   0.08

                                                                                 8.06                   6.73
INFORMATION TECHNOLOGY
Application Software                                                                -                   0.12
Computer Hardware                                                                0.67                      -
Computer Storage & Peripherals                                                   2.63                   0.22
Electronic Equipment & Instruments                                               2.87                   0.69
IT Consulting & Services                                                         2.13                   0.13
Networking Equipment                                                                -                   0.21
Semiconductors                                                                      -                   3.46
Telecommunications Equipment                                                     0.10                   0.10

                                                                                 8.40                   4.93
MATERIALS
Aluminium                                                                           -                   0.06
Commodity Chemicals                                                              0.24                   0.15
Construction Materials                                                           4.03                   5.56
Diversified Metals & Mining                                                      0.56                   2.25
Fertilisers & Agricultural Chemicals                                                -                   0.07
Gold                                                                             2.26                      -
Paper Packaging                                                                  0.42                      -
Paper Products                                                                   1.54                   1.43
Steel                                                                               -                   0.67

                                                                                 9.05                  10.19
TELECOMMUNICATION SERVICES
Alternative Carriers                                                                -                   0.39
Integrated Telecommunication Services                                           13.18                   8.26
Wireless Telecommunication Services                                              3.30                   2.16

                                                                                16.48                  10.81
UTILITIES
Electric Utilities                                                               7.46                   7.53
Gas Utilities                                                                    0.04                      -

                                                                                 7.50                   7.53
OTHER NET ASSETS*                                                                2.57                   9.81

                                                                               100.00                 100.00


*Includes fixed income stocks

The above groupings are based on the Morgan Stanley International Perspective
Directory of Industry Classification.





PORTFOLIO ANALYSIS by value

Twenty largest portfolio holdings

As at 30 April 2002
                                         Principal             % of   % of Total          Cost        Market
                                         Country             Issued   Net Assets         £'000         Value
                                         of Issue/            Share                                    £'000
Number of                                Listing       Capital Held
Shares          Issuer
                EQUITY INVESTMENTS
4,668,235       South Africa Breweries   South Africa          0.56         3.87        23,496        25,757
                Plc.

                Emerging Markets brewer
                with operations in
                Eastern Europe, Africa,
                China and India.

183,370,000     China Petroleum &        China                 1.09         3.03        21,754        20,167
                Chemical Corp.

                A China based company
                which explores for and
                produces crude oil and
                natural gas in China.


62,580,320      PT Telekomunikasi        Indonesia             0.62         2.90        11,965        19,331
                Indonesia

                A telecommunication
                company that provides a
                variety of domestic
                telecommunications
                services.



3,985,668       Cemex S.A.               Mexico                0.28         2.60        11,533        17,328

                A Mexican company which
                is the world's third
                largest cement producer
                and the most important
                producer on the American
                continent.




275,547         Samsung SDI Co. Ltd.     Korea                 0.59         2.47         7,704        16,438
                                         (South)
                Samsung specialises in
                manufacturing cathode
                ray tubes for
                televisions and computer
                monitors.



1,820,600       Gold Fields Ltd.         South Africa          0.39         2.26         6,014        15,062
                Gold Fields is a gold
                mining, development and
                exploration company in
                South Africa.

35,840,300      Siam Commercial Bank     Thailand              0.02         2.07        12,913        13,816
                Public Co. Ltd.

                One of Thailand's
                largest commercial
                banks.


1,056,340       Korea Electric Power     Korea                 0.17         2.06        13,556        13,724
                Corp. (KEPCO)            (South)

                Generates, transmits and
                distributes electricity
                to South Korea for a
                variety of uses.

295,508         Gedeon Richter Ltd.      Hungary               1.59         1.94        11,423        12,910

                Gedeon Richter
                manufactures
                pharmaceuticals.

417,460         KT Corp.                 Korea                 0.13         1.93        13,471        12,884
                                         (South)
                Provides
                telecommunication
                services in South Korea.

                Top 10 Holdings - 25.13% of Net Assets                                 133,829       167,417



                  Issuer                   Principal              % of  % of Total         Cost       Market
                                           Country              Issued  Net Assets        £'000        Value
Number of Shares                           of Issue/             Share                                 £'000
                                           Listing        Capital Held
5,573,101,069     Akbank                   Turkey                 1.11        1.82       13,178       12,125
                  One of the largest banks
                  in Turkey.
3,697,933         Polski Koncern Naftowy   Poland                 0.88        1.75       11,507       11,685
                  Orlen S.A.
                  Polski Koncern refines
                  and distributes
                  petroleum products.

1,643,000         Cheung Kong Holdings     Hong Kong              0.07        1.61       11,427       10,733
                  Ltd.
                  A Hong Kong based
                  property development
                  company with holdings in
                  wholesale, import &
                  export, shipping
                  terminal operations,
                  electricity generation,
                  hotels and
                  manufacturing.
1,336,640         Quilmes Industrial S.A.  Argentina              3.50        1.61       11,296       10,685
                  Quilmes through
                  subsidiaries, brews beer
                  and bottles soft drinks.
2,145,740,827     Companhia Paranaense de  Brazil                 1.67        1.59        8,656       10,591
                  Energia-Copel
                  Generates, transmits,
                  transforms and
                  distributes electric
                  power to the entire
                  Brazilian State of
                  Parana.
973,060           Hellenic                 Greece                 0.19        1.55       10,861       10,325
                  Telecommunications
                  Organization S.A. (OTE)
                  Provides
                  telecommunications
                  services to industrial,
                  residential and public
                  customers throughout
                  Greece.
4,687,000         Kimberly Clark de Mexico Mexico                 0.73        1.55        8,164       10,292
                  S.A. de CV, A
                  One of the largest
                  manufacturers and
                  distributors of paper
                  and paper products in
                  Mexico. It is a 43%
                  owned subsidiary of
                  Kimberly-Clark in the
                  U.S.
17,500,851        Dairy Farm International Hong Kong              1.14        1.53        9,179       10,208
                  Holdings Ltd.
                  Dairy Farm International
                  and its subsidiaries
                  operate retail stores
                  such as supermarkets,
                  drugstores and
                  convenience stores.
19,323,000        China Merchant Holdings  China         0.94          1.53        8,902        10,201
                  International Co. Ltd.
                  China Merchant Holdings
                  International through
                  its subsidiaries,
                  operates port,
                  port-related and toll
                  highway business.
385,000           Hyundai Motor Co. Ltd.   Korea (South) 0.18          1.47        6,079        9,799
                  Hyundai Motor
                  manufactures and sells
                  passenger cars, trucks,
                  commercial vehicles and
                  auto parts. The company
                  also sells heavy
                  equipment and petroleum.

                  Top 20 Holdings - 41.14% of Total Assets                              233,078 274,061

                  FIXED INCOME INVESTMENTS
20,000,000        United Kingdom 8.00%     United        0.28          3.12              20,728 20,756
                                           Kingdom
                  06/10/03

                  Total Fixed Income Investments - 3.12% of Net Assets                   20,728 20,756

ANALYSIS OF PORTFOLIO
TOTAL VALUE OF INVESTMENT PORTFOLIO (100.55%)                                                   669,877
OTHER NET LIABILITIES (-0.55%)                                                                  (3,660)
                                                                                                666,217










STATEMENT OF TOTAL RETURN OF THE COMPANY (INCORPORATING THE REVENUE ACCOUNT)
For the year ended 30 April 2002
                                             2002                                 2001
                        Note     Revenue     Capital    Total        Restated     Restated       Restated
                                 £'000       £'000      £'000        Revenue      Capital        Total
                                                                     £'000        £'000          £'000
Gains/(losses) on       15       -           45,497     45,497       -            (113,570)      (113,570)
investments
Income                  2        20,829      -          20,829       18,954       -              18,954
Investment management   3        (6,100)     -          (6,100)      (6,754)      -              (6,754)
fee
Other expenses          4        (2,772)     -          (2,772)      (3,253)      -              (3,253)
Net return on ordinary           11,957      45,497     57,454       8,947        (113,570)      (104,623)
activities before
taxation
Tax on ordinary         5        (3,676)     -          (3,676)      (2,692)      -              (2,692)
activities
Return on ordinary               8,281       45,497     53,778       6,255        (113,570)      (107,315)
activities after
taxation for the
financial year
Dividend in respect of  6        (5,695)     -          (5,695)      (5,628)      -              (5,628)
equity shares
Transfer to reserves             2,586       45,497     48,083       627          (113,570)      (112,943)
(after aggregate
dividends paid and
proposed)
Return per Ordinary     7        1.82p       9.97p      11.79p       1.36p        (24.64p)       (23.28p)
Share (before dividend)

Following clarification of the treatment of bond interest the results for the
year ended 30 April 2001 have been restated to reflect an item of capital that
had been treated as income.

Total recognised gains and losses since the last annual report:
                                           2002
                             Revenue       Capital           Total
                             £'000         £'000             £'000
Return on ordinary           8,281         45,497            53,778
activities after taxation
for the financial year
Prior year adjustment        (1,394)       1,992             598
Total recognised gains and   6,887         47,489            54,376
losses since last annual
report

Notes:

The revenue column of this statement is the profit and loss account of the
Company.

The accompanying notes are an integral part of this statement.

All revenue and capital items in the above statement derive from continuing
operations.





BALANCE SHEET

As at 30 April 2002


                                                           Note                    2002                 2001
                                                                                                    Restated
                                                                                  £'000                £'000
FIXED ASSETS
Investments                                                8                    669,877              603,203
CURRENT ASSETS
Debtors                                                    9                      9,109               10,550
Cash                                                                                  -               16,207
                                                                                  9,109               26,757
CREDITORS: amounts falling due within one year             10                  (12,449)             (10,473)
NET CURRENT (LIABILITIES)/ASSETS                                                (3,340)               16,284
TOTAL ASSETS LESS CURRENT LIABILITIES                                           666,537              619,487
PROVISION FOR LIABILITIES AND CHARGES                      11                     (320)                (456)
                                                                                666,217              619,031

CAPITAL AND RESERVES
Called-up Share Capital                                    12                   113,893              114,081
Share Premium Account                                      13                   275,307              275,306
Capital Redemption Reserve                                 14                     3,843                3,655
Capital Reserve - Realised                                 15                   199,848              257,176
Capital Reserve - Unrealised                               15                    57,460             (44,467)
Revenue Reserve                                            16                    15,866               13,280
SHAREHOLDERS' FUNDS (all equity)                           17                   666,217              619,031
Net Asset Value per Ordinary Share (in pence)              17
- Basic                                                                          146.24               135.66
- Diluted                                                                        144.00               135.21












CASH FLOW STATEMENT

For the year ended 30 April 2002
                                                           Note     2002                2001
                                                                                        Restated
                                                                    £'000               £'000
Reconciliation of operating profit to net cash inflow
from operating activities
Net return on ordinary activities before taxation                   11,957              8,947
Decrease in debtors                                                 15                  22
Decrease in accrued income                                          1,119               259
(Decrease) in creditors                                             (29)                (125)
Net cash inflow from operating activities                           13,062              9,103

Cash flow statement
Net cash inflow from operating activities                           13,062              9,103
Taxation                                                            (2,778)             (1,739)
Financial investments                                      19       (20,984)            (64,379)
                                                                    (10,700)            (57,015)
Equity dividends paid                                               (5,704)             (5,104)
                                                                    (16,404)            (62,119)
Financing                                                  19       (897)               (17,932)
(Decrease) in cash                                                  (17,301)            (80,051)
Reconciliation of net cash flow to movement                19
in net funds
Decrease in cash in the year                                        (17,301)            (80,051)
Opening net funds                                                   16,207              96,258
Closing net funds                                                   (1,094)             16,207





This Preliminary Announcement is not the Company's statutory accounts for the
year ended 30 April 2002. The Statement of Total Return, Balance Sheet and Cash
Flow Statement are extracted from these accounts which have not yet been
delivered to the Registrar of Companies. Copies of the Annual Report will
shortly be sent to shareholders.

The Company's Statutory Accounts for the year ended 30 April 2001, which
included an unqualified Audit Report and did not contain statements under s237
(2) and s237(3) of the Companies Act 1985, have been filed with the Registrar of
Companies.

For information please contact Richard Locke/William Simmonds at Cazenove & Co.
Ltd (0207 588 2828). No representation or warranty is made by Cazenove & Co. Ltd
as to the accuracy or completeness of the information contained in this
announcement and no liability will be accepted for any loss arising from its
use. These figures have been prepared by Franklin Templeton Investments and are
their sole responsibility.







End of Announcement.




                      This information is provided by RNS
            The company news service from the London Stock Exchange