Interim Results & Tender Offer Up to £250m

Electra Investment Trust PLC
24 May 2000


                     ELECTRA INVESTMENT TRUST PLC

           Interim Results for six months ended 31 March 2000
                   and Tender Offer for up to £250m

Highlights

* Net asset value per share of £11.65 as at 31 March 2000 (1999: £9.51 per
  share)
* Six month net asset value up 22.5% versus FTSE All-Share Index (+10.1%) and
  FTSE SmallCap Index (+25.1%)
* Portfolio sales during period realised £202m
* Strong performance from the listed portfolio up 45.9%
* Net bank borrowings reduced to £30m as at 19 May 2000
* Adjusted net asset value per share at 22 May 2000 of £10.76

The adjusted net asset value at 22 May 2000 is calculated on the basis of
the net asset value at 31 March 2000 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. A number of Electra's investments which
are quoted, or are valued by reference to quoted prices, have experienced
significant share price volatility in recent months.  This volatility is
reflected in the adjusted net asset value at 22 May 2000 which has been
affected by the fall in the prices of a number of technology stocks.


Tender Offer for up to £250m

*  Shares will be acquired at the Tender Price which will be calculated on 27
   June 2000 on the same basis as the adjusted net asset value detailed above
   after reflecting the expenses of the Tender Offer

* Shareholders will be entitled to have a basic entitlement expressed as a
  percentage of their holdings repurchased under the Tender Offer.
  Shareholders will also be able to request the repurchase of additional
  shares, but such requests will only be satisfied, on a pro rata basis, to
  the extent that other shareholders do not tender their basic entitlement

* For the purposes of illustration, if the calculations for the Tender Price
  and basic entitlement for the tender offer had been made as of 22 May,
  2000, the tender price would have been £10.57 and the basic entitlement
  would have been 22.77%, representing in aggregate 23,651,844 Electra shares
 (assuming the Tender Offer is taken up in full)

* Implementation of the tender offer will require approval by shareholders at
  an Extraordinary General Meeting

* A circular to shareholders is being posted on 25 May 2000. The expected
  timetable for the Tender Offer is set out in the appendix to this
  announcement

Future

The Board is committed to Electra's policy of maximising value through the
realisation of the investment portfolio.  The Board remains confident as to
the long term prospects although realisations may not continue at the rate
achieved over the last year.  Following the Tender Offer the Board will
consider using the general authority granted at the Annual General Meeting in
March 2000 for Electra to make on-market share repurchases in order to return
further capital to shareholders.

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 a rollover vehicle to enable those investors who wish to do so to maintain
a holding in a successor vehicle.  This is something that the Board will take
careful account of in due course as the realisation of Electra's portfolio
proceeds and as further value becomes available for distribution to
shareholders.

Commenting on the results, Brian Williamson, appointed Chairman following the
retirement of Michael Stoddart, said:

'During the first half of the year, excellent progress was made in our
realisation programme. Since March 1999 the realisation programme has
generated in excess of £820m of sales and contracted sales.

The Board remains fully focused on the task in hand, namely to maximise value
to our shareholders through a combination of realisations and returns of
capital.  Today, we have taken another step forward, announcing details of the
return of up to £250m of capital to shareholders.  Once fully completed,
shareholders will have had returned to them almost £800m since April 1999.'


For further information:

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

Stephen Breslin, Brunswick Group Limited                    020 7404 5959
Caroline Greetham, Brunswick Group Limited

In relation to the Tender Offer:
Jonathan Dawson, Lazard                                     020 7588 2721
Jon Hack, Lazard
Christopher Smith, Cazenove                                 020 7588 2828



Chairman's Statement

Six Month Review
At 31 March 2000 the net asset value per share was £11.65 compared with £9.51
at 30 September 1999, an increase of 22.5%.  This increase compares favourably
with the FTSE All-Share Index which gained 10.1% over the same period,
although was below the FTSE SmallCap Index which gained 25.1%.

The six month period under review saw a continuation of the successful
strategy adopted over the last year of creating value through the realisation
of the investment portfolio and by returning capital to Shareholders.
Realisations since the Tender Offer in April 1999 have resulted in the
repayment of substantially all the borrowings arranged to fund the Tender
Offer.  At 31 March 2000 net borrowings had been reduced to £108 million and
this had been further reduced to £30 million by 19 May 2000.  A new £450
million banking facility has just been arranged which will enable further
returns of capital to be made.

Reference was made in the last Chairman's statement to the substantial uplift
in value of two Far Eastern technology investments, Moser Baer and Locus.  At
1 October 1999 these two investments were valued in the portfolio at £53.5
million and partial sales in the six months to 31 March 2000 generated
proceeds of £67.9 million.  The residual holdings were valued at £141.3
million at 31 March 2000 after applying discounts to the market prices to
reflect the volatility of Far Eastern stock markets and dealing restrictions
on part of the holdings.

The Board
Michael Stoddart my predecessor as Chairman retired on 30 April 2000.  He
joined the Board in 1973 and was Chief Executive at the time Electra listed in
1976.  It was through his knowledge, foresight and determination that Electra
became one of the leading investors in private equity in the United Kingdom.
The record that Electra has maintained over many years is a tribute to his
leadership and enthusiasm.  I am sure that I speak for our Shareholders and
for all associated with Electra in expressing our gratitude for his
outstanding contribution.

Electra Partners
As previously reported, Electra sold its holding in its Investment Manager and
its business in November 1999 to Electra Partners Limited, a new venture
established by senior executives of the Investment Manager.  The management
team of Electra Partners continues to work hard to maximise the realisation
proceeds from Electra's investment portfolio as well as developing its own
business.


Portfolio Performance
Overall Portfolio Changes


Summary of Changes to Overall Portfolio
Six months ended 31 March 2000

                                                                Valuation
                  Valuation                                         At 31
                 At 30 Sept                         Net capital     March
                       1999  Purchases      Sales  Appreciation      2000
                      £'000      £'000      £'000         £'000     £'000
                 __________  _________  _________    __________  ________
Unlisted          1,040,495     57,958  (147,632)       176,252 1,127,073
Listed              133,073      2,699   (54,369)        61,097   142,500
                  _________     ______    _______      ________  ________
Total Portfolio   1,173,568     60,657  (202,001)       237,349 1,269,573
                  _________     ______   ________      ________  ________
                                                                         


At 31 March 2000, Electra's investment portfolio was valued at £1,270 million
of which £1,127 million (89%) was invested in securities classified as
unlisted.  On a geographical basis 61% of the portfolio was invested in the UK
and Continental Europe, 24% in the Americas and 15% in the Far East including
India.

During the six months to 31 March 2000 the net capital appreciation recorded
by the portfolio amounted to £237 million, an increase over the period of
20.2%.

In accordance with the change of investment policy approved by Shareholders in
April 1999, the realisation process continued during the period with total
sales of £202 million, generating net cash from the portfolio of £141 million
after deducting purchasing of £61 million.


Unlisted Portfolio

Summary
At 31 March 2000 the unlisted portfolio was valued at £1,127 million compared
to £1,040 million at 30 September 1999.  During the six months to 31 March
2000 there was a net disinvestment from the portfolio with sales of £148
million compared to purchases of £58 million.  A strong capital performance of
the portfolio more than offset this disinvestment with the result that the
overall valuation of the portfolio increased by £87 million.

The period thus saw a continuation of the success of the realisation programme
which commenced in April 1999, with the aim of realising the whole portfolio
over a five year period.  Between April 1999 and 31 March 2000 cash
realisations from the unlisted portfolio totalled £467 million.  Since 31
March 2000, more than £110 million of unlisted securities have either been
sold, redeemed or are subject to a contract for sale.  Furthermore, at the end
of the period the unlisted portfolio included £145 million of securities which
were listed during the period providing further potential liquidity once
restrictions on sale are removed.

As a result of these transactions, significant value has been added to the
portfolio and substantial progress has already been made in achieving the
realisation programme.

New Investments
In accordance with the current investment policy, new investments were
restricted to commitments outstanding at April 1999 and investments made to
enhance or protect the value of existing portfolio companies.  During the six
months to 31 March 2000 total investments amounted to £58 million.  Of this
amount, £38 million was invested in existing portfolio companies and £20
million in third party funds.  The largest individual investment of £9.1
million was made in CE Heath in connection with the acquisition of Lambert
Fenchurch.  Further investments were also made in Swifty Serve, Leiner Health
Products and International Garden Products to help fund further synergistic
acquisitions.  Commitments drawn down by third party funds included £7.2
million to the Patagonian fund for two acquisitions in Argentina and  £3.9
million to Kennet for further investment in high technology companies.

Realisations
Realisations from the unlisted portfolio for the six months to 31 March 2000
amounted to £148 million.  The majority of realisations were made through
sales in the stock market of securities which were previously unlisted or were
listed but subject to restrictions.  In total these sales amounted to £84.1
million of which £60.9 million related to Locus, a company quoted on the
Kosdaq exchange in South Korea.  Additionally £7.0 million was realised from
the sale of securities in Moser Baer, an Indian company and £4.8 million from
the partial sale of the holding in Tradepoint.

The disposal of seven companies from the unlisted portfolio produced total
proceeds of £49 million of which £15.6 million arose from the sale of Document
Management Services, one of the four companies formed from The Stationery
Office, £12.4 million from the sale of Vantios and £10.4 million from the sale
of Eurogestion, a company based in France.


Shortly after the end of the reporting period, Electra disposed of its entire
holding in HMY for £27.7 million, the French franc proceeds representing
almost six times the original cost three years earlier.  In April, £11.7
million was raised from the sale of Aspen Healthcare and £23.5 million was
received from the refinancing of Inchcape Shipping Services.  A further event
of note related to the potential sale of Robert Fleming Holdings which was
announced in April and is due to complete subject to regulatory approval in
July.  On closing of this transaction, Electra will receive approximately £30
million in cash and securities for its residual holding in Robert Fleming
Holdings against a cost in 1995 of £7.5 million.

Performance
During the six months to 31 March 2000 the unlisted portfolio performed
strongly with net capital appreciation of £176 million, an increase in the
half year of 16.9%.  The main contributor to this performance was Locus.  At
the beginning of the period Electra's investment in Locus was valued at £30.4
million.  During the period £60.9 million was realised from the sale of
securities and the residual holding was valued at £103.3 million at 31 March
2000.  This gave rise to capital appreciation in the six month period of
£133.8 million.  Other significant contributors to performance during the
period were Zensar Technologies (formerly ICIL), Moser Baer and Robert Fleming
Holdings.

The most significant reduction in value related to a provision made against
PsychPartners, a US investment where trading has been below expectations.


Largest Valuation Changes

                                          Increase/
                                         (Decrease)
Company                        £'000              %
                             _______      _________
Locus                        133,846          440.9
Moser Baer                    21,898           94.7
Zensar Technologies           19,115           78.7
(formerly ICIL)
Robert Fleming Holdings       18,313          176.7
Vendcrown                      6,000           23.1
Agricola Holdings              6,000           32.8
Swifty Serve                   5,899           21.6
PsychParters                 (10,296)       (100.0)
                             ________        ______
                                                   
Outlook
Substantial progress with the realisation programme has already been achieved
with sales and contracted sales exceeding £577 million since 31 March 1999.
The residual unlisted portfolio consists of interests in over 70 companies and
£98 million invested in third party funds.  Good opportunities remain for
adding value to portfolio companies and the maturity profile should ensure
that realisations continue to occur over the next four years.


Listed Portfolio
At 31 March 2000 the listed portfolio had risen by 45.9% despite net disposals
of £51.7 million and was valued at £142.5 million.  This performance compares
favourably with the FTSE SmallCap Index which increased by 25.1%.  The
outperformance was largely attributable to the portfolio weighting in
technology related companies.

Cedar Group, a software consultant, started the period valued at £2.1 million
and rose by 1072% ending the six month period as the largest holding in the
portfolio valued at £18.7 million.  Fibernet, a telecommunications network
provider, rose by 370%.  Diagonal, an SAP software consultant rose by 169% and
was valued at £8.0 million.  In total £20.0 million was realised in the period
from these three companies.  Other notable performers were Bioglan Pharma, a
pharmaceutical company, which rose by 74% and at 31 March 2000 was the second
largest holding valued at £16.8 million and Euro Sales Finance which rose by
102% after reporting strong trading results.  A partial sale of our holding in
Euro Sales Finance realised £8.4 million leaving a holding valued at £3.5
million at 31 March 2000.

Following the strong performances outlined above, the top ten holdings
represented 63.6% of the portfolio at 31 March 2000.  It is anticipated that
disposals will continue at a similar rate during the second half year although
recent volatility in stock markets, particularly the technology sector, has
reduced the underlying market liquidity.


Part one

Consolidated Statement of Total Return
(incorporating the Revenue Account)

                                                                  
For the six months ended 31 March                             2000
                                    Revenue    Capital       Total
                                      £'000      £'000       £'000
                                      _____     ______       _____
Gains on investment:                                    
Realised                                  -     77,234      77,234
Unrealised                                -    151,728     151,728
Gains/(Losses) on revaluation of                                  
foreign currencies:
Realised                                  -      (373)       (373)
Unrealised                                -         56          56
                                      _____      _____       _____
                                          -    228,645     228,645
Income of the investment trust        8,781          -       8,781
Income of subsidiary undertakings     6,465          -       6,465
Priority profit share paid to                                     
general partners                   (15,176)          -    (15,176)
Other expenses                      (4,175)          -     (4,175)
                                    _______     ______      ______
Net Return before Finance Costs                                   
and Taxation                        (4,105)    228,645     224,540
Interest payable and similar                                      
charges                             (6,986)          -     (6,986)
Income from interest in                                           
associated undertaking                    -          -           -
                                     ______     ______     _______
Return on Ordinary Activities                                     
before Taxation                    (11,091)    228,645     217,554
Taxation on ordinary activities           -          -           -
                                    _______   ________    ________
Return to Shareholders             (11,091)    228,645     217,554
Exchange differences arising on                                   
consolidation                           209      4,878       5,087
                                    _______    _______     _______
Net Transfers (from)/to Reserves                                  
for the Period                     (10,882)    233,523     222,641
                                    _______    _______     _______
Return to Shareholders per                                        
Ordinary Share                     (10.68p)    220.15p     209.47p
                                     ______    _______     _______
                                   


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

                                                                  
                                                                  
at 31 March                                                   2000
Number of Ordinary Shares in issue                     103,859,120


Part two

Consolidated Statement of Total Return
(incorporating the Revenue Account)

                                                          Restated
For the six months ended 31 March                             1999
                                     Revenue   Capital       Total
                                       £'000     £'000       £'000
                                      ______    ______      ______
Gains on investment:                                              
Realised                                   -    34,390      34,390
Unrealised                                 -   259,496     259,496
Gains/(Losses) on revaluation of                                  
foreign currencies:
Realised                                   -       955         955
Unrealised                                 -   (3,486)     (3,486)
                                       _____    ______      ______
                                           -   291,355     291,355
Income of the investment trust        28,213         -      28,213
Income of subsidiary undertakings        514         -         514
Priority profit share paid to                                     
general partners                     (8,148)         -     (8,148)
Other expenses                      (15,362)         -    (15,362)
                                     _______    ______     _______
Net Return before Finance Costs                                   
and Taxation                           5,217   291,355     296,572
Interest payable and similar                                      
charges                              (5,158)         -     (5,158)
Income from interest in associated                                
undertaking                            2,860         -       2,860
                                       _____    ______      ______
Return on Ordinary Activities                                     
before Taxation                        2,919   291,355     294,274
Taxation on ordinary activities      (1,806)         -     (1,806)
                                     _______   _______     _______
Return to Shareholders                 1,113   291,355     292,468
Exchange differences arising on                                   
consolidation                             37     1,681       1,718
                                       _____    ______      ______
Net Transfers (from)/to Reserves                                  
for the Period                         1,150   293,036     294,186
                                       _____   _______     _______
Return to Shareholders per                                        
Ordinary Share                         0.64p   168.32p     168.96p
                                       _____   _______     _______


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

at 31 March                                                  1999
Number of Ordinary Shares in issue                    173,098,534

Prior year adjustment
The results for the six months to 31 March 2000 have been prepared in
accordance with UK GAAP and the accounting policies applied to the Group's
annual accounts for the year ended 30 September 1999, except for the adoption
of Financial Reporting Standard No 16 - Current Taxation.  The comparative
figures for the six months ended 31 March 1999 have been restated accordingly.
There is no impact on the Net Assets of the Group or Transfer to Reserves for
the six months although Income of the Investment Trust and Taxation on
Ordinary Activities have both been  reduced by £622,000.


Consolidated Balance Sheet

                             As at 31 March 2000   As at 30 September 1999
                                  £'000     £'000       £'000        £'000
                                _______    ______      ______       ______
Fixed Assets                                                              
Investments:                                                              
   Associated undertaking             -                 9,033             
   Unlisted                   1,127,073             1,040,495             
   Listed                       142,500               133,073             
                               ________              ________
                                        1,269,573                1,182,601
                                        _________                _________
Current Assets                                                            
Debtors                          36,356                35,969             
Investments                      24,547                26,567             
Cash at bank and in hand          9,332                39,607             
                                 ______                ______
                                 70,235               102,143             
                                 ______               _______
Current Liabilities                                                       
Creditors: amounts falling                                                
due within one year              11,974                 8,896
                                 ______                ______
Net Current Assets                         58,261                   93,247
                                           ______                   ______
Total Assets less Current                                                 
Liabilities                             1,327,834                1,275,848
Creditors: amounts falling                                                
due after more than one year                                              
                                          117,733                  288,388
                                         ________                _________
Net Assets                              1,210,101                  987,460
                                         ________                _________
Capital and Reserves                                                      
Called-up share capital                    25,965                   25,965
Share premium                    24,147                24,147             
Capital redemption reserve       17,310                17,310             
Realised capital profits        873,820               719,319             
Unrealised capital profits      236,618               157,596             
Revenue profits                  32,241                43,123             
                                _______               _______
                                        1,184,136                  961,495
                                        _________                  _______
Total Equity Shareholders'                                                
Funds                                   1,210,101                  987,460
                                        _________                  _______
Net asset value per ordinary                                              
share of 25p                            1,165.14p                  950.77p
                                        _________                  _______
                                                                          


Reconciliation of Total Shareholders' Funds

For the six months ended 31 March               2000         1999
                                               £'000        £'000
                                              ______       ______
                                                                 
Total Return                                 217,554      292,468
Exchange differences arising on                                  
consolidation                                  5,087        1,718
                                              ______       ______
Movements in Total Shareholders' Funds       222,641      294,186
Total Shareholders' Funds at 1 October       987,460    1,145,319
                                             _______    _________
Total Shareholders' Funds at 31 March      1,210,101    1,439,505
                                           _________    _________
                                                     


Consolidated Cash Flow Statement

For the six months ended 31                                               
March                                            2000                 1999
                                     £'000      £'000      £'000     £'000
                                    ______     ______      _____
Operating Activities                                                      
Unfranked investment income          1,069                 5,418          
Partnership income                       8                 1,001          
Interest income                        606                 5,310          
Other income                           153                   135          
Expenses                          (13,364)              (16,166)          
                                   _______               _______
Net Cash Outflow from                                                     
Operating Activities                         (11,528)              (4,302)
                                              _______              _______
Returns on Investment and                                                 
Servicing of Finance
Interest paid                      (6,986)               (5,161)          
                                   _______               _______
Net Cash Outflow from Returns                                             
on Investments                                                            
and Servicing of Finance                      (6,986)              (5,161)
                                              _______              _______
Taxation Paid                                                             
Corporation tax                    (2,032)               (3,180)          
                                   _______               _______
Total Taxation Paid                           (2,032)              (3,180)
                                               ______               ______
Capital Expenditure and                                                   
Financial Investment
Purchase of investments           (73,045)             (226,106)          
Sales of investments               233,592               230,878          
                                   _______              ________
Net Cash Inflow from Capital                                              
Expenditure                                                               
and Financial Investment                      160,547                4,772
                                              _______               ______
Net Cash Inflow/(Outflow)                                                 
before Management of Liquid                                               
Resources and Financing                       140,001              (7,871)
                                              _______               ______
Management of Liquid Resources                (2,500)             (32,000)
Financing                                                                 
Bank loans drawn                    67,182                50,000          
Bank loans repaid                (242,332)                     -          
Loans received                       4,873                 7,510          
                                  ________                ______
Net Cash (Outflow)/Inflow from                                            
Financing                                   (170,277)               57,510
                                             ________               ______
(Decrease)/Increase in Cash in                                            
the Period                                   (32,776)               17,639
                                              _______               ______
                                                                          


APPENDIX

Expected Timetable for Tender Offer     2000
-----------------------------------     -------
                                        
Posting of shareholder circular         25 May
                                        
Latest time and date for receipt of     11:00 am on 18 June
forms of direction from share plan
participants
                                        
Latest time and date for receipt of     11:00 am on 19 June
forms of proxy
                                        
Extraordinary General Meeting           11:00 am on 21 June
                                        
Latest time and date for receipt of     3:00 pm on 27 June
tender forms and Fleming Investment
Trust Share Plan tender forms
                                        
Record date for tender offer            Close of business on 27
                                        June
                                        
Calculation date for Tender Price       27 June
                                        
Tender offer trade date and result of   4 July
tender offer announced
                                        
Settlement Date: cheques despatched and 11 July
assured payments through CREST made