AGM Statement/Tender Offer

Electra Investment Trust PLC
28 February 2001


Electra Investment Trust

AGM Statement

Electra Announces £150 million Tender Offer and Updated Investment Strategy
to Maximise Value For Shareholders

At the AGM, held today at 11.00 am, Brian Williamson, chairman of Electra
Investment Trust P.L.C. ('Electra' or the 'Trust') updated shareholders on
the Board's proposals for the future of the Trust.  He said:

'In my Chairman's statement in the 2000 Annual Report, I anticipated that I
would give an update to shareholders on the future of Electra.

Since 28 February 1999, Electra has achieved asset sales of over £1 billion,
or 75 per cent. of the then Net Asset Value, and has already returned £795
million of cash to shareholders.  The Board remains committed to maximising
value for shareholders and this morning, I am pleased to announce a further
tender offer for up to £150 million, expected to be completed in May this
year, at the then prevailing Net Asset Value.  This would be the third
tender offer in the past two years and would bring the total cash returned
to shareholders to £945 million. We believe this is a tremendous result and
shows the excellent progress of our realisation strategy, which has
significantly exceeded expectations.

Whilst the realisation of the portfolio within the original timescale
remains achievable, market conditions have changed, and while these
conditions persist, they will lead to a slowdown in the rate of
realisations.  In light of this, the Board considers it is necessary to
pursue a more flexible strategy to maximise the value of the remaining
portfolio.

The Board proposes to retain the existing emphasis on realising investments.
We anticipate returning at least two-thirds of future cashflow from the
existing portfolio, which, subject to market conditions, the Board expects
to result in not less than £500 million being returned in the next three
years.  This would be via a combination of aggressive share buy-backs and
regular tender offers.

The remaining cashflow will over time go to create a smaller investment
vehicle investing in private equity opportunities arising from existing
portfolio companies and investments in and co-investments alongside Electra
Partners' funds.  Subject to feasibility, the Board intends to invest in the
Electra Partners' European management buy-out fund.

This strategy will be reviewed by the Board of Electra in 2004.

The Electra Partners' team has managed the assets of Electra for more than
ten years, including the last two years of successful realisations.  Electra
Partners has built a strong expertise and track record.  As you are aware,
Electra has consistently outperformed the FTSE-All Share Index over ten
years.

In line with the change in strategy Electra Partners will be appointed under
a new contract which will run for an initial two-year term, with a one-year
rolling notice period thereafter.  The management fee and incentive
arrangements for the new contract will be based on market rates.

By agreement, the existing long-term incentive scheme will be replaced with
a new scheme that will align better the interests of the management team and
shareholders.  We believe that the new scheme will result in appropriate
levels of payments being made to management as additional value is realised.
Following shareholder approval, the net impact of this new scheme is an
immediate uplift to Electra's Net Asset Value of £11.5 million.

The full details of the proposals including the tender offer will be
provided to shareholders in a circular which will convene an Extraordinary
General Meeting for shareholders' approval.  The Board anticipates that this
circular will be published in Spring of this year.'

Notes to Editors:

The unaudited net asset value per share at 31 January 2001 was 1055p,
reflecting purchases and sales of investments, currency movements and
changes in value of the listed portfolio since 30 September 2000.  The
unlisted portfolio was not revalued at 31 January 2001 except where
securities were valued by reference to quoted prices.

Contacts:

Brian Williamson, Electra Investment Trust   Tel: [phone]
                                             
Hugh Mumford, Electra Partners Limited       Tel: [phone]
                                             
Jonathan Dawson, Lazard                      Tel: [phone]
Jon Hack                                     
                                             
Christopher Smith, Cazenove                  Tel: [phone]
Angus Gordon-Lennox                          
                                             
Stephen Breslin, Brunswick                   Tel: [phone]
Tricia Parish