TWI Taiwan I.T

RNS No 1873x
TAIWAN INVESTMENT TRUST PLC
8th May 1998


ANNOUNCEMENT OF PRELIMINARY UNAUDITED RESULTS FOR THE FOURTEEN MONTH PERIOD
ENDED 28TH FEBRUARY 1998.

                        CHAIRMAN'S STATEMENT                             

Total assets rose by 30.5% to #89.4 million over the fourteen months to 28th
February 1998.  This compares to a rise in the Taiwan Stock Exchange Weighted
Index of 18.3% in sterling terms over the same period.

Gross revenue for the period under review was #485,000 against #560,000 in the
previous year. Your directors are not recommending the payment of a dividend.

The period under review has seen a dramatic deterioration in the economic
prospects for much of South East and East Asia. Regional currencies, other
than the Hong Kong dollar and China's renminbi, have depreciated in the wake
of collapsing economic growth rates due to large and growing current account
deficits and a high level of debt frequently raised in US dollars or other
offshore currencies, and often unhedged.

The relative stability of the NT dollar however, and the absolute gains in the
Taiwan Stock Exchange Weighted Index are a reminder of the economic and
financial strengths of Taiwan.

The Taiwan stock market rose through much of the period although in August a
period of consolidation followed. The NT dollar came under moderate selling
pressure through September and October and the Authorities condoned a modest
depreciation in order to maintain competitiveness with their exporting rivals
in Japan and South Korea. At the end of the period investors were regaining
confidence and the index closed the financial period with a positive
performance.

International diplomacy and politics are always near the top of a list of
factors influencing the Taiwan financial markets and 1997 was no exception.
With the Hong Kong SAR now fully established, the "cross-strait" relationship
is one of the highest priorities on China's diplomatic agenda. A noticeably
accommodating attitude towards the island can be gleaned from recent policy
statements by high ranking mainland officials. Should 1998 produce evidence of
a move to normalise relations the stock market would be expected to give a
positive endorsement. On a local level the ruling KMT party suffered a defeat
at the hands of the Democratic Progressive Party in November's municipal
elections. It will have to re-establish its credentials as the party of
Government if it hopes to continue in power through the next countrywide
elections, due towards the end of 1998.

The fundamental attractions of Taiwan remain intact. The economy is, without
doubt, one of the region's fittest. The country is running a current account
surplus equivalent to about 2.2% of GDP and has no international debts of
consequence. Domestic demand is booming with a growth of over 6% last year.
Bank lending is accelerating and loan growth of 7% year on year is within the
bounds of acceptability.

Inflation is minimal and therefore the monetary and fiscal environment is
expected to remain benign. Corporate profits are expected to continue at a
high level.

There will be occasional pitfalls and the relationship with China is volatile
but, on the present view, the future outlook for Taiwan remains positive.

In the last Annual Report and Accounts of your Company and in the last Interim
Statement, your directors expressed concern at the level of the discount to
net asset value at which the share price stands. In the last Interim Statement
it was suggested that a marketing initiative would be launched this Spring and
this has now started.

Concurrent with the issue of these Accounts, your Company is arranging for its
Ordinary shares to be packaged in the form of Global Depositary Receipts
("GDRs"). Each GDR will represent 100 Ordinary shares and settlement will be
through EuroClear or Cedel. It is believed that this form of dealing and
settlement will appeal to overseas investors and, therefore, it is hoped that
this will have the effect of narrowing the discount.

In the Interim Statement, I also said that if this marketing initiative failed
to narrow significantly the discount within a short period of time, then your
directors would put alternative proposals to shareholders. This remains our
intention. 
                                                                           
Norman Lamont
8th May 1998
                                                                              
                    CONSOLIDATED STATEMENT OF TOTAL RETURN                    
                     (INCORPORATING THE REVENUE ACCOUNT)                      
             for the fourteen month period ended 28th February 1998           
                                                                    
                                   1st January 1997 to           Year ended
                                   28th February 1998      31st December 1996 
                                Revenue Capital  Total Revenue Capital  Total
                                  #'000   #'000  #'000   #'000   #'000  #'000

Realised gains on investments         -  25,687 25,687       -   3,975  3,975
Unrealised appreciation of 
 investments                          -   1,523  1,523       -   8,236  8,236 
                                  ______ ______  ______ ______ _______ ______
Total capital gains on                -  27,210 27,210       -  12,211 12,211
 investments                                                                  
Income                              485       -    485     560       -    560
Results of dealings by
subsidiary                          (44)      -    (44)      -       -      -
Exchange losses                       -  (1,155)(1,155)      -    (408)  (408)
Investment management 
and advisory fees                   (442)(1,327)(1,769)   (249)   (747)  (996)
Investment performance fees           -  (2,038)(2,038)      -    (485)  (485)
Other expenses                    (1,398)     - (1,398)   (988)      -   (988)
                                  _______ ______ ______ _______ _______ ______
 
Net return on ordinary
activities before finance
costs and taxation               (1,399) 22,690 21,291    (677)  10,571 9,894
Interest payable on 
bank overdrafts                      (7)    (20)   (27)    (15)     (45)  (60)
                                  ______ _______ ______ _______ ________ _____
Return on ordinary activities     
before tax                       (1,406)  22,670 21,264   (692)  10,526 9,834
Tax on ordinary activities          203     (574)  (371)  (143)    (282) (425)
                                  ______ _______ ______ _______ _______ ______
Return on ordinary activities
after tax for the financial
period                           (1,203)  22,096 20,893   (835)  10,244 9,409
                                  ====== ======= ====== ======= ======= ======
Return/(loss) per 
ordinary share                   (1.69p)  31.06p 29.37p (1.54p)  18.85p 17.31p
                                  ====== ======= ====== ======= ======= ======
                                                                              
The revenue column of this statement is the profit and loss account of the
Group.

All revenue and capital items in the above statement derive from continuing
operations.
                              
                                                 28th February  31st December
                                                          1998          1996
                                                         #'000         #'000


Equity Shareholders' Funds                              89,406        68,513
                                                       =======        =======
Net Asset Value per Ordinary share                     125.66p        96.30p
                                                       =======        =======


The above financial information does not constitute statutory accounts as
defined in section 240 of the Companies Act 1985. The comparative financial
information is based on the statutory accounts for the financial year ended  
31st December 1996. Those accounts, on which the auditors gave an unqualified
report, have been delivered to the Registrar of Companies.  Statutory accounts
for the fourteen month period ended 28th February 1998 will be delivered to
the Registrar.

The Report and Accounts are expected to be posted to all registered
shareholders shortly and copies may be obtained from the registered office of
the Company at Knightsbridge House, 197 Knightsbridge, London SW7 1RB.

BY ORDER OF THE BOARD
JUPITER ASSET MANAGEMENT LIMITED - SECRETARIES

END

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