Final Results

ACM European Enhanced Inc.Fund PLC
28 April 2004


ACM EUROPEAN ENHANCED INCOME FUND PLC


PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2003


28 APRIL 2004



ACM European Enhanced Income Fund Plc announces its preliminary results for the
year ended 31 December 2003.


For further information, please contact:


ACM

Geoffrey Hyde

Tel. [phone]



Manager's Report


This report contains investment results and market activity for ACM European
Enhanced Income Fund Plc (the 'Company') for the annual reporting period ended
31 December 2003.

Investment Objectives And Policies

The Company's investment objective is to provide a high level of income through
investment in European corporate and sovereign fixed income securities. As a
secondary objective, the Company seeks to provide capital growth, which is
expected to arise principally through enhancement of the credit rating of
specific securities bought by the Company but also through a general re-rating
of European high yield debt as that market matures. The Company may borrow an
amount of up to 25% of its net asset value at any time. Although the Company
invests predominantly in euro denominated fixed income securities, it may invest
in issues denominated in U.S. dollars and other European currencies but no more
than 30% of its net assets may be invested in U.S. dollar denominated issues.
Holdings that are not denominated in euros will ordinarily be hedged into euros.

Investment Results

The following table provides performance data for the Company for the six- and
12-month periods ended 31 December 2003. For comparison, we have included a
custom blended benchmark consisting of 50% Merrill Lynch European Currency High
Yield Index hedged into euros and 50% Lehman Brothers European Corporate Bond
Index. This is then leveraged by 25% and converted into sterling. This benchmark
represents an unmanaged measure of the markets and instruments in which the
Company is able to invest. The performance presented below is reported in
sterling.

INVESTMENT RESULTS*
Periods Ended 31 December 2003

                                                           Returns
                                                6 Months               12 Months

ACM European Enhanced Income Fund Plc             7.17%                    28.46%

Custom Benchmark**                                7.13%                    32.93%


* The Company's investment results are monthly compounded total returns for the
periods shown and are based on the net asset value (NAV) as of 31 December 2003.
All fees and expenses related to the operation of the Company have been
deducted. Past performance is no guarantee of future results.


** The custom benchmark is comprised of equal 50% weightings of two indices,
which are leveraged by 25% and converted into sterling. The Merrill Lynch
European Currency High Yield Index (hedged into euros) is comprised of corporate
bonds with maturities greater than or equal to one year. The Lehman Brothers
European Corporate Bond Index is a measure of fixed-rate securities with at
least one year remaining until maturity. An investor cannot invest directly in
an index, and its results are not indicative of the performance for any
particular investment, including the Company. The custom benchmark does not
include the operating expenses associated with an investment in an investment
company and, in the case of the Company, its borrowing costs.


For the 12-month period ended 31 December 2003, the Company posted very strong
absolute returns, but underperformed its custom benchmark. During 2003,
corporate credit staged a very significant rally following the tumultuous market
conditions of 2002. The European high yield market returned nearly 30% for the
year, while investment grade corporates returned over 6.5%. On top of this, the
euro gained over 8% versus sterling for the year. The rise in the Company's net
asset value (NAV) was also reflected in the share price. Including dividends
paid, the Company's shares returned over 50% for the year (based on market
price), and the discount to NAV nearly halved to under 15% by year-end.

The Company's underperformance versus the custom benchmark is primarily the
result of two things. First, the benchmark is reported on a gross basis. That
is, the benchmark performance does not reflect the costs and expenses associated
with the Company, including the interest cost on the Company's loan with
Deutsche Bank AG London, transaction, custodial, administrative and operating
costs and investment management fees.

Second, the Company's security selection within the high yield sector detracted
from performance earlier in the year as the Company avoided many of the 'fallen
angels' and other higher beta and more aggressive names that rebounded strongly
from their lows. ('Fallen angels' are bonds that were investment-grade at the
time of issuance but have since declined in quality to below investment-grade.)
Fallen angel securities came to dominate the high yield indices during the
reporting period. The investment manager made an active decision to underweight,
and in many cases avoid, these issuers based upon both a negative view of their
credit fundamentals, as well as the objective to maintain a well-diversified
portfolio. In hindsight, this decision cost the portfolio performance.

Modestly detracting from relative performance was the portfolio's government
allocation. Although government securities posted positive returns, they
modestly dampened the Company's performance relative to the returns on AA-rated
corporates. We held government securities in the Company's portfolio in lieu of
these high-grade corporates prior to reducing the government allocation in
August 2003.

The Company's overweight exposure to high yield securities during the second
half of the year contributed positively to performance relative to the
benchmark. Within the investment grade sector, the Company's overweight position
in BBB-rated bonds and exposure to subordinated bank debt also enhanced
performance. Finally, the Company did not hold Parmalat which was placed into
administration during December 2003 amid allegations of accounting fraud.

Market Review And Investment Strategy

After stagnating in the first half of 2003, the euro-zone economy also benefited
from a surge in export demand during the second half of the year. The German IFO
business climate indicator, an index which measures German business sentiment
and is one of the key indicators of European economic health, rose to its
highest level in three years in December, driven by business expectations, which
rose to their highest level in almost a decade. The European Central Bank (ECB)
cut official interest rates by 50 basis points in 2003, lowering short-term
rates throughout the euro-zone to their lowest levels since the 1960s.

In the currency market, the U.S. dollar ended its worst year against the euro on
an annual return basis since the euro's inception in 1999. The euro gained
20.20% against the U.S. dollar with the sterling gaining 11.20%. The U.S. dollar
continued to be hurt by severe U.S. external imbalances as well as the lack of
interest rate support as official rates in the U.S. were lower than every other
major market except Japan. The euro gained 8.29% against the sterling for the
12-month period ended 31 December 2003.

Despite the fact that economic growth remained mediocre in Europe for the year,
lower-rated credit sectors dramatically outperformed higher-quality fixed income
securities for the year, reflecting the significant increase in global
liquidity. European corporate bonds posted a solid return of 6.77% for the year,
benefiting from ongoing improvement in corporate profitability, continued
de-leveraging and a significant improvement in earnings expectations. European
high yield posted a strong return of 29.90%. Among the drivers for high yield
were a decreasing amount of distressed debt as a percentage of the high-yield
market, lower interest-rate sensitivity than higher-quality securities and a
declining default rate in that sector.

The Company utilized government securities earlier in the period due to our
expectations of sluggish growth and that companies would continue to struggle to
generate earnings. In turn, the Company was underweight in European
investment-grade credit, particularly in AAA and AA credits which we believed to
be priced expensively. The Company was modestly underweight in the high yield
sector in the first half of the year, as we believed, at the time, that the
macroeconomic picture was not conducive for the sector. In addition, fallen
angels had come to dominate the high yield market and, as explained above, for
many of those issuers, we remained cautious regarding further deterioration of
their credit quality. Mid-year however, we shifted the Company's allocation as
both credit fundamentals and the economic outlook improved. We increased the
Company's allocation to high yield credit to an overweight position and
significantly reduced its government holdings. The Company maintained an
overweight position in BBB credits throughout the year because we believed
BBB-rated debt was undervalued compared to the higher quality investment-grade
corporate securities.

Thank you for your continued interest and investment in ACM European Enhanced
Income Fund Plc. We look forward to reporting to you again on market activity
and the Company's investment results in the coming periods.

Alliance Capital Management L.P.

Investment Manager

STATEMENT OF TOTAL RETURN
For the year ended 31
December 2003
                                                             2003         2002
                                Revenue      Capital        Total        Total
                                      £            £            £            £
Net gains/(losses) on                 0    6,739,613    6,739,613     (582,934)
investments during the
year
Net gains/(losses) on                 0     (322,087)    (322,087)     292,383
foreign exchange                ---------    ---------    ---------    ---------
Net investment gains/                 0    6,417,526    6,417,526     (290,551)
(losses) for the year

Gross income                  3,437,631            0    3,437,631    2,963,582
Expenses                       (604,188)    (201,395)    (805,583)    (735,861)
                                ---------    ---------    ---------    ---------
Net income for the year       2,833,443     (201,395)   2,632,048    2,227,721
                                ---------    ---------    ---------    ---------

Return on ordinary            2,833,443    6,216,131    9,049,574    1,937,170
activities

Distributions                (2,355,619)           0   (2,355,619)  (2,842,047)
                                ---------    ---------    ---------    ---------

Net increase/(decrease) in      477,824    6,216,131    6,693,955     (904,877)
Shareholders' funds from        =========    =========    =========    =========
investment activities



STATEMENT OF MOVEMENTS IN SHAREHOLDERS' FUNDS
For the year ended 31 December 2003
                                                            2003          2002
                                                               £             £
Net assets at the start of the year                   32,885,341    33,790,218
Net increase/(decrease) in Shareholders'               6,693,955      (904,877)
Funds from investment activities                         ---------     ---------
Net assets at the end of the year                     39,579,296    32,885,341
                                                         =========     =========

All returns are generated by continuing operations. There were no
gains or losses other than those included in the Statement of
Total Return.


BALANCE SHEET
as at 31 December 2003
                                                          2003            2002
                                                         Total           Total
                                                             £               £
Portfolio of investments                            45,931,956      38,371,525
                                                       =========       =========

Current assets
Debtors                                              1,355,489       1,238,620
Cash and bank balances                               1,092,123         764,440
                                                       ---------       ---------
                                                     2,447,612       2,003,060
Less: Current liabilities
Bank overdraft                                               0         (62,270)
Creditors (less than one year)                        (149,100)       (126,752)
Loan                                                (8,651,172)     (7,300,222)
                                                       ---------       ---------
                                                    (8,800,272)     (7,489,244)
                                                       ---------       ---------

Net current liabilities                             (6,352,660)     (5,486,184)
                                                       ---------       ---------
Net assets                                          39,579,296      32,885,341
                                                       =========       =========
Shareholders' funds (all equity interests)          39,579,296      32,885,341
                                                       =========       =========

Number of Shares in issue                           54,654,743      54,654,743
Net Asset Value per Share                              £0.7242         £0.6017





CASHFLOW STATEMENT
For the year ended 31 December 2003

                                                           2003           2002
                                                              £              £
Net cash inflow from operating activities             2,467,339      2,996,948

Servicing of finance
Interest paid                                          (251,899)      (260,848)
                                                       ----------     ----------
Net cash outflow from servicing of finance             (251,899)      (260,848)

Capital expenditure and financial investment
Acquisition of investments                          (45,657,370)   (43,321,828)
Sale of investments                                  44,836,552     40,535,066
                                                       ----------     ----------
Net cash outflow from capital expenditure and          (820,818)    (2,786,762)
financial investment

Dividends paid                                       (2,355,619)    (2,842,047)

Financing
Increase/(decrease) in short term loans               1,350,950      2,559,001
                                                       ----------     ----------
Net cash inflow/(outflow) from financing              1,350,950      2,559,001

Increase/(decrease) in cash                             389,953       (333,708)
                                                       ==========     ==========

Closing cash balance                                  1,092,123        702,170
Opening cash balance                                    702,170      1,035,878
                                                       ----------     ----------

Movement in cash balance                                389,953       (333,708)
                                                       ==========     ==========









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