Final Results

Templeton Emerging Markets IT PLC
27 June 2006



               TEMPLETON EMERGING MARKETS INVESTMENT TRUST PLC
                           ("TEMIT") (the "Company")


                             YEAR TO 30 APRIL 2006


The Company today announced its annual results for the year to 30 April 2006.

CHAIRMAN'S STATEMENT

I am pleased to report strong performance by the Company for the year under
review. Net asset value per share at year-end was 348.18 pence, an increase of
75.1% for the year. The share price at 30 April 2006 was 310.25 pence, compared
with 167.25 pence at the beginning of the financial year, an increase of 85.5%.
Over the year, the MSCI Emerging Markets Index and the S&P/IFC Investable
Composite Index both increased 71.1% and 73.5% respectively. Since inception,
the net asset value of the Company has risen by 948.4% in Sterling terms
compared with a rise of 556.0% for the MSCI Emerging Markets Index and 503.9%
for the S&P/IFC Investable Composite Index.

The Manager's Report and Portfolio Review give a detailed analysis of the
Company's performance over the year. The portfolio is managed using the value
style of investing. This requires a detailed research of stocks, and the Manager
purchases only those trading at less than their assessed value.

At the year end, 99.2% of the Company's total assets were invested in equities,
with the remaining 0.8% being held in liquid assets. The general policy of the
Board is to be fully invested.

At 30 April 2006, the Company had total assets of £1,866.20 million, compared
with £1,065.96  million at 30 April 2005. Comparative figures for the year ended
30 April 2005 have been restated to be in accordance with International
Financial Reporting Standards ("IFRS"). Whilst the Company is not technically
required to adopt IFRS, the Board felt as a leading Investment Trust in its
sector and one of the largest in the UK, it would lead the way by fully adopting
IFRS for this year end, and, released its results for the six month period ended
31 October 2005 under IFRS.

The Board of Directors has proposed a cash dividend of 2.76 pence per Ordinary
Share (2005: 2.67  pence). The dividend will be paid on 4 October 2006 to
Shareholders on the register at the close of business on 1 September 2006,
subject to the approval of Shareholders at the Annual General Meeting, which
will be held on 28 September 2006.

The Board keeps the discount under continual review and remains prepared to buy
back shares when it believes this to be in shareholders' best interests. It last
did this when the share price was unusually volatile in the run up to the
continuation vote and warrant redemption exercise in 2004. The Board believes a
discretionary rather than formulaic approach is appropriate. There continue to
be worthwhile investment opportunities, and indeed performance during the year
under review as a fully invested Company has produced an excellent performance.

The Board has continued to monitor the Investment Manager's performance. Last
year it confirmed the management fee at 1% of net asset value and has
subsequently examined the secretarial and administration fees. These services,
since the Company's inception, have been provided by Franklin Templeton
Investment Management Limited at a fee of 0.25%. The Board is satisfied that
administration can be carried out effectively and efficiently by continuing
these arrangements and has negotiated a reduction in the fee to 0.20%, with
effect from 1 February 2006. This will result in a reduction in fees for the
year of £936,000 based on 30 April 2006 closing net assets.

The Board on the recommendation of the Nomination and Remuneration Committee,
has increased directors' fees. The increasing workload, including new corporate
governance and audit requirements, the potential legal liability to which
directors are subject, and the need to attract and retain high quality
directors, justifies such an increase. The new annual figures are: Chairman
£50,000, Chairman of the Audit Committee £40,000, and non-executive directors
£30,000. Directors receive no other benefits. The payment figures shown in this
report reflect partial payment of these increases during 2005/2006.

Sam Ginn is retiring from the Board at the Annual General Meeting on 28
September 2006. He joined the Board in December 2003 at the time of its
significant restructuring. We shall miss his sound business judgment and global
experience and we thank him warmly for his contribution. The Board is proposing
to elect to the Board at its September meeting Neil Collins, the former Business
Editor of the Daily Telegraph. Mr Collins, who is 59, will be recommended to
shareholders for re-election at the Annual General Meeting on 28 September 2006
and his biographical details appear in the Directors' Report.

Since the year end at 30 April 2006, there has been a significant downward
adjustment in equity markets worldwide and this has affected both the Company's
net asset value and the share price. At 15 June 2006 the respective figures were
274.28p and 231.00p. At these levels the net asset value has risen by 37.9% and
the share price by 38.3% since 30 April 2005, representing good positive returns
to shareholders. The Board continues to believe that emerging markets offer
significant value investment opportunities to a well managed fund.

Sir Ronald Hampel
27 June 2006

Indices above are shown on a total return basis in GBP. Sources: Franklin
Templeton Investments and Standard & Poor's.


MANAGER'S REPORT AND PORTFOLIO REVIEW

This is the annual report for Templeton Emerging Markets Investment Trust PLC
for the year ended 30 April 2006.

Overview

Ample global liquidity and a strong macroeconomic environment boosted investor
confidence, resulting in a 71.1% return for the MSCI Emerging Markets Free (EMF)
index in GBP terms. Latin American markets outperformed their emerging market
peers as the region's risk profile continued to improve and earnings remained
robust. In Eastern Europe, markets recorded positive returns as companies
benefited from greater integration into Western Europe. Asian markets, although
returning double digit returns, lagged their counterparts as rising interest
rates in the US led investors to adopt a more cautious stance towards investing
in the region. High commodity prices, strong economic growth and market
stability saw the South African market perform well, while positive developments
in Turkey led the market to end the period with strong gains.

Performance Attribution

Geographic Distribution

The Company's performance, relative to the MSCI EMF index, benefited from an
underweight position in Taiwan, and overweight exposures to Brazil and Turkey.
Good stock selection in Brazil and South Korea further enhanced relative
performance. A zero weighting in Israel also supported performance as the market
underperformed the benchmark index during the period. In Taiwan, the largest
contributors to performance were the Company's underweight holdings in Taiwan
Semiconductor and absence from stocks such as Chinatrust Financial Holdings,
China Steel and Au Optronics. Key Brazilian and Turkish companies which
outperformed the broader MSCI EMF index, and where the Company had an overweight
exposure, were Banco Bradesco, Unibanco, Akbank and Tupras.
Alternatively, underweight exposures to Russia and Mexico resulted in the
largest negative attribution effects. An overweight position in Hong Kong also
had an adverse impact on relative performance. While the Company significantly
increased its investments in Russia, it maintains an underweight position in
Mexico mainly due to the fact that valuations are not as appealing as
neighbouring markets such as Brazil where we continue to find value stocks. In
Hong Kong, overweight positions in Dairy Farm and Cosco Pacific had the largest
negative impact on relative performance as these stocks underperformed the
benchmark index. Exposure to Cosco Pacific was trimmed during the period, but we
continue to maintain the Company's position in Dairy Farm as the company's core
businesses of supermarkets, drugstores, convenience stores and restaurant
businesses should benefit from a regional recovery in consumer demand.
The graph below shows the geographic distribution of the Company's portfolio in
comparison to the MSCI Emerging Markets Index.

Region    Templeton Emerging Markets Investment Trust PLC   MSCI Emerging Markets

Asia                                               48.72%                  52.64%
Europe                                             25.41%                  12.31%
L America/Caribbean                                21.11%                  20.69%
Mid-East/Africa                                     4.76%                  14.34%
North America                                       0.00%                   0.02%


Sector Attribution

The Company's performance was positively impacted by its sector allocation
compared to the MSCI Emerging Markets Index.

The main contributors to this were:

Overweight position and favourable stock selection in the banking sector

Banks are generally facing more favourable business conditions such as widening
net interest margins, increasing fee income derived from cross-selling of
financial products, and lower non-performing loans due to economic recovery and
fewer bankruptcies. Thus we continue to maintain an overweight position.

Overweight exposure and favourable stock selection in the capital goods sector

The sector has a broad diversification into many different sub-sectors, which
include stocks such as Daewoo Shipbuilding, Hyundai Development (which is a
major real estate development and construction company), Sime Darby (which is a
conglomerate with core businesses in plantations, tyre manufacture, automobile
and heavy equipment distribution, and general trading), Fraser & Neave (which is
a well established manufacturer and distributor of food and beverages), and
Trakya Cam (which manufactures and distributes float glass and other glass
products). Rising consumer spending is indeed one of the main investment themes
of the sector.

Underweight exposure to the under performing technology hardware & equipment
sector

Most companies in the information technology sector, such as the software and
consultancy firms in India and Israel, continue to be traded at valuations ahead
of their growth prospects and other fundamental factors. We therefore continue
to maintain an underweight position.

The biggest lags on performance were:

Unfavourable stock selection in the energy sector

There were corrections in the share prices of portfolio holdings in the energy
sector after their excellent performance in the previous quarters. The most
noticeable retrenchments included those of PKN Orlen and PTT Public. However, as
crude oil prices and refining margins remained firm, the share prices of most of
the Company's holdings in the sector resumed their up trend.

Underweight exposure to the materials sector

The materials sector has experienced strong performances as a result of high
commodity prices, making valuations increasingly expensive. Thus, the Company
will continue to be underweight in the sector until more attractive valuations
emerge.

Portfolio Changes & Investment Strategies

During the reporting period, the Company invested in stocks which were well
positioned to benefit from high commodity prices. This resulted in significant
purchases in Russia and Brazil. Key additions included Lukoil, one of the
world's largest vertically integrated oil companies, Norilsk Nickel, one of the
biggest precious metals companies in the world, Vale Do Rio Doce, which is among
the world's leading producers of iron ore, and Petrobras, Brazil's national oil
and gas company. On the other hand, countries which experienced substantial
reductions during the period were Greece and South Africa. The Company also
divested its holding in Commercial International Bank thereby eliminating
exposure to Egypt.

As the Company continued its search for value stocks trading at attractive
valuations, it increased its exposure to Malaysia and China via "Red-chip" and
Shenzhen "B" shares. The significant purchases during the year were Maxis
Communications, one of Malaysia's prominent integrated telecommunications
service providers, Denway Motors, a major automobile manufacturer with a joint
venture with Honda Motor in China, and China International Marine Containers,
the world's largest manufacturer of marine containers. In addition, the Company
repositioned its holdings in South Korea to ensure that it is well positioned to
benefit from the country's economic recovery by reducing its holdings in the
steel and packaged foods & meat sectors. Alternatively, the Company reduced its
exposure to Taiwan and Singapore as selective stocks reached their sale targets.

Asia

China reported GDP growth of 10.2% in the first quarter of 2006 even faster than
the 9.9% in 2005. Key drivers included exports and investment. In an effort to
rein in the faster than expected growth, the People's Bank of China raised its
key lending rate by 27 basis points. Fuelling the strong economic growth,
foreign direct investment (FDI) into the country remained strong as investors
were optimistic about China's growing consumer market and high manufacturing
productivity. FDI inflows totalled US$14.3 billion in the first quarter of 2006,
up 6.4% year on year. China's trade sector continued to benefit from greater
export demand with the surplus registering US$23.3 billion in the first quarter
of 2006. Moreover, China signed agreements with oil & gas rich countries such as
Saudi Arabia and Russia to secure a sustainable energy supply in the future.
President Hu Jintao also embarked on a visit to the US to further develop
relations between the two countries.

Economic indicators continued to point towards steady economic recovery in South
Korea. First quarter GDP grew 6.2% year on year as solid growth exports and
domestic demand continued to boost the economy. Despite accelerating economic
growth, inflation slowed in the first quarter of 2006, allowing the central bank
to keep interest rates unchanged in 2006. However, the bank signalled likely
tightening in the future as economic recovery continued. Aimed at improving
regional economic relations, South Korea signed an accord to form a free trade
agreement (FTA) with the ASEAN trade bloc. This could further boost the
country's trade sector. In politics, parliament approved the nomination of
cabinet minister Han Myung-sook for the position of prime minister. Han is
expected to expand relations between the government and opposition parties as
elections approach in May.

Latin America

In Brazil, the central bank continued to maintain a loose monetary policy with
interest rates ending the period at 15.75% as inflation remained benign and
efforts to ensure a sustained economic recovery continued. GDP grew 2.3% in 2005
mainly due to growth in the industrial and services sectors. Brazil registered a
record US$45.8 billion trade surplus in the 12-month period ended March 2006 as
high commodity prices boosted exports. There was further evidence of Brazil's
financial and economic recovery when the country repaid its outstanding debt of
approximately US$15.5 billion with the International Monetary Fund (IMF) in
December, well ahead of schedule. In politics, Finance Minister Antonio Palocci
resigned in March as allegations of government corruption intensified. He was
replaced by Guido Mantega, President of Brazil's National Development Bank.
Mantega immediately pledged to continue with Palocci's current policies.

Southern/Eastern Europe

In Turkey, the start of European Union accession talks, robust GDP growth,
implementation of key reforms and the support from the IMF provided investors
with reasons to remain confident. GDP grew a revised 7.4% in 2005, on the back
of strong private consumption and fixed investments. Parliament also approved
the social security and health insurance reforms, fulfilling a key requirement
to ensure continued support from the IMF. Moreover, newly appointed Central Bank
Governor Durmus Yilmaz pledged to continue to combat inflation and maintain
price stability.

Russia's economy continued to benefit from high oil and other commodity prices
as its financial position strengthened as a result of strong commodity exports.
This has allowed Russia to repay US$18.3 billion of debt to the IMF and the
Paris Club ahead of maturity. Russia has also approached the Paris Club to repay
another US$12 billion in 2006. This would further reduce the country's debt
servicing costs. Economic growth also remained strong with GDP growing 6.4% last
year. All three major international ratings agencies, Fitch, Moody's and
Standard and Poor's raised Russia's credit ratings during the year mainly due to
continued political and macroeconomic stability, improved finances and sound
debt management. Russia also continued to negotiate the terms for its joining
the World Trade Organisation (WTO) with member states, including the US.
Officials expect Russia to be ready to join in 2006-7.

South Africa

South African GDP growth remained robust in 2005 with GDP expanding 4.9%, faster
than the 4.5% recorded in 2004. Key drivers included the finance, real estate
and business sectors. Domestic demand also remained strong with private
consumption rising 6.9% in 2005. Capital inflows also supported the country's
finances with foreign direct investment and portfolio flows in 2005 totalling
US$11 billion, significantly larger than the US$7 billion recorded in 2004. The
government together with private investors may invest as much as US$3.3 billion
to research and develop alternative energy sources such as ethanol as high oil
prices impacted energy costs. In politics, as widely expected, the ruling Africa
National Congress (ANC) party emerged victorious with 66% of the votes in the
local government elections.

Outlook

After strong performances in the last few years, going forward, we may see
short-term consolidation in some markets. In macroeconomic terms, however, many
of the emerging countries continued to report positive data. Thus, over the
long-term, the investment case for emerging markets remains strong with
economies growing much faster than developed markets, corporate earnings showing
strong growth in many countries, valuations remaining attractive in spite of the
strong price appreciation experienced by many companies, and governments
continuing to implement key financial, social and economic reforms, to ensure
that economic recovery is sustained. We continue to see good opportunities in
Asia, South America, Africa and Eastern Europe and will continue to position the
Company to benefit from the positive developments ahead.

The Manager would like to draw the attention of the Company's shareholders to
the fact that there has been a sharp correction in the emerging markets as
evidenced by a 19.2% and a 21.2% decline in the MSCI Emerging Markets Free Index
and the Company's net asset value respectively from 30 April 2006 to 15 June
2006. At this stage, the Manager believes that such decline is a normal
retrenchment in view of the high appreciation in the markets and companies
attained in the past three years. Although we cannot preclude further downward
movements in the markets, the fundamentals of the Company's holdings and the
prospects of the countries or sectors they operate in remain sound. The Manager
is cautious about the possible further volatility going forward because of
widely fluctuating currencies and commodity prices.

Thank you for your continued interest and support.

J Mark Mobius, Ph.D.
27 June 2006


PORTFOLIO HOLDINGS BY GEOGRAPHY

Geographical analysis
(by country of incorporation)

As at 30 April 2006

                                                                 FairValue (a)
Country                                                                  £'000

BRAZIL
Unibanco - Uniao de Bancos Brasileiros SA, GDR, pfd.*+                  82,780
Banco Bradesco SA, ADR, pfd.*+                                          70,362
Petroleo Brasileiro SA, ADR, pfd.*+                                     51,235
Companhia Paranaense de Energia-Copel, ADR, pfd.*+                      45,464
Companhia Vale do Rio Doce, ADR, pfd., A*+                              32,835
Centrais Eletricas Brasileiras SA                                       30,226
Souza Cruz SA                                                           15,614
Centrais Eletricas Brasileiras SA                                       13,624
Suzano Bahia Sul Papel e Celulose SA, pfd., A +                          9,904
Caemi Mineracao e Metalurgia SA, pfd.* +                                 9,680
Usinas Siderurgicas de Minas Gerais SA, pfd., A +                        3,362
                                                                       ---------
                                                                       365,086
                                                                       ---------

                                                                 FairValue (a)
Country                                                                  £'000

SOUTH KOREA
Hyundai Development Co.                                                117,803
SK Corp.                                                                56,632
Kangwon Land Inc.                                                       25,439
LG Card Co. Ltd.                                                        20,787
CJ Corp.                                                                16,315
Daewoo Shipbuilding & Marine Engineering Co. Ltd.                       14,724
LG Corp.                                                                13,400
Hana Financial Group Inc.                                               13,341
LG Petrochemical Co. Ltd.                                               10,353
POSCO                                                                    8,366
Samsung Electronics Co. Ltd.                                             7,767
SK Telecom Co. Ltd.                                                      7,644
LG Chem Ltd.                                                             7,574
                                                                       ---------
                                                                       320,145
                                                                       ---------


PORTFOLIO HOLDINGS BY GEOGRAPHY (Continued)

                                                                 FairValue (a)
Country                                                                  £'000

CHINA
PetroChina Co. Ltd., H                                                  64,393
China Petroleum and Chemical Corp., H                                   52,868
China Merchants Holdings International Co. Ltd.                         37,291
China Mobile (Hong Kong) Ltd.                                           22,535
Denway Motors Ltd.                                                      16,596
Aluminum Corp. of China Ltd., H                                         15,632
Cosco Pacific Ltd.                                                      11,895
Huaneng Power International Inc., H                                     10,818
Datang International Power Generation Co. Ltd., H                       10,393
Shanghai Industrial Holdings Ltd.                                        4,036
Chongqing Changan Automobile Co. Ltd., B                                 3,649
China International Marine Containers (Group) Co. Ltd., B                2,924
Guangdong Electric Power Development Co. Ltd., B                         2,811
Brilliance China Automotive Holdings Ltd.                                2,450
                                                                       ---------
                                                                       258,291
                                                                       ---------

                                                                 FairValue (a)
Country                                                                  £'000

TURKEY
Akbank TAS                                                              71,096
Tupras-Turkiye Petrol Rafineleri AS                                     44,317
Arcelik AS. Br.                                                          8,587
KOC Holdings AS                                                          5,546
Migros Turk TAS                                                          5,068
Trakya Cam Sanayii AS                                                    3,904
                                                                       ---------
                                                                       138,518
                                                                       ---------

                                                                 FairValue (a)
Country                                                                  £'000

THAILAND
Siam Commercial Bank Public Co. Ltd., fgn.                              33,509
PTT Exploration and Production Public Co. Ltd., fgn.                    25,002
Siam Cement Public Co. Ltd., fgn.                                       18,848
Kasikornbank Public Co. Ltd., fgn.                                      18,828
Bangkok Bank Public. Co. Ltd., fgn.                                      9,303
Land and Houses Public Co. Ltd., fgn.                                    7,288
Kiatnakin Bank Public Co. Ltd., fgn.                                     6,995
BEC World Public Co. Ltd., fgn.                                             41
True Corp. Public Co. Ltd., rts., 3/28/08                                    -
                                                                       ---------
                                                                       119,814
                                                                       ---------

PORTFOLIO HOLDINGS BY GEOGRAPHY (Continued)

                                                                 FairValue (a)
Country                                                                  £'000
RUSSIA
Lukoil Holdings, ADR*                                                   51,201
Mining and Metallurgical Co. Norilsk Nickel, ADR                        21,049
Mobile Telesystems, ADR*                                                13,514
Gazprom                                                                 12,510
                                                                        --------
                                                                        98,274
                                                                        --------

                                                                 FairValue (a)
Country                                                                  £'000
HUNGARY
Gedeon Richter Ltd.                                                     51,954
MOL Magyar Olaj-es Gazipari Rt.                                         44,681
BorsodChem Rt.                                                           1,174
                                                                       ---------
                                                                        97,809
                                                                       ---------

                                                                 FairValue (a)
Country                                                                  £'000
SOUTH AFRICA
Nedbank Group Ltd.                                                      26,635
Remgro Ltd.                                                             22,598
Anglo American PLC                                                      19,901
Old Mutual PLC                                                           8,127
Nampak Ltd.                                                              5,005
Tiger Brands Ltd.                                                        4,320
The Spar Group Ltd.                                                      2,108
                                                                       ---------
                                                                        88,694
                                                                       ---------

                                                                 FairValue (a)
Country                                                                  £'000
TAIWAN
President Chain Store Corp.                                             18,772
Lite-On Technology Corp.                                                14,463
Chunghwa Telecom Co. Ltd.                                               10,358
MediaTek Inc.                                                            8,810
Taiwan Semiconductor Manufacturing Co. Ltd.                              7,542
Taiwan Mobile Co. Ltd.                                                   6,213
Tainan Enterprises Co. Ltd.                                              3,785
Faraday Technology Corp.                                                 1,799
                                                                       ---------
                                                                        71,742
                                                                       ---------

                                                                 FairValue (a)
Country                                                                  £'000
POLAND
Polski Koncern Naftowy Orlen SA                                         49,294
                                                                        --------
                                                                        49,294
                                                                        --------

PORTFOLIO HOLDINGS BY GEOGRAPHY (Continued)

                                                                 FairValue (a)
Country                                                                  £'000
INDIA
ITC Ltd.                                                                15,934
Oil & Natural Gas Corp. Ltd.                                             9,636
Hindustan Petroleum Corp. Ltd.                                           8,256
Gail India Ltd.                                                          7,222
Hindalco Industries Inc.                                                 2,997
National Aluminium Co. Ltd.                                              2,330
                                                                       ---------
                                                                        46,375
                                                                       ---------

                                                                 FairValue (a)
Country                                                                  £'000
SINGAPORE
Dairy Farm International Holdings Ltd.                                  33,035
Fraser and Neave Ltd.                                                    8,020
                                                                       ---------
                                                                        41,055
                                                                       ---------

                                                                 FairValue (a)
Country                                                                  £'000
AUSTRIA
OMV AG                                                                  37,071
                                                                        --------
                                                                        37,071
                                                                        --------

                                                                 FairValue (a)
Country                                                                  £'000
MALAYSIA
Maxis Communications Bhd.                                               17,457
Sime Darby Bhd.                                                          5,489
Tanjong PLC                                                              5,085
                                                                       ---------
                                                                        28,031
                                                                       ---------

                                                                 FairValue (a)
Country                                                                  £'000
CROATIA
Pliva d.d., GDR, Reg S                                                  26,291
                                                                        --------
                                                                        26,291
                                                                        --------

                                                                 FairValue (a)
Country                                                                  £'000
MEXICO
Kimberly Clark de Mexico SA de CV, A                                    12,091
Fomento Economico Mexicano SA de CV, ADR*                                7,836
Telefonos de Mexico SA de CV, L, ADR*                                    5,531
                                                                       ---------
                                                                        25,458
                                                                       ---------

                                                                 FairValue (a)
Country                                                                  £'000
PHILIPPINES
San Miguel Corp., B                                                     10,309
                                                                        --------
                                                                        10,309
                                                                        --------

PORTFOLIO HOLDINGS BY GEOGRAPHY (Continued)

                                                                 FairValue (a)
Country                                                                  £'000
INDONESIA
PT Bank Danamon Indonesia Tbk                                            6,289
PT Astra International Tbk                                               1,268
                                                                         -------
                                                                         7,557
                                                                         -------

                                                                 FairValue (a)
Country                                                                  £'000
UNITED KINGDOM
Provident Financial PLC++                                                7,552
                                                                         -------
                                                                         7,552
                                                                         -------

                                                                 FairValue (a)
Country                                                                  £'000
CZECH REPUBLIC
Philip Morris CR AS                                                      7,500
                                                                         -------
                                                                         7,500
                                                                         -------

                                                                 FairValue (a)
Country                                                                  £'000
SWEDEN
Oriflame Cosmetics SA, SDR++                                             3,529
                                                                         -------
                                                                         3,529
                                                                         -------

                                                                 FairValue (a)
Country                                                                  £'000
GREECE
Titan Cement Co.++                                                       3,199
                                                                     -----------
                                                                         3,199
                                                                     -----------
TOTAL INVESTMENTS                                                    1,851,594
                                                                     -----------
OTHER NET ASSETS                                                        14,605
                                                                     -----------
TOTAL EQUITY                                                         1,866,199
                                                                     -----------

* US Listed Stocks
+ pfd: preferred shares
++ These companies have significant exposure to operations in emerging markets.

(a) Fair value represents the bid value of a security as required by
International Financial Reporting Standards.


PORTFOLIO HOLDINGS BY VALUE
Ten largest portfolio holdings
As at 30 April 2006

Number of     Issuer                Principal   % of Issued     % of    Market
Shares        EQUITY INVESTMENTS      Country         Share    Total     Value
                                    of Issue/       Capital      Net     £'000
                                      Listing          Held   Assets

  3,705,290   Hyundai Development   South              4.92     6.31   117,803
              Co.                   Korea
              One of the leading
              residential property
              developers
              in Korea.

  1,903,100   Unibanco Uniao de     Brazil             0.32     4.44    82,780
              Bancos Brasileiros
              SA
              GDR, pfd.
              One of Brazil's
              largest financial
              conglomerates,
              providing a full
              range of banking and
              financial
              services.

 15,590,875   Akbank TAS            Turkey             0.87     3.81    71,096
              One of Turkey's
              largest privately
              owned
              commercial banks,
              providing a full
              range of
              banking and financial
              services.

  3,374,738   Banco Bradesco SA,    Brazil             0.69     3.77    70,362
              ADR, pfd.
              One of Brazil's
              largest financial
              conglomerates,
              providing a full
              range of banking and
              financial
              services.

106,506,000   PetroChina Co. Ltd.,  China              0.50     3.45    64,393
              H
              China's largest oil
              and gas company in
              terms of
              reserves that is
              diversifying into
              marketing and
              downstream
              activities.

  1,405,990   SK Corp               South Korea        1.09     3.03    56,632
              A major player in
              South Korea's
              refining industry.

152,584,000   China Petroleum &     China              0.91     2.83    52,868
              Chemical Corp., H
              One of the largest
              integrated energy
              companies in
              China.

    441,558   Gedeon Richter Ltd.   Hungary            2.37     2.78    51,954
              Hungary's largest
              pharmaceutical
              producer, with
              strong presence in
              Eastern Europe.

  1,052,759   Petroleo Brasileiro   Brazil             0.06     2.75    51,235
              SA, ADR, pfd.
              Brazil's national oil
              and gas company.

  1,033,166   Lukoil, ADR           Russia             0.12     2.74    51,201
              A major integrated                                       ---------
              oil and gas company
              in Russia.

              Top Ten Holdings -                                       670,324
              35.92 % of Net                                           ---------
              Assets



INCOME STATEMENT
For the year ended 30 April 2006

                                  2006                             2005 (restated)
                Revenue        Capital         Total    Revenue          Capital        Total
                  £'000          £'000         £'000      £'000            £'000        £'000

Gains on
investments
and exchange
Gains on
investments at
fair value            -        795,513       795,513          -          168,968      168,968
Losses on
foreign               
exchange              -           (535)         (535)         -             (512)        (512)

Revenue
Dividends        49,221              -        49,221     36,015                -       36,015
Bank Interest       676              -           676      1,200                -        1,200
               ---------- -------------- ------------- ----------  ---------------  -----------  
                 49,897        794,978       844,875     37,215          168,456      205,671

Expenses
Investment
Management fee  (15,203)             -       (15,203)    (9,487)               -       (9,487)
Other expenses   (6,222)             -        (6,222)    (4,863)               -       (4,863)
               ---------- -------------- ------------- ----------  ---------------  -----------  
Profit before
taxation         28,472        794,978       823,450     22,865          168,456      191,321
Tax Expense*     (8,897)             -        (8,897)    (5,718)               -       (5,718)
               ---------- -------------- ------------- ----------  ---------------  -----------

Profit
attributable  
to equity
holders of the   
Company          19,575        794,978       814,553     17,147          168,456      185,603
               ---------- -------------- ------------- ----------  ---------------  -----------

Basic earnings 
per Ordinary
Share                                         151.97p                                   36.97p
                                         -------------                              -----------
Annualised
Expense Ratio                                   1.41%                                    1.50%


Figures for the year ended 30 April 2005 have been restated following the
adoption of International Financial Reporting Standards ("IFRS").

The total column is the Income Statement of the Company.
The supplementary revenue and capital return columns are both prepared under
guidance published by the Association of Investment Trust Companies.
All items in the above statement derive from continuing operations.

*The Tax Expense consists of:
UK Tax £7,501,000
Overseas Tax £1,396,000




BALANCE SHEET
As at 30 April 2006

                                                          2006   2005 (restated)
                                                         £'000           £'000
ASSETS
Non-current assets
Investments at fair value through profit or loss     1,851,594       1,038,882
                                                     -----------     -----------
Current assets
Trade and other receivables                              9,290           8,985
Cash                                                    25,764          24,294
                                                     -----------     -----------
                                                        35,054          33,279
                                                     -----------     -----------

Current Liabilities
Trade and other payables                               (15,440)         (2,862)
Current tax payable                                     (3,309)         (1,371)
                                                     -----------     -----------
                                                       (18,749)         (4,233)
                                                     -----------     -----------

Non-current liabilities
Deferred tax liabilities                                (1,700)         (1,971)
                                                     -----------     -----------
NET ASSETS                                           1,866,199       1,065,957
                                                     -----------     -----------

ISSUED SHARE CAPITAL AND RESERVES
ATTRIBUTABLE TO EQUITY SHAREHOLDERS
Called-up Share Capital                                133,995         133,995
Share Premium Account                                  375,327         375,327
Capital Redemption Reserve                               6,893           6,893
Capital Reserve - Realised                             271,724         183,656
Capital Reserve - Unrealised                         1,035,007         328,097
Revenue Reserve                                         43,253          37,989
                                                     -----------     -----------
EQUITY SHAREHOLDERS' FUNDS                           1,866,199       1,065,957
                                                     -----------     -----------

Net Asset Value per Ordinary Share (in pence)           348.18          198.88


Figures as at 30 April 2005 have been restated following the adoption of
International Financial Reporting Standards ("IFRS").

These Financial Statements were approved for issue by the Board and signed on 27
June 2006.



STATEMENT OF CHANGES IN EQUITY

For the year ended 30 April 2006


                                                  Capital     Capital      Capital
                        Share         Share    Redemption   Reserve -    Reserve -      Revenue
                      Capital       Premium       Reserve    Realised   Unrealised      Reserve        Total
              Ref       £'000         £'000         £'000       £'000        £'000        £'000        £'000

Balance at 1
May 2004 under 
UK GAAP         a     113,806       275,351         3,940     197,761      166,757       20,842      778,457

Effect of
changes in
accounting
policy arising
from the
introduction
of International
Financial
Reporting
Standards:
Equity
Dividend        b           -             -             -           -            -       10,242       10,242
Bid valuation
adjustment      c           -             -             -           -       (3,947)           -       (3,947)
Transaction
Costs           d           -             -             -      (2,039)       2,039            -            -
                    ----------- -------------   -----------   ---------  -----------  ----------- ------------
Balance at 1
May 2004            
under IFRS      e     113,806       275,351         3,940     195,722      164,849       31,084      784,752
                    ----------- -------------   -----------   ---------  -----------  ----------- ------------

Profit for the              
period                      -             -             -           -            -      185,603      185,603
Equity
Dividends                   -             -             -           -            -      (10,242)     (10,242)
Issue of
shares on
warrants
exercised              23,142        99,976             -           -            -            -      123,118
Purchase and
cancellation
of own shares          (2,953)            -         2,953     (17,274)           -            -      (17,274)
Transfer to
capital
reserves                    -             -             -       5,208      163,248     (168,456)           -
                    ----------- -------------   -----------   ---------  -----------  ----------- ------------
Balance at 30
April 2005      e     133,995       375,327         6,893     183,656      328,097       37,989    1,065,957
                    ----------- -------------   -----------   ---------  -----------  ----------- ------------
Profit for the              
period                      -             -             -           -            -      814,553      814,553
Equity 
dividends       f           -             -             -           -            -      (14,311)     (14,311)
Transfer to
capital
reserves                    -             -             -      88,068      706,910     (794,978)           -
                    ----------- -------------   -----------   ---------  -----------  ----------- ------------
Balance at 30
April 2006            133,995       375,327         6,893     271,724    1,035,007       43,253    1,866,199
                    ----------- -------------   -----------   ---------  -----------  ----------- ------------

     
a.   As previously reported under UK GAAP.
b.   Equity dividend adjustment is due to a change whereby only dividends paid 
     during the year are reflected in the financial statements. Previously,
     proposed dividends were shown as a creditor in the financial statements. 
     The 2004 dividend of 2.25 pence per share is therefore added back and 
     subsequently reflected in the year ended 30 April 2005 results.
c.   All investments are now valued on a bid basis. Previously they were valued 
     on a mid market basis.
d.   Previously transaction costs were included within cost of security when
     purchased and deducted from proceeds of security when sold. They are now 
     treated as a capital expense. This results in a movement between realised 
     and unrealised capital reserves.
e.   Restated for IFRS.
f.   The equity dividend in respect of the year ended 30 April 2005 was paid on 
     3 October 2005.



CASH FLOW STATEMENT
For the year ended 30 April 2006
                                                       2006      2005 (restated)
                                                      £'000              £'000

Cash flows from operating activities
Profit before taxation                              823,450            191,321
Adjustments for:
Gains on investments at fair value                 (795,513)          (168,968)
Realised loss on foreign exchange                       535                512
Decrease/(increase) in debtors                          598               (526)
Decrease/(increase) in accrued income                    16             (2,512)
Increase in creditors                                 1,884              1,443
                                                  -----------        -----------
Cash generated from operations                       30,970             21,270
                                                  -----------        -----------
Taxation paid                                        (6,892)            (5,777)
                                                  -----------        -----------
Net cash inflow from operating activities            24,078             15,493
                                                  -----------        -----------

Cash flows from investing activities
Purchases of non-current financial assets          (198,399)          (273,417)
                                                  -----------        -----------
Sales of non-current financial assets               190,402            168,638
                                                  -----------        -----------
                                                     (7,997)           104,779
                                                  -----------        -----------

Cash flows from financing activities
Equity dividends paid                               (14,311)           (10,242)
                                                  -----------        -----------
Proceeds of issue of shares                               -            123,118
Purchase of shares for cancellation                       -            (17,273)
                                                  -----------        -----------
                                                    (14,311)            95,603
                                                  -----------        -----------

Net increase in cash                                  1,770              6,317

Cash at start of year                                24,294             17,977
Exchange (loss) on cash                                (300)                 -
                                                  -----------        -----------
Cash at end of year                                  25,764             24,294
                                                  -----------        -----------

As a result of the implementation of IFRS, the Profit before taxation is taken
from the Total column of the Income Statement. The gains/losses on Investment
and Foreign Exchange are then deducted to reach the same figure as that which
would have appeared in the UK GAAP Cash Flow Statement.

This preliminary statement was approved by the Board on 27 June 2006. It is not
the Company's statutory accounts. The statutory accounts for the year ended 30
April 2005 have been delivered to the Registrar of Companies and received an
audit report which was unqualified and did not contain statements under s237(2)
or (3) of the Companies Act 1985. The financial statements for the year ended 30
April 2006 have been approved and audited and are due to be filed. They have
been prepared using the IFRS accounting policies set out on pages 44-46 in the
financial statements. Previous years' accounting policies were prepared under UK
GAAP. Copies of the Company's Annual Report and Audited Accounts for the year
ended 30 April 2006 will be mailed to shareholders shortly.

For information please contact Will Rogers at UBS Limited (0207 567 8000),
Client Dealer Services on freephone 0800 305 306 or Sara MacIntosh (Company
Secretary) on 0131 242 4000. No representation or warranty is made by UBS
Limited as to the accuracy or completeness of the information contained in this
announcement and no liability will be accepted for any loss arising for its use.
These figures have been prepared by Franklin Templeton Investments and are their
sole responsibility.



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