Interim Results

F&C Capital & Income Inv Tst PLC
28 April 2004

Date:           28 April 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 Interim Statement of Results
                     for the half-year ended 31 March 2004



Highlights

•    The share price increased by 8.2% and NAV by 8% over the six month
     period.  Over the period of the last five years net asset total return per 
     share is positive at +4.5% and is well ahead of the negative total return 
     of -12.7% from the FTSE All-Share.

•    The interim dividend was brought forward to take advantage of the tax
     credit ceasing after 5 April 2004.  Additionally the interim dividend 
     increased by 32.9% to 2.725 pence to rebalance the interim and final 
     payments.

•    The rally in stock markets that started in March 2003 continued over
     the last six months and the Company benefited from its investments in 
     Amersham and William Hill among others.


SUMMARY OF RESULTS

Attributable to equity shareholders                         31 March            30 September                %
                                                                2004                    2003           Change

Net assets                                                   £81.62m                 £79.47m             +2.7

Net asset value per share                                    171.17p                 158.46p             +8.0

Share price                                                  172.00p                 159.00p             +8.2

                                                         6 months to             6 months to                %
                                                       31 March 2004           31 March 2003           Change

Earnings per ordinary share                                    2.34p                   1.91p            +22.5

Dividends per ordinary share                                 2.725p*                   2.05p            +32.9

* Paid on 2 April 2004



F&C CAPITAL AND INCOME INVESTMENT TRUST PLC
Unaudited Interim Statement of Results
for the half-year ended 31 March 2004



Chairman's Statement

During the six months under review from 30 September 2003 to 31 March 2004 it is
encouraging that the FTSE All-Share index rose 8.4%. Your Company's results were
narrowly below this benchmark as the net asset value ("NAV") per share and the
share price increased by 8.0% and 8.2% respectively. The interim dividend was
brought forward and increased by 32.9% to 2.725 pence per share to take
advantage of the tax credit ceasing after 5 April 2004.



Capital Performance

The rally in stockmarkets that started in March 2003 continued over the last six
months. Most of the rise in the stockmarket however, came during the first three
weeks of October in anticipation of the seasonally strong period leading up to
the year end. After this surge there was only limited further progress before
the New Year. Base rates  increased twice during the period and an environment
of increasing interest rates has had a dampening effect on the market, with a
rise of only 2.6% since the first increase on 6 November.



The strongest positive features for the portfolio were its holdings in Amersham,
which received an agreed bid from GE of the USA, and William Hill, which
benefited from gaming deregulation in the UK. The use of a small amount of
borrowing to invest in the stockmarket and some investments in European
stockmarkets were also positive. The main negatives were a lack of exposure to
those companies most geared to a stronger economic recovery and above average
holdings in GlaxoSmithKline and Abbey National that fell 14.5% and 7.9%
respectively.



It is clearly a little disappointing to report short-term performance below that
of the benchmark, but we should be mindful that over the longer-term our
performance is significantly better. Over the period of the last five years, net
asset total return per share (including dividends) is positive at +4.5% despite
falls in markets and is well ahead of the negative total return of -12.7% from
the FTSE All-Share index (Source: Datastream).



Dividend

As economic and business conditions have improved so company profits have seen a
better period than for a number of years. As a consequence, dividend growth has
shown a better trend than in recent years.



This year the Directors brought forward the timing of the payment of the
dividend to give the majority of our shareholders a tax benefit. By bringing the
payment forward, shareholders who hold their shares in a PEP or ISA wrapper can
reclaim a tax credit that would not have been available if the interim dividend
were paid after 5 April (as it had been in previous years). In order to maximise
the tax benefits the interim dividend of 2.725p per share is larger than in
previous years. At least 85% of the Company's shareholders will benefit from
these changes and the aggregate benefit to them is at least £115,000.



The size of the interim dividend represents a re-balancing between the interim
and final payments and as a consequence, there will be a reduction in the final
dividend. The Directors' aim for the year as a whole is to continue to build on
the Company's record of steady dividend growth.


F&C CAPITAL AND INCOME INVESTMENT TRUST PLC
Unaudited Interim Statement of Results
for the half-year ended 31 March 2004

Discount to Net Asset Value and Share Buy-Backs

The Board has maintained the commitment it gave to shareholders more than 18
months ago to seek to ensure that the Company's shares do not stand at any
material discount to net asset value. By having the ability to issue shares at a
premium, and purchase when at a discount, the Board is able to keep the share
price trading fairly closely in line with the underlying net asset value. Over
the half year, the average discount was 3.8%.

In order to help keep the share price close to net asset value, almost 2.5m
shares were purchased during the six months to 31 March. The reason for the
large number of shares purchased was that at the end of last year the Company
was removed from the FTSE All-Share index and this caused some index-tracking
funds to sell their holdings. The shares were bought at an average discount to
asset value (including accumulated income) of 7.4%.



It is unfortunate that the regular valuation of many investors occurred at the
year-end and hence reflected an abnormally low share price as a result of the
index tracking funds' forced selling. The Company was removed from the index
because its average level of trading is fairly low; whilst true, this is a
positive sign that most of our shareholders are solid long-term investors.



Towards the half-year end and subsequently, the shares have returned to trading
close to NAV, and to satisfy demand when some shareholders reinvested their
interim dividend, 523,000 shares were issued at a small premium to NAV.



Outlook

Having hoped a year ago that the military campaign in Iraq was all but over, it
is now proving to be much more difficult to win the peace. Although of little
direct consequence to most UK companies or individuals it does increase the risk
of terrorist attacks and further expensive military intervention. More
positively, most companies are expecting to see reasonable profit growth and are
benefiting from low inflation and low interest rates. However, further interest
rate increases are probable and these are at least partially aimed at
controlling consumer debt levels and strong house prices. Overall, although many
company valuations have recovered significantly, there are still opportunities
for further progress providing profit forecasts prove robust.


Graham Ross Russell
April 2004



F&C CAPITAL AND INCOME INVESTMENT TRUST PLC
Unaudited Interim Statement of Results
for the half-year ended 31 March 2004

Unaudited Statement of Total Return (incorporating the Revenue Account*)
for the half-year ended 31 March


                                                 31 March 2004                          31 March  2003
                                        Revenue     Capital        Total     Revenue       Capital         Total
                                         £'000s      £'000s       £'000s      £'000s        £'000s        £'000s

Gains and losses on    investments            -       6,361        6,361           -       (3,639)       (3,639)
                                              
Exchange gains and losses on
currency balances                             1         (4)          (3)         (4)            11             7
                                              
Income                                    1,382           -        1,382       1,156             -         1,156
Management fee                            (105)       (105)      (210)          (82)          (82)         (164)
Other expenses                            (108)        (11)        (119)       (115)           (4)         (119)

Net return before finance costs and
taxation                                  1,170       6,241        7,411         955       (3,714)       (2,759)
                                          
Interest payable and similar
charges                                    (29)        (29)         (58)         (4)           (4)           (8)
                                           
Return on ordinary
activities before taxation                1,141       6,212        7,353         951       (3,718)       (2,767)
Taxation on ordinary activities             (2)           -          (2)         (5)             -           (5)
Return attributable to equity
shareholders                              1,139       6,212        7,351         946       (3,718)       (2,772)
                                          
Dividends on ordinary shares
(equity):                               (1,277)           -      (1,277)     (1,011)             -       (1,011)
                                        
Amount transferred (from)/to
reserves                                  (138)       6,212        6,074        (65)       (3,718)       (3,783)
                                          
Return per ordinary share - pence          2.34       12.77        15.11        1.91        (7.51)        (5.60)

* 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 Interim Statement of Results
for the half-year ended 31 March 2004

Unaudited Balance Sheet
                                                         31 March             31 March          30 September
                                                             2004                 2003                  2003
                                                           £'000s               £'000s                £'000s
Fixed assets
Investments                                                88,123               68,366                81,384

Current assets
Debtors                                                       809                  509                 1,112
Taxation recoverable                                           12                   14                    19
Cash at bank and short-term deposits                          122                  124                    15
                                                             
                                                              943                  647                 1,146
Current liabilities
Creditors: amounts falling due within one                 (6,000)              (1,500)                     -
year:
Short-term loans                                          (1,450)              (1,153)               (3,064)
Other creditors                                           (7,450)              (2,653)               (3,064)

Net current liabilities                                   (6,507)              (2,006)               (1,918)
Net assets                                                 81,616               66,360                79,466


Capital and reserves
Called up equity share capital                             11,920               12,445                12,537
Capital redemption reserve                                  3,154                2,492                 2,537
Share premium                                              17,955               17,190                17,955
Special reserve                                            13,592               17,810                17,516
Capital reserves                                           34,155               15,473                27,943
Revenue reserve                                               840                  950                   978

Total shareholders' funds                                  81,616               66,360                79,466

Net asset value per ordinary share - pence                 171.17               133.31                158.46



F&C CAPITAL AND INCOME INVESTMENT TRUST PLC
Unaudited Interim Statement of Results
for the half-year ended 31 March 2004

Unaudited Cash Flow Statement
for the half-year ended 31 March
                                                          6 months to                        6 months to
                                                        31 March 2004                      31 March 2003
                                                               £'000s                             £'000s
Net cash inflow from operating
activities                                                        750                                841
Interest paid                                                    (57)                                (7)
Total tax recovered/(paid)
                                                                    2                                (1)
Net cash outflow from purchases
and sales of investments                                        (419)                            (1,523)
Equity dividends paid                                         (1,632)                            (1,606)
Net cash outflow before use of
liquid resources and financing
                                                              (1,356)                            (2,296)
Increase in short-term deposits                                    -                                600
Net cash inflow
from financing                                                  1,465                              1,496

Increase/(decrease) in cash during
the period                                                        109                              (200)
                                                                  


The Directors have declared a dividend of 2.725p (2003: 2.05p) per share paid on
2 April 2004  to shareholders registered on 19 March 2004.

The results for the six months to 31 March 2004 and 31 March 2003, which are
unaudited and set out in this announcement, constitute non-statutory accounts
within the meaning of Section 240 of the Companies Act 1985.  Unaudited interim
accounts for the period 1 October 2003 to 29 February 2004 have been delivered
to the Registrar of Companies in order to comply with section 272 of the
Companies Act 1985.  The latest published accounts which have been delivered to
the Registrar of Companies are for the year ended 30 September 2003; the report
of the auditors thereon was unqualified and did not contain a statement under
Section 237 of the Companies Act 1985. The abridged financial statements shown
above for the year ended 30 September 2003 are an extract from those accounts.

The Interim Report & Accounts will be posted to shareholders in mid-May 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
27 April 2004


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