India I.T. Fund Ld - Interim Results

RNS No 0676h
INDIA I.T. FUND LIMITED
12th March 1999

                          THE INDIA I.T. FUND LIMITED
                            Details of Proposals and
        Preliminary Profits Statement in respect of the Company's Accounting
                   Period from 1 July 1998 to 31 December 1998


General
The India I.T. Fund Limited ("the Company") was incorporated in Mauritius on 13
June 1997 as a closed-ended multi-class investment company reporting in US
Dollars.  The Company has invested in the units of The Unit Trust of India -
The India I.T. Fund Scheme 1997 (UTI Scheme).  The funds have been invested
through the UTI Scheme, in a portfolio consisting principally of the securities
of information technology companies and the balance in other technology related
companies.  The UTI Scheme is managed in accordance with this investment
objective.

Proposal
The Board of the Company has approved the details of the Proposal that it wishes
to put to Shareholders in the Company in connection with its intention to raise
fresh capital for investment by the Company through the issue of new shares and
to subsequently open-end the Company.

These details will be contained in a Circular to Shareholders which is to be
posted to Shareholders shortly and which will contain notice of an Extraordinary
General meeting ("the EGM") of Shareholders to approve a number of Special
Resolutions which would authorise the Directors to proceed to implement the
Proposal.  The EGM is expected to be held in Mauritius on or around 10th April
1999.

The Proposal, if approved by Shareholders, envisages that the Shareholders will
grant approval for the Directors to issue up to 10 million Conversion Shares ("C
Shares") at a price of US$10 per Share in a Placing to be organised by Credit
Lyonnais Securities (Asia) Limited and Credit Lyonnais Securities (USA) Inc.,
which would close a few days after the EGM.  The Placing will not be
underwritten but will be carried out on a best endeavours basis.  The minimum
size of the Placing is expected to be 2.5 million C Shares.  It is expected that
the C Shares will be listed on the London Stock Exchange and will convert into
Shares after at least 85% of the proceeds of their issue have been invested.

In addition to the Placing, the Proposal, if approved by Shareholders, also
contemplates that the Company will become open-ended on a monthly basis and that
Shares will be issued and redeemed at prices based on the prevailing Net Asset
Value per Share plus or minus an allowance for the cost to the Company of
dealing in the underlying investments and, in the case of issues, a sales charge
of up to 5%.  At each monthly dealing date, the number of Shares that could be
issued or redeemed will be restricted to no more than 10% of the aggregate
number of Shares in issue at that time.

It is expected that the C Shares would be fully invested and converted and that
the Company would open-end within six months of the issue of the C Shares.

If the Placing should not proceed, but the necessary Shareholder resolutions are
passed, it is envisaged that the Company would open-end for monthly dealing on
2nd July 2000.

It is also proposed that certain amendments will be made to the investment
policies of the Company to remove the ability of the Company to invest in Indian
technology stock other than Indian Information Technology stocks and to permit
the Company to invest up to 10% of its Net Assets into ADRs or GDRs of Indian
Information Technology companies.

In addition to the Proposal, the Board approved the unaudited interim accounts
of the Company for the six months ended 31st December 1998 and these will be
posted to Shareholders shortly.  The main points in these interim accounts are
as follows:

Performance and results for the period from 1 July 1998 to 31 December 1998

The Company turned in a good performance in the period from 1 July 1998 to 31
December 1998.  The Company's US Dollar NAV appreciated 26.7 per cent during
this period and it consistently outperformed the benchmark CNX I.T. Index and
the BSE Sensex.

In the period between 30 June 1998 to 31 December 1998, the Rupee NAV of the
underlying unit scheme appreciated by 27.2 per cent.  It thus outperformed both
the S&P CNX Information Technology Index which had appreciated by 17.7 per cent
and the stock market bellweather, the BSE Sensitive Index, which fell by 6 per
cent in the same period.  Moreover, in the same period, the standard deviation
of the Rupee NAV series is significantly lower than that of the S&P CNX IT,
Index, indicating the lower volatility and well diversified nature of the
scheme's portfolio.

                                                31.12.98           30.06.98
                                                     US$                US$

Net Assets                              US$   73,609,913    US$  58,135,950

                                              ----------         ----------

Number of shares in issue during the period    5,000,000          5,000,000

Net Asset Value per share                     US$  14.72         US$  11.63
                                                   -----              -----

                                             01.07.98 to        13.06.97 to
                                                31.12.98           30.06.98
                                                     US$                US$

Bank interest                                     21,614            430,121

Expenditure                                     (127,207)          (671,375)
                                              ----------         ----------

Net loss for the period*                 US$    (105,593)   US$    (241,254)
                                              ----------         ----------

Net loss per share                            US$ (0.021)        US$ (0.048)
                                              ----------         ----------

* affected by the cyclical nature of distributions from the UTI Scheme.

For the accounting period there are no tax liabilities, extraordinary items or
minority interests.  These figures are unaudited.

Dividend
The Directors of the Company do not propose to declare a dividend in respect of
the Participating Preference Shares for the period from 1 July 1998 to 31
December 1998.

Issued by the Board of Directors

Dated: 12th March 1999

END

IR SFUFWEUUUFLD