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JPMorgan Flem.Russ (JFR)

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Tuesday 24 January, 2006

JPMorgan Flem.Russ

Final Results

JPMorgan Flem Russian Secs PLC
24 January 2006


                    JPMORGAN FLEMING RUSSIAN SECURITIES PLC
                           STOCK EXCHANGE ANNOUNCEMENT


The Board today announces the preliminary results of the Company for the year
ended 31st October 2005.


Chairman's Statement


The Year Under Review

I am pleased to report that the Company's excellent performance since it listed
on the London Stock Exchange in December 2002 has continued in the year to 31st
October 2005. During the year, the Company produced a total return on net assets
of +41.6%, which compares favourably with the return of +35.3% (in sterling
terms) from the benchmark, the CSFB Russian ROS Index.

During the year under review, the Company's ordinary share price increased by
46.6% from 183.5p to 269.0p. The Company's discount to net asset value narrowed
from 11.1% to 8.0%.


Revenue and Earnings

The revenue loss after taxation for the year to 31st October 2005 was £870,000
with a loss per share of 1.55p.


Authority to Repurchase the Company's Shares

At the last Annual General Meeting shareholders gave the Directors authority to
repurchase the Company's shares for cancellation. During the year under review,
the Company did not repurchase any shares. The Board continues to believe that a
facility to reduce discount volatility is important, and is therefore seeking
approval from shareholders to renew the authority at the forthcoming Annual
General Meeting.


JPMorgan Asset Management

During the year, the Company's Manager changed its name from J.P. Morgan Fleming
Asset Management (UK) Limited to JPMorgan Asset Management (UK) Limited ('
JPMAM'). The Board has reviewed the investment management, secretarial and
marketing services provided to the Company by JPMorgan Asset Management (UK)
Limited. This annual review has included their performance record, management
processes, investment style, resources and risk control mechanisms. The Board
was satisfied with the results of the review and therefore in the opinion of the
Directors, the continuing appointment of JPMAM for the provision of these
services is in the interests of shareholders as a whole.


Loan Facility

Russia's investment rating has been increased during the year and this has
enabled the Company to secure a loan facility of up to US$40 million at a
materially reduced margin than previously applied. At 31st October 2005, US$30
million of the Company's facility with ING Bank was drawn down for utilisation
in accordance with the Company's investment objectives.


Board of Directors

The Directors retiring by rotation are Mr Patrick Gifford and Mr Paul Teleki. A
Nomination Committee of the Board, consisting of those Directors who are not
standing for re-election by rotation, has met to consider the attributes and
contribution of each individual to the Board's deliberations. Following this
review, the Nomination Committee recommends to shareholders that, given their
investment experience and contribution to the Board, the Directors should be
re-elected.


Outlook

It is anticipated that the key driver for this year will be Russia's ability to
maintain macroeconomic stability and contain inflation, as growth can only occur
in an environment of an improving business climate with monetary and political
stability. As domestic growth continues, it is expected that the consumer sector
is well positioned to benefit in the current year. It should be noted that
Russia has various structural advantages which could be utilised, such as the
size of the domestic market, educational levels of the population, existing
basic infrastructure and ownership of core commodities. These areas will be the
main impetus of future growth and the investment managers will reflect these
main themes in the Company's portfolio.


Change of Name

In view of the Manager's change of name mentioned above and the fact that the
Fleming name will no longer be used in the general promotion of companies in the
JPMorgan investment trust range, the Board considers it appropriate to change
the name of the Company to JPMorgan Russian Securities plc.


Annual General Meeting

The Company's third Annual General Meeting will be held on Wednesday 1st March
2006 at 2.00 p.m., at JPMorgan's offices at 60 Victoria Embankment (entrance
located on John Carpenter Street), London EC4Y 0JP.


Pamela Idelson Smith
Chairman

24th January 2006


JPMorgan Fleming Russian Securities plc
Audited figures for the year ended 31st October 2005

Statement of Total Return
                                                     Year ended 31 October 2005       Year ended 31 October 2004
                                                    Revenue     Capital      Total   Revenue     Capital      Total
                                                      £'000       £'000      £'000     £'000       £'000      £'000

Realised gains on investments                             -       4,415      4,415         -         594        594
Unrealised gains on investments                           -      45,268     45,268         -      26,541     26,541
Currency gains on cash and short-term deposits            -         415        415         -          78         78
Unrealised foreign exchange (loss)/gain on US             -       (887)      (887)         -         531        531
dollar loan
Realised foreign exchange gain on US dollar loan          -           -          -         -         184        184
Other capital charges                                     -        (51)       (51)         -        (20)       (20)
Income from investments                               2,692           -      2,692     2,063           -      2,063
Other income                                            149           -        149        56           -         56
                                                    _______    ________    _______   _______    ________    _______

Gross return                                          2,841      49,160     52,001     2,119      27,908     30,027
Management fee                                      (1,989)           -    (1,989)   (1,588)           -    (1,588)
Other administrative expenses                         (373)           -      (373)     (323)           -      (323)
Interest payable                                      (822)           -      (822)     (321)           -      (321)
Provision against income accrual                          -           -          -        72           -         72
                                                    _______     _______    _______   _______     _______    _______

(Loss)/return on ordinary activities before           (343)      49,160     48,817      (41)      27,908     27,867
taxation
Taxation on ordinary activities                       (527)           -      (527)      (58)           -       (58)
                                                    _______     _______    _______   _______     _______    _______

(Loss)/return on ordinary activities after            (870)      49,160     48,290      (99)      27,908     27,809
taxation
Dividend on ordinary shares                               -           -          -         9           -          9
                                                    _______     _______    _______   _______     _______    _______

Transfer (from)/to reserves                           (870)      49,160     48,290      (90)      27,908     27,818

(Loss)/return per ordinary share                    (1.55)p      87.53p     85.98p   (0.18)p      49.42p     49.24p



JPMorgan Fleming Russian Securities plc
Audited figures for the year ended 31st October 2005


BALANCE SHEET                                                                      31 Oct           31 Oct
                                                                                     2005             2004
                                                                                    £'000            £'000

Investments at valuation                                                          170,163          123,244

Net current liabilities                                                           (5,898)          (7,269)
                                                                                  _______          _______
Total net assets                                                                  164,265          115,975
                                                                                    =====            =====
Net asset value per share                                                          292.5p           206.5p


CASH FLOW STATEMENT
                                                                                     2005             2004
                                                                                    £'000            £'000

Net cash inflow from operating activities                                             698              372

Net cash outflow from returns on investments and servicing of
finance                                                                             (822)            (305)

Net cash inflow from investing activities                                           6,764            2,645

Dividend paid on ordinary shares                                                        -            (505)

Net cash inflow/(outflow) from financing                                            5,145            (348)
                                                                                  _______          _______
Increase in cash for the year                                                      11,785            1,859
                                                                                    =====             ====




The above financial information does not constitute statutory accounts as
defined in Section 240 of the Companies Act 1985. The comparative financial
information is based on the statutory accounts for the year ended 31st October
2004. These accounts, upon which the auditors issued an unqualified opinion,
have been delivered to the Registrar of Companies.


JPMORGAN ASSET MANAGEMENT (UK) LIMITED

24th January 2006






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