Interim Results

Electra Private Equity PLC
05 June 2007


                 EMBARGOED UNTIL 07:00 AM, TUESDAY 5 JUNE 2007

                           ELECTRA PRIVATE EQUITY PLC

       Announcement of Interim Results for six months ended 31 March 2007


• Continued growth in net asset value - up 17.2% over six months to 1,811p per 
share at 31 March 2007 - unaudited net asset value per share at 31 May 2007 of 
1,822p
• Total return to shareholders of 18.3% for the six months
• Return on Equity of 15% annualised over five years to 31 March 2007
• Share price outperformance relative to the FTSE All-Share Index over short and 
medium term - up 16.9% over six months (up 160.8% over five years) versus Index 
which rose 7.6% over six months (rose 28.4% over five years)
• Investment portfolio valued at £568m at 31 March 2007, an increase of 65% over
12 months
• During the six months Electra made on-market purchases of its own shares for 
cancellation at an aggregate cost of £18 million


Commenting on the Interim Results, Sir Brian Williamson, Chairman, said:

'The six months have provided a sound start to Electra's return to full
investment of its capital resources. These results demonstrate Electra's solid
performance over both the short and medium term.'


For further information:

Sir Brian Williamson, Chairman, Electra Private Equity PLC 020 7306 3883
Hugh Mumford, Managing Partner, Electra Partners LLP 020 7214 4200
Nick Miles, M: Communications 020 7153 1535



Net Asset Value Per Share
                                  31 March 2007  30 September 2006 31 May 2007
Net asset value per share             1,811p          1,545p          1,822p

Increase since 30 September 2006      17.2%

Increase in FTSE All-Share Index       7.6%
since 30 September 2006
                                       

Return on Equity comprises Total 'Profit on Ordinary Activities after Taxation'
divided by opening 'Total Equity Shareholders' Funds' calculated on an
annualised basis (as these terms are used in the Report and Accounts of Electra
for the year ended 30 September 2006).

The unaudited net asset value per share at 31 May 2007 was calculated on the
basis of the net asset value at 31 March 2007 adjusted to reflect the purchases
and sales of investments, currency movements and bid values on that day in
respect of listed investments. These adjustments exclude the investments in
Moser Baer and Zensar which were treated as unlisted investments at 31 March and
31 May 2007.

The figures and financial information in respect of the year ended 30 September
2006 have been delivered to the Registrar of Companies and included the
Auditors' Report which was unqualified and did not contain a statement under
either section 237(2) or section 237(3) of the Companies Act 1985.

A copy of the Chairman's Statement, Investment Manager's Review and the Interim
Announcement are attached.


Chairman's Statement

The significant progress achieved by Electra during the year ended 30 September
2006 has continued for the six months to 31 March 2007, with strong growth in
net asset value and a good share price performance. Over the six months the net
asset value per share increased by 17.2% from 1,545p to 1,811p. Over the same
period the share price increased by 16.9%, while the FTSE All-Share Index
increased by 7.6%. Inclusive of the special dividend of 17p per share paid in
March 2007, Electra achieved a total return to shareholders of 18.3% for the six
months. Very satisfactory though these results are, Electra's performance over
the medium term is particularly pleasing and the net asset value per share
increased by 105% over the five years to 31 March 2007. Over the same period,
Electra achieved a return on equity of 15% on an annualised basis, while the
share price rose by 161% and the FTSE All-Share Index increased by 28%.

Electra was the winner of the Investment Trusts Magazine award for 'Best Private
Equity Trust' of 2006, having produced a return which was more than four times
the average return of the other 18 constituents of the Private Equity sector in
the year.

Investment Strategy
During 2006 the Board undertook a thorough review of Electra's market, its
investment strategy and the relationship with its Investment Manager, including
its contractual and compensation arrangements. In October 2006 shareholders
approved Electra's return to full investment of its capital resources in private
equity and the appointment of the independently owned Electra Partners LLP as
its Investment Manager. Electra Partners' senior management team has worked
together since 1992 and has in aggregate, over 80 years' experience in the
private equity markets. Since 2005 Electra Partners has recruited a further five
investment professionals. Electra Partners' experienced finance, compliance,
property investment, portfolio management and marketing teams support the
investment professionals.

In implementing Electra's investment strategy, Electra Partners is typically
targeting investments at a cost of £25-70 million in companies with an
enterprise value of £70-200 million. Investments are sought in companies which 
have a meaningful part of their business or management team based in the UK, 
although opportunities will be taken to invest additionally elsewhere in Western 
Europe. The emphasis is on investments where it is possible for Electra 
Partners, sometimes in conjunction with like-minded investors, to establish and 
deliver the portfolio company's strategy, direct the appointment and development 
of its management team and control the realisation process from the investment.

Investment Activity
Since shareholders gave approval for Electra's return to full investment,
Electra Partners has quickly developed a strong dealflow, although it is
adopting a cautious approach to new investment and, in appropriate cases, will
structure transactions to include financial instruments which will give greater
protection in a more demanding economic environment.

The private equity market remains very active, particularly at the larger end
where a number of major transactions are being contemplated. In Electra's
targeted deal size the market was very competitive during the six months,
although £89 million was successfully invested and there were outstanding
commitments to invest in new portfolio companies and private equity funds of
£162 million at 31 March 2007.

At 31 March 2007, Electra had a net liquid assets position of £170 million
compared to £238 million at 30 September 2006. Future changes to this position 
will relate directly to the timing of new investments and future portfolio 
realisations.

After achieving realisations of £257 million in the year ended 30 September
2006, the Board had anticipated that the level of realisations would begin to
fall as the age profile of the portfolio changed. During the six months under
review, sale proceeds amounted to £41 million, significantly less than the £81
million received in the six months ended 30 September 2006. However, since 31
March 2007 Electra has announced the conditional sale of its investment in
Capital Safety Group which, if completed, will substantially increase
realisation proceeds for the year.

Full details of the investment activity are included in the Investment Manager's
Report.

Board of Directors
Colette Bowe and Lucinda Webber were appointed as Non-Executive Directors of
Electra with effect from 1 March 2007 and the Board is already benefiting from
their wide and varied experience. These are the first two of three Non-Executive
appointments which the Board intends to make. The process to select a further
Non-Executive Director is still ongoing and I anticipate that once this has been
completed there will be a short period of transition after which some of the
existing Directors will retire from the Board.

On-Market Purchases of Shares for Cancellation
At the Extraordinary General Meeting held in October 2006 shareholders gave
authority to continue the on-market share buy-back programme. In deciding when
to buy-back shares, the Board will take account of the prospective returns on
prevailing investment opportunities and the discount at which the shares trade
to their net asset value. The Directors will only use this authority when it is
judged there will be an increase in net asset value and be in the best interest
of shareholders generally. During the six months ended 31 March 2007, Electra
made on-market purchases of 1.22 million shares at an aggregate cost of £18
million representing an average price of 1,469p per share.

Outlook
The six months have provided a sound start to Electra's return to full
investment of its capital resources and the team at Electra Partners has once
again delivered a strong investment performance.

Electra is now in a position to continue to create shareholder value for both
private and institutional investors.

Sir Brian Williamson
4 June 2007


Investment Portfolio Analysis

Summary of Changes to Investment Portfolio +

Six months ended 31 March                         2007                      2006

                                                 £'000                     £'000
Opening Valuation                              380,159                   353,274
Investments                                     89,047                    59,871
Realisations                                  (41,280)                 (176,297)
Net capital increase                           132,746                   106,847
Closing valuation                              560,672                   343,695


+ The above investment portfolio at 31 March excludes accrued income (2007:
£7,450,000; 2006: £776,000) and investments in floating rate notes (2007:
£329,273,000; 2006: £391,759,000).

In the six months to 31 March 2007, Electra's net asset value per share
increased from 1,545p per share to 1,811p per share, an increase of 17.2%. This
performance resulted from the continuing good progress of the investment
portfolio and in particular the exceptional increase in value of the investment
in Capital Safety Group. As in the previous financial period, the net asset
value performance resulted primarily from realised gains and from the increase
in value of investments valued with a listed price. The net increase in
valuation of unlisted investments resulting from the Directors' valuation
process accounted for less than 15% of the net asset value performance.

During the six month period, the investment rate continued its upward trend with
total new investment of £89 million. Realisations decreased as expected to a
total of £41 million. The net investment of £48 million combined with the
capital appreciation during the period of
£133 million led to a significant increase in the value of the investment
portfolio from
£380 million to £561 million at 31 March 2007.

The emphasis on investment continues to be in the UK and Europe. At 31 March
2007, 81% of the investment portfolio was based there with the remainder
invested 12% in USA and 7% in Asia.

Current Operations and Outlook
Following approval at the Extraordinary General Meeting in October 2006, all
restrictions on the level of investment by Electra were removed. Partly as a
result of this change, investment continued its upward trend in the period under
review. This is expected to continue for the balance of the financial year. The
market for new investment remains extremely competitive and identifying
transactions with appropriate potential remains challenging. The level of
current dealflow is, however, encouraging and with Electra's flexible approach
in terms of sector, ownership and type of investment instrument, suitable new
investments are being located at a satisfactory rate.


Investment Portfolio Review

New Investments
In the six month period, investments totalled £89 million compared to £60
million in the corresponding period of the previous year. This almost 50%
increase in the rate of investment reflects, in part, the change in investment
strategy of Electra.

New investments included the buyout of Lil-lets Group in which Electra invested
£26 million, Safeland - £9.4 million, TCR Capital - £19.6 million and Locatel -
£9.9 million. In addition a further £5.0 million was invested in Leiner to
purchase the interest of another shareholder and
£20.3 million was drawn down under commitments to private equity funds.

Lil-lets is the second largest brand in the UK tampon market and the market
leader in South Africa. The company also sells a range of complimentary
products. The £78 million buyout was completed in December with Electra
investing £26 million and the balance funded mainly by borrowings. The
investment of £19.6 million in TCR Capital consisted of the purchase of limited
partnership interests in a French private equity fund which held five unquoted
investments. One of these investments was subsequently realised resulting in the
return of £8.1 million to Electra. Safeland invests in property suitable for use
as low cost flexible workspace occupied on short term licenses. During the
period, Safeland purchased £28 million of properties which were financed with
equity of £9.4 million provided by Electra. Locatel, purchased in a €77 million
buyout, is Europe's leading supplier of interactive multi-media solutions for
the hotel and healthcare industries.

In April Electra announced the completion of its investment of £34 million in
the £75 million buyout of Nuaire, a leading UK manufacturer of ventilation 
systems.

Realisations
Realisation proceeds for the six month period amounted to £41 million, a
significant reduction from recent periods reflecting the fact that many of the
more mature investments have now been realised or refinanced. Shortly after the
period end proceeds from realisations were increased by the receipt of £17
million from Freightliner through repayment of the shareholder loan.
Furthermore, in May, Electra announced the sale of Capital Safety Group which,
subject to competition clearance, will provide gross proceeds to Electra of
circa £112 million, subject to exchange rates ruling at the date of completion.
Together, these two further realisations will bring the total amount realised in
the year to date to an amount in excess of £170 million.

Performance
During the six month period, the investment portfolio achieved net capital
appreciation of
£133 million, a percentage increase of 35%. This significant increase resulted
primarily from gains realised on the sale or anticipated sale of investments.
Such gains accounted for 77% of the net capital appreciation. Investments valued
against a quoted price accounted for a further 8% while the increase in
unrealised appreciation on unlisted investments accounted for the balance of
14%.

As detailed above, the most significant value increase related to the investment
in Capital Safety which was revalued in line with the potential proceeds of
sale, completion of which is expected in June. At 31 March 2007, the investment
was valued at £110 million giving rise to an uplift over the 30 September 2006
valuation of £86 million.


Consolidated Income Statement (unaudited)

For the six months ended 31                         2007                    2006
March
                                Revenue Capital    Total Revenue Capital   Total

                                  £'000   £'000    £'000   £'000   £'000   £'000

Net gains on investments         16,599 100,519  117,118  11,107 100,578 111,685
Profits/(losses) on
revaluation of foreign                -   4,937    4,937       - (3,121) (3,121)
currencies
                                 16,599 105,456  122,055  11,107  97,457 108,564
Other income                        642       -      642   2,310       -   2,310
Priority profit share paid to   (5,626)       -  (5,626) (5,310)       - (5,310)
general partners
Other expenses                  (1,409)   (816)  (2,225)   (768)       -   (768)
Net Profit before Finance
Costs and Taxation               10,206 104,640  114,846   7,339  97,457 104,796
                                                                  
Finance costs                   (4,819)       -  (4,819) (3,611)       - (3,611)
Profit on Ordinary Activities
before                            5,387 104,640  110,027   3,728  97,457 101,185

Taxation
Taxation Expenses               (3,293)       -  (3,293) (2,449)       - (2,449)
Profit on Ordinary Activities     2,094 104,640  106,734   1,279  97,457  98,736
after Taxation
Attributable to Equity            2,094 104,640  106,734   1,279  97,457  98,736
Shareholders

Basic and Diluted Earnings per    5.50p 275.02p  280.52p   2.96p 225.92p 228.88p
Ordinary Share                                                   


The Total column of this statement represents the Group's Income Statement
prepared in accordance with IFRS and the Companies Act 1985. The supplementary
Revenue and Capital columns are both prepared under guidance published by the
Association of Investment Companies.

The amounts dealt with in the Consolidated Income Statement are all derived from
continuing activities.


                                                        2007            2006
Number of Ordinary Shares in issue at 31 March    37,502,687      40,722,687

+------------------------------+--------+-------+--------+-------+-------+-----+
|Special Dividends Paid        |        |       |    2007|       |       | 2006|
|                              |        |       |        |       |       |     |
|Total paid (£'000)            |        |       |   6,375|       |       |8,592|
|                              |        |       |     17p|       |       |  20p|
|Per share                     |        |       |        |       |       |     |
+------------------------------+--------+-------+--------+-------+-------+-----+

Consolidated Statement of Changes in Equity (unaudited)

For the six months ended 31 March                      2007             2006

                                                      £'000            £'000
Total equity at 1 October                           598,292          520,883
Adoption of IAS 39 *                                      -            1,239
Profit after taxation                               106,734           98,736
Special dividend +                                  (6,375)          (8,592)
Exchange differences arising on                     (1,320)            1,026
consolidation
Repurchase of own shares                           (18,045)         (36,080)
Total Equity at 31 March                            679,286          577,212


* Opening balance at 1 October 2005 has been restated for IAS 39 such that
listed investments have been valued at bid rather than mid price and
marketability discounts have not been applied.

+ Special dividend paid of 17p (2006: 20p) per share after share buy-backs of
1,000,000 ordinary shares on 18 December 2006, 120,000 ordinary shares on 19
December 2006 and 100,000 ordinary shares on 15 January 2007 (2006: 550,000
ordinary shares on 6 February 2006).


Consolidated Balance Sheet (unaudited)

                      As at 31 March 2007 As at 30 Sept 2006 As at 31 March 2006
                      £'000      £'000     £'000      £'000     £'000      £'000
Non-Current Assets
Investments held at fair
value:
Unlisted and listed            568,122              386,033              344,471
Floating rate notes            329,273              394,201              391,759
                               897,395              780,234              736,230
Current Assets
Debtors                1,577                1,481                5,895
Cash and cash 
equivalents           14,242                9,875               19,735
                      15,819               11,356               25,630

Current Liabilities
Trade and other 
payables              13,759               15,591               10,795
Net Current Assets/
Liabilities                      2,060              (4,235)               14,835
Total Assets less Current      899,455              775,999              751,065
Liabilities
Bank loans                     173,724              165,823              160,311
                               725,731              610,176              590,754
Provision for liabilities and   46,445               11,884               13,542
charges
Net Assets                     679,286              598,292              577,212
Capital and Reserves
Called-up share capital          9,376                9,681               10,181
Share premium         24,147               24,147               24,147
Capital redemption 
reserve               33,899               33,594               33,094
Translation reserve  (2,287)                (967)                2,016
Realised capital 
profits              632,414              645,621              623,742
Unrealised capital 
losses              (37,178)            (136,980)            (131,828)
Revenue reserves      18,915               23,196               15,860
                               669,910              588,611              567,031
Total Equity Shareholders'     679,286              598,292              577,212
Funds
Net asset value per ordinary 1,811.30p            1,545.07p            1,417.42p
share
Ordinary Shares in issue    37,502,687           38,722,687           40,722,687


Consolidated Cash Flow Statement (unaudited)

For the six months ended 31 March                   2007                  2006
                                        £'000      £'000      £'000      £'000

Operating Activities
Purchases of investments             (87,571)             (216,100)
Amounts paid under incentive          (1,170)               (8,189)
schemes
Sales of investments                  105,577               214,589
Dividend and distributions              1,424                 8,110
received
Other investment income received       13,373                12,832
Interest income received                  494                 1,428
Other income received                     148                   882
Expenses paid                         (9,281)               (6,093)
Taxation paid                         (2,225)                     -
Net Cash Inflow from Operating                    20,769                 7,459
Activities

Financing Activities
Bank loans drawn                       76,243                56,680
Bank loans repaid                    (63,000)              (56,680)
Repurchase of own shares             (18,045)              (36,080)
Loans advanced                              -               (1,993)
Finance costs                         (4,646)               (3,611)
Dividend paid                         (6,375)               (8,592)
Other finance costs                     (173)                     -

Net Cash Outflow from Financing                 (15,996)              (50,276)
Activities

Changes in cash and cash                           4,772              (42,817)
equivalents
Cash and cash equivalents at 1                     9,875                62,610
October
Translation difference                             (405)                  (58)
Cash and cash equivalents at 31                   14,242                19,735
March


END



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