Interim Management Statement to 30 September 2008

ABERFORTH GEARED CAPITAL & INCOME TRUST PLC

Interim Management Statement for the three months to 30 September 2008

Investment Objective
The investment objective of Aberforth Geared Capital & Income Trust plc (AGCiT)  is
to provide Income Shareholders with a high level of income payable half yearly with
the  potential  for income growth and to provide Capital Shareholders  with  geared
capital growth.

Aberforth Partners LLP are contracted as the Investment Managers and Secretaries to
the Company.

Features
·  Over  the  3  month  period to 30 September 2008, the Company's  total  asset
   value  fell  by  15.4%. By comparison the HGSC (XIC) Index, fell by  13.4%.  All
   figures are total returns.
·  As at 30 September 2008 the Capital share price was 238.5p, representing a
   discount of 4.3% to the Capital share net asset value.
·  The  first  interim dividend in respect of the year to 31  December  2008  of
   5.9p was paid on 21 August 2008.

Performance - Total Returns
Periods to 30 September 2008
                          3 Months   6 Months    1 Year   3 Years
Total Assets                -15.4%     -18.2%    -31.3%     -4.4%
Capital Share NAV           -39.9%     -46.7%    -64.0%    -37.6%
HGSC (XIC)                  -13.4%     -20.7%    -30.1%     -5.2%
Capital Share Price         -31.3%     -36.2%    -59.0%    -17.9%
Income Share Price            1.4%       4.8%      9.4%     27.2%

Note: Past performance is not a guide to future performance


Top 10 Holdings
As at 30 September 2008                     % of
                                      Investment
                                       Portfolio
Greggs                                       4.4
Hampson Industries                           4.2
Spirax-Sarco Engineering                     3.5
Shanks Group                                 2.9
Hiscox                                       2.9
e2v technologies                             2.7
BSS Group                                    2.7
Brown (N.) Group                             2.6
Robert Wiseman Dairies                       2.6
Delta                                        2.3
                                            ----
                                            30.8

Size Distribution across FTSE Indices
As at 30 September 2008
                              HGSC      AGCiT
                             (XIC)
                           % Total     %Total
FTSE 100                      0.0         0.0
FTSE 250                     69.5        38.5
FTSE SmallCap                25.5        56.0
FTSE Fledgling                2.8         4.6
Other                         2.2         0.9
                            -----       -----
                            100.0       100.0

Note:  The  HGSC (XIC) figures above are simulated and assume that  the  index  was
rebalanced on the above date.


Current Financial Position                   As at          As at
                                      30 September        30 June
                                              2008           2008

Fixed Assets: Investments                £   89.9m       £ 105.2m
Net Current Assets/(Liabilities)         £   (2.4m)      £   0.1m
                                             -----         ------
Total Assets less  Current Liabilities   £   87.5m       £ 105.3m
Creditors (amounts falling due           £   59.0m       £  58.8m
after more than one year)                    -----         ------
Equity Shareholders' Funds               £   28.5m      £   46.5m

Income Share NAV                            96.41p         97.51p
Capital Share NAV (assuming Income         249.15p        414.72p
Shares at 100p)
Income Share Price                         112.75p        117.00p
Capital Share Price                        238.50p        347.00p
Market Capitalisation (Income and          £ 52.7m        £ 65.1m
Capital Shares)
Current Gearing                             315.0%         226.0%

Hurdle Rates
Required capital growth p.a. on portfolio    -3.3%          -7.9%
to return 100p to Capital Shareholders
Required capital growth p.a. on portfolio     2.1%          -0.3%
to return Capital Share price

General Information
Total Expense Ratio (p.a.)                                   1.3%
Second Interim Dividend (paid February 2008)                 6.7p
First Interim Dividend (paid August 2008)                    5.9p
Dividend Yield                                              11.2%
Launch Date                                      18 December 2001
Planned Winding Up Date                          31 December 2011

Further Information
Further  information regarding the Company, including more recently  published  net
asset values, can be found on the following website: www.aberforth.co.uk

Contact
Gary Tait (Tel: [phone])
Aberforth Partners LLP, Secretaries, 3 October 2008

END