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City of London IT (CTY)

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Friday 02 February, 2001

City of London IT

Interim Results

City of London Investment Trust PLC
2 February 2001

                                                               2 February 2001


                   THE CITY OF LONDON INVESTMENT TRUST PLC

              UNAUDITED INTERIM RESULTS FOR THE HALF YEAR ENDED

                               31 DECEMBER 2000


Highlights

                                             6 months 5 Years   10 Years
                                             %        %         %
The City of London Investment Trust plc
Net Asset Value Total Return*                +4.7     +90.8     +287.4

FTSE All-Share Index
Total Return*                                -0.5     +91.7     +317.8

Average UK Growth & Income Investment Trust
Net Asset Value Total Return£*               +4.8     +87.3     +274.8
£ size weighted average

* Source: AITC Services Limited


*   Dividend up 3.4% over the comparable period of 1999, thirty-fourth
    annual increase.


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                                    - 2 -

                   THE CITY OF LONDON INVESTMENT TRUST PLC

      Unaudited Interim Results for the half year ended 31 December 2000

Chairman's Statement

Markets

During the six months to 31 December 2000, UK economic growth maintained its
steady rate with inflation below the government's target of 2.5%. Stockmarket
sentiment was affected by profit warnings and severe share price declines for
a number of technology and telecommunications companies.

Over the last two years there has been a high level of volatility between
sectors in the UK stockmarket. Many long established companies, out of favour
in 1999 as they were perceived to be threatened by new technology, enjoyed
strong share price performances in 2000 as investors appreciated their
underlying strengths.

Performance

The Company's portfolio benefited from being underweight in the technology and
telecommunications sectors and outperformed the FTSE All-Share Index, in the
six months to 31 December 2000, by approximately five percentage points. The
Company's portfolio has now recovered almost all of its 1999 setback. In spite
of the improved asset value performance, however, there has been no narrowing
of the discount of the Company's share price to its net asset value. During
the six months to 31 December 2000, the Board authorised buy-backs of 2.37
million shares at discounts of over 10%.

Dividends

The Board declared, on 7 December 2000, a second interim dividend of 1.84p per
ordinary share. The 3.4% increase in the dividend rate compared with last year
continues the Company's unbroken record of annual dividend increases since
1966.

Expenses

Expenses remained under tight control. In the year to 30 June 2001, excluding
interest but including the portion of the management fee which is charged to
capital, expenses are expected to amount to approximately 0.45 % of assets
under management.

Prospects

UK economic growth is anticipated to continue at over 2% with the government's
fiscal stimulus likely to offset weakening private sector demand. There is
scope for the Bank of England to cut the base rate with inflation expected to
remain below target.

In spite of the dull outlook for corporate profits growth, the UK equity
market appears to be good value relative to British government bonds and other
major equity markets.




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                   THE CITY OF LONDON INVESTMENT TRUST PLC


      Unaudited Interim Results for the half year ended 31 December 2000


Statement of Total Return (incorporating the revenue account *)             
for the half year ended 31 December 2000                                    


                  (Unaudited)                    (Unaudited)                  
                  Half Year ended 31 December    Half Year ended 31 December  
                  2000                           1999                         
                  Revenue      Capital  Total    Revenue      Capital  Total  
                                                                              
                  £'000        £'000    £'000    £'000        £'000    £'000  
  Total capital       -        19,697   19,697       -        8,631    8,631  
  gains/(losses)                                                              
  from                                                                        
  investments                                                                 
  Income from     9,739             -    9,739   8,375            -    8,375  
  fixed asset                                                                 
  investments                                                                 
  Other             128             -      128     119            -      119    
  interest                                                                    
  receivable                                                                  
  and similar                                                                 
  income                                                                      
  Gross revenue   9,867        19,697   29,564   8,494        8,631    17,125 
  and capital                                                                 
  gains/(losses)                                                              
                                                                              
  Management       (360)        (839)   (1,199)   (726)        (363)   (1,089)
  fee                                                                         
  Other            (208)           -      (208)   (213)           -      (213)  
  administrative                                                              
  expenses                                                                    
  Net                                                                         
  return/(loss)   9,299        18,858   28,157   7,555        8,268    15,823 
  on ordinary                                                                 
  activities                                                                  
  before                                                                      
  interest                                                                    
  payable                                                                     
  Interest         (642)       (1,501)  (2,143)  (1,067)      (1,067)  (2,134)
  payable                                                                     
  Net             8,657        17,357   26,014    6,488        7,201   13,689 
  return/(loss)                                                               
  on ordinary                                                                 
  activities                                                                  
  before                                                                      
  taxation                                                                    
  Taxation on       (60)           60        -      (37)          37        -   
  net return on                                                               
  ordinary                                                                    
  activities                                                                  
  Net return      8,597        17,417   26,014   6,451        7,238    13,689 
  /(loss) on                                                                  
  ordinary                                                                    
  activities                                                                  
  after                                                                       
  taxation                                                                    

  Dividends:                                                                  
  Preference        (95)            -      (95)     (95)          -       (95)  

  and preferred                                                               
  ordinary                                                                    
  stocks                                                                      
  Net return /                                                                
  (loss)          8,502        17,417   25,919   6,356        7,238    13,594 
  attributable                                                                
  to the                                                                      
  ordinary                                                                    
  shares                                                                      

  Dividends:                                                                  
  Ordinary                                                                    
  shares                                                                      
  First interim   (3,798)           -   (3,798)  (3,748)          -    (3,748)
  payment of                                                                  
  1.84p (1999                                                                 
  1.78p)                                                                      
  Second          (3,791)           -   (3,791)  (3,757)          -    (3,757)
  interim                                                                     
  payment of                                                                  
  1.84p (1999                                                                 
  1.78p)                                                                      
  Third interim        -            -        -        -           -        -    
  2000: 1.78p                                                                 
  Fourth               -            -        -        -           -        -    
  interim 2000:                                                               
  1.84p                                                                       
                  (7,589)           -   (7,589)  (7,505)          -   (7,505)
                                                                              
  Transfer           913       17,417   18,330   (1,149)      7,238    6,089  
  to/(from)                                                                   
  reserves                                                                    
  Return/(loss)   4.12p        8.43p    12.55p   3.02p        3.43p    6.45p  
  per                                                                         
  ordinary                                                                    
  share                                                                       
 
                                                  
                                                    (Audited)                
                                             Year ended 30 June 2000  
                                                       
                                           Revenue     Capital      Total  
                                             £'000      £'000       £'000  
                                                                              
  Total capital gains/(losses) from                -   (20,709)    (20,709)  
  investments                                                                 
  Income from fixed asset investments         17,892         -      17,892    
  Other interest receivable and similar          180         -         180      

  income                                                                      
  Gross revenue and capital gains/(losses)    18,072   (20,709)     (2,637)  
  Management fee                              (1,499)     (750)     (2,249)  
  Other administrative expenses                 (385)        -       (385)  
  Net return/(loss) on ordinary activities                                    
  before interest payable                      16,188    (21,459)   (5,271)  
  Interest payable                             (2,161)    (2,161)   (4,322)  
  Net return/(loss) on ordinary activities     14,027    (23,620)   (9,593)  
  before taxation                                                             
  Taxation on net return on ordinary activities   (67)        67         -   
  Net return /(loss) on ordinary activities    13,960    (23,553)    (9,593)  
  after taxation                                                              
                                              
  Dividends:  
  Preference and preferred ordinary stocks       (190)         -       (190)  
  Net return / (loss) attributable to the                                     
  ordinary shares                              13,770    (23,553)    (9,783)  
                                                 
  Dividends:       
  Ordinary shares  
  First interim payment of 1.84p (1999 1.78p)  (3,748)         -     (3,748)  
  Second interim payment of 1.84p (1999 1.78p) (3,757)         -     (3,757)  
  Third interim 2000: 1.78p                    (3,743)         -     (3,743)  
  Fourth interim 2000: 1.84p                   (3,834)         -     (3,834)  
                                                       
                                              (15,082)         -    (15,082)  
                                                                        
  Transfer to/(from) reserves                  (1,312)    (23,553)    (24,865)  
  Return/(loss) per                              6.54p    (11.19)p    (4.65)p  
  ordinary share                                      
 
 
* The revenue columns of this statement represent the revenue accounts of   
  the Company                                                                 
 


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                   THE CITY OF LONDON INVESTMENT TRUST PLC


      Unaudited Interim Results for the half year ended 31 December 2000

Balance Sheet

As at 31 December 2000
                                         (Unaudited)    (Unaudited)   (Audited)
                                            At 31      At 31 December   At 30
                                          December                      June
                                            2000           1999         2000
                                            £'000          £'000        £'000
Fixed asset investments                       617,355        642,904    608,257
Current assets
Debtors                                         3,559          2,418      2,050
Bank balances and short term deposits           2,274          2,396        347
                                                5,833          4,814      2,397
Creditors : amounts falling due within        (5,714)        (5,712)    (5,867)
one year
Net current assets/(liabilities)                  119          (898)    (3,470)
Total assets less current liabilities         617,474        642,006    604,787
Creditors : amounts falling due after        (46,000)       (46,000)   (46,000)
more than one year
Total net assets                              571,474        596,006    558,787
Capital and reserves
Issued share capital                           53,590         54,859     54,183
Share premium account                          28,249         28,249     28,249
Other capital reserves                        478,341        502,353    465,974
Revenue reserve                                11,294         10,545     10,381
Shareholders' funds (including
non-equity interests of £2,086,000;
1999: £2,086,000)
                                              571,474        596,006    558,787
Net asset value per ordinary share            276.38p        281.35p    267.14p




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                                    - 5 -


                   THE CITY OF LONDON INVESTMENT TRUST PLC


      Unaudited Interim Results for the half year ended 31 December 2000


Group Cash Flow Statement

For the half year ended 31 December 2000

                                (Unaudited)           (Unaudited)    (Audited)
                          Half year ended          Half year ended   Year ended
                              31 December 2000     31 December 1999   30 June

                                                                        2000
                                             £'000             £'000      £'000
Net cash inflow from operating activities    7,824             7,944     16,489
Net cash outflow from servicing of          (2,239)           (2,228)    (3,660)
finance
Net tax recovered/(paid)                        35                30      (793)
Net cash inflow/(outflow) from purchases     9,582             (344)      5,082
and sales of investments
Equity dividends paid                       (7,632)           (7,496)   (14,996)
Net cash inflow/(outflow) before             7,570           (2,094)      2,122
financing
Net cash (outflow)/inflow from financing    (5,643)             1,489    (4,776)
Increase/(decrease) in cash                  1,927             (605)    (2,654)

Reconciliation of operating revenue to net cash inflow from
operating activities
Net revenue before interest payable and      9,299             7,555     16,188
taxation
(Increase)/decrease in accrued income        (302)               775      1,143
Increase/(decrease) in creditors and other      11              (17)       (38)
accruals
Management expenses charged to other         (839)             (363)      (750)
capital reserves
UK income tax deducted at source              (35)               (6)       (54)
Scrip dividends included in investment       (310)                 -          -
income
Net cash inflow from operating activities    7,824             7,944     16,489
Reconciliation of net cash flow to movement in net
debt
Increase/(decrease) in cash as shown         1,927             (605)    (2,654)
above
Change in net debt resulting from cash       1,927             (605)    (2,654)
flows
Net debt at beginning of the period         (45,653)         (42,999)   (42,999)
Net debt at the end of the period           (43,726)         (43,604)   (45,653)
Represented by:
Cash at bank and short term deposits         2,274             2,396        347
Debt falling due after more than one year   (46,000)         (46,000)   (46,000)
                                            (43,726)         (43,604)   (45,653)



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                   THE CITY OF LONDON INVESTMENT TRUST PLC


      Unaudited Interim Results for the half year ended 31 December 2000

Notes
1.  Expenses charged to capital
    The Company charges to capital 70% of its finance costs and management
    fees. All other expenses are charged wholly to revenue. Expenses which are
    incidental to the purchase or sale of a fixed asset investment are
    included in the cost or deducted from the proceeds of sale of investment.

2.  Return/(loss) per ordinary share
    Revenue return per ordinary share is based on the earnings attributable to
    the ordinary shares of £8,502,000 (half year ended 31 December 1999: gains
    of £6,356,000; year ended 30 June 2000: gains of £13,770,000) and
    206,508,246 ordinary shares being the weighted average number of ordinary
    shares in issue for the period (half year ended 31 December 1999:
    210,709,425; year ended 30 June 2000: 210,454,674 ordinary shares).

    Capital return per share is based on net capital gains of £17,417,000
    (half year ended 31 December 1999: gains of £7,238,000; year ended 30 June
    2000: losses of £23,553,000) and on the weighted average number of
    ordinary shares stated above.

3   Net asset value per share
    The net asset value per ordinary share is based on the net assets
    attributable to the ordinary shares of £569,388,000 (half year ended 31
    December 1999: £593,920,000; year ended 30 June 2000: £556,701,000) and on
    206,016,018 ordinary shares (half year ended 31 December 1999:
    211,094,303; year ended 30 June 2000: 208,389,303), being the number of
    ordinary shares in issue at the end of the period.

4   Buy-Backs
    During the half year to 31 December 2000, the Company made authorised
    purchases for cancellation of 2,373,285 of its own issued ordinary shares
    of 25p, representing 1.14% of its issued share capital, for an aggregate
    consideration of £5,643,000.

5   Interim Dividend
    The first interim dividend of 1.84p was paid on 30 November 2000. The
    second interim dividend of 1.84p will be paid on 28 February 2001 to
    shareholders on the register on 19 January 2001.

6   Accounts for the year ended 30 June 2000
    The figures and financial information for the year ended 30 June 2000 are
    an extract from the latest published accounts of the Company and do not
    constitute statutory accounts for that year. These accounts have been
    delivered to the Registrar of Companies and included the report of the
    auditors which was unqualified and did not contain a statement under
    either section 237(2) or 237(3) of the Companies Act 1985.



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                       THE CITY OF LONDON INVESTMENT TRUST PLC


          Unaudited Interim Results for the half year ended 31 December 2000


7     Interim Report
      Copies of the Company's interim report for the half year ended 31
      December 2000 will be posted to Shareholders mid February 2001 and will
      be available thereafter from the Secretary at the Registered Office, 4
      Broadgate, London, EC2M 2DA.


        For further information please contact:


        Job Curtis

        Portfolio Manager

        The City of London Investment Trust plc

        Telephone: 020 7410 4367


        Vicki Staveacre

        The Press Office

        Henderson Global Investors

        Telephone: 020 710 4222


        Alex Crooke

        Deputy Portfolio Manager

        The City of London Investment Trust plc

        Telephone: 020 7410 4447



        Stephen Westwood

        Head of Investment Trusts

        Henderson Global Investors

        Telephone: 020 7410 4100



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                                    - 8 -

                   THE CITY OF LONDON INVESTMENT TRUST PLC


      Unaudited Interim Results for the half year ended 31 December 2000


Largest Investments

The 80 largest investments, convertibles and all classes of equity in any one
company being treated as one investment, were as follows:

                               Market value                        Market value

                           31 December 2000                    31 December 2000
                                      £'000                               £'000
GlaxoSmithKline                      37,475  Boots                        3,745
HSBC                                 33,982  Anglo American               3,690
Shell Transport & Trading            32,391  Reckitt Benckiser            3,614
BP Amoco                             29,160  Reed International           3,500
Vodafone                             27,741  BG                           3,493
CGNU                                 19,205  WPP                          3,488
Lloyds TSB                           18,408  Great Universal Stores       3,416
Royal Bank of Scotland               18,182  BSkyB                        3,363
AstraZeneca                          15,187  Halifax                      3,318
Barclays                             12,950  Imperial Chemical Industries 3,312
BT                                   12,867  Whitbread                    3,300
Diageo                               11,250  Sainsbury                    3,176
Prudential                           10,770  Powergen UK                  3,160
Marconi                              10,066  BOC                          3,051
Tesco                                 9,819  Dixons                       3,032
Abbey National                        9,752  Safeway                      2,990
Legal & General                       9,225  Associated British Ports     2,928
Cable & Wireless                      9,030  Hilton                       2,926
Land Securities                       8,425  Next                         2,818
British American Tobacco              7,646  Imperial Tobacco             2,786
GKN                                   7,070  Hammerson                    2,769
Rio Tinto                             7,068  British Airways              2,764
Bank Of Scotland                      5,954  Wolseley                     2,760
Unilever                              5,730  BPB                          2,750
Royal & Sun Alliance                  5,730  Laird                        2,614
Reuters                               5,665  Billiton                     2,580
Pearson                               5,565  United News & Media          2,550
Cadbury Schweppes                     5,556  Kingfisher                   2,489
Granada Compass                       5,315  BAA                          2,472
Scottish Power                        5,290  Severn Trent                 2,418
Bass                                  5,224  Marks & Spencer              2,418
BAE Systems                           5,156  Rolls Royce                  2,379
EMI                                   4,675  Exel                         2,375
National Grid                         4,564  Scottish & Newcastle         2,350
Amvescap                              4,122  Taylor Woodrow               2,321
Slough Estates                        4,044  Lattice                      2,265
Scottish & Southern Energy            4,030  Beazer                       2,205
Allied Domecq                         3,978  Premier Farnell              2,198
Smith & Nephew                        3,805  National Express             2,169
Carlton Communications                3,766  United Utilities             2,161
These investments total £559,951,000 or 90.75% of the portfolio.

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