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3i UK Select Trust (UKT)

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Tuesday 22 February, 2000

3i UK Select Trust

Final Results - Year Ended 31 December 1999

3i UK Select Trust Ld
22 February 2000


The unaudited figures for the year ended 31 December 1999 are as follows:

                                    31 December 1999  31 December 1998
                                         £'000's           £'000's

Dividends and interest                   2,498             2,222
Commissions                                  4                 3
Revenue                                  2,053             1,764
Amount absorbed by dividends            (1,764)           (1,507)
Amount transferred to revenue
reserves -                                 289               257

Interim, final and special
dividends per ordinary share              3.06p             2.60p
Earnings per ordinary share               3.56p             3.03p

                                    31 December 1999  31 December 1998
                                         £'000's           £'000's

Market value of investments             86,036            76,694
Total net assets                        84,635            73,556
Net asset value per ordinary
share at 1Op each                        146.9p            127.6p
(ex dividend)

The directors propose that ordinary shareholders should be offered the right to
elect to receive new ordinary shares in lieu of the cash final and special

The Chairman, Advocate JM Le Pelley commented as follows:

I  am  able  to  report on a year that produced good returns  for shareholders.
During the year the price of Shares in your company rose by  20.1%  and  a
shareholder  who  elected to receive scrip dividends enjoyed a total  return  of
22.9%.  Over the year as a whole the portfolio produced a total return,
combining capital growth and income earned, of 17.6% compared to the total
return  of  the All-Share of 24.2%.

The  price at which shares in your company trade stands at a discount to the
net  asset value of the shares. The size of this discount in absolute  terms
and  relative  to  the peer group of similar companies is monitored  by  the
Board. In recent years the Board have instituted the programme of share buy-
backs  and  branded the Company with the name of the Manager.  In  1999  the
discount narrowed  from 20% to 16% so contributing to  the  healthy  return
enjoyed  by  shareholders. During the year the company  bought  back  845,000
shares,  more than matching the number of shares issued in scrip  dividends.
The  Board's  policy  remains to buy-in shares to match scrip  issuance  but  
they  will  also  consider  buying-in  shares  should  the  discount  become

Earnings  per share for the year rose from 3.03p to 3.56p per share. The bulk 
of these  earnings  represent  increased dividend  payments  made  by  portfolio
companies and this reflects continuing real dividend growth in the UK stock
market.  Many companies are currently reshaping their balance sheets and  the
portfolio  continued  to  receive  special  dividends  in  addition  to 
ordinary payments.   These   special   dividend  receipts   are   by   their  
nature non-recurring.  In  addition interest income was also  higher  than  in 
the previous  year. Against this background the Board recommend a final ordinary
dividend  of  1.88p,  an  increase  of 4.4%.  If  approved  by  shareholders
ordinary  dividends paid will have increased by 4.2% over  1998.  The  Board
also  propose  the  payment of a special dividend of  0.35p  reflecting  the
non-recurring  income.  The proposed dividends, combined  with the  interim
already paid, represent an increase of 17.7% on payments made last year.

Since  the  year  ended  there  have been sharp  movements  in  world  stock
markets.  In  general some of the over-valuation which had appeared  at  the
year  end has dissipated although some areas of the market still remain  fully
valued.  From these lower levels the Board would expect a steady performance
over  the  balance  of  the year although continuing short  term  volatility
cannot be ruled out.

The  directors  have  decided to declare a final dividend  of  1.88p  (1998:
1.80p)  and a special dividend of 0.35p for the year ended 31 December  1999
making a total dividend of 3.06p, (1998: 2.60p).

The  final  and special dividends will be payable on 5 May 2000 on  such  of
the  ordinary shares in respect of which the holders had not,  prior  to  12
April 2000, elected to receive an allotment of new ordinary shares.

The  record  date  for the final dividend in respect of the  year  ended
31 December 1999 is 3 March 2000.