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3i UK Select Trust (UKT)

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Wednesday 28 February, 2001

3i UK Select Trust

Final Results

3i UK Select Trust Ld
28 February 2001


The unaudited figures for the year ended 31 December 2000 are as follows:

                                       31 December 2000  31 December 1999
                                            £'000's           £'000's

Dividends and interest                      2,199             2,498
Commissions                                     4                 4
Revenue                                     1,733             2,053
Amount absorbed by dividends               (1,566)           (1,764)
Amount transferred to revenue
reserves -                                    167               289

Interim and final (special 1999)
dividend per ordinary share                 2.77p             3.06p
Earnings per ordinary share                 3.04p             3.56p

                                       31 December 2000  31 December 1999
                                           £'000's           £'000's

Market value of investments                83,703            86,036
Total net assets                           76,008            84,635
Net asset value per ordinary share at
10p                                        134.2p            146.9p
each (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 dividend.

The Chairman, Advocate JM Le Pelley commented as follows:

Equity markets produced their weakest returns for over a decade in 2000.
Negative returns were seen worldwide and were the result of several factors.
Firstly, the very high valuations of technology stocks began to decline in 
the spring and acted as a depressant on investor sentiment for the remainder 
of the year. Secondly, fears of the impact of interest rate increases on
profitability acted as a cap on markets through the middle of the year. 
Finally evidence of a sharp and unexpected economic slow down in the United
States appeared in the final quarter driving markets in that country to lows 
for the year.

During  the  year  your  company's  portfolio  produced  a  total  return,
combining capital and income, of -6.5%. This may be compared to the  total
return  of  the FTSE All-Share Index of -5.9%. The portfolio  outperformed
the  market over the last nine months of the year following the  start  of
the decline in technology stocks.

In common with most investment trusts the price at which shares  in  your
company  trade stands at a discount to the net asset value of the  shares.
At  the  end  of December 2000 the discount had narrowed slightly  to  15%
from  the 16% recorded at the end of December 1999. This improvement means
that  after  accounting  for dividends paid during the  year  shareholders
received  a  total return of -4.2%. In the course of the year,  and  after
adjusting  for  shares  issued as scrip dividends, a million  shares  were
bought for cancellation. The Board's policy remains to buy-in at least  as
many  shares as are issued as scrip dividends and to buy more  should  the
discount become excessive.

Earnings  per share were 3.04p down from 3.56p in 1999. The reduction  had
three principal causes: a sharp fall in the number  and  size  of  special
dividends;  a  reduction  in  the yield of the portfolio  as  low-yielding
shares  with  growth prospects were bought; and dividend cuts  from   some
large  companies.  These factors are discussed at greater  length  in  the
fund  manager's  report.  Against this background the Board  recommend  a
final  ordinary  dividend of 1.94p, an increase of 3.2%. If  the  proposed
final  dividend is approved by shareholders dividends for  the  year  will
total 2.77p, an increase of 2.2% over last year.

The  Board has decided to change registrars and from the end of  May  2001
shareholders  will  receive share certificates and dividend  payments from
Capita  IRG (CI) Limited. This change will allow shareholders who so  wish
to  have  their shareholdings registered with the London Stock  Exchange's
CREST system.

For  the third year in a row I have to report on a volatile start  to  the
new  year in equity markets. At the end of 2000 pessimism developed as the
US  economy  appeared  to  be slowing sharply.  In  January  the  American
authorities  cut interest rates twice and began moves to reduce  taxation.
Rates  were  cut  in  the  UK  in February. Initially  these  developments
boosted   equity  markets  but  they  have  since  drifted  back.  Although
sentiment  is  currently depressed by the impact of the  economic  slowing
the  benefits  of monetary and fiscal easing should be seen later  in  the

The  directors  have decided to declare a final dividend of  1.94p  (1999:
1.88p)  for  the  year ended 31 December 2000 making a total  dividend  of
2.77p, (1999: 3.06p including a special dividend of 0.35p).

The final dividend will be payable on 4 May 2001 on such of the ordinary
shares in respect of which the holders had not, prior to 10 April 2001,
elected to receive an allotment of new ordinary shares.

The record date for the final dividend in respect of the year ended 31
December 2000 is 9 March 2001.