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Platinum Inv. Trust (PNI)

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Monday 21 November, 2005

Platinum Inv. Trust

Statement:Claims Against Co

Platinum Investment Trust PLC
21 November 2005


Progress of claims against the company

The board of Platinum Investment Trust plc ('the Company') is writing to update
shareholders on the progress of claims against the Company by Knox D'Arcy Asset
Management Limited ('KAM'). KAM, a company historically controlled by Richard
Steele, was the investment manager of the Company. KAM has an unusual agreement
with the Company dating from 1996 whereby KAM would be entitled, subject to the
performance of the Company, to receive warrants to subscribe for ordinary shares
at par for a 5 year period following the termination of KAM's management
contract with the Company.

On 31 August 2004 the Company announced that it had received a claim from KAM
for 6,350,629 warrants in respect of the year to 30 April 2004. It has
subsequently received a further claim for 1,081,465 warrants in respect of the
year to 30 April 2005. If the claims were to be successful, the Company would be
required to issue warrants to KAM which, when exercised, would result in
dilution of approximately 5% for all shareholders. The board strongly disputes
both these claims.

As reported in the last Annual Report, the Company instituted High Court
proceedings to clarify and if necessary to rectify the agreement and a trial
date has been provisionally set for June 2006. KAM has recently initiated an
application for a summary judgement on the case and the hearing has been set for
next month. The board and its external advisers believe the claims by KAM are
without merit and the board has no alternative but to resist these claims in
order to protect shareholders' assets.

The Company announced on 19 August 2005 that until such time as the claims from
KAM had been resolved, there would be uncertainty as to the Company's NAV. This
had hindered the board's ability to achieve a target limit of a 5% discount. In
order to provide shareholders and prospective investors with comfort, the board
adopted an interim policy of seeking, through the use of share buy-backs, to
restrict the share price discount to 10% of the published NAV.

The board has noted recent announcements which state that KAM, Knox D'Arcy
Investments Limited, Richard Steele Esq, and QVT Fund LP are acting by agreement
and understanding with one another and following recent purchases have an
aggregate interest in the Company of 25.56% of the issued share capital. The
board, through its advisers, has recently written to KAM to obtain a clearer
understanding of the nature of the agreement between the parties. The board has
received no further clarification.

The board will balance the interests of shareholders who wish to realise all or
part of their holdings and the interests of current and potential shareholders
who wish to be invested in the Company. The presence of the claims makes the
interests of KAM materially different from other shareholders. Only when either
KAM withdraws the claims or the issues have been resolved by the Court will the
board be in a position to formulate proposals which would not have to take this
contingency into account.

The Board will make further announcements as and when more information becomes

Eric McAuslan or Adam Forsyth 0131 220 2962

                      This information is provided by RNS
            The company news service from the London Stock Exchange