Chairman's AGM Statement

Electra Investment Trust PLC
1 March 2000


Electra Investment Trust
AGM Chairman's Statement

Michael Stoddart, the Chairman of Electra Investment Trust will make the
following statement at the Howard Hotel, 12 Temple Place WC2R 2PR at 12 noon
today

'As I set out in the Chairman's statement in the annual report and accounts,
the year to 30 September, 1999 was one of substantial change for Electra and
its shareholders.  These changes have resulted in Electra pursuing a
strategy of creating value for shareholders through the successful
realisation of Electra's investment portfolio and by returning capital to
shareholders.  The start of this process was in April 1999 when a tender
offer for 40 per cent. of the then share capital of the company at £7.86 per
share was completed.  I am pleased to confirm that realisations since the
time of this tender offer have already resulted in the substantial repayment
of the borrowings which were raised to fund this tender offer.  Net bank
borrowings have been reduced to £110 million at 29 February 2000 and the
Board anticipates that net borrowings will have been eliminated by the
middle of the year.

As a result of this continued satisfactory progress in realising the
portfolio and consistent with Electra's strategy, the Board has been
developing plans for a further return of capital to shareholders.  I am
therefore pleased to announce that, assuming continued satisfactory progress
in realising investments, it is the Board's current intention to announce
the return of approximately a further £250 million of capital alongside
Electra's results to 31 March 2000.  This is expected to be towards the end
of May 2000, with completion by the end of June.  It is intended that this
return of capital be effected by way of a tender offer, at a price
equivalent to the then net asset value per share of the trust.  In addition,
the Board is seeking at this meeting to renew the general authority to buy
back shares to enable Electra to take advantage from time to time of market
opportunities to buy in additional capital.  The level of share purchases
made under this authority will, however, depend on future realisations and
cashflows.

The Board is aware that the tender offer mechanism may not be attractive to
some private shareholders who sell their shares.  Shareholders may recall
that taxable gains received under the tender offer may be taxable as income
in the hands of certain private shareholders rather than as capital.  Whilst
the Board cannot give advice in relation to the taxation affairs of
shareholders, those shareholders who wish to realise part of their holding
in Electra without risking additional income tax, may do so by selling their
shares in the market in the usual way rather than participating in the
tender offer.  To assist such shareholders the Board intends to make
available at the time of the tender offer a facility provided by Cazenove
through which they can sell their shares in the market at attractive
commission rates.  Shareholders are reminded that there is no obligation on
them to tender any of their shares.  The Board remains confident as to the
long term prospects for realising the portfolio.

Looking further ahead, the Board is aware of the views that a number of
shareholders have expressed in favour of providing some means of
continuation or rollover vehicle to enable those investors who wish to do so
to maintain a holding in the company.  This is something that the Board will
take careful account of in due course as the realisation of Electra's
portfolio proceeds and further value is distributed to shareholders.'


For further information:

Michael Stoddart    Electra Investment Trust      0171 831 6464

Stephen Breslin     Brunswick Group Limited       0171 404 5959
Caroline Greetham