Preliminary Announcement of Results - NAV Up 29.8%

MORGAN GRENFELL EQUITY INCOME TRUST PLC
28 October 1999


                    MORGAN GRENFELL EQUITY INCOME TRUST PLC
                                       
                      PRELIMINARY ANNOUNCEMENT OF RESULTS
                                       
EXTRACT FROM THE CHAIRMAN'S STATEMENT

I am pleased to be able to report that the Company's net asset value per 
share rose by 29.8%, outperforming by 9.3% the increase in the capital value
of the UK equity market as measured by the FT-SE All Share Index, which rose
20.5%.  This represents a welcome recovery in performance and more than       
compensates for the disappointing return in the previous year.  The share 
price has reflected the good performance, rising  by 38.3% and the discount to
net assets has improved from 17.1% to 11.7%.

In the Company's interim statement, I was able to report on the strong 
recovery in the UK equity market from the lows seen at the time of the
Company's last year-end. During the second half of the current year the market
fell slightly, as investors became concerned about the extent of the interest 
rate  rises which  may  be  necessary to contain the strong  growth  in  the
economy.  Therefore I can reflect upon a year which  began  with expectations 
of a recession in the UK and ended  with  concerns that  the economy was
growing too rapidly with a risk that  this would lead to resurgence in
inflation.

The background for companies improved over the  course of the year as both the
UK and other major economies showed signs of stronger growth. However, the
strength of sterling remained a problem for the manufacturing sector and
despite the revival in the economy the competitive environment for many 
consumer companies worsened.  In  many industries the effect of this increased
competitive pressure was to increase the amount of merger activity and we saw
further consolidation in a number of sectors, particularly financial services.
       
Our revenue return per share was ahead of last year, increasing 33.4%, but 
once again the increasing incidence of companies paying special dividends, 
sometimes in lieu of a more progressive dividend policy, makes it difficult 
to judge the underlying  picture. The Board is proposing a final dividend of
4.90p per share which reflects the policy of more modest dividend growth 
indicated in last year's annual report, adjusted for the windfall effect of
special dividends.  This makes, together with the interim dividend of 2.45p 
per share already paid, a total dividend for the year of 7.35p per share, 2.8%
higher than last year.
                                                          J. Leigh Pemberton
                                                                    Chairman
       
The final dividend of 4.90p per share will be paid on 29 December 1999 to
shareholders on the register at the close of business on 19 November 1999.
       
The financial information set out overleaf does not constitute the Company's 
statutory accounts for the years ended 30 September 1999 or 1998. The
financial information for 1998 is derived from the statutory accounts for 1998
which have been delivered to the Registrar of Companies.  The Auditors have
reported on the 1998 accounts; their report was unqualified and did not
contain a statement under section 237(2) or (3) of the Companies Act 1985. The
statutory accounts for 1999, which have not yet been reported on by the
Auditors, will be finalised on the basis of the financial information 
presented by the Directors in this preliminary announcement and will be
delivered  to the Registrar of Companies following the Company's Annual
General Meeting.

The annual report will be sent to shareholders and will also be made 
available  to  the  public  at  the  Company's  registered office.

ANNUAL GENERAL MEETING

The Annual General  Meeting  will be held on Thursday, 16 December 1999  at 
11.00  a.m. at  Winchester  House,  1  Great Winchester Street, London EC2.
       
By  order  of  the  Board                               Registered Office:
P A Hogwood                                             20 Finsbury Circus
Secretary                                               London EC2M 1NB
                                                        28 October 1999

For  further  information please contact  James  Fox  or  Adrian Frost at
Deutsche Asset Management Tel: [phone].
       
                          30 September 1999                  30 September 1998
Net Asset Value Per 
Ordinary Share            Basic 245.1p                             188.8p
                                239.9p                             183.7p

Statement of total return (incorporating the revenue account*)
for the year ended 30 September

                         Revenue  Capital    Total   Revenue  Capital   Total
                            1999     1999     1999      1998     1998    1998
                           £'000    £'000    £'000     £'000    £'000   £'000 

Gains/(losses) on 
investments                    -   22,238   22,238         -   (5,159) (5,159)

Income                     4,474        -    4,474     3,589        -   3,589
Investment management
fee                         (808)       -     (808)     (707)       -    (707)
Other expenses              (132)       -     (132)     (127)       -    (127)

Net return before finance
costs and taxation         3,534   22,238   25,772     2,755   (5,159) (2,404)
Interest payable             (26)       -      (26)       (7)       -      (7)

Return on ordinary 
activities before tax      3,508   22,238   25,746     2,748   (5,159) (2,411)
Tax on ordinary 
activities                  (470)       -     (470)     (500)       -    (500)

Return on ordinary 
activities after tax 
for the financial year 
attributable to equity 
shareholders               3,038   22,238   25,276     2,248   (5,159) (2,911)
Dividends in respect 
of equity shares          (2,817)       -   (2,817)   (2,723)       -  (2,723)
Cancellation of warrants       -     (660)    (660)        -     (272)   (272)

Transfer to reserves
after aggregate dividends 
paid and proposed of 7.35p 
per share (1998-7.15p 
per share)                   221   21,578   21,799      (475)  (5,431) (5,906)

Return per ordinary share:
Basic                       7.94p   58.15p   66.09p     5.95p (13.67)p (7.72)p
Diluted**                   7.75p   56.71p   64.46p     5.76p (13.21)p (7.45)p

*The revenue column of this statement is the profit and loss account of the
Company.

All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or discontinued in the year.

**The diluted return per ordinary share for September 1998 has been restated
under Financial Reporting Statement 14.