Portfolio Update

BLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC

All information is at 30 September 2012 and unaudited.

Performance at month end with net income reinvested

                                   One   Three   Since      One   Three     Five
                                 month  months 1 April 12  year   years    Years

Sterling:

Share price                       0.7%   7.3%    5.6%     13.5%   25.2%   -10.5%
Net asset value                   0.4%   4.5%    3.0%     18.4%   27.2%    -8.3%
FSTE All-Share Total Return       1.1%   4.7%    1.9%     17.2%   26.1%     8.7%

Sources: BlackRock and Datastream

BlackRock took over the investment management of the Company with effect from 1
April 2012.

At month end

Sterling:

Net asset value - capital only:    142.89p
Net asset value - cum income*:     145.40p
Share price:                       137.50p
Total assets (including income):    £41.3m
Discount to cum-income NAV:           5.4%
Gearing:                              5.0%
Net yield:                            3.7%
Ordinary shares in issue**:     28,379,268

*includes net revenue of 2.51 pence per share
** excludes 4,554,664 shares held in treasury

Benchmark

Sector Analysis                              Total assets(%)

Oil & Gas Producers                                   13.85
Banks                                                  9.79
Mining                                                 9.50
Pharmaceuticals & Biotechnology                        9.35
Mobile Telecommunications                              8.58
Media                                                  7.03
Tobacco                                                6.19
Food Producers                                         4.88
Non Life Insurance                                     3.56
Life Insurance                                         3.35
Equity Investment Instruments                          3.05
Support Services                                       2.68
General Retailers                                      2.54
Software & Computer Services                           2.49
Aerospace & Defence                                    2.36
Electronic & Electrical Equipment                      2.12
Financial Services                                     2.10
Electricity                                            2.00
Real Estate Investment & Services                      1.79
Gas, Water & Multiutilities                            1.70
Technology Hardware & Equipment                        1.28
Non Equity Investment Instruments                      0.75
Net Current Liabilities                               (0.94)
                                                     ------
Total                                                100.00
                                                     ------

Ten Largest Equity Investments(in alphabetical order)

Company                                  % of Total assets

Antofagasta                                           4.06
Astrazeneca                                           3.13
BHP Billiton                                          3.45
British American Tobacco                              3.46
GlaxoSmithKline                                       3.91
HSBC                                                  7.21
Royal Dutch Shell B                                   8.08
Tullow Oil                                            4.16
UBM                                                   3.94
Vodafone                                              8.58

Commenting on the markets, Nick McLeod-Clarke & Adam Avigdori, representing the
Investment Manager noted:

Markets

Equity markets rose in the third quarter in response to stimulus measures
provided by the Federal Reserve, European Central Bank and Bank of Japan. The
rally was strongest in European peripheral markets as policy makers, notably
Draghi, signalled an intention to do whatever is necessary to underpin the
eurozone. In a reversal of trends from the previous quarter, the market's rally
left behind the more defensive shares: tobacco, mobile telecoms and oil
producers were the biggest negative contributors. Financials, led by banks and
life assurance, rallied strongly towards the end of the quarter as eurozone
risks were perceived to have diminished.

Portfolio Performance

The portfolio delivered a positive return in September of 0.4%, slightly
underperforming its benchmark the FTSE All Share Index (total return), which
returned 1.1%. The market's rotation away from companies with defensive
earnings saw Vodafone shares move lower, in part due to concerns over whether
or not the company will receive a dividend from its holding of Verizon Wireless
in the US, which continues to deliver growth. Imperial Tobacco shares were also
lower, hit by Australia's highest court upholding tough new anti-tobacco
marketing laws that require plain packaging. Not owning Barclays detracted from
returns after its shares bounced on decent results and on improving market
sentiment towards banks. Pharma company Shire suffered a period of poor share
price performance after US regulators approved a generic version of one of its
hyperactivity drugs.

On the positive side, despite investor concerns over slowing global growth and
lower demand for commodities, the strongest contributor to performance was
copper miner Antofagasta, which recovered from weaker performance earlier in
the year after its shares rose when the copper price strengthened in September.
Carphone Warehouse, specialist retailer of mobile electronic devices, continued
to perform well after it reported first quarter results that were ahead of
expectations. Business information and exhibitions group UBM continued to
progress well after reporting a good set of interim numbers, with the
exhibitions and conferences business, which is mainly focused on emerging
markets and China in particular, delivering growth ahead of market
expectations. Jupiter Fund Management was additive to returns after its shares
responded to the improving market sentiment after the central bank actions.
Plumbing goods supplier Wolseley benefited from indications that the US housing
market is seeing signs of revival.

Outlook

The macro environment remains stable but depressed, and a wide range of
outcomes are still possible. The recent interventions by the ECB, Federal
Reserve and Japanese Central Bank have provided a great deal of liquidity,
which may have reduced downside risk in the short term but this needs to
translate into growth to be effective.

Overall, UK equity valuations still look attractive compared to those of most
other asset classes, with the prospect of high quality earnings and dividend
growth. We expect domestic consumption to remain under pressure and hence we
prefer to hold positions in companies with exposure to growth markets. The UK
equity market has considerable exposure to overseas earnings and provides many
good investment opportunities.

17 October 2012