Kevin Keegan's side made an incredible start with Scholes and McManaman striking inside the first 18 minutes.

But the Portuguese gradually gained control and by the interval Luis Figo and Joao Pinto had cancelled out England's advantage.

The game was full of excitement with both defences looking suspect but a worrying sign for England was that Figo and Rui Costa were being given too much space which they were exploiting to the full as the half-time whistle approached.

It was Scholes' goals that had taken England to Euro 2000 via his hat-trick against Poland and his two goals against Scotland in the play-off match at Hampden Park.

Old Trafford team-mate David Beckham provided the opening with a typical pin-point cross. Scholes rose above the Portuguese defence to send in a powerful header that went in via the underside of the bar.

It was his 10th international goal and gave England the perfect start in their bid to win a trophy for the first time in 34 years.

England had started brightly and skipper Shearer had put in a header in the first minute from a long throw by Gary Neville which Portuguese keeper Vitor Baia held on to above his head.

McManaman looked as if he had been given a roaming role by Keegan although the same could also be said of Portuguese dangerman Figo.

The Barcelona captain had given early warning of the threat he could pose when he seized onto a flick by Nuno Gomes but he was halted on the edge of the England area by a fine tackle from Adams.

Portugal were stunned by this early reversal but they quickly regained their composure and Paulo Bento sent a shot across goal which flew only inches wide.

England keeper David Seaman was then forced to fingertip an inswinging corner from the dangerous Figo behind for another flag kick.

Then Rui Costa gave the first indication of his danger to England when he went past Phil Neville and sent over a menacing centre.

Pinto was perfectly placed at the far post but his downward header bounced over the crossbar - much to the relief of Seaman and his defenders.

The Arsenal keeper was then called into action to fingertip behind a 25-yard swerving shot from Costa.

After 18 minutes England were in dreamland when McManaman doubled their lead - with another damaging cross from Beckham leading to the goal.

Owen, who had made a quiet start to the game, flicked the ball into the path of Beckham who timed his run perfectly on the right flank to beat the Portuguese offside trap.

His first-time centre went over the head of Scholes and Xavier and picked out McManaman in the centre.

The Real Madrid star hit the ball first time on the half-volley and it rocketed into the roof of the net to send the thousands of England supporters wild with delight.

Portugal again tried to pull themselves back into the game and Gomes had the ball in the net a minute later only for his effort to be ruled out for offside.

Seaman then came to England's rescue when he blocked a close-range effort from Gomes but in the 22nd minute Figo scored for Portugal.

The Barcelona captain was not picked up as he advanced towards the edge of the England penalty area and he let fly with a rising 20-yard effort. His shot took a deflection off Adams as it flew past a stranded Seaman into the roof of the net.

Play was so open with both sides looking as if they were capable of scoring every time they ventured forward.

Scholes was only just wide off the mark from 20 yards and then Shearer turned sharply and sent his shot across the face of goal after good play by McManaman and Ince.

It was the same when Portugal attacked and Seaman was forced to fingertip away at full stretch another menacing centre from Rui Costa.

Vidigal then got into a threatening position in plenty of space on the edge of the England penalty area but he sent his shot high and wide.

Portugal began to enjoy a spell of territorial dominance during which England found it difficult to gain possession - and in the 37th minute Pinto brought them back on level terms.

Once again the danger came from Costa with his right-wing centre picking out Pinto.

He got in front of Campbell and his glancing header flew with power and pace wide of the dive of Seaman into the corner of the net.

There was no doubt that the Portuguese were now in the driving seat with Figo and Costa given far too much space and time on the ball.