RECOVERY TRUST PLC

(formerly Pavilion Geared Recovery Trust PLC)

PRELIMINARY ANNOUNCEMENT OF UNAUDITED INTERIM RESULTS

The Directors present the unaudited interim results for the period from 1
August 2002 to 31 January 2003.

Over the period under review, total assets have fallen 24.6% to �13,400,000 .

Shareholders are no doubt aware that this was mainly caused by our exposure to
the split capital investment trust sector.

Montanaro Investment Managers Limited ("Montanaro") were appointed as the new
Managers of the Company with effect from 2 January 2003. Montanaro's existing
funds have a strong and consistent track record of outperforming their
benchmarks. A clear focus on recovery investment opportunities provides a sound
basis for rebuilding shareholder value over time. At 31 January 2003 66.7% of
our assets were represented by our recovery portfolio and the new Managers are
taking opportunities to re-position this part of the portfolio. While we still
retain split capital holdings these are now predominantly not fund of fund type
trusts.

Revenue profits for the period amounted to � 304,000. On 5 March 2003 the Board
declared a second interim dividend of 0.75p per Ordinary Income share which
will be paid on 31 March to shareholders on the Register as at 14 March 2003.
Following this dividend revenue reserves attributable to the Ordinary Income
shares amounted to � 163,000.

An Extraordinary General Meeting was held on 4 March 2003 at which a resolution
was passed changing the name of the Company to Recovery Trust PLC.

These changes should be regarded as the first steps in a continuing process
that demonstrates your Board's efforts to restore shareholder value.

During the period, your Board paid the Company's first interim dividend of
0.75p in November 2002, which, taken together with the second interim dividend
of 0.75p brings the total for the period to 1.50p.

SUMMARISED STATEMENT OF TOTAL RETURN

(*incorporating the revenue account) of the Company

                                      1 August 2002 to        15 August 2001 to
                                                                               
                                       31 January 2003          31 January 2002
                                                                               
                               Revenue Capital   Total Revenue Capital   Total 
                                                                               
                                �'000   �'000   �'000   �'000   �'000   �'000  
                                                                               
Losses on investments               -  (4,192) (4,192)      -  (6,528) (6,528) 
                                                                               
Dividends and interest            446       -     446   1,743       -   1,743  
                                                                               
Investment management fees        (32)    (32)    (64)   (114)   (114)   (228) 
                                                                               
Other expenses                   (110)      -    (110)   (117)      -    (117) 
                                                                               
Return on ordinary activities     304  (4,224) (3,920)  1,512  (6,642) (5,130) 
for the period                                                                 
                                                                               
Interest payable                    -       -       -    (209)   (209)   (418) 
                                                                               
Return on ordinary activities     304  (4,224) (3,920)  1,303  (6,851) (5,548) 
before and after taxation for                                                  
the period                                                                     
                                                                               
Appropriations in respect of                                                   
non-equity shares                                                              
                                                                               
- Zero Dividend Preference          -    (691)   (691)      -    (631)   (631) 
                                                                               
Return attributable to            304  (4,915) (4,611)  1,303  (7,482) (6,179) 
Ordinary Income shareholders                                                   
                                                                               
1st interim dividend paid of     (225)      -    (225)   (600)      -    (600) 
0.75p (2002: 2.0p) per                                                         
Ordinary Income share                                                          
                                                                               
2nd interim dividend proposed    (225)      -    (225)   (600)      -    (600) 
of 0.75p (2002: 2.0p) per                                                      
Ordinary Income share                                                          
                                                                               
Transfer (from)/ to reserves     (146) (4,915) (5,061)    103  (7,482) (7,379) 
                                                                               
Return per share                                                               
                                                                               
Ordinary Income                  1.01  (16.38) (15.37)   4.34  (24.94) (20.60) 
                                                                               
Zero Dividend Preference            -    4.99    4.99       -    4.21    4.21  

* The revenue column of this statement is the revenue account of the Company.

All revenue and capital items in the above statement derive from continuing
operations.

SUMMARISED BALANCE SHEET

                                                 As at       As at        As at
                                                                               
                                            31 January     31 July   31 January
                                                  2003        2002         2002
                                                                               
                                                 �'000       �'000        �'000
                                                                               
                                           (unaudited)   (audited)  (unaudited)
                                                                               
Investments at valuation                       11,397      17,062       50,833 
                                                                               
Net current assets                              1,969         674        1,046 
                                                                               
Total assets less current liabilities          13,366      17,736       51,879 
                                                                               
Bank loan                                           -           -      (14,972)
                                                                               
Total shareholder funds                        13,366      17,736       36,907 
                                                                               
Less current period revenue                       146           -         (103)
                                                                               
Total net assets for the purpose of            13,512      17,736       36,804 
calculating the net asset value per                                            
share                                                                          
                                                                               
Net asset value per:                             pence       pence        pence
                                                                               
Ordinary Income share                           0.00**       9.02        70.63 
                                                                               
Zero Dividend Preference share                  95.43      108.64       104.09 

** The net asset value announced for the Ordinary Income shares is 0.00p with
accrued income attributable of 1.03p. This has been calculated in accordance
with entitlements as at 31 January 2003, and the Company's Articles of
Association.

The net assets and net asset values per share reflect the entitlements of
shareholders as set out in the Articles of Association and differ from those in
the Balance Sheet which are calculated in accordance with Financial Reporting
Standard No. 4.

SUMMARISED STATEMENT OF CASHFLOWS

                                                 1 August 2002   15 August 2001
                                                            to               to
                                                                               
                                                    31 January  31 January 2002
                                                          2003                 
                                                                               
                                                         �'000           �'000 
                                                                               
Net cash inflow from operating activities                 327            1,325 
                                                                               
Net cash outflow from servicing of finance                  -             (251)
                                                                               
Capital expenditure and financial investment                                   
                                                                               
Purchase of investments                                (4,071)         (76,303)
                                                                               
Sale of investments                                     5,480           18,450 
                                                                               
Net cash inflow/ (outflow) from capital                 1,409          (57,853)
expenditure and financial investments                                          
                                                                               
Equity dividends paid                                    (450)            (600)
                                                                               
Net cash inflow/ (outflow) before financing             1,286          (57,379)
                                                                               
Financing                                                                      
                                                                               
Proceeds of share issue                                     -           45,000 
                                                                               
Issue expenses                                              -           (1,304)
                                                                               
Draw down of long term loan                                 -           14,972 
                                                                               
Increase in cash                                        1,286            1,289 
                                                                               

The above financial information has been prepared using the accounting policies
set out in the statutory accounts for the period to 31 July 2002.

NOTES

1. The above financial information does not constitute statutory financial
statements as defined in section 240 of the Companies Act 1985. The statutory
accounts for the period to 31 July 2002, which contained an unqualified
auditors' report, have been lodged with the Registrar of Companies and did not
contain a statement under section 273(2) or (3) of the Companies Act 1985.

2. The Directors have declared a second interim dividend of 0.75p per Ordinary
Income share, payable on 31 March 2003 to the holders of Ordinary Income shares
on the Register at 14 March 2003.

3. The revenue return per Ordinary Income share is based on earnings of �
304,000 (2002: �1,303,000) and on 30,000,000 Ordinary Income shares in issue
throughout the period.

4. The capital return per Ordinary Income share is based on net capital losses
of �4,915,000 (2002: �7,482,000) and on 30,000,000 Ordinary Income shares in
issue throughout the period.

5. There are 13,835,000 Zero Dividend Preference shares in issue. The Zero
Dividend Preference shareholders are entitled to receive 167.74p per share on
15 August 2007. In accordance with Financial Reporting Standard No: 4, the
accrued compound growth entitlement of �691,000 (2002: �631,000) which takes
into account the allocation of share issue expenses to the Zero Dividend
Preference shareholders, has been charged against the capital reserve. The
appropriation is used to calculate the capital return per Zero Dividend
Preference share.

6. An amount of �32,000 (2002: �323,000) has been charged to capital in respect
of management fees, other expenses and interest in accordance with accounting
policy.

7. It is the intention of the Directors to conduct the affairs of the Company
so that it satisfies the conditions for approval as an investment trust company
set out on Section 842 of the Income and Corporation Taxes Act 1988.



END