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Henderson TR Pacific (ATR)

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Tuesday 08 February, 2005

Henderson TR Pacific

Final Results

Henderson TR Pacific Inv. Trust PLC
08 February 2005


                   HENDERSON TR PACIFIC INVESTMENT TRUST PLC

                         Unaudited Preliminary Results

                      for the Year Ended 31 December 2004

                                                                 8 February 2005


Henderson TR Pacific Investment Trust plc announces preliminary results for the
year ended 31 December 2004.


Henderson TR Pacific Investment Trust plc seeks a high rate of total return from
Pacific region stock markets and economies excluding Japan and Australasia.


Key Points:


      •   Board implementing a number of initiatives aimed at improving Trust's performance
          -  Amendment to primary investment objective from capital growth to high total return
          -  Strengthening of investment team with appointment of new Deputy Fund Manager
          -  Resolution to shareholders at AGM to broaden geographical scope of investments to include India

      •   40% increase in proposed Final Dividend to 1.4p per share (2003: 1.00p).  Future dividend policy to be
          in line with revised investment strategy.

      •   £40m multi-currency borrowing facility agreed during the year with ING Bank.  At year end £13.9m drawn
          down.

      •   Countries, sectors and stocks to which the Trust was most exposed performed less well than previous
          year, particularly China and Thailand, resulting in fall in NAV (total return) of 1.3% over year.



Key Extracts from the Preliminary Statement


                                                                            (Unaudited)                (Audited)
                                                                       31 December 2004         31 December 2003

Net Asset Value per Ordinary Share                                                87.1p                    89.3p
Share price                                                                       76.8p                    85.0p
Discount to NAV                                                                   11.8%                     4.8%
Proposed Final Dividend per Ordinary Share:                                       1.40p                    1.00p



Total Return Performance for 12 Months to 31 December 2004


Net Asset Value (i)                                                               -1.3%
Share price (i)                                                                   -8.6%
MSCI AC Far East (Free) ex-Japan Index (ii)                                       +9.7%


(i)  Source: AITC Services Ltd. (net dividends reinvested)

(ii) Source: Thomson Financial, Datastream  (gross dividend reinvested)



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                   HENDERSON TR PACIFIC INVESTMENT TRUST PLC



                         Unaudited Preliminary Results

                      for the Year Ended 31 December 2004



Commenting on the results Chairman, David Robins said:

Both market and stock selections, in particular over-weight positions in China
and Thailand, led to a disappointing performance in 2004.  The advantage of
being an investment trust rather than an open ended investment vehicle, is that
the underlying issue of underperformance can be addressed by the Board.
Accordingly, the Board has taken action by changing the emphasis in the
company's primary objective from one of 'capital growth' to 'high total return'.
  An experienced Deputy Fund Manager has been appointed to the team, while
Henderson has also agreed to strengthen the analytical resources available to
support the fund managers. In addition, it is proposed that the country coverage
be widened to include India.



Extracts from the Chairman's Statement



Following the China growth theme which dominated 2003, there were few
discernible trends in Asian markets during the course of 2004, which proved to
be a difficult one for your company.  Whilst 2003 was reasonably successful, the
countries, sectors and stocks to which the Trust was exposed, performed less
well in 2004.



Performance

For the year ended 31 December 2004 the net asset value per share fell by 1.3%
on a total return basis which compared with a rise of 9.7% in the MSCI Far East
(Free) ex Japan Index.  The underperformance reflected relatively large
positions in Thailand and China which were the region's worst performing stock
markets.  Stock selection continued to favour growth and cyclical stocks, in
line with the Trust's stated objectives.  However, the performance of these
positions, particularly in South Korea and Taiwan, was also relatively
disappointing.  As a result, having visited the region in the spring, the Board
held a Strategy Meeting later in the year, and has initiated various changes
aimed at improving the performance of the Trust.



Objectives



The Board has decided to change the emphasis in the company's primary objective,
which has historically been to seek 'capital growth' from the region's stock
markets.  Given that some of the region's markets are now maturing, providing
fewer opportunities to take advantage of high growth stocks, the Board wishes to
give the fund manager greater flexibility in stock selection.  We have,
therefore, amended the objectives of the Trust to the pursuit of a 'high total
return' in regional markets.  In practice this will involve a more active and
opportunistic investment policy which is not necessarily confined to growth
stocks.



You will notice from the Resolutions to be put to the Annual General Meeting
that the Board has also decided that it would be in shareholders' interests to
broaden the scope of the fund to include investment in India, which is currently
not permitted.  India is developing along its own course with a different
economic cycle to the rest of the region, which is increasingly dependent on
China.  Investment in India will not only allow access to huge growth
opportunities but will also provide greater diversification for the Trust.  The
Managers of the Trust will be able to rely upon expertise on the Indian economy
and market already in place within Henderson.  Our intention is to monitor
developments and only to invest in the market on a gradual basis.  The Board
hopes that you will fully endorse this change.

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                   HENDERSON TR PACIFIC INVESTMENT TRUST PLC



                         Unaudited Preliminary Results

                      for the Year Ended 31 December 2004





Board



Iain Dale, our previous Chairman, retired at the last AGM after 14 years on the
Board and we wish him well.  I took on the responsibility of Chairmanship at
that time and greatly look forward to the challenge ahead.



Management



There has also been an important change in the company's management.  Michael
Watt will continue as Manager, but has been joined by a new Deputy Manager,
Michael Kerley, who was appointed in December.  Michael Kerley brings 12 years
experience of investing in the region, and we look forward to benefiting from
the support that he will bring Michael Watt as they work as a team in
Henderson's London office.



In addition, Henderson Global Investors has added two analysts to their office
in Singapore and is seeking to bring an economist/strategist covering the region
into their London office.  Again, the Board expects that this addition of
resources will provide more investment ideas and bring greater rigour to the
stock selection process.



Share Buybacks



After the strong performance in the region's markets in 2003, some investors
clearly became disenchanted with the region in 2004.  As a result, the discount
to assets at which our shares traded over the year widened from 4.8% at the end
of 2003 to 11.8% at the end of 2004.  It reached a peak in August of 15.7%.
Accordingly, during the year the company made share repurchases totalling
10,400,000 shares at an average discount of 14.2%.  These shares were
subsequently cancelled and amounted to some 5% of the company's issued shares.



Borrowings



During the course of the year, a multi-currency borrowing facility was put in
place with ING Bank.  This allows the Trust to borrow up to £40 million.  At 31
December 2004 the equivalent of £13.9 million was drawn down with loans in Hong
Kong and Singapore dollars.  Borrowings were reduced over the year due to the
less favourable stock market outlook faced by the company.  The Board believes
it is an important potential benefit to shareholders that borrowings may be used
as investment opportunities arise.



Dividend



A final dividend of 1.4p, compared with last year's 1.00p, is recommended in
respect of 2004, to be paid to shareholders in April.  This year's higher
dividend reflects the company's new policy of seeking a high total return.  The
Board no longer feels it is appropriate to limit the dividend to the minimum
payable but intend in future to pay a higher share of earnings to shareholders
each year.

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                   HENDERSON TR PACIFIC INVESTMENT TRUST PLC



                         Unaudited Preliminary Results

                      for the Year Ended 31 December 2004



Charitable Donations



We were all greatly saddened to see the tragic impact of the tsunami wave across
South East Asia on 26 December.  A donation of £10,000 was approved towards the
relief effort in addition to the  £10,000 also paid to our regular charity,
Sabakan, in Mindanao in the Philippines.



Outlook



Global economic growth is expected to slow in 2005 after relatively high growth
in 2004.  Asian economies are expected to slow too, though they are likely to
continue to achieve higher rates of growth than other regions.  But, following
increases in raw material and other costs, a slowdown in company profit
expansion is also expected, after two strong years.  Although stock market
valuations are attractive in relative terms, we do not expect a particularly
strong performance by regional markets until next year.  As a result, there may
well be some consolidation in stock markets in the first part of 2005.  However,
longer term prospects continue to look exciting, particularly as the outlook for
ongoing high levels of structural growth in China and, indeed, India remains
intact.



Annual General Meeting



The AGM will be held on 15 April 2005 at 12.30pm.  As usual it will take place
at Henderson's offices in the City of London.



David Robins


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                   HENDERSON TR PACIFIC INVESTMENT TRUST PLC



                         Unaudited Preliminary Results

                      for the Year Ended 31 December 2004





Statement of Total Return (incorporating the revenue account)


                                                       (Unaudited)                         (Audited)
                                               Year ended 31 December 2004        Year ended 31 December 2003
                                               Revenue    Capital       Total     Revenue      Capital       Total
                                                 £'000      £'000       £'000       £'000        £'000       £'000


Total capital (losses)/gains from                    -    (6,116)     (6,116)           -       51,601      51,601
investments
Income from fixed asset investments              5,525          -       5,525       4,418            -       4,418
Other interest receivable and similar               66          -          66          35            -          35
income
                                               -------  ---------   ---------   ---------   ----------  ----------
Gross revenue and capital (losses)/gains         5,591    (6,116)       (525)       4,453       51,601      56,054

Management fee                                   (593)    (1,015)     (1,608)       (547)        (890)     (1,437)
Other administrative expenses                    (630)          -       (630)       (496)            -       (496)
                                               -------   --------    --------    --------  -----------  ----------
Net return/(loss) on ordinary activities
 before interest payable and taxation            4,368    (7,131)     (2,763)       3,410       50,711      54,121

Interest payable                                  (72)      (214)       (286)        (72)        (218)       (290)
                                               -------   --------    --------  ----------  -----------  ----------
Net return/(loss) on ordinary activities
 before taxation                                 4,296    (7,345)     (3,049)       3,338       50,493      53,831

Taxation on net return/(loss) on ordinary      (1,423)        727       (696)       (773)          224       (549)
activities
                                              --------   --------    -------- -----------   ---------- -----------
Net return/(loss) on ordinary activities
 after taxation                                  2,873    (6,618)     (3,745)       2,565       50,717      53,282

Proposed ordinary dividend:
Final: 1.40p per share (2003: 1.00p)           (2,705)          -     (2,705)     (2,036)            -     (2,036)
                                             ---------  ---------   ---------  ---------- ------------  ----------
Transfer to/(from) reserves                        168    (6,618)     (6,450)         529       50,717      51,246
                                                 =====      =====      ======      ======      =======     =======

Return/(loss) per ordinary share (note 1)        1.45p    (3.33p)     (1.88p)       1.26p       24.90p      26.16p




The revenue columns of this statement represent the profit and loss accounts of
the company.



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                HENDERSON TR PACIFIC INVESTMENT TRUST PLC

                         Unaudited Preliminary Results

                      for the Year Ended 31 December 2004





Balance Sheet

At 31 December 2004
                                                                           (Unaudited)               (Audited)

                                                                      31 December 2004        31 December 2003

                                                                                 £'000                   £'000
                                                                 ---------------------    --------------------
Fixed asset investments
Listed at market value - overseas                                              181,221                 216,097
                                                                            ----------              ----------


Current assets
Debtors                                                                            142                     117
Bank balances and short term deposits                                            5,685                   3,359
                                                                            ----------              ----------
                                                                                 5,827                   3,476

Creditors: amounts falling due within one year                                (18,842)                (37,835)
                                                                            ----------              ----------
Net current liabilities                                                       (13,015)                (34,359)
                                                                            ----------              ----------
Total net assets                                                               168,206                 181,738
                                                                                ======                  ======
Capital and reserves
Called up share capital                                                          9,660                  10,180
Other reserves                                                                 152,569                 165,749
Revenue reserve                                                                  5,977                   5,809
                                                                            ----------              ----------
Equity shareholders' funds                                                     168,206                 181,738
                                                                                ======                  ======
Net asset value per ordinary share (note 2)                                      87.1p                   89.3p



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                      HENDERSON TR PACIFIC INVESTMENT TRUST PLC



                         Unaudited Preliminary Results

                      for the Year Ended 31 December 2004



Cash Flow Statement

For the year ended 31 December 2004


                                                           (Unaudited)                  (Audited)

                                                                    Year ended                  Year ended
                                                                 31 December 2004            31 December 2003
                                                                    £'000         £'000          £'000        £'000
                                                           -------------- ------------- -------------- ------------
Net cash inflow from operating activities                                         2,182                       1,576


Servicing of finance

Interest paid                                                       (309)                        (264)
                                                              -----------                  -----------
Net cash outflow/inflow from servicing of finance                                 (309)                       (264)


Taxation

Withholding tax paid                                                (118)                        (106)
                                                               ----------                   ----------
Net tax paid                                                                      (118)                       (106)


Financial investment

Purchases of investments                                         (89,906)                     (98,389)
Sales of investments                                              120,705                       66,353
                                                            -------------                -------------
Net cash inflow/(outflow) from financial investment                              30,799                    (32,036)


Equity dividends paid                                                           (2,036)                     (1,223)


                                                                              ---------                 -----------
Net cash inflow/(outflow) before financing                                       30,518                    (32,053)


Financing

Repurchases of ordinary shares                                    (7,082)                        (121)
(Repayment)/drawdown of multi-currency loan facility             (21,278)                       30,297
                                                              -----------                  -----------
Net cash (outflow)/ inflow from financing                                      (28,360)                      30,176

                                                                             ----------                  ----------
Increase/(decrease) in cash                                                       2,158                     (1,877)
                                                                                 ======                      ======


Reconciliation of net cash flow to movement in net debt

Increase/(decrease) in cash as above                                              2,158                     (1,877)
Cash outflow/(inflow) from debt financing                                        21,278                    (30,297)
                                                                              ---------                  ----------
Change in net debt resulting from cash flows                                     23,436                    (32,174)
Exchange movements                                                                  124                       1,678
                                                                               --------                  ----------
                                                                                 23,560                    (30,496)
Net debt at 1 January                                                          (32,160)                     (1,664)
                                                                             ----------                  ----------
Net debt at 31 December                                                         (8,600)                    (32,160)

                                                                                 ======                      ======


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                  HENDERSON TR PACIFIC INVESTMENT TRUST PLC

                         Unaudited Preliminary Results

                      for the Year Ended 31 December 2004




Notes:


1.    Return/(loss) per Ordinary Share
      Revenue returns per ordinary share are based on earnings attributable to the ordinary shares of £2,873,000
      (year ended 31 December 2003: £2,565,000) and on the weighted average number of ordinary shares in issue
      during the year to 31 December 2004, being 198,788,181 (year ended 31 December 2003: 203,680,948).


      Capital (losses)/gains per ordinary share are based on net capital losses attributable to the ordinary shares
      of £6,618,000 (year ended 31 December 2003: gains of £50,717,000 and on the weighted average number of
      ordinary shares in issue during the year, as shown above.


2.    Net Asset Value per Ordinary Share
      The net asset value per ordinary share is based on net assets attributable to ordinary shares of £168,206,000
      (31 December 2003: £181,738,000) and on the 193,203,359 (31 December 2003: 203,603,359) ordinary shares in
      issue at 31 December 2004.


3.    Share Buy-Backs
      The company was granted authority to repurchase up to 30,336,900 ordinary shares at the Annual General
      Meeting held on 5 April 2004. During the year to 31 December 2004 the company purchased 10,400,000 Ordinary
      shares for cancellation at an average discount of 14.18%, at a cost of £7,082,000. The net asset value was
      enhanced by approximately £586,000.


4.    2003 Accounts
      The figures and financial information for the year ended 31 December 2003 are an extract of the latest
      published accounts of the company 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 under Section 237(2) or 237(3) of the Companies Act 1985.


5.    2004 Accounts
      The preliminary figures for the year ended 31 December 2004 have been extracted from the latest company
      accounts.  These accounts have not yet been delivered to the Registrar of Companies, nor have the auditors
      yet reported on them.


6.    Dividends
      A final dividend of 1.40p per ordinary share will, if approved by shareholders, be paid on 20 April 2005 to
      shareholders recorded on the Register of Members on 16 March 2005. The company's shares go ex-dividend on 18
      March 2005.


7.    Annual General Meeting
      The annual report will be posted to shareholders in March 2005 and thereafter copies will be available at the
      registered office at 4 Broadgate, London EC2M 2DA.  The Annual General Meeting of the company will be held at
      4 Broadgate, London EC2M 2DA on Monday 15 April 2005 at 12.30 pm.


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                     HENDERSON TR PACIFIC INVESTMENT TRUST PLC



                         Unaudited Preliminary Results

                      for the Year Ended 31 December 2004



Stock Market Performance Comparison for the year to 31 December 2004


                                                         Local Currency               Sterling Adjusted

                                                                      %                               %


South Korea                                                        10.5                            18.6
Taiwan                                                              4.2                             4.1
China                                                              -3.5                           -10.0
Hong Kong                                                          13.2                             5.4
Thailand                                                          -13.5                           -17.7
The Philippines                                                    26.4                            16.6
Malaysia                                                           14.3                             6.6
Singapore                                                          11.8                             8.4
Indonesia                                                          44.6                            22.3



Geographical Distribution of the Investment Portfolio


                                                 As at 31 December 2004          As at 31 December 2003

                                                                      %                               %

South Korea                                                        16.5                            20.7
Taiwan                                                             15.9                            20.2
China                                                              14.6                            15.9
Hong Kong                                                          19.8                             9.5
Thailand                                                            9.9                            17.0
The Philippines                                                     0.0                             0.6
Malaysia                                                            6.9                             8.3
Singapore                                                          10.3                             6.6
Indonesia                                                           4.6                             0.0
Vietnam                                                             1.5                             1.2
                                                                  100.0                           100.0

                                                                   ====                            ====



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                     HENDERSON TR PACIFIC INVESTMENT TRUST PLC


                         Unaudited Preliminary Results

                      for the Year Ended 31 December 2004

Sector Analysis of Investments


                                                    As at 31 December 2004            As at 31 December 2003

                                                                         %                                 %

Consumer Discretionary                                                11.7                              14.0
Consumer Staples                                                       3.5                               4.2
Energy                                                                 3.4                               2.3
Financials and Property                                               44.0                              20.4
Healthcare                                                             0.0                               0.0
Industrials and Transport                                              7.9                              21.6
Information Technology                                                11.2                              19.9
Materials                                                              4.8                               7.5
Telecommunications Services                                           10.3                               5.9
Utilities                                                              3.2                               4.2
                                                                     100.0                             100.0

                                                                      ====                              ====



Top 20 Investments as at 31 December 2004


Company                              Country              Sector                                      Value of
                                                                                                    Investment

                                                                                                         £'000

Hutchison Whampoa                    Hong Kong            Financials & Property                          5,840
Samsung Fire & Marine                South Korea          Financials & Property                          4,508
Swire Pacific                        Hong Kong            Financials & Property                          4,331
Li & Fung                            Hong Kong            Consumer Discretionary                         4,222
Cheung Kong                          Hong Kong            Financials & Property                          4,147
LG Electronics                       South Korea          Consumer Discretionary                         3,867
China Merchants                      China                Industrials & Transport                        3,737
New World Development                Hong Kong            Financials & Property                          3,720
Shin Corporation                     Thailand             Telecommunications Services                    3,719
Noble Group                          Singapore            Financials & Property                          3,689
Hong Kong & China Gas                Hong Kong            Utilities                                      3,442
Shinsegae                            South Korea          Consumer Discretionary                         3,432
Cathay Financial                     Taiwan               Financials & Property                          3,406
China Netcom                         China                Telecommunications Services                    3,401
CNOOC                                China                Energy                                         3,387
Taishin Financial                    Taiwan               Financials & Property                          3,336
Citiraya Industries                  Singapore            Industrials & Transport                        3,322
Kasikornbank                         Thailand             Financials & Property                          3,318
Keppel Corporation                   Singapore            Financials & Property                          3,283
Giordano International               Hong Kong            Consumer Discretionary                         3,258
                                                                                                        75,365

                                                                                                          ====
                                                          Total Investments                            181,221

                                                                                                          ====
                                                Top 20 as a percentage of total investments              41.6%


                                    - ENDS -


For further information contact:-


Michael Watt, Director and Manager

David Robins, Chairman

Tel: 020 7818 1818


David Hardy

Binns & Co. PR

Tel: 020 7786 9600



or


Vicki Staveacre

Henderson Press Office

Telephone: 020 7818 4222



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