RNS Number:5025R
St.David's Inv Tst PLC
30 October 2003



30 October 2003

St David's Investment Trust PLC (the "Company")

Proposal to extend the life of the 2003 Zero Dividend Preference Shares ("2003
Zeros")

Since the Company's interim report for the half year ended 31 May 2003, the
Company's gross assets have increased from #50.9 million as at 31 May 2003 to
#54.9 million as at 28 October 2003 (at mid-market prices except for investment
company income shares where bid price is used) and the immediate shortfall
between the Company's assets and its bank indebtedness (including the RPI
accrual on its existing bank loans of #3.7 million) has reduced from
#7.2 million to #3.5 million. If, however, the Company had been wound-up on 28
October 2003, the estimated shortfall (including the break costs on the interest
rate swaps in connection with the bank loans of #2.8 million which would then
fall to be paid and excluding any costs which would be incurred in winding-up
the Company) would be #6.3 million.

The Company has today posted a circular to shareholders proposing an amendment
to its articles of association to extend the final repayment date of the 2003
Zeros (which are repayable on 30 November 2003) by a further 12 months with the
capital entitlement of the 2003 Zeros continuing to accrue on the basis
currently prescribed under the Company's articles of association which will
result in a final capital entitlement on 30 November 2004 of 346.5019151p per
2003 Zero (the "Proposal"). No other change to the rights of the 2003 Zeros or
as between the Company's different share classes is proposed.

The Company's Directors have been exploring with the Company's advisors a number
of opportunities to enable the Company to make use of its capital losses so that
some part of their financial value may be recovered for the benefit of the
Company's shareholders. The extension of the life of the 2003 Zeros is intended
to enable the Directors to explore these opportunities further with a view to
submitting formal proposals to shareholders during the course of the next 12
months.

Under the terms of its current banking facility agreements with The Royal Bank
of Scotland plc ("RBS") (and attendant RPI interest rate swap arrangements) the
Company will be obliged to repay the following capital amounts on 30 November
2003:

-    Senior Loan Agreement                                 #16,400,000
     (Repayable 30 November 2003)

-    Senior Loan RPI interest rate swap reserve             #1,306,585
     (estimated)

-    Junior Loan Agreement                                  #8,000,000

                                                  Total    #25,706,585

In addition to the sums noted above the Company has an outstanding senior loan
facility of #30.3 million (excluding a current RPI accrual of approximately #2.4
million) which is repayable (together with the final RPI accrual) under its
terms on 30 November 2007 but which currently remains on demand.

RBS is aware of the Proposal and has been consulted on a preliminary basis
regarding the options being considered by the Directors to utilise the Company's
capital losses. RBS has reconfirmed their support for the Company by agreeing to
effectively extend the above indebtedness by a further 12 months. RBS have
agreed to put in place a new limited 12 month loan facility to replace the
Junior Loan Agreement and Senior Loan Agreement repayable on 30 November 2003
(which will be on the same basic terms as these agreements) subject to the
Company paying interest on this new facility at 1.5 per cent. over the London
interbank offer rate and in addition paying an arrangement fee of #450,000 which
is payable as to #100,000 on 1 December 2003 as to #100,000 on 31 January 2004
and the balance on the earlier of a successful refinancing of the Company or the
repayment, termination or cancellation of the remaining loan facility agreements
or this new facility. In addition, it has been agreed with RBS that the Company
will pay the Senior Loan RPI interest rate swap cost (detailed above) of #1.3
million. It should be noted that the new replacement loan facility (together
with the Company's other current loans) is repayable on demand.

The Board of St. David's notes the publication of the Investment Entities
(Listing Rules and Conduct of Business) Instrument 2003 and in anticipation of
changes to the Listing Rules which come into force on 1 November 2003, the Board
announces that it is a stated investment policy of the Company that it shall not
invest more than 15 per cent of its gross assets in other listed investment
companies (including investment trusts). The implementation of this investment
policy does not require the Company to dispose of any existing shareholding.

A copy of the circular to shareholders has been submitted to the UK Listing
Authority and are available for inspection at the UK Listing Authority's
Document Viewing Facility, which is situated at:

Financial Services Authority

25 The North Colonnade

Canary Wharf

London E14 5HS

Tel No. 020 7676 1000



All enquiries should be addressed to:

Martin Kinney  020 7436 0950

Director

Robert Hoskin  020 7463 6000

Aberdeen Asset Management PLC

David Benda  020 7651 5562

Close Brothers Securities






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

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