Final Results

F&C Capital & Income Inv Tst PLC
23 November 2004





Date:           23 November 2004


Contact:        Julian Cane
                F&C Management Ltd              020 7628 8000

                Lisa Stanley
                Lansons Communications          020 7294 3692


                  F&C CAPITAL AND INCOME INVESTMENT TRUST PLC
         Unaudited Preliminary Statement of Results for the year ended
                                30 September 2004

Highlights



•        NAV increased 12.1% while the FTSE All-Share Index rose by 12.0%.  Over
the long-term, performance is well ahead of the FTSE All-Share benchmark



•        Dividend increase of 1.9% on the previous year in line with inflation



•        Active share buy back scheme ensured the Company's shares did not stand
at any material discount to NAV



•        Attractive valuations for the UK market and current price / earnings
multiples, together with good stock selection and the appropriate use of gearing
promote a positive outlook for the coming year.





SUMMARY OF RESULTS



                                                                 30 Sep            30 Sep              %
                                                                  2004              2003             Change
Attributable to equity shareholders


Net assets                                                       £84.30m           £79.47m             +6.1

Net assets per share                                             177.62p           158.46p            +12.1

Earnings per share                                                 5.38p             5.28p             +1.9

Dividends per share                                                5.45p             5.35p             +1.9

Share price                                                      173.50p           159.00p             +9.1



F&C CAPITAL AND INCOME INVESTMENT TRUST PLC
Unaudited Preliminary Statement of Results for the year ended
                        30 September 2004


Chairman's Statement


Dear Shareholder


Over the year to 30 September 2004, the 12.1% rise in net asset value (NAV) per
share of your Company was slightly ahead of the 12.0% increase in the FTSE
All-Share index. The share price rose by a little less, increasing by 9.1%.



The directors are recommending a final dividend of 2.725 pence per share to give
a total for the year of 5.45 pence per share, an increase of 1.9% on the
previous year.



Capital Performance



Following two years of heavy falls, the UK stock market and your Company have
now had two years of recovery. The second half of the year under review saw a
much more muted recovery than the first half when the FTSE All-Share rose 8.4%.
Amongst the factors behind the more subdued conditions were the five increases
in interest rates from the Bank of England taking rates from 3.5% at the start
of the year to 4.75% at the end, and the rise in the price of oil.



Over the last two years, performance has been in line with or slightly ahead of
its benchmark, the FTSE All-Share index, but prior to this your Company's
results were considerably more resilient when the index was falling in the bear
market. The result is that your Company's record over the medium and long-term
remains well ahead of the FTSE All-Share benchmark index.



Revenue and Dividend

The revenue account of your Company has seen a number of changes over the year.
Income increased by 3% as a result of dividend increases from the underlying
portfolio and an increase in the size of the portfolio funded by borrowing;
after the cost of borrowing and a higher management fee (to reflect the increase
in asset value) are taken into consideration, the revenue return before tax fell
by 1%. Despite this, the earnings per share increased by 1.9% as the number of
shares in issue fell following a series of share buy-backs.



As was foreshadowed in the interim report there has been a re-balancing between
the interim dividend and the recommended final dividend. Earlier in the year,
the Directors brought forward and made a large increase in the interim dividend,
in order to allow shareholders who hold their shares in a PEP or ISA wrapper to
reclaim a tax credit that would not have been available if the dividend were
paid after 5 April. The re-balancing between the interim and final dividends
will continue in the future.



Although the proposed final dividend is 17% lower than last year, total
dividends for the year have increased by 1.9%. This rate is in line with the
increase in earnings per share and is also in line with the underlying rate of
inflation (RPI-X) in the year to September. This dividend would give the twelfth
successive annual increase with the total for the year being more than 55%
greater than the dividend for the year to September 1994, which was the
Company's first full year of existence.






F&C CAPITAL AND INCOME INVESTMENT TRUST PLC
Unaudited Preliminary Statement of Results for the year ended
                        30 September 2004

Gearing

The level of gearing was increased over the year from nil at the start to £6m at
the year end as interesting investment opportunities appeared. As interest costs
have remained low

and the portfolio has risen in value by more than the interest cost, the use of
gearing has been advantageous for shareholders.



Share Buy-Backs / New Issues

Since its commitment made in September 2002, the Board has been active to
ensure, so far as is possible, that the Company's shares should not stand at any
material discount to NAV. This has been done through an active share buy-back
programme which purchased 3.2m shares during the course of the year. The policy
has been successful as, over the last year, the average discount was 3.2%. There
was a period of about one week during the year when the discount temporarily
widened to more than 10%. This was entirely due to some index-tracking funds
selling their holdings as the Company was removed from the FTSE All-Share index;
this occurred because its average level of trading is fairly low.  Whilst this
is true, it is a positive sign that most of our shareholders are solid long-term
investors.  Soon after these shares had been bought back, the discount narrowed
again back towards its average level for the year.



As well as buying shares when there has been excess supply in the market and the
discount widened, the Board has also issued shares when they have traded at a
premium to NAV and there has been demand. In total over the year, 523,000 shares
were issued to satisfy investor demand through the F&C PEP and ISA scheme.



Since having received permission from shareholders, the Company has been keeping
purchased shares in Treasury, rather than cancelling them as in the past.
Treasury shares can be re-issued, but the Board has committed to re-issue them
only when the shares are trading at a premium to NAV. There is very little
difference in this process to what the Company was doing in the past, but it is
considerably cheaper to re-issue Treasury shares than to issue new shares.



Share Price Performance

Although the share price saw a reasonable increase last year, it did not track
the rise in NAV per share as the shares moved from a small premium to NAV at the
start of the year to trade at a discount of 2.3% at the end of the year.



Prospects

Much of the economic background is relatively positive. Inflation is at a low
level, and although interest rates have increased, they are unlikely to increase
much further from current levels. Unemployment is low and forecast economic
growth is reasonable at about 3.4% for this year, but slowing towards 2.5% for
next. This should provide a reasonable environment in which companies can grow
sales and profits. The concerns are more structural in nature: £1,000bn of
personal debt in the UK, doubts about the sustainability of house prices
together with the government's fiscal and current account deficits are all
reasons to moderate enthusiasm. Other more international factors to consider are
the price of oil, currently below $50 / barrel, but still much higher than a
year ago, continued fighting in Iraq and the possibility of another major
terrorist attack.



Overall, valuations for the UK market are reasonably attractive. The current
price / earnings multiple of 15 times historic earnings is broadly in line with
the average of the last decade so this together with the potential to add extra
value through stock selection and the appropriate use of gearing should enable
your Company to continue to perform well.



Graham Ross Russell CHAIRMAN

November 2004


 F&C CAPITAL AND INCOME INVESTMENT TRUST PLC
Unaudited Preliminary Statement of Results for the year ended
                        30 September 2004





Unaudited Statement of Total Return (incorporating the Revenue Account*)

                        for the year ended 30 September








                                                              2004                                      2003
                                   Revenue       Capital      Total       Revenue      Capital         Total
                                    £'000s       £'000s      £'000s        £'000s       £'000s        £'000s
Gains on investments                     -        9,384       9,384             -        8,945         8,945
Exchange gains/(losses) on
currency balances                        1          (4)         (3)             2           12            14
Income                               3,145            -       3,145         3,047            -         3,047
Management fee                       (211)        (211)      (422)          (175)        (175)        (350)
Other expenses                       (196)         (22)       (218)         (208)         (12)         (220)

Net return before finance
costs and taxation                   2,739        9,147      11,886         2,666        8,770        11,436
Interest payable and similar
charges                               (120)        (120)       (240)          (18)         (18)          (36)
Return on ordinary
activities before taxation           2,619        9,027      11,646         2,648        8,752        11,400
Taxation on ordinary                  (22)            -        (22)          (19)            -          (19)
activities
Return attributable to
equity shareholders                  2,597        9,027      11,624         2,629        8,752        11,381
Dividends on ordinary shares
(equity):

Interim dividend of 2.725p
(2003:2.05p)                       (1,277)            -     (1,277)       (1,011)            -       (1,011)
Proposed final dividend of
2.725p                             
(2003: 3.30p)                      (1,293)            -     (1,293)       (1,655)            -       (1,655)
                                   (2,570)            -     (2,570)       (2,666)            -       (2,666)
Amount transferred to/(from)
reserves                               27        9,027       9,054          (37)        8,752         8,715
Return per ordinary share -
pence                                5.38        18.70       24.08          5.28        17.57         22.85


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

All revenue and capital items in the above statement derive from continuing
operations.



F&C CAPITAL AND INCOME INVESTMENT TRUST PLC
Unaudited Preliminary Statement of Results for the year ended
30 September 2004



                                                           Unaudited Balance Sheet at 30 September



                                                     2004                                    2003
                                                   £'000s                                   £'000s  
Fixed assets
Investments                                        91,012                                   81,384

Current assets
Debtors                                               596                                    1,112
Taxation recoverable                                   13                                       19
Cash at bank                                          743                                       15
                                                    1,352                                    1,146



Current liabilities

Creditors: amounts falling due within one
year:
Loans                                             (6,000)                                        -
Other                                             (2,065)                                  (3,064)
                                                  (8,065)                                  (3,064)
Net current liabilities                           (6,713)                                  (1,918)

Net assets                                         84,299                                   79,466







Capital and reserves

Called up equity share capital                     12,051                                   12,537
Capital redemption reserve                          3,154                                    2,537
Share premium                                      18,771                                   17,955
Special reserve                                    12,348                                   17,516
Capital reserves                                   36,970                                   27,943
Revenue reserve                                     1,005                                      978
Total equity shareholders' funds                   84,299                                   79,466
Net asset value per ordinary share
- pence                                            177.62                                   158.46






F&C CAPITAL AND INCOME INVESTMENT TRUST PLC
Unaudited Preliminary Statement of Results for the year ended
30 September 2004







                        Unaudited Cash Flow Statement
                        for the year ended 30 September



                                                                  2004                               2003
                                                                £'000s                             £'000s
Net cash inflow from operating
activities                                                       2,583                              2,367
Net cash outflow from servicing of
finance                                                          (213)                               (36)
Total tax paid                                                    (18)                               (25)
Net cash outflow from financial
investment                                                        (30)                            (1,884)
Equity dividends paid                                          (2,931)                            (2,626)
Net cash outflow before use of
liquid resources and financing
                                                                 (609)                            (2,204)
Decrease in short-term deposits                                     -                                600
Net cash inflow from financing                                  1,339                              1,289


Increase/(decrease) in cash                                       730                              (315)




The Directors recommend a final dividend of 2.725p (2003: 3.30p) per share
payable on 4 February 2005 to shareholders registered on 7 January 2005.



The financial information set out in this announcement does not constitute the
Company's statutory accounts for the years ended 30 September 2004 or 30
September 2003. The financial information for the year ended 30 September 2003
has been extracted from the statutory accounts for that year which have been
delivered to the Registrar of Companies.  The auditors' report on those accounts
was unqualified and did not contain a statement under

either Section 237(2) or Section 237(3) of the Companies Act 1985. The statutory
accounts for the year ended 30 September 2004 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 Report & Accounts will be posted to shareholders towards the end of December
2004. Copies may be obtained during normal business hours from the Company's
Registered Office, Exchange House, Primrose Street, London EC2A 2NY.





By order of the Board
F&C Management Limited - Secretary
22 November 2004




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