Interim Results

Electra Investment Trust PLC
11 May 2001


ELECTRA INVESTMENT TRUST PLC

Interim Results for six months ended 31 March 2001

Highlights

*  Net asset value per share of £9.62 as at 31 March 2001 (30 September
   2000: £10.85 per share)
*  Six month net asset value fall of 11.4% versus FTSE All-Share Index
   decline of 10.5%
*  Portfolio sales of £133 million for half year to 31 March 2001 (2000:
   £202 million), in aggregate over £1.1 billion since 1 March 1999
*  Adjusted net asset value per share at 30 April 2001 of £9.79*
*  Proposals to return up to a further £150 million of capital to
   shareholders via tender offer and updated investment strategy

* The adjusted net asset value at 30 April 2001 is calculated on the basis
of the net asset value at 31 March 2001 adjusted to reflect the purchases
and sales of investments, currency movements and mid market values on that
day in respect of listed investments and unlisted investments where these
are valued by reference to quoted prices.

Key Points of Board's proposals for the future of Electra given to
shareholders on 28 February 2001

*  The Board remains committed to its policy of maximising value for
   shareholders whilst retaining the existing emphasis on realising
   investments
*  Tender offer for up to £150 million.  Shares will be acquired at a
   tender price at the time of the tender, calculated on the same basis as
   the adjusted net asset value detailed above, after reflecting the
   expenses of the tender offer and certain other adjustments.  This would
   take the total cash returned to shareholders to £945 million since April
   1999
*  Adopt a more flexible investment strategy to reflect changed market
   conditions and maximise value for shareholders
*  Two thirds of future cash flow to be returned over the next three years
   via share buy-backs and tender offers (subject to market conditions,
   this is expected to be not less than £500 million, inclusive of the £150
   million detailed above)
*  Balance of cash flow to be invested in private equity opportunities.
   Subject to feasibility an investment will be made in Electra Partners'
   European management buy-out fund
*  Implementation of the tender offer and revised investment strategy will
   require shareholders' approval.  A circular giving full details is
   expected to be posted by the end of May

Brian Williamson, Chairman, said:

'The Board remains committed to its policy of maximising value for
shareholders and of returning the bulk of proceeds from realisations.
Although concerns about a downturn in the global economy have affected the
climate for realisations in the short term, the Board believes that the
updated investment strategy will give the manager greater flexibility to
deliver value, to make limited additions to the portfolio at attractive
prices and to continue to return substantial proceeds to shareholders.  This
will enable Electra to continue to maximise value.'

For further information:

Brian Williamson, Chairman, Electra Investment Trust PLC  020 7831 6464
Hugh Mumford, Chief Executive, Electra Partners Limited

Stephen Breslin, Brunswick Group Limited                  020 7404 5959
Tricia Parish, Brunswick Group Limited

In relation to the Tender Offer and Revised Investment Strategy:

Jonathan Dawson, Lazard                                   020 7588 2721
Jon Hack, Lazard
Christopher Smith, Cazenove                               020 7588 2828

CHAIRMAN'S STATEMENT

Six Month Review
At 31 March 2001 Electra's net asset value per share was £9.62 compared with
£10.85 at 30 September 2000, a reduction of 11.4%.  The FTSE All-Share Index
fell by 10.5% over the same period.

Portfolio sales since the start of the realisation programme in March 1999
now total over £1.1 billion although, as anticipated at the time of the
Annual General Meeting, the rate of realisations has now slowed with
proceeds in the six months to 31 March 2001 of £133 million compared with
£202 million a year earlier.

Whilst the performance of the UK unlisted portfolio has not changed
significantly since 30 September 2000, a number of unlisted investments in
the USA have been affected by a slow down in consumer spending and a more
difficult banking environment. Provisions of £51 million have been made to
reflect difficulties being experienced by companies in the USA and in South
America. In the Far East, whilst the underlying performance of the
businesses remained satisfactory, the stock market values of a number of our
investments have fallen, contributing to the decline in net asset value.

Outlook
The Board believes that the uncertain market conditions will persist for at
least the remainder of the current financial year.  Electra's existing
portfolio consists primarily of unlisted securities, a significant number of
which are relatively immature with good potential for added value in the
longer term.  As a consequence the Board continues to believe that the
remaining portfolio will deliver significant value provided investments can
be realised on a timely basis when market conditions are more favourable.

Further Tender Offer and Updated Investment Strategy
At the Annual General Meeting held on 28 February 2001 plans were announced
for a further tender offer of up to £150 million, along with amendments to
Electra's investment strategy and changes to the investment management
arrangements. This, the third tender offer in the past two years would, if
fully taken up, bring the total cash returned to shareholders since April
1999 to £945 million. Although the existing emphasis on realising
investments will be retained, market conditions have changed and the Board
considers that a more flexible strategy is required to maximise the value of
the remaining portfolio. The Board intends that at least two-thirds of
future cash flow from the existing portfolio will be returned over the next
three years via a combination of share buy-backs and regular tender offers.
Subject to market conditions, this is not expected to be less than £500
million, inclusive of the £150 million detailed above. The remaining cash
flow will provide funding for private equity opportunities.

Full details of the proposed tender offer and updated investment strategy
will be set out in a Circular which is expected to be despatched by the end
of May.

The Future
The Board remains committed to its policy of maximising value for
shareholders and of returning the bulk of proceeds from realisations.
Although concerns about a downturn in the global economy have affected the
climate for realisations in the short term, the Board believes that the
updated investment strategy will give the manager greater flexibility to
deliver value, to make limited additions to the portfolio at attractive
prices and to continue to return substantial proceeds to shareholders.  This
will enable Electra to continue to maximise value.

Brian Williamson - Chairman                                     10 May 2001

Portfolio Analysis

Overall Portfolio Changes

Summary of Changes to Overall Portfolio
Six months ended 31 March 2001

            Valuation                                             Valuation
                at 30                             Net capital   at 31 March
            Sept 2000    Purchases       Sales   depreciation          2001
                £'000        £'000       £'000          £'000         £'000
 __________________________________________________________________________
Unlisted      965,917       50,848   (129,184)       (70,967)       816,614
Listed         50,163            -     (3,384)        (9,527)        37,252
 __________________________________________________________________________
Total       1,016,080       50,848   (132,568)       (80,494)       853,866
Portfolio     
 __________________________________________________________________________
                                                                           

At 31 March 2001, Electra's investment portfolio was valued at £854 million
compared to a valuation of £1,016 million at 30 September 2000.  At the end
of the period, 67% of the portfolio was invested in Europe, 24% in North
America, 6% in Asia and India and 3% in South America.  Of the total
portfolio 96% was classified as unlisted.

During the six month period, new investment amounted to £51 million and
sales from the portfolio amounted to £133 million resulting in a net
disinvestment of £82 million.  In terms of capital performance, the
portfolio valuation declined in aggregate by £80 million, a reduction of
7.9%.

PORTFOLIO

New Investments
In accordance with the existing investment policy, new investments in the
period were restricted to commitments outstanding at April 1999 and to
investments made to enhance or protect the value of existing portfolio
companies.  Commitments which remain outstanding from April 1999 relate
mainly to private equity funds.  In the period these gave rise to further
drawdowns from Electra of £7 million.  At 31 March 2001, £35 million of
commitments remained outstanding in respect of private equity funds.

The most significant investment was made in Newmond where £23.7 million was
invested as part of the merger of Newmond with the Baxi boiler business, a
merger which has created one of the largest boiler businesses in Europe with
a significant presence in the UK, France and Germany.  Newmond, which
subsequently changed its name to Baxi, has 7,500 employees and annual sales
of £750 million.  A significant investment was also made in Swifty Serve
where Electra subscribed £6.6 million as part of a financing to acquire
additional sites within the company's targeted expansion area.

In total £51 million of unlisted investments were added to the portfolio
during the period.

Realisations
Realisations from the portfolio for the six months amounted to £133 million.
This included £76 million from the sale of unlisted securities, £17 million
from the sale of listed securities, £27 million of proceeds from private
equity funds and £13 million from other sources, including a payment of £8
million by Electra Partners as part of the consideration for the purchase of
the management company.

Sales of unlisted securities included the outright disposal of eight
portfolio companies, six in Europe and two in the USA.  By far the most
significant sales were those of Security Printing & Services and of Guala
Closures.  Security Printing & Services was sold to a financial buyer for
proceeds of £28 million compared to a valuation of the company at 30
September 2000 of £15.5 million.  Guala Closures was also sold to a
financial buyer for total proceeds of £15 million.  This sale had been
anticipated in the 30 September 2000 valuation but compared to a valuation
six months previously of £4.9 million.

Performance
During the six months to 31 March 2001 the capital performance of the
portfolio was adversely affected by the decline in stock markets and the
uncertain economic outlook, particularly in the USA and the Far East.  Over
the period the portfolio recorded a net decrease in valuation of £80
million, or 7.9% of the opening portfolio.  Of the net decrease in
valuation, £35 million was attributable to investments in the USA, £48
million was attributable to investments in Asia and South America and there
was a net increase in the valuation of investments in the UK and Europe of
£3 million.

£52 million of the net capital depreciation of the portfolio arose from
securities valued by reference to quoted market prices.  These included
reductions in value of Locus by £18 million and Moser Baer by £17 million,
both effectively restricted stock.

Profits realised on the sale of investments contributed £15 million to the
portfolio performance and included a gain of £12.5 million on the sale of
Security Printing & Services.  Realised profits were however offset by a £44
million reduction in unrealised appreciation of unlisted securities.  Full
provision was made against the investment in Supervia resulting in a
decrease in value of £14.1 million.  Supervia operates the commuter rail
network in Rio de Janeiro and the provision was made as no conclusion had
been reached with regard to a capital refinancing, without which the current
franchise is unlikely to be continued.  Other provisions of significance
were made against the investment in Swifty Serve (£6.6 million) where
profits were impacted by the sudden rise in fuel prices in the last quarter
of 2000, and against the investment in Leiner (£6.3 million), the latter to
reflect trading uncertainty caused by an anti-trust case involving suppliers
to Leiner.

Largest Valuation Changes

                                                         Increase/
Company                                    £'000      (decrease) %
Security Printing & Services              12,474              80.5
Media Partners                             6,292              94.2
Zensar Technologies                      (6,238)            (62.9)
Leiner                                   (6,261)            (27.4)
Swifty Serve                             (6,576)            (16.0)
Supervia                                (14,069)           (100.0)
Moser Baer                              (17,172)            (43.1)
Locus                                   (17,912)            (58.0)

Outlook

The realisation phase has now been in place for a period of just over two
years. By 31 March 2001 proceeds of £1,104 million had been received from
portfolio sales, an amount equivalent to 81% of the valuation of the
portfolio at the commencement of the realisation process.

Initially the environment for disposals was favourable but market conditions
changed as a result of the worldwide decline in stock markets and the
uncertain outlook for the major economies, particularly that of the USA.
This has led to a sharp decline in the activity of financial buyers who have
provided the most significant exit routes for Electra's portfolio
companies. As a result the rate of realisations has slowed, particularly in
the last quarter, and it appears likely that the uncertain market conditions
will persist for at least the remainder of the current financial year.

The remaining portfolio consists primarily of unlisted securities, a
significant number of which are relatively immature with good potential for
added value in the longer term. As a consequence we continue to believe that
the remaining investments in the portfolio will deliver significant value
provided they can be realised on a timely basis when market conditions are
more favourable.

Consolidated Statement of Total Return (unaudited)
(incorporating the Revenue Account)

                                                                            
                                                                            
For the six                                 2001                        2000
months ended 31    Revenue     Capital      Total  Revenue  Capital     Total
March                £'000       £'000      £'000    £'000    £'000     £'000
 ___________________________________________________________________________
                                                                            
Gains /(losses)                                                             
on investments:
Realised                -      15,193     15,193        -   77,234    77,234
Unrealised              -   (106,543)  (106,543)        -  151,728   151,728
Gains/(losses)                                                              
on revaluation
of
Foreign
currencies:
Realised                -     (4,923)    (4,923)        -    (373)     (373)
Unrealised              -     (3,415)    (3,415)        -       56        56
 ___________________________________________________________________________
                        -    (99,688)   (99,688)        -  228,645   228,645
Income of the                                                               
investment trust    7,528           -      7,528    8,781        -     8,781
Income of                                                                   
subsidiary                                                                  
undertakings          159           -        159    6,465        -     6,465
Priority profit                                                             
share paid to                                                               
general partners   (8,000)          -   (8,000)  (15,176)        -  (15,176)
Other expenses      (690)           -      (690)  (4,175)        -   (4,175)
 ___________________________________________________________________________
Net Return                                                                  
before Finance                                                              
Costs and                                                                   
Taxation                                                                    
                   (1,003)   (99,688)  (100,691)  (4,105)  228,645   224,540
Interest payable                                                            
and similar                                                                 
charges            (5,783)          -    (5,783)  (6,986)        -   (6,986)
 ___________________________________________________________________________
Return on                                                                   
Ordinary                                                                    
Activities                                                                  
before Taxation    (6,786)   (99,688)  (106,474)  (11,091) 228,645   217,554
Taxation on                                                                 
ordinary                                                                    
activities              -           -          -        -        -         -
 ___________________________________________________________________________
Return to                                                                   
Shareholders       (6,786)   (99,688)  (106,474)  (11,091)  228,645   217,554
Exchange                                                                    
differences                                                                 
arising on                                                                  
consolidation                                                               
                      174       6,959      7,133      209    4,878     5,087
 ___________________________________________________________________________
Net Transfers                                                               
(from)/to                                                                   
Reserves for the                                                            
Period                                                                      
                   (6,612)   (92,729)   (99,341)  (10,882) 233,523   222,641
 ___________________________________________________________________________
Return to                                                                   
Shareholders per                                                            
Ordinary Share     (8.42p)  (123.90p)  (132.32p)  (10.68p) 220.15p   209.47p
 ___________________________________________________________________________
                                                                            

The amounts dealt with in the Consolidated Statement of Total Return are all
derived from continuing activities.


                                                         2001          2000
Number of Ordinary Shares in issue at 31 March    80,459,959    103,859,120
 __________________________________________________________________________
                                                                           

Consolidated Balance Sheet (unaudited)

                              As at 31 March 2001      As at 31 March 2000
                                 £'000       £'000      £'000        £'000
 _________________________________________________________________________
Fixed Assets                                                              
Investments:                                                              
  Unlisted                     816,614              1,127,073             
  Listed                        37,252                142,500             
 _________________________________________________________________________
                                           853,866               1,269,573
 _________________________________________________________________________
Current Assets                                                            
Debtors                         36,823                 36,356             
Investments                      2,856                 24,547             
Cash at bank and in hand        27,391                  9,332             
 _________________________________________________________________________
                                67,070                 70,235             
 _________________________________________________________________________
Current Liabilities                                                       
Creditors: amounts falling                                                
due within one year             26,915                 11,974
 _________________________________________________________________________
Net Current Assets                          40,155                  58,261
 _________________________________________________________________________
Total Assets less Current                                                 
Liabilities                                894,021               1,327,834
Creditors: amounts falling                                                
due after more than one                                                   
year                                                                          
                                           120,232                 117,733
 _________________________________________________________________________
Net Assets                                 773,789               1,210,101
 _________________________________________________________________________
Capital and Reserves                                                      
Called-up share capital                     20,115                  25,965
Share premium                   24,147                 24,147             
Capital redemption              23,160                 17,310
Realised capital profits       810,673                873,820             
Unrealised capital profits   (113,416)                236,618
Revenue profits                  9,110                 32,241             
 _________________________________________________________________________
                                           753,674               1,184,136
 _________________________________________________________________________
Total Equity Shareholders'                                                
Funds                                      773,789               1,210,101
 _________________________________________________________________________
Net asset value per                                                       
ordinary share of 25p                      961.71p               1,165.14p
 _________________________________________________________________________
                                                                          

Reconciliation of Total Shareholders' Funds (unaudited)

                                                                          
For the six months ended 31 March                   2001              2000
                                                   £'000             £'000
 _________________________________________________________________________
Total Return                                   (106,474)           217,554
Exchange differences arising on                                           
consolidation                                      7,133             5,087
Repurchase of own shares                           (887)                 -
Nominal value of own shares purchased               (25)                 -
 _________________________________________________________________________
Movements in Total Shareholders' Funds         (100,253)           222,641
Total Shareholders' Funds at 1 October           874,042           987,460
 _________________________________________________________________________
Total Shareholders' Funds at 31 March            773,789         1,210,101
 _________________________________________________________________________
                                                                          

Consolidated Cash Flow Statement (unaudited)


For the six months ended 31                    2001                 2000
March                            £'000        £'000     £'000      £'000
 _______________________________________________________________________
Operating Activities                                                    
Franked investment income          750                      -           
Unfranked investment income      2,844                  1,069           
Partnership income                   5                      8           
Interest income                    778                    606           
Other income                       255                    153           
Expenses                       (8,912)               (13,364)           
 _______________________________________________________________________
Net Cash Outflow from                                                   
Operating Activities                        (4,280)             (11,528)
 _______________________________________________________________________
Returns on Investments and                                              
Servicing of Finance                                         
Interest paid                                                
                               (9,000)                (6,986)
 _______________________________________________________________________
Net Cash Outflow from                                                   
Returns on Investments and                                              
Servicing Finance                           (9,000)              (6,986)
 _______________________________________________________________________
Taxation Repaid/(Paid)                                                  
Corporation tax                  1,871                (2,032)
 _______________________________________________________________________
Total Taxation Repaid/(Paid)                  1,871              (2,032)
 _______________________________________________________________________
Capital Expenditure and                                                 
Financial Investment
Purchases of investments      (50,846)               (73,045)           
Sales of investments           147,814                233,592           
 _______________________________________________________________________
Net Cash Inflow from Capital                                            
Expenditure and Financial                                               
Investment                                   96,968              160,547
 _______________________________________________________________________
Net Cash Inflow before                                                  
Management of Liquid                                                    
Resources and Financing                      85,559              140,001
 _______________________________________________________________________
Management of Liquid                                                    
Resources Financing                          38,896              (2,500)
Bank loans drawn                25,000                 67,182
Bank loans repaid             (150,398)              (242,332)
Loans received                       -                  4,873
Repurchase of own shares          (912)                     -
 _______________________________________________________________________
Net Cash Outflow from                                                   
Financing                                 (126,310)            (170,277)
 _______________________________________________________________________
Decrease in Cash in the                                                 
Period                                      (1,855)             (32,776)
 _______________________________________________________________________
Reconciliation of Net Cash                                              
Flow to Movement in Net Debt                       
Decrease in cash in the                                                 
period                                      (1,855)             (32,776)
Cash outflow from debt                                                  
financing                      125,398                175,150
Cash (inflow)/outflow from                                              
change in liquid resources                                                    
                              (38,896)                  2,500
 _______________________________________________________________________
                                             86,502              177,650
 _______________________________________________________________________
Change in Net Debt resulting                                            
from Cash Flows                              84,647              144,874
Translations difference                     (8,334)              (4,494)
 _______________________________________________________________________
Movement in Net Debt                         76,313              140,380
Net debt brought forward                  (169,154)            (248,781)
 _______________________________________________________________________
Net Debt carried forward                   (92,841)            (108,401)
 _______________________________________________________________________