Issue of Equity

Capital Gearing Trust PLC
02 September 2005

REGULATORY ANNOUNCEMENT

CAPITAL GEARING TRUST plc

Issue of Ordinary Shares

The Board of Capital Gearing Trust plc are pleased to announce the issue of
30,000 Ordinary shares at a price of 2,065p per share on 2 September 2005. The
shares were allotted for cash at a premium to the net asset value in accordance
with the authority given to the directors at the 2005 Annual General Meeting to
allot shares on a non pre-emptive basis. Following the issue, there will be
2,784,906 Ordinary shares in issue.



Enquiries

Andrew Kane

Ernst & Young LLP

01582 643 272


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