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TR European Growth (TRG)

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Tuesday 21 February, 2006

TR European Growth

Interim Results

TR European Growth Trust PLC
21 February 2006

                                                                          Page 1

21 February 2006



                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results
                    for the half year ended 31 December 2005

•                 Strong start to the year with NAV up by 20.2%
•                 Good performance against the benchmark
•                 Share price rise of 23.4%


HIGHLIGHTS

      31 December                                                                           30 June
             2004                                                     31 December              2005
   (unaudited and                                                            2005      (audited and
       restated -                                                                       restated -
                                                                      (unaudited)
          note 7)                                                                           note 6)

            £'000 ASSETS                                                    £'000             £'000     % change
          380,065 Total net assets                                        336,458           294,865       + 14.1

                % Divided between:                                              %                 %
             89.1 Quoted equities                                           100.0             100.7
              3.8 Unquoted equities                                           3.2               4.8
              0.1 Unquoted convertibles                                       0.0               0.0
              7.0 Net current assets/(liabilities)                          (3.2)             (5.5)
          -------                                                         -------           -------
            100.0                                                           100.0             100.0
             ====                                                            ====              ====


          261.58p Net asset value per ordinary share                      373.83p           311.13p       + 20.2

          235.50p Ordinary share price                                    339.25p           275.00p       + 23.4
            9.97% Discount to NAV                                           9.25%            11.61%

                  Benchmark Index                                                                         + 17.7
           280.14 *HSBC Smaller Europe (ex UK) Index                       379.67            320.61       + 18.4
           328.38 *S&P/Citigroup EMI Europe (ex UK) Index                  427.01            364.96       + 17.0

           438.21 *FTSE World Europe (ex UK) Index                         543.71            466.22       + 16.6
                  * Indices expressed on a total return basis



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                                                                          Page 2

                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results
                    for the half year ended 31 December 2005

Extracts from the Chairman's Statement

Results

I am pleased to report that the Company's net asset value per share rose by
20.2% over the six months to 31 December 2005 and the share price rose by 23.4%
as the discount narrowed into single digits. These returns compare very
favourably with the increase of 17.7% in the Company's benchmark index. The
pattern of smaller companies outperforming their larger counterparts repeated
itself but less notably than in the recent past. The strength of sterling
against the Euro slightly blunted returns for UK based investors.



As is usual for the first half of the fiscal year, the revenue return showed a
loss. This is due to dividend receipts predominately falling into the second
half of the year.



After the tender offer during the spring, the Company has continued to
repurchase its shares for cancellation. These have all been executed at
discounts to net asset value per share and so have enhanced the net asset value
attributable to remaining shareholders. During the six months to 31 December
2005, 4,770,590 shares were repurchased.



New Accounting Standards (IFRS)



In line with all other listed companies producing consolidated accounts, the
Company has adopted International Financial Reporting Standards (IFRS) and these
interim results have been prepared on that basis. Full information as to the
detailed changes and reconciliations can be found in the notes to the financial
statements. The most noteworthy change is that the portfolio is valued on a bid
basis rather than using mid market prices previously. The aggregate difference
was a decrease of £502,000 in the context of a restated portfolio value at 30
June 2005 of £311,184,000.



Prospects



There are signs of a continuing pick up in European growth and US growth remains
strong, though likely to moderate later in 2006. However, balanced against these
opportunities are continuing concerns such as a potential slowdown in the US
housing market and its likely impact on US consumer confidence and spending
patterns. The result is likely to be an uncertain time for markets with the
potential for rapid swings in sentiment. Nonetheless, we believe that any
periods of uncertainty are likely to provide our manager with attractive
opportunities for careful stockpicking. We have made a strong start to our
financial year and I look forward to updating you on our progress with our full
year results.



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                                                                          Page 3



                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results
                   for the half year ended 31 December 2005


Consolidated Income Statement
for the half year ended 31 December 2005


                               Half year ended                  Half year ended                    Year ended
                              31 December 2005                  31 December 2004                  30 June 2005
                                (unaudited)             (unaudited and restated - note  (audited and restated - note 6)
                                                                             7)
                          Revenue    Capital               Revenue    Capital              Revenue    Capital
                           Return     Return      Total     Return     Return      Total    Return     Return      Total
                            £'000      £'000      £'000      £'000      £'000      £'000     £'000      £'000      £'000

Investment income             306          -        306      1,073          -      1,073     6,161          -      6,161
Other income                   42          -         42        125          -        125       771          -        771
Gains on investments held
at fair value through
profit or loss                  -     66,689     66,689          -     55,850     55,850         -    105,369    105,369
                          -------   --------  ---------  ---------  ---------  --------- ---------  --------- ----------
Total income                  348     66,689     67,037      1,198     55,850     57,048     6,932    105,369    112,301
                          -------   --------  ---------  ---------  ---------  --------- ---------  --------- ----------

Expenses           
Management fees (note 2)     (196)    (6,366)    (6,562)      (208)    (1,840)    (2,048)     (416)    (8,000)   (8,416)
Other expenses               (315)         -       (315)      (365)         -       (365)     (722)         -      (722)
                          -------   --------  ---------  ---------  ---------  --------- ---------  --------- ----------
(Loss)/profit before
finance costs and taxation   (163)    60,323     60,160        625     54,010     54,635     5,794     97,369    103,163
                             

Finance costs                 (16)       (65)       (81)       (11)       (47)       (58)      (17)       (67)      (84)
                          -------   --------  ---------  ---------  ---------  --------- ---------  --------- ----------
(Loss)/profit before
taxation                     (179)    60,258     60,079        614     53,963     54,577     5,777     97,302    103,079
                             

Taxation                      (39)         -       (39)      (224)        202        (22)   (1,687)     1,099      (588)
                          -------   --------  ---------  ---------  ---------  --------- ---------  --------- ----------
(Loss)/profit for the        (218)    60,258     60,040        390     54,165     54,555     4,090     98,401    102,491
period
                           ======   ========  =========  =========  =========  =========  ========  =========  =========


Earnings per ordinary 
share                     (0.24)p     65.32p     65.08p      0.26p     36.41p     36.67p     2.92p     70.17p     73.09p
(note 3)                   ======      =====      =====     ======      =====     ======     =====      =====      =====








The total column of this statement represents the Group's Income Statement,
prepared in accordance with IFRS. The revenue return and capital return columns
are supplementary to this and are prepared under guidance published by the
Association of Investment Trust Companies. All items in the above statement
derive from continuing operations.

All income is attributable to the equity holders of TR European Growth Trust
PLC, the parent company. There are no minority interests.


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                                                                         Page 4

                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results
                    for the half year ended 31 December 2005


Statement of Changes in Equity
for the half year ended 31 December 2005

                                                       Half year ended 31 December 2005

                                                                  (unaudited)

                                  Ordinary                    Capital          Other
                                     Share                 Redemption
                                                  Share       Reserve        Capital      Retained
                                   Capital                                                Earnings
                                                Premium                     Reserves                        Total
                                     £'000        £'000         £'000          £'000         £'000          £'000

Balance at 30 June 2005             11,847      115,451         8,331        143,445        15,791        294,865
Buy-backs of ordinary shares         (596)            -           596       (14,737)             -       (14,737)
Net profit/(loss) for the                -            -             -         60,258         (218)         60,040
period
Tender offer costs                       -            -             -            (9)             -            (9)
Ordinary dividend paid                   -            -             -              -       (3,701)        (3,701)
                               ----------- ------------    ----------   ------------   -----------    -----------
Balance at 31 December 2005         11,251      115,451         8,927        188,957        11,872        336,458
                                    ======      =======        ======        =======        ======         ======


                                                       Half year ended 31 December 2004

                                                       (unaudited and restated - note 7)
                                  Ordinary                    Capital          Other
                                     Share                 Redemption
                                                  Share       Reserve        Capital      Retained
                                   Capital                                                Earnings
                                                Premium                     Reserves                        Total
                                     £'000        £'000         £'000          £'000         £'000          £'000

Balance at 30 June 2004             18,979      115,451         1,199        191,902        16,011        343,542
Buy-backs of ordinary shares         (817)            -           817       (13,721)             -       (13,721)
Net profit for the period                -            -             -         54,165           390         54,555
Ordinary dividend paid                   -            -             -              -       (4,311)        (4,311)
                              ------------ ------------  ------------   ------------  ------------  -------------
Balance at 31 December 2004         18,162      115,451         2,016        232,346        12,090        380,065
                                   =======      =======       =======        =======       =======        =======


                                                            Year ended 30 June 2005

                                                        (audited and restated - note 6)
                                  Ordinary                    Capital          Other
                                     Share                 Redemption
                                                  Share       Reserve        Capital      Retained
                                   Capital                                                Earnings
                                                Premium                     Reserves                        Total
                                     £'000        £'000         £'000          £'000         £'000          £'000

Balance at 30 June 2004             18,979      115,451         1,199        191,902        16,011        343,542
Buy-backs of ordinary shares       (7,132)            -         7,132      (146,346)             -      (146,346)
Net profit for the period                -            -             -         98,401         4,090        102,491
Tender offer costs                       -            -             -          (512)             -          (512)
Ordinary dividend paid                   -            -             -              -       (4,310)        (4,310)
                              ------------ ------------  ------------  -------------  ------------   ------------
Balance at 30 June 2005             11,847      115,451         8,331        143,445        15,791        294,865
                                   =======      =======       =======        =======       =======        =======






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                                                                          Page 5

                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results
                    for the half year ended 31 December 2005


Consolidated Balance Sheets
at 31 December 2005
                                                    31 December 2005      31 December 2004        30 June 2005
                                                         (unaudited)        (unaudited and        (audited and
                                                                        restated - note 7)  restated - note 6)
                                         Note                  £'000                 £'000               £'000

Non-current assets
Investments held at fair value through
profit or loss                           1(d)                347,254               353,467             311,184
                                                         -----------      ----------------     ---------------
Current assets
Sales for future settlement                                      452                   185                 153
Taxation recoverable                                              88                   157                 250
Prepayment and accrued income                                    122                    27                 163
Cash and cash equivalents                                      4,383                28,523               2,315
                                                          ----------      ----------------       -------------
                                                               5,045                28,892               2,881
                                                         -----------      ----------------     ---------------

Total assets                                                 352,299               382,359             314,065
                                                         -----------      ----------------     ---------------
Current liabilities
Purchase for future settlements                                  116                     -               5,997
Accruals                                                       6,400                 2,294               7,174
Bank loans and overdrafts                                      9,325                     -               6,029
                                                        ------------          ------------         -----------
                                                              15,841                 2,294              19,200
                                                        ------------          ------------         -----------

Net assets                                                   336,458               380,065             294,865
                                                             =======               =======              ======

Equity attributable to equity
shareholders
Called up share capital                                       11,251                18,162              11,847
Share premium                                                115,451               115,451             115,451
Capital redemption reserve                                     8,927                 2,016               8,331
Other capital reserves                                       188,957               232,346             143,445
Retained earnings                                             11,872                12,090              15,791
                                                       -------------         -------------      --------------
Total equity                                                 336,458               380,065             294,865
                                                             =======               =======            ========

Net asset value per ordinary share         5                 373.83p               261.58p             311.13p
                                                             =======               =======            ========









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                                                                          Page 6

                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results
                    for the half year ended 31 December 2005

Consolidated Cash Flow Statement
for the half year ended 31 December 2005

                                                          Half year ended     Half year ended
                                                         31 December 2005    31 December 2004         Year ended
                                                              (unaudited)      (unaudited and       30 June 2005
                                                                           restated - note 7)
                                                                                                    (audited and
                                                                                              restated - note 6)
                                               Note                 £'000               £'000              £'000

Net cash inflow from operating activities       9                  17,600              43,519            144,879
                                                               ----------          ----------          ---------

Net cash inflow before use of financing                            17,600              43,519            144,879
Net cash outflow from financing activities                       (14,629)            (18,032)          (145,606)
                                                               ----------         -----------        -----------
Net increase/(decrease) in cash and cash                            2,971              25,487              (727)
equivalents
Cash and cash equivalents at the start of                           1,689               3,027              3,027
period
Realised (loss)/profit on foreign currency                          (277)                   9              (611)
                                                             ------------        ------------        -----------
Cash and cash equivalents at the period end                         4,383              28,523              1,689
                                                                  =======             =======             ======




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                                                                          Page 7

                          TR EUROPEAN GROWTH TRUST PLC


                           Unaudited Interim Results
                    for the half year ended 31 December 2005


Notes to the Financial Statements



1.    Accounting policies



(a)        Basis of preparation

The consolidated financial information for the half year ended 31 December 2005
has been prepared using the accounting policies expected to be used in the
Group's annual accounts for the year ending 30 June 2006.  These accounting
policies will be based on International Financial Reporting Standards ('IFRS'),
comprising standards and interpretations approved by the International
Accounting Standards Board ('IASB'), together with interpretations of the
International Accounting Standards and Standing Interpretations Committee
approved by the International Accounting Standards Committee ('IASC') that
remain in effect, to the extent that IFRS have been adopted by the European
Union for the Group's year ending 30 June 2006.



            The accounts have been prepared on the historical cost basis, except
for the revaluation of certain financial instruments.  The principal accounting
policies are set out below.  Where presentational guidance set out in the
revised Statement of Recommended Practice ('the revised SORP') for investment
trusts issued by the Association of Investment Trust Companies ('the AITC') in
December 2005 is consistent with the requirements of IFRS, the directors have
sought to prepare the financial statements on a basis compliant with the
recommendations of the revised SORP.



(b)        First time adoption of IFRS

            The date of transition to IFRS for the Group is 1 July 2005.  The
IFRS accounting policies set out herein have been applied retrospectively to the
opening balance sheet as at 1 July 2004 and all subsequent periods.   The
disclosures required by First Time Adoption of International Financial Reporting
Standards ('IFRS 1') concerning the transition from UK GAAP to IFRS are given in
notes 6, 7 and 8.



(c)        Basis of consolidation

            The Group accounts consolidate the accounts of the Company and of
its wholly owned subsidiary undertaking, TREG Finance Limited.



(d)       Investments held at fair value through profit or loss

            All investments are designated upon initial recognition as held at
fair value. Assets are de-recognised at the trade date of the disposal.
Proceeds will be measured at fair value which will be regarded as the proceeds
of sale less any transaction costs. The fair value of the financial instruments
is based on their quoted bid market price at the balance sheet date without
deduction for the estimated future selling costs. Unquoted investments are
valued by the directors using primary valuation techniques such as earnings
multiples, recent transactions and net assets. Where fair value cannot reliably
be measured the investment will be carried at the previous reporting date value
unless there is evidence that the investment has since been impaired. In such a
case the value will be reduced.



            Changes in the fair value of investments held at fair value through
profit or loss and gains and losses on disposal are recognised in the Income
Statement as 'Gains or losses on investments held at fair value through profit
or loss'.  Also included within this caption are transaction costs in relation
to the purchase or sale of investments, including the difference between the
purchase price of an investment and its bid price at the date of purchase.





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                                                                          Page 8

                          TR EUROPEAN GROWTH TRUST PLC



                           Unaudited Interim Results

                    for the half year ended 31 December 2005



(e)        Presentation of the Income Statement

            In order to better reflect the activities of an investment trust
company, and in accordance with guidance issued by the AITC, supplementary
information which analyses the Income Statement between items of a revenue and
capital nature has been presented alongside the Income Statement. In accordance
with the Company's status as a UK investment company under section 266 of the
Companies Act 1985, net capital returns may not be distributed by way of
dividend. Additionally, the net revenue is the measure the directors believe
appropriate in assessing the Group's compliance with certain requirements set
out in section 842 of the Income and Corporation Taxes Act 1988.



(f)        Income

            Dividends receivable on equity shares are recognised as revenue for
the year on an ex-dividend basis. Income from fixed interest debt securities is
recognised using the effective interest rate method. Bank deposit interest is
accounted for on an accruals basis. Special dividends are treated as income or
as capital, depending on the facts of each case. The trading profits of the
subsidiary undertaking, which represent realised gains and losses on the sale of
current asset investments, are dealt with in the revenue column of the Income
Statement as a revenue item.



(g)        Expenses and interest payable

            On the basis of the Board's long term split of total returns in the
form of capital gains and income of 80% and 20% respectively, the Company
charges 80% of its finance costs and management fee to capital return. All
administration expenses are charged to the revenue account. Expenses which are
incidental to the purchase or sale of an investment are charged to the Income
Statement and allocated to other capital reserves.



            Any performance fees payable are allocated wholly to capital,
reflecting the fact that they are expected to be attributable largely, if not
wholly, to capital performance.



(h)        Deferred taxation

            Deferred taxation is provided on all timing differences that have
originated but not reversed by the balance sheet date, other than those
differences regarded as permanent. Any liability to deferred tax is provided at
the average rate of tax expected to apply. Deferred tax assets and liabilities
are not discounted to reflect the time value of money.



(i)         Foreign currency

            For the purpose of the consolidated accounts, the results and
financial position of each entity are expressed in pounds sterling, which is the
functional currency of the Company and the presentational currency of the Group.
  Sterling is the functional currency because it is the currency of the primary
economic environment in which the Company operates.  The United Kingdom is the
Company's country of incorporation and the primary location of the shareholder
base.  Sterling is the currency by which dividends are returned to shareholders,
share buy-backs and share issues are conducted and is the currency of the cost
base of the Trust.



            Transactions recorded in overseas currencies during the year are
translated into sterling at the appropriate daily exchange rates. Assets and
liabilities denominated in overseas currencies at the balance sheet date are
translated into sterling at the exchange rates ruling at that date.



(j)        Cash and cash equivalents

            Cash comprises cash in hand and demand deposits.  Cash equivalents
are short-term highly liquid investments that are readily convertible to known
amounts of cash and that are subject to an insignificant risk of changes in
value.



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                                                                          Page 9

                          TR EUROPEAN GROWTH TRUST PLC



                           Unaudited Interim Results

                    for the half year ended 31 December 2005



Notes to the Financial Statements (continued)



2.   Management fee and performance fee


                           Half year ended                 Half year ended                   Year ended

                          31 December 2005                31 December 2004                  30 June 2005

                             (unaudited)           (unaudited and restated - note  (audited and restated - note 6)
                                                                 7)
                       Revenue   Capital     Total     Revenue   Capital     Total     Revenue   Capital     Total
                         £'000     £'000     £'000       £'000     £'000     £'000       £'000     £'000     £'000

Performance fee
provision/ paid              -     4,830     4,830           -       869       869           -     5,449     5,449
                             
Management fee             169       678       847         179       716       895         358     1,432     1,790
Irrecoverable VAT
thereon                     27       858       885          29       255       284          58     1,119     1,177
                            
                       -------  -------- ---------   --------- --------- ---------   --------- --------- ---------
                           196     6,366     6,562         208     1,840     2,048         416     8,000     8,416
                       -------  -------- ---------   --------- ---------  --------   --------- ---------  --------



For the half year ended 31 December 2005 and half year ended 31 December 2004 a
performance fee has been accrued on a full year effect of rewarding the Manager,
under the terms of the Management Agreement, for outperformance achieved in the
first six months of the respective performance fee period.  The actual fee
payable to the Manager, for the year ended 30 June 2006, will depend on the
outperformance over the 2 years to 30 June 2006.  The performance fee is set at
15% of the outperformance, subject to the total management fee and performance
fee not exceeding 2.4% of average net assets over the 2 year period.



3.   Earnings per ordinary share

The earnings per ordinary share figure is based on the net gain for the half
year of £60,040,000 (half year ended 31 December 2004: £54,555,000; year ended
30 June 2005: £102,491,000) and on 92,252,478 (half year ended 31 December 2004:
148,763,517; year ended 30 June 2005: 140,219,591) ordinary shares, being the
weighted average number of ordinary shares in issue during the period.  The
return per ordinary share detailed above can be further analysed between revenue
and capital, as below.
                                          31 December 2005            31 December           30 June 2005

                                               (unaudited)                   2004         (audited and
                                                                                      restated - note 6)
                                                                  (unaudited and
                                                              restated -  note 7)
                                                     £'000                  £'000                  £'000
Net revenue (loss)/gain                              (218)                    390                  4,090
Net capital gain                                    60,258                 54,165                 98,401
                                              ------------           ------------          -------------
Net total gain                                      60,040                 54,555                102,491
                                                   =======                 ======                =======
Weighted average number of ordinary             92,252,478            148,763,517            140,219,591
shares in issue during the period

                                                     Pence                  Pence                  Pence
Revenue return per ordinary share                   (0.24)                   0.26                   2.92
Capital return per ordinary share                    65.32                  36.41                  70.17
                                               -----------            -----------             ----------
Total earnings per ordinary share                    65.08                  36.67                  73.09
                                                    ======                 ======                  =====

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                                                                         Page 10

                          TR EUROPEAN GROWTH TRUST PLC



                           Unaudited Interim Results

                    for the half year ended 31 December 2005



Notes to the Financial Statements (continued)



4          Ordinary share capital

At 31 December 2005 there were 90,002,555 ordinary shares in issue (31 December
2004: 145,296,869; 30 June 2005: 94,773,145).  During the half year ended 31
December 2005 the Company bought 4,770,590 of its own issued ordinary shares in
the market for cancellation (31 December 2004: 6,534,088; 30 June 2005:
57,057,812).  The cost of the share buy-backs, including stamp duty, amounted to
£14,737,000 (31 December 2004: £13,721,000; 30 June 2005: £146,346,000).



5          Net asset value per share

The net asset value per ordinary share is based on the net assets attributable
to equity shareholders of £336,458,000 (31 December 2004: £380,065,000 as
restated; 30 June 2005: £294,865,000 as restated) and on 90,002,555 (31 December
2004: 145,296,869; 30 June 2005: 94,773,145) ordinary shares, being the number
of ordinary shares in issue at the period end.



6 (a)   Restatement of balances as at and for the year ended 30 June 2005

At 1 July 2005 the Company adopted International Financial Reporting Standards.
In accordance with IFRS 1 (First Time Adoption of Financial Reporting Standards)
the following is a reconciliation of the results as at and for the year ended 30
June 2005, previously reported under the applicable UK Accounting Standards and
the SORP, to the restated IFRS results.
                                                          Previously reported         Effect of     Restated 30
                                                                 30 June 2005     transition to       June 2005
                                                                                           IFRS
                                                                    (audited)
                                                  Note                  £'000             £'000           £'000

 Investments                                        1                 311,686             (502)         311,184
 Current assets                                                         2,881                 -           2,881
 Creditors : amounts falling due within one year    2                (22,991)             3,791        (19,200)
                                                                 -----------       ------------    -----------
 Total assets less current liabilities                                291,576             3,289         294,865
                                                                       ======            ======          ======
 Capital and reserves
 Called up share capital                                               11,847                 -          11,847
 Share premium                                                        115,451                 -         115,451
 Capital redemption reserve                                             8,331                 -           8,331
 Capital reserve - realised                         1                  57,159          (57,159)               -
 Capital reserve - unrealised / revaluation         1                  86,788          (86,788)               -
reserve
 Other capital reserve                              1                       -           143,445         143,445
 Revenue reserve / Retained earnings                2                  12,000             3,791          15,791
                                                                ------------        -----------   ------------
                                                                      291,576             3,289         294,865
                                                                      =======            ======         =======

Notes to the reconciliation

1.                  Investments are classified as held at fair value through
profit or loss under IFRS and are carried at bid prices which total their fair
value of £311,184,000. Previously, under UK GAAP, they were carried at mid
prices. The aggregate difference, being a revaluation downwards of £502,000,
also decreases capital reserve.  Capital reserve - realised and capital reserve
- unrealised are now re-classified within other capital reserves.



2.                  No provision has been made for the final dividend on the
ordinary shares for the year ended 30 June 2005 of £3,791,000. Under IFRS, the
final dividend is not recognised until approved by shareholders.

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                                                                         Page 11

                          TR EUROPEAN GROWTH TRUST PLC



                           Unaudited Interim Results

                    for the half year ended 31 December 2005



Notes to the Financial Statements (continued)



(b)  Reconciliation of the Statement of Total Return to the Income Statement for
the period ended 30 June 2005

Under IFRS the Income Statement is the equivalent of the Statement of Total
Return as reported previously.


                                                                                             2005       EPS Impact
                                                                     Note                   £'000            Pence

Net return on ordinary activities after taxation per Statement of
Total Return
                                                                                          102,142
Change from mid to bid basis at 30 June 2004                           1                      851             0.60
Change from mid to bid basis at 30 June 2005                           1                    (502)           (0.36)
                                                                                -----------------  ---------------
Net profit per Income Statement                                                           102,491             0.24
                                                                                       ==========         ========



Note to the reconciliation

1.   The portfolio valuations at 30 June 2004 and 30 June 2005 are required to
be valued at fair value under IFRS. These values differ from the previous
valuations by £851,000 and £502,000 respectively.



(c)  Reconciliation of the Group Cash Flow Statement for the year ended 30 June
2005


                                                         Previously reported         Effect of      Adjusted Cash
                                                             Cash Flows 2005     transition to         Flows 2005
                                                                                          IFRS
                                                                   (audited)
                                                Note                   £'000             £'000              £'000

Net cash inflow from operating activities         1                    3,378           141,501            144,879
Returns on investments and servicing of                                 (82)                82                  -
finance
                                                  1
Taxation                                          1                      692             (692)                  -
Net cash inflow from financial investment         1                  140,891         (140,891)                  -
Equity dividends paid                             2                  (4,310)             4,310                  -
                                                               -------------     -------------      -------------
Net cash inflow before financing                                     140,569             4,310            144,879
Financing                                         2                (141,296)           (4,310)          (145,606)
                                                               -------------     -------------      -------------
Decrease in cash and cash equivalents                                  (727)                 -              (727)
                                                                     =======           =======            =======



Notes to the reconciliation

1.   Servicing of finance, taxation and net cash inflow from financial
investment have now been analysed within operating activities.

2.   Equity dividends paid are now analysed within financing.







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                                                                         Page 12

                          TR EUROPEAN GROWTH TRUST PLC



                           Unaudited Interim Results

                    for the half year ended 31 December 2005



Notes to the Financial Statements (continued)



7 (a)   Restatement of balances as at and for the period ended 31 December 2004



At 1 July 2005 the Company adopted International Financial Reporting Standards.
In accordance with IFRS 1 (First Time Adoption of Financial Reporting Standards)
the following is a reconciliation of the results as at and for the period ended
31 December 2004, previously reported under the applicable UK Accounting
Standards and the SORP, to the restated IFRS results.


                                                       Previously reported         Effect of         Restated 31
                                                          31 December 2004     transition to       December 2004
                                                               (unaudited)              IFRS
                                               Note                  £'000             £'000               £'000

Investments                                     1                  354,363             (896)             353,467
Current assets                                                      28,892                 -              28,892
Creditors : amounts falling due within one                         (2,294)                 -             (2,294)
year
                                                           ---------------   ---------------     ---------------
Total assets less current liabilities                              380,961             (896)             380,065
                                                                 =========         =========           =========

Capital and reserves
Called up share capital                                             18,162                 -              18,162
Share premium                                                      115,451                 -             115,451
Capital redemption reserve                                           2,016                 -               2,016
Capital reserve - realised                      1                  163,261         (163,261)                   -
Capital reserve - unrealised / revaluation      1                   69,981          (69,981)                   -
reserve
Other capital reserves                          1                        -           232,346             232,346
Revenue reserve / Retained earnings                                 12,090                 -              12,090
                                                           ---------------   ---------------     ---------------
                                                                   380,961             (896)             380,065
                                                                 =========         =========           =========



Note to the reconciliation

1.   Investments are classified as held at fair value through profit or loss
under IFRS and are carried at bid prices which total their fair value of
£353,467,000. Previously, under UK GAAP, they were carried at mid prices. The
aggregate difference, being a revaluation downwards of £896,000, also decreases
other capital reserves.  Capital reserve - realised and capital reserve -
unrealised are now reclassified within other capital reserves.















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                                                                         Page 13

                          TR EUROPEAN GROWTH TRUST PLC



                           Unaudited Interim Results

                    for the half year ended 31 December 2005



Notes to the Financial Statements (continued)



(b)   Reconciliation of the Statement of Total Return to the Income Statement
for the period ended 31 December 2004

Under IFRS the Income Statement is the equivalent of the Statement of Total
Return as reported previously.


                                                                                            2004      EPS Impact
                                                                         Note              £'000           Pence
Net return on ordinary activities after taxation per Statement of
Total Return
                                                                                          54,600
Change from mid to bid basis at 30 June 2004                              1                  851            0.57
Change from mid to bid basis at 31 December 2004                          1                (896)          (0.60)
                                                                                   -------------     -----------
Net gain per Income Statement                                                             54,555          (0.03)
                                                                                         =======          ======



Note to the reconciliation

1.   The portfolio valuations at 30 June 2004 and 31 December 2004 are required
to be valued at fair value under IFRS. These values differ from the previous
valuations by £851,000 and £896,000 respectively.



(c)   Reconciliation of the Cash Flow Statement for the half year ended 31
December 2004


                                                                  Previously                      Adjusted Cash
                                                               reported Cash                         Flows 2004
                                                                 Flows 2004        Effect of
                                                                               transition to
                                                                 (unaudited)            IFRS
                                                    Note               £'000           £'000              £'000
 Net cash inflow from operating activities           1                   743          42,776             43,519
 Returns on investments and servicing of finance     1                  (53)              53                  -
 Taxation                                            1                   474           (474)                  -
 Net cash inflow from financial investment           1                42,355        (42,355)                  -
 Equity dividends paid                               2               (4,311)           4,311                  -
                                                                ------------    ------------      -------------
 Net cash inflow before financing                                     39,208           4,311             43,519
 Financing                                           2              (13,721)         (4,311)           (18,032)
                                                                ------------     -----------      -------------
 Increase in cash and cash equivalents                                25,487               -             25,487
                                                                     =======          ======           ========



Notes to the reconciliation

1.   Servicing of finance, taxation and net cash inflow from financial
investment have now been analysed within operating activities.

2.   Ordinary dividends paid are now analysed within financing.













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                                                                         Page 14

                          TR EUROPEAN GROWTH TRUST PLC



                           Unaudited Interim Results

                    for the half year ended 31 December 2005



Notes to the Financial Statements (continued)



8   Restatement of opening balances as at 30 June 2004

At 1 July 2005 the Company adopted International Financial Reporting Standards.
In accordance with IFRS 1 (First Time Adoption of Financial Reporting Standards)
the following is a reconciliation of the Balance Sheet as at 30 June 2004,
previously reported under the applicable UK Accounting Standards and the SORP,
to the restated IFRS results.


                                                              Previously           Effect of         Restated 30
                                                        reported 30 June       transition to           June 2004
                                                                    2004                IFRS

                                                               (audited)
                                                Note               £'000               £'000               £'000

Investments                                      1               341,118               (851)             340,267
Current assets                                                     3,928                   -               3,928
Creditors : amounts falling due within one       2               (5,056)               4,403               (653)
year
                                                             -----------        ------------        ------------
Total assets less current liabilities                            339,990               3,552             343,542
                                                                  ======             =======             =======

Capital and reserves
Called up share capital                                           18,979                   -              18,979
Share premium                                                    115,451                   -             115,451
Capital redemption reserve                                         1,199                   -               1,199
Capital reserve - realised                       1               160,624           (160,624)
                                                                                                               -
Capital reserve - unrealised / revaluation       1                32,129            (32,129)                   -
reserve
Other capital reserves                           1                     -             191,902             191,902
Revenue reserve / Retained earnings              2                11,608               4,403              16,011
                                                           ------------          -----------         ----------
                                                                 339,990               3,552             343,542
                                                                 =======              ======              ======



Notes to the reconciliation

1.   Investments are classified as held at fair value through profit or loss
under IFRS and are carried at bid prices which total their fair value of
£340,267,000. Previously, under UK GAAP, they were carried at mid prices. The
aggregate difference, being a revaluation downwards of £851,000, also decreases
other capital reserves.  Capital reserve - realised and capital reserve -
unrealised are now re-classified within other capital reserves.



2.   No provision has been made for the dividend on the ordinary shares for the
year ended 30 June 2004 of £4,403,000. Under IFRS, dividends are not recognised
until paid or approved by shareholders.







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                                                                         Page 15

                          TR EUROPEAN GROWTH TRUST PLC



                           Unaudited Interim Results

                    for the half year ended 31 December 2005



Notes to the Financial Statements (continued)



9   Reconciliation of profit before taxation to net cash outflow from operating
activities


                                                 Half year ended        Half year ended       Year ended 30 June
                                                31 December 2005                                            2005
                                                                            31 December
                                                     (unaudited)                                    (audited and
                                                                                   2004       restated - note 6)

                                                                         (unaudited and
                                                                     restated - note 7)
                                                           £'000                  £'000                    £'000

Profit before taxation                                    60,079                 54,577                  103,079
Gains on investments held at fair value                 (66,689)               (55,850)                (105,369)
Decrease/(increase) in accrued income                         47                    (4)                    (128)
Decrease in other debtors                                      -                     13                        -
(Decrease)/increase in accruals                            (676)                  2,092                    6,737
Taxation on overseas investment income                       124                    336                    (331)
(Increase)/decrease in sales settlement debtor             (299)                    102                      134
(Decrease)/increase in purchases settlement              (5,881)                  (381)                    5,616
creditor
Net sales of investments                                  30,895                 42,634                  135,141
                                                    ------------            -----------             ------------

                                                          17,600                 43,519                  144,879
                                                         =======                =======                  =======



10   Transaction costs

Purchase transaction costs for the half year ended 31 December 2005 were
£164,000 (half year ended 31 December 2004: £135,000; year ended 30 June 2005:
£192,000).  Sales transaction costs for the half year ended 31 December 2005
were £294,000 (half year ended 31 December 2004: £282,000; year ended 30 June
2005: £640,000).  These comprise mainly stamp duty and commission.



11   Interim dividend

The Company has not declared an interim dividend (2004: nil).



12   Comparative information

The financial information contained in this interim report does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985. The
financial information for the half year ended 31 December 2005 and 2004 has not
been audited. The information for the year ended 30 June 2005 has been extracted
from the latest published audited financial statements and restated to comply
with IFRS (see note 6). The audited financial statements for the year ended 30
June 2005 have been filed with the Registrar of Companies. The report of the
auditors on those accounts contained no qualification or statement under section
237(2) or (3) of the Companies Act 1985.















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                                                                         Page 16

                          TR EUROPEAN GROWTH TRUST PLC



                           Unaudited Interim Results

                    for the half year ended 31 December 2005



Thirty Largest Investments

Market Value at 31 December 2005
Stock                            Activity                                                                 £'000
Pfleiderer                       Engineered wood products                                                15,240
Azimut                           Investment manager                                                      13,667
auFeminin.com                    Europe's number 1 women's internet portal                               13,061
OMV                              Oil and gas                                                             11,908
Rhodia                           Speciality chemicals                                                     9,953
Isbank                           Banking group                                                            9,077
NDS                              Conditional access software                                              8,989
Sjaelso Gruppen                  Property developer                                                       8,821
Vakifbank                        Banking group                                                            7,650
Heijmans                         Broadly based construction company                                       7,522
Lundin Mining                    Base metals mining                                                       7,448
Washtec                          Car washing equipment                                                    7,338
TradeDoubler                     Online marketing and sales                                               7,326
*BrainLAB                        Medical technology company                                               7,156
Eiffage                          Construction and concessions                                             6,470
Wienerberger                     Building materials                                                       6,387
Ballast Nedam                    Construction and civil engineering                                       6,349
Amtel-Vredestein                 Tyre production                                                          6,293
Coca-Cola Hellenic Bottling      Soft drinks bottler                                                      6,260
Aalberts Industries              Specialist engineering products and services                             6,163
Technip                          Engineering and construction services                                    6,096
austriamicrosystems              Specialist semiconductors                                                5,755
Geox                             Shoes                                                                    5,487
Thielert                         Diesel aircraft engines and engineering services                         5,273
Regal Petroleum                  Oil and gas                                                              5,189
Axalto                           Smart cards                                                              5,141
BAM                              Construction                                                             4,876
Fugro                            Geological services                                                      4,847
Telekom Austria                  Telecommunications                                                       4,830
Saft                             Specialist batteries                                                     4,828



These investments total £225,400,000 or 64.9% of the portfolio.

All classes of equity in any one company are treated as one investment.

*Unquoted investment



For further information please contact:



Stephen Peak, Fund Manager

TR European Growth Trust PLC, Telephone: 020 7818 4334



James de Sausmarez, Head of Investment Trusts

Henderson Global Investors, Telephone: 020 7818 3349



Sarah Gibbons-Cook, Investor Relations and PR Manager

Henderson Global Investors, Telephone: 020 7818 3198



                                    - ENDS -


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