Aberdeen celebrates 15 years in Asia, Anticipates Further Growth in the Region

Singapore, 15 March 2007 - Aberdeen Asset Management PLC said it was likely to expand operations further in the region, according to chairman Charles Irby. Speaking in Singapore ahead of celebrations to mark the company's 15th anniversary here, he iterated the gathering importance of Asia to the Group.

"We now have US$34.8bnš under management, plus 200 staff in seven countries across the region. When we started we had just US$250m, nearly all sourced from the UK, and just three staff."

Mr Irby said growth in Asia had been phenomenal, and revenues now accounted for a substantial portion of Group profits -- which was why the board of directors had chosen to meet in Singapore. Strong Asian equity performance had provided the backbone to performance with re-allocations by global institutions to the region helping the group to reach new clients. Consistency of process and team also contributed.

"In the past three years we've broken into the major league of global pension funds, central banks and institutional buyers. Today the majority of assets are sourced from outside the region, which really emphasises the global scope of our business. Investors see diversification into Asia as sound because this is where growth will be. This is long-term money," he stressed.

Aberdeen sees three main shifts to its business:

The first is more opportunities to enhance its existing presence, be this through acquisition, joint ventures or from a standing start. The company is currently eyeing opportunities in North Asia and is hopeful of new mandate wins soon. Over the past eighteen months it has opened offices in Malaysia and Japan.

The second is more opportunity to sell fixed income and property products to institutional buyers, as well as through its existing wholesale network.

"In Asia our reputation rests largely on our equity capability, and we are still seen as quite niche. But over half our Group assets are in fixed income and we have US$12.5bnš in property assets. So the potential to grow our presence is huge."

The third factor is cost management. Mr Irby said the Group had learnt the hard way the importance of cost. "We can't control markets but we can look after our overheads. That has meant paying back debts, focusing on core competencies and getting out of non-core activities.

"Many investment groups are looking to outsource," he continued, "but we have been gradually transferring functions such as portfolio monitoring and analysis, editorial and reporting to Asia -- not just process tasks, therefore, but skilled ones too."

In conclusion he offered that the Group was as well balanced as it has ever been in his seven years as chairman. As well as asset class diversity it has moved to a global operating model, with hubs in Philadelphia and London as well as Singapore, to cover the main time zones. The US office came via the acquisition of Deustche Bank interests 18 months ago, as did the bulk of the company's UK-run fixed income businesses, where assets were overwhelmingly retained.

He added that Aberdeen was determined to maintain its future as an independent operator. Listed on the London Stock Exchange the Group is capitalised at US$2.3bn˛ and has US$149.3bnš under management, making it one of the largest dedicated asset managers in the UK.

"One can never say never, but we have come this far creating our own identity with a senior management team that has been around from the beginning. Others envy that. I'm a firm believer anyway that asset management has its own culture. You don't have the same flair in a financial services conglomerate."

š as at end Jan 2007
˛ as at end Dec 2006