Final Results

    News Release

2 May 2003

                               SVM OFEX FUND PLC                               

                   - Results for the year to 31 March 2003 -                   

KEY POINTS

  * Net asset value declined 34.4% to 55.6p per share, compared to a 34.8% fall
    in the AIM Index and a 33.6% decline in the FTSE Small Cap Index over the
    same period
   
  * Since inception the Fund has outperformed both the AIM and and FTSE
    SmallCap indices falling 42.6% compared to declines of 66.4% and 46.1%
    respectively
   
  * Significant trading progress was achieved by several portfolio companies
    during the year. Six of the larger investments have reported strong sales
    growth, with three now being profitable.
   
  * The first trade sale was achieved for the Fund with Squaresum, which was
    acquired by AIM-listed CODASciSys at a premium to the then share price and
    to the Fund's original investment cost.
   
  * 15% increased weighting in AIM stocks and 18% held in unquoted stocks,
    resulting in one third of the Fund's portfolio now being outside the OFEX
    market.
   
  * Successful fundraising and AIM listing achieved in April 2003 by the OFEX
    market operator, OFEX Holdings plc. This has attracted several mainstream
    institutional shareholders.
   
  * Outlook is becoming more positive for both the market and the Fund, which
    the Board believes will benefit from a revival of interest in early stage
    companies.
   
  * Annual General Meeting will be held in London on Friday 6 June 2003.
   
                                   - Ends -                                    

For further information, please contact:

David Stevenson SVM Asset Management 0131 226 6699

Roland Cross Broadgate 020 7726 6111

                               SVM OFEX FUND PLC                               

                             Chairman's Statement                              

                Unaudited results for the year to 31 March 2003                

Commenting on the results for the year ended 31 March 2003, Chairman, Peter
Dicks, said:

The year under review has been a difficult one for equity markets, with
sentiment towards early stage companies particularly badly affected. The lack
of confidence amongst investors reflects a challenging trading environment for
young companies, brought about by slowing growth within the UK economy. Tighter
spending by companies and consumers makes rapid sales growth difficult to
achieve, with an immediate impact on fragile cashflows. Only those companies
with a compelling product or service, will continue to make progress.

The Fund's performance for the year reflects the weak stockmarket environment,
with net asset value per share down 34.4% to 55.6p. Its benchmark, the FTSE
Fledgling Index fell 21.9%, however the broader pattern in smaller companies is
more clearly evidenced by the AIM and FTSE SmallCap indices, which fell 34.8%
and 33.6% respectively. Since its inception, the Fund has outperformed both the
AIM and FTSE SmallCap indices, falling 42.6% against declines of 66.4% and
46.1% respectively.

Portfolio

The fall in net asset value contrasts with the significant trading progress
achieved by several portfolio companies during the year. Six of the larger
investments, together accounting for almost one third of the Fund, have
reported strong sales growth, and three are now profitable. However, this
trading performance translated into share price gains in only two cases, with
the remainder of these companies suffering more than ten per cent declines.
Small selling volumes continue to have a disproportionate impact on share
prices, with liquidity remaining tight not only on the OFEX market but right
across the smaller companies universe.

On a more positive note, the Fund achieved its first trade sale during the
year, with accounting software supplier Squaresum acquired by AIM listed
CODASciSys, at a premium to the then share price and also the Fund's original
investment cost.

The portfolio remained nearly fully invested for most of the period,
maintaining a cash balance which averaged less than ten per cent. A number of
follow-on investments were made in existing portfolio companies, focusing on
those where growth prospects are still achievable, albeit delayed by the slower
economic environment. During the year, one of the Fund's larger investments,
hospital equipment manufacturer Dawmed, was promoted from OFEX to AIM. This
increased the weighting in AIM stocks to 15% at the period end, and with 18%
held in unquoted stocks, the Fund now has one third of its portfolio outwith
the OFEX market.

Whilst disappointed by the lack of market interest in smaller companies during
the year, the Board believes the business growth being achieved by several
companies within the portfolio will eventually be recognised by a wider
investor audience. This could occur on OFEX, more senior stockmarkets such as
AIM, or as a result of a trade sale.

In April 2003 the OFEX market operator, OFEX Holdings plc, achieved a
successful fundraising and AIM listing, attracting several mainstream
institutional shareholders. Following this, it is to be hoped that the OFEX
market will enjoy a higher profile amongst investors, and the Board remains
positive about the outlook for both the market and the Fund, with some small
signs that interest in early stage companies is beginning to return.

AGM

The Fund's Annual General Meeting will be held in London on Friday 6 June 2003
and details of the resolutions to be proposed are given in the Notice of
Meeting. The AGM will be at 12.30pm and will be preceded at 12 Noon by a
presentation from the Managers, who will review the portfolio and investment
policy, and answer questions from shareholders. Copies of the presentation will
be available upon request to all shareholders and will be put on the Managers'
website (www.svmonline.co.uk)."

Peter Dicks

Chairman

2 May 2003

Summarised Statement of Total Return                                  
                                                                      
(unaudited)                                                           
                                                                      
                   Year to 31 March 2003      Period to 31 March 2002 
                                                                      
                 Revenue  Capital    Total   Revenue  Capital    Total
                                                                      
                   £'000    £'000    £'000     £'000    £'000    £'000
                                                                      
Gains on sale of       -       12       12         -     (78)     (78)
investments                                                           
                                                                      
Movement in            -  (1,498)  (1,498)         -    (765)    (765)
unrealised                                                            
depreciation                                                          
                                                                      
                 -------  -------  -------   -------  -------  -------
                                                                      
Losses on              -  (1,486)  (1,486)         -    (843)    (843)
investments                                                           
                                                                      
Income                12        -       12       216        -      216
                                                                      
Investment             -     (32)     (32)         -     (66)     (66)
management fees                                                       
                                                                      
Other expenses      (79)        -     (79)     (114)        -    (114)
                                                                      
                 -------  -------  -------   -------  -------  -------
                                                                      
Return on           (67)  (1,518)  (1,585)       102    (909)    (807)
ordinary                                                              
activities                                                            
before taxation                                                       
                                                                      
Taxation               -      (8)      (8)      (19)       13      (6)
                                                                      
                 -------  -------  -------   -------  -------  -------
                                                                      
Transfer from       (67)  (1,526)  (1,593)        83    (896)    (813)
reserves                                                              
                                                                      
                  ------  -------  -------   ------- --------  -------
                                                                      
Return per       (1.22p) (27.94p) (29.16p)     1.45p (15.62p) (14.17p)
ordinary Share                                                        

                                          As at      As at
                                                          
                                       31 March   31 March
                                                          
                                           2003       2002
                                                          
                                          £'000      £'000
                                                          
Balance Sheet                                             
                                                          
(unaudited)                                               
                                                          
Investments                               2,696      3,971
                                                          
Net current assets                          342        660
                                                          
                                        -------    -------
                                                          
Ordinary shareholders funds               3,038      4,631
                                                          
                                        -------    -------
                                                          
Net asset value per ordinary             55.65p     84.82p
share                                                     
                                                          
Summarised Cash Flow Statement                            
                                                          
(unaudited)                                               
                                                          
Net cash flow from operating              (102)         42
activities                                                
                                                          
Taxation                                   (14)          -
                                                          
Capital expenditure and financial         (211)    (4,814)
investment                                                
                                                          
Financing                                     -      5,444
                                                          
                                        -------    -------
                                                          
(Decrease) / increase in cash             (327)        672
                                                          
                                        -------    -------

Notes

1. The above results cover the year to 31 March 2003. The comparative figures
are for the period from incorporation on 4 October 2000 to 31 March 2002. The
results reflect the adoption in the accounts of the Statement of Recommended
Practice (SORP) issued by the Association of Investment Trust Companies.

2. Returns per Ordinary Share are based on 5,460,000 shares in issue during the
year (31 March 2002 - 5,739,151). The number of shares in issue at 31 March
2003 was 5,460,000. (31 March 2002- 5,460,000).

3. The above figures do not constitute full accounts in terms of Section 240 of
the Companies Act 1985. The accounts for the period from incorporation to 31
March 2002, which were unqualified, have been lodged with the Registrar of
Companies. The report will be mailed to shareholders in early May 2003. Copies
will be available for inspection at 7 Castle Street, Edinburgh, the registered
office of the Company.

ENDS

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