PAVILION GEARED RECOVERY TRUST PLC

The Company announces that the Net Asset Values at 15 January 2003 were:

per Ordinary Income share                         0.00p
                                                       
per Zero Dividend Preference share              100.42p

Note: Accrued income attributable to the Ordinary Income shares amounts to
1.03p per share, as at 31 July 2002 .

The Company's twenty largest holdings as at 15 January 2003 were as follows:

     Stock Name                                           % of Total 
                                                            Assets   
                                                                     
   1 Framlington Income & Capital Trust Inc 25p              6.95    
                                                                     
   2 JP Morgan Fleming Income & Growth Inc 12.5p             4.41    
                                                                     
   3 United Utilities Ord �1                                 4.24    
                                                                     
   4 Gallaher Group Ord 10p                                  4.17    
                                                                     
   5 Associated British Foods Ord 5.68p                      3.88    
                                                                     
   6 Granada Ord 10p                                         3.83    
                                                                     
   7 Laing (John) Ord 25p                                    3.37    
                                                                     
   8 Scottish & Newcastle Ord 20p                            3.18    
                                                                     
   9 Bradford & Bingley Ord 25p                              2.96    
                                                                     
  10 Prudential Ord 5p                                       2.94    
                                                                     
  11 Matalan Ord 10p                                         2.84    
                                                                     
  12 Shell Transport & Trading Ord 5p                        2.82    
                                                                     
  13 Debenhams Ord 10p                                       2.75    
                                                                     
  14 Centrica Ord 0.55555p                                   2.64    
                                                                     
  15 Hiscox Ord 5p                                           2.52    
                                                                     
  16 Aviva Ord 25p                                           2.33    
                                                                     
  17 Investec High Income Trust Ord 25p                      2.20    
                                                                     
  18 TBI Ord 10p                                             1.96    
                                                                     
  19 Pilkington Ord 50p                                      1.95    
                                                                     
  20 BFS Managed Properties Ord 25p                          1.85    



END



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