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TR European Growth (TRG)

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Tuesday 24 September, 2002

TR European Growth

Final Results

TR European Growth Trust PLC
24 September 2002





23 September 2002



                          TR EUROPEAN GROWTH TRUST PLC

                      Unaudited Preliminary Group Results

                        for the year ended 30 June 2002


        *     Final dividend unchanged at 1.45p

        *     Poor result but performance improving over second half year

        *     Gearing levels reduced

Extracts from the Chairman's Statement

The last year has been one of, if not the most, traumatic that the world at
large, let alone financial markets, has seen for some years.

Performance

The overall results of the Company reveal a fall in net assets per share in
excess of 30%. This is due to a combination of poor stock selection, exacerbated
by gearing. Whilst this is an improvement over the previous year, it was still a
very poor outcome given that the broader markets, as represented by indices,
fell only half as much. Nevertheless our relative performance has improved over
our second half year, the six months to 30 June. During this period, our fully
diluted net asset value fell less than 5%, more than 4% better than our
benchmark index. Despite the challenging market conditions, we have continued to
maintain our gearing at modest levels and we have kept banking facilities in
place to take advantage of the upturn when it comes. It was disappointing not to
do better given the relatively better tone of returns from smaller companies as
illustrated by the HSBC Smaller Europe (ex UK) Index.

Revenue and Dividend

Overall investment income fell by almost 30% reflecting a more cautious dividend
policy stance from our investments. However our net revenue fell to a lesser
degree due to the lower level of borrowings and resulting interest charges.
Earnings per share fell almost 20% but we propose a dividend per share of 1.45p,
unchanged from last year.

Share Capital

No purchases of our own shares or warrants were made in the year to June as we
focused on reducing gearing levels and our level of discount, although widening,
was not materially out of line with equivalent Trusts. However, since the
year-end, our discount has widened further and we have made modest purchases
totalling 2,335,128 as at the date of the Annual Report. These shares have been
cancelled thus enhancing the NAV per share for remaining shareholders.



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                          TR EUROPEAN GROWTH TRUST PLC

                      Unaudited Preliminary Group Results

                        for the year ended 30 June 2002



Extracts from the Chairman's Statement cont'd

4,111 shares were issued at a subscription price of £1.66 per share as a result
of the annual warrant exercise last year. Nearly 19 million warrants remain
outstanding, exercisable on 30 October both this year and finally next, when
they expire.

At this year's AGM, we shall be seeking to refresh the powers to buy back stock.

Outlook

The global outlook remains heavily influenced by conditions in America. The lack
of confidence in financial markets will be abated when we have greater clarity
over the course of the American economy. Valuations of equities around the world
have fallen sharply, to levels that generate opportunities for the astute
stock-picker. Whilst we have not demonstrated skill in this area of late, our
Manager is intent on extending the better trends we have shown more recently and
recovering, markets permitting, the lost ground of the last two years.

Audley Twiston-Davies

Chairman

23 September 2002



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                          TR EUROPEAN GROWTH TRUST PLC

                      Unaudited Preliminary Group Results

                        for the year ended 30 June 2002

Group Statement of Total Return (incorporating the consolidated revenue account)

for the year ended 30 June 2002
                                                                                          Year ended 30 June 2001

                                                     Year ended 30 June 2002
                                                  Revenue       Capital       Total     Revenue      Capital       Total
                                                    £'000         £'000       £'000       £'000        £'000       £'000
Total capital losses from investments                   -     (128,265)   (128,265)           -    (361,746)   (361,746)
Income from fixed asset investments                 5,513             -       5,513       7,814            -       7,814
Other interest receivable and similar income          141             -         141         313            -         313
                                                ---------     ---------   ---------   ---------    ---------   ---------
Gross revenue and capital losses                    5,654     (128,265)   (122,611)       8,127    (361,746)   (353,619)
Management fee                                    (1,016)       (4,064)     (5,080)       (862)      (3,448)     (4,310)
Other administrative expenses                       (602)             -       (602)       (804)            -       (804)
                                                ---------     ---------   ---------   ---------    ---------   ---------
Net return/(loss) on ordinary activities
before
interest payable and taxation                       4,036     (132,329)   (128,293)       6,461    (365,194)   (358,733)
Interest payable                                    (416)       (1,666)     (2,082)     (1,409)      (5,634)     (7,043)
                                                ---------   ---------     ---------   ---------  ---------     ---------
Net return/(loss) on ordinary activities
before
taxation                                            3,620     (133,995)   (130,375)       5,052    (370,828)   (365,776)
Taxation on net return on ordinary activities     (1,109)           765       (344)     (1,940)        1,182       (758)
                                                ---------     ---------   ---------   ---------    ---------   ---------
Net return/(loss) on ordinary activities
after taxation                                      2,511     (133,230)   (130,719)       3,112    (369,646)   (366,534)
Appropriations - dividends
Proposed final 1.45p (2001: 1.45p)                (2,340)             -     (2,340)     (2,340)            -     (2,340)
                                                ---------     ---------   ---------   ---------    ---------   ---------
Transfer to/(from) reserves                           171     (133,230)   (133,059)         772    (369,646)   (368,874)
                                                    =====        ======      ======       =====       ======      ======
Return/(loss) per ordinary share (note 1)
- Basic                                             1.56p      (82.55)p    (80.99)p       1.94p    (230.05)p   (228.11)p
- Diluted                                               -             -           -       1.82p            -           -
                                                    =====        ======      ======       =====       ======      ======

The revenue column of this statement represents the consolidated revenue account
of the Group.




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                          TR EUROPEAN GROWTH TRUST PLC

                      Unaudited Preliminary Group Results

                        for the year ended 30 June 2002

Group and Company Balance Sheets

at 30 June 2002

                                                                 Group            Group         Company          Company

                                                                  2002             2001            2002             2001

                                                                 £'000            £'000           £'000            £'000
Fixed asset investments
Listed at market valuation                                     270,421          506,877         270,421          506,877
Unquoted - at directors' valuation                              15,698           16,857          17,195           18,355
                                                          ------------     ------------    ------------     ------------
Total fixed assets                                             286,119          523,734         287,616          525,232
                                                          ------------     ------------    ------------     ------------

Current assets
Debtors                                                          2,373           23,447           2,373           23,447
Cash at bank                                                     2,839              627           2,837              624
                                                          ------------     ------------    ------------     ------------
                                                                 5,212           24,074           5,210           24,071

Creditors: amounts falling due within one year                (16,385)        (139,811)        (17,880)        (141,306)
                                                          ------------     ------------    ------------     ------------
Net current liabilities                                       (11,173)        (115,737)        (12,670)        (117,235)
                                                          ------------     ------------    ------------     ------------
Total net assets                                               274,946          407,997         274,946          407,997
                                                               =======          =======          ======           ======

Capital and reserves
Called up share capital                                         20,175           20,174          20,175           20,174
Share premium                                                  115,421          115,414         115,421          115,414
Other capital reserves                                         129,570          262,800         131,136          264,367
Revenue reserve                                                  9,780            9,609           8,214            8,042
                                                           -----------      -----------    ------------     ------------
Equity Shareholders' funds                                     274,946          407,997         274,946          407,997
                                                               =======          =======         =======          =======

Net asset value per ordinary share
Basic                                                          170.35p          252.79p         170.35p          252.79p
Diluted                                                        169.89p          243.70p         169.89p          243.70p




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                          TR EUROPEAN GROWTH TRUST PLC

                      Unaudited Preliminary Group Results

                        for the year ended 30 June 2002

Group Cash Flow Statement

for the year ended 30 June 2002
                                                                    2002            2002            2001            2001

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

Net cash (outflow)/inflow from operating activities                              (1,029)                             855

Servicing of finance
Interest paid                                                    (2,150)                         (7,109)
                                                            ------------                    ------------
Net cash outflow from servicing of finance                                       (2,150)                         (7,109)

Taxation
UK corporation tax recovered                                           -                              78
Withholding and income tax recovered                                 524                           1,360
                                                            ------------                    ------------
Net tax recovered                                                                    524                           1,438

Financial investment
Purchase of investments                                         (89,943)                       (292,838)
Sale of investments                                              227,397                         296,617
                                                            ------------                    ------------
Net cash inflow from financial investment                                        137,454                           3,779

Equity dividends paid                                                            (2,340)                         (1,593)

Financing
Gross proceeds from issue of shares                                    8                           3,483
Repayment of loans                                             (132,389)                        (12,572)
                                                            ------------                    ------------
Net cash outflow from financing                                                (132,381)                         (9,089)
                                                                            ------------                    ------------
Increase/(decrease) in cash                                                           78                        (11,719)
                                                                                 =======                         =======
Reconciliation of net cash flow to movement in
net debt
Increase/(decrease) in cash as above                                                  78                        (11,719)
Cash outflow from loans repaid                                                   132,389                          12,572
                                                                            ------------                    ------------
Change in net debt resulting from cash flows                                     132,467                             853
Exchange difference                                                              (3,703)                           2,648
                                                                            ------------                    ------------
Movement in net debt in the year                                                 128,764                           3,501
Net debt at 1 July                                                             (136,465)                       (139,966)
                                                                             -----------                     -----------
Net debt at 30 June                                                              (7,701)                       (136,465)
                                                                                 =======                         =======

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                          TR EUROPEAN GROWTH TRUST PLC

                      Unaudited Preliminary Group Results

                        for the year ended 30 June 2002

Notes:


        1.     Return/(loss) per ordinary share

             Revenue return per ordinary share is based on earnings attributable
        to ordinary shares of £2,511,000 (2001: £3,112,000) and on the weighted
        average number of ordinary shares in issue during the year of
        161,398,674 (2001: 160,682,587).

             Capital return per ordinary share is based on net capital loss for
        the year of £133,230,000 (2001 loss: £369,646,000) and on the weighted
        average number of ordinary shares in issue during the year of
        161,398,674 (2001: 160,682,587).



             The calculation of the fully diluted revenue and capital returns
        per ordinary share are carried out in accordance with Financial
        Reporting Standard No.14, Earnings per Share, ('FRS14'). For the
        purposes of calculating diluted revenue and capital returns per ordinary
        share, the number of ordinary shares is the weighted average used in the
        basic calculation plus the number of ordinary shares deemed to be issued
        for no consideration on exercise of all warrants by reference to the
        average price of the ordinary shares during the year. The calculations
        indicate that the exercise of warrants would result in a decrease in the
        weighted average number of ordinary shares of 247,895 (2001: increase of
        10,509,664). The calculations indicate that the warrants do not have a
        potentially dilutive effect on capital and total returns for this year.

        2.     Dividend

             The final dividend, subject to approval at the AGM, will be payable
        on 14 November 2002 to shareholders on the register at the close of
        business on 4 October 2002. The ex-dividend date will be 2 October 2002.

        3.     2001 Accounts

             The figures and financial information for the year ended 30 June
        2001 are an extract of the latest published accounts of the Group and do
        not constitute statutory accounts for that year. Those 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
        either under section 237(2) or 237(3) of the Companies Act 1985.

        4.     2002 Accounts

             The preliminary figures for the year ended 30 June 2002 have been
        extracted from the latest Group accounts. These accounts have not yet
        been delivered to the Registrar of Companies nor have the auditors yet
        reported on them.

        5.     Annual General Meeting

             Copies of the Annual Report will be posted to shareholders in
        October. Further copies will be available from the Secretary at 4
        Broadgate, London EC2M 2DA thereafter. The Annual General Meeting will
        be held on 8 November 2002.



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For further information please contact:



Stephen Peak

Director

TR European Growth Trust PLC

Telephone: 020 7818 4334

Stephen Westwood

Head of Investment Trusts

Henderson Global Investors

Telephone: 020 7818 5517

Stephen Phillips

Investor Relations Manager

Henderson Global Investors

Telephone: 020 7818 6417

Mark Vickery

Henderson Press Office

Telephone: 020 7818 4222



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