Electra Kingsway Holdings Bought by Management

Electra Investment Trust PLC
16 November 1999



         EIT announces Sale of Management Company

Electra Investment Trust P.L.C. ('EIT') announces the buy-out of its
investment management group, Electra Kingsway Holdings Limited (formerly
Electra Fleming Holdings Limited), by a new company, Electra Partners Limited,
formed by the management team.

Under the transaction, the Electra Partners group ('Electra Partners') will
continue to manage its international business and act as EIT's investment
manager, with arm's length management arrangements.  EIT will retain the
separable net assets of Electra Kingsway, which are predominantly in cash and
which are valued at some £19 million.  EIT will also receive payments in
connection with the overall transaction as follows:

*     £2 million in cash;

*     £12.5 million as a loan note;

*     an amount equivalent to 10 per cent of the net management fees
      receivable by Electra Partners from the next European private equity
      fund; and

*     a 20 per cent share in the pre-bonus profits of Electra Partners for
      the next 5 years.

In the event that any material part of Electra Partners is sold on to a third
party within 3 years from completion, EIT will share an agreed portion of the
profit.  The total payments receivable by EIT under these arrangements will be
capped at £45 million.

In addition EIT and Electra Partners have agreed:

*    the duration of the management arrangements with Electra Partners will be
     reduced from a rolling 3 year notice period to an initial fixed term of 2
     years with a rolling twelve month notice period for either party
     thereafter; and

*    Electra Partners will earn a fixed management fee for the period
     anticipated for the realisation of EIT's investment portfolio.

Certain assets in the Far East are currently managed by JF Electra Holdings
Limited, EIT's joint venture with Flemings, and discussions are taking place
regarding the future of these arrangements.


Fred Vinton has been appointed non-executive Chairman of Electra Partners
Limited. Hugh Mumford is Chief Executive and his responsibilities will include
the management of the realisation of the EIT portfolio. Nigel McConnell has
been appointed Managing Director of the new European private equity business,
with a team of 20 investment professionals based in London, Hamburg and Paris.

As a result of the transaction EIT has been informed by the London Stock
Exchange that its shares will once again be subject to the rules applying to
investment entities governed by Chapter 21 of the Listing Rules.


Michael Stoddart, Chairman of EIT, said:

'EIT's realisations have been running ahead of the programme put to
shareholders in April, 1999.  The sale of Electra Kingsway at a small premium
to its carrying value as at 31st May, 1999, will realise further value for
shareholders and ensure that the management team's considerable expertise in
extracting value from EIT's portfolio is retained.'

Hugh Mumford, Chief Executive of Electra Partners Limited, said:

'This is an exciting chapter for the management team at Electra Partners.  We
look forward to building a global private equity business to service an
increasingly international client base.  We have enjoyed an excellent
relationship with EIT, our major investor to date, and we are committed to
ensuring that we realise full value for the remainder of the EIT portfolio.'


Enquiries:

Electra Investment Trust P.L.C.                        0207 831 6464
Michael Stoddart

Electra Partners Limited                               0207 831 6464
Hugh Mumford
Fred Vinton

Brunswick                                              0207 404 5959
Lucas van Praag
Alison Hogan
Helen Precious