Portfolio Update

BLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC

All information is at 31 August 2013 and unaudited.

Performance at month end with net income reinvested
 
                                     One     Three    One     Since    Three    Five
                                   month    months   year   1 April    years   years 
                                                               2012
Sterling:
Share price                        -3.9%     -3.3%  18.2%     23.9%    37.8%   19.7%
Net asset value                    -3.7%     -2.5%  11.6%     14.6%    30.7%   14.8%
FTSE All-Share Total Return        -2.2%     -0.8%  18.9%     19.9%    40.5%   42.6%

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:          153.01p
Net asset value - cum income*:           156.35p
Share price:                             154.75p
Total assets (including income):          £44.8m
Discount to cum-income NAV:                 1.0%
Gearing:                                    6.3%
Net yield**:                                3.5%
Ordinary shares in issue***:          27,399,268
Gearing range (as a % of net assets)       0-20%

* includes net revenue of 3.34 pence per share

** based on final dividend of 3.45p per share in respect of the year ended 31
October 2012 and interim dividend of 2.00p per share in respect of the year
ending 31 October 2013.

*** excludes 5,534,664 shares held in treasury

Benchmark

Sector Analysis                  Total assets( %)
Oil & Gas Producers                         12.3
Banks                                       12.0
Pharmaceuticals & Biotechnology              9.1
Tobacco                                      8.0
Travel & Leisure                             6.8
Mobile Telecommunications                    5.8
Support Services                             5.1
Mining                                       5.0
Food Producers                               5.0
Media                                        4.8
Financial Services                           4.7
Non-Life Insurance                           4.5
Life Insurance                               3.5
Electronic & Electrical Equipment            2.4
General Retailers                            2.4
Gas, Water & Multiutilities                  2.3
Real Estate Investment & services            2.2
Fixed Line Telecommunications                2.0
Industrial Engineering                       1.4
Oil Equipment, Services & Distribution       1.1
Household Goods & Home Construction          1.1
Non-Equity Investment Instruments            0.8
Net Current Liabilities                     (2.3)
Total                                      100.0

Ten Largest Equity Investments

Company                        % of Total assets
HSBC                                         7.0
GlaxoSmithKline                              6.1
Vodafone                                     6.0
Royal Dutch Shell B                          5.5
British American Tobacco                     5.4
Unilever                                     3.4
Shire                                        3.4
Reed Elsevier                                3.2
Rio Tinto                                    3.1
Barclays                                     3.1

Commenting on the markets, Adam Avigdori, representing the Investment Manager
noted:

Markets

The UK equity market was impacted by the political crisis in Syria and the
continued investor focus on the US Federal Reserve's anticipated commencement
of its withdrawal of the quantitative easing programme. UK equities performed
better than those in the US, Japan, Europe ex-UK and Asia Pacific ex-Japan, all
of which were in negative territory for the month. In a marked turnaround to
July, financials were the largest negative contributors to overall market
performance; banks were the main culprits, followed by life insurance
companies. Consumer goods companies, especially tobacco, were also down. Mining
companies delivered another month of positive returns, with mobile telecoms,
industrial engineering and pharmaceuticals also making positive contributions.

Portfolio Performance

The portfolio returned -3.7% during August, underperforming the FTSE All-Share
Index return of -2.2%.

The main detractors from relative portfolio performance over the month included
Capital & Counties Properties, whose shares fell despite strong estimated
rental value growth surpassing expectations at Covent Garden and planning/land
progress at Earls Court resulting in growth of site values. Market concerns
were around the potential for a rise in gearing should the firm have to proceed
with the development at Earls Court by itself. Motor insurers Esure and Admiral
Group both detracted from performance as UK motor insurance premium rates
softened. Esure's maiden set of interim results were slightly above consensus
yet the shares fell by 20% after management acknowledged that pricing
competition had increased during June and July and premium growth in the second
half of the year was expected to be below that of the first. This led to
downgrades in analysts' earnings forecasts.

Positive contributors included heating and plumbing supplier Wolseley, whose
share price rose sharply after earnings expectations were upgraded by analysts,
who noted accelerating US growth, improving UK momentum and some evidence of
stabilisation in Europe.

Engineering group Melrose Industries announced good interim results at the
month-end, with operating profit ahead of expectations as recently acquired
metering company Elster met its margin target two years ahead of schedule.
Jupiter Fund Management announced good first half results, with net asset
inflows ahead of expectations, in line with the first quarter's performance.
Inflows from private clients were a positive surprise and mutual fund inflows
remained resilient; in addition, the company substantially increased its
dividend, by approximately 40%.

During the month we initiated a new position in Betfair Group and added to
holdings in Unilever, Stagecoach Group and Howden Joinery Group. We sold the
AstraZeneca and Partnership Assurance Group positions and trimmed holdings in
Royal Dutch Shell, British American Tobacco and Tate & Lyle.

Outlook

Recent data has suggested an improved economic outlook, particularly in the US
where manufacturing and construction related activity have picked up from a low
base. European economic activity remains subdued and without a clear path for
growth. Meanwhile positive but lower rates of growth in emerging markets are
putting pressure on the business models of resource companies, particularly
those that had relied on rapid commodity price appreciation. Equity valuations
have been lifted by a downward reassessment of risk levels in equity investment
given higher levels of inflation and lower bond yields. Although equities have
risen over the last six months, valuations remain attractive relative to other
asset classes.

Given relative valuations we remain confident about equities in anticipation of
a modest level of top-line growth, influenced by improving trends in earnings
prospects on a global basis. We continue to focus on income, stock selection
and building a high conviction portfolio to deliver both income and capital
growth.

17 September 2013