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Friday 14 February, 2003

City of London IT

Interim Results

City of London Investment Trust PLC
14 February 2003

                                                                13 February 2003

                    THE CITY OF LONDON INVESTMENT TRUST PLC

               UNAUDITED INTERIM RESULTS FOR THE HALF YEAR ENDED

                                31 DECEMBER 2002


Summary

                                                                6 months          3 Years          5 Years
                                                                       %                %                %
The City of London Investment Trust plc
Net Asset Value Total Return *                                     -16.4            -28.1             -7.4

FTSE All-Share Index
Total Return #                                                     -15.1            -36.9            -10.9

Average UK Growth & Income Investment Trust
Net Asset Value Total Return * =                                   -18.4            -22.4             -1.3


* Source: AITC Services Limited

# Source: Datastream

= Size weighted average



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                    THE CITY OF LONDON INVESTMENT TRUST PLC

       Unaudited Interim Results for the half year ended 31 December 2002

Extracts from the Chairman's Statement:-

The UK along with other leading world equity markets produced a very
disappointing performance in the second six months of 2002 with a negative total
return of 15.1% on the FTSE All-Share Index. Market expectations for corporate
profits proved to be too high as overcapacity persisted in many industries.
Rising political tension in the Middle East led to a strong oil price with
adverse cost implications for both companies and consumers.

UK base rates remained at 4% throughout the period. UK economic growth was
better than that of the other major economies with consumer spending and house
prices outside London remaining robust. Life assurance companies, however,
continued to switch out of equities into British government bonds in response to
regulatory solvency ratios.


Performance

City of London's objective is to outperform over the long term the total return
of the FTSE All-Share Index. We set out to be a straightforward investment
vehicle that gives an above average yield and seeks to be one of the leading
candidates for regular savings and investment. For the six month period, City of
London's portfolio performed relatively well but gearing, although at modest
levels, led to an overall performance which was 1.3 percentage points behind the
FTSE All-Share Index. Over three and five years, City of London is ahead by 8.8
and 3.5 percentage points respectively.


Dividends

The Board declared on 13 February 2003 a third interim dividend of 2.00p per
ordinary share, a 1% increase in the dividend rate compared with last year. The
dividend will be paid on 31 May and the shares will trade ex-dividend with
regard to this payment from Wednesday 5 March 2003.


Expenses

Total expenses were substantially lower than in the same period of the previous
year. The management fees were well down, reflecting the absence of a
performance fee for the six months to December 2002 and the lower level of
assets under management. Other administrative expenses were higher principally
because of the costs of launching the new City of London Alliance Trust Pension
Plan.

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                    THE CITY OF LONDON INVESTMENT TRUST PLC

       Unaudited Interim Results for the half year ended 31 December 2002


Henderson Geared Income & Growth Trust plc

Henderson Geared Income & Growth Trust plc is a UK investment trust managed by
Henderson Global Investors which reaches the end of its fixed life on 7 March
2003. It has a broadly similar investment portfolio to City of London. A maximum
of 8 million City of London shares are being offered as one alternative to
Henderson Geared Income & Growth shareholders for reinvestment. The new City of
London shares will be issued at a 1/2% premium to net asset value. The increased
number of shares in issue will reduce the overall running costs per share for
City of London shareholders.

Outlook

After three difficult years for world stock markets, and a fall of 9.1% in
January in the FTSE All-Share Index, investor expectations are low. The historic
dividend yield for the UK equity market is about 3.8% which, given the long term
prospects for growth in company profits and dividends, compares favourably with
the current level of base rates 3.75% and the yield on ten year British
government bonds of 4.2%. In the short term, the market may continue to be
adversely affected by uncertainty ahead of a possible war in Iraq, structural
selling by life assurance companies and tough competitive conditions in many
industries. We do, however, feel that at the current level UK share prices
already reflect many of the problems and offer good long term value.


S M de Zoete


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                    THE CITY OF LONDON INVESTMENT TRUST PLC

       Unaudited Interim Results for the half year ended 31 December 2002


STATEMENT OF TOTAL RETURN (incorporating the revenue account)

for the half year ended 31 December 2002


                                      (Unaudited)                     (Unaudited)                    (Audited)
                                    Half year ended                 Half year ended                 Year ended
                                    31 December 2002               31 December 2001                30 June 2002

                               Revenue    Capital      Total   Revenue   Capital     Total    Revenue  Capital     Total
                                 £'000      £'000      £'000     £'000     £'000     £'000      £'000    £'000     £'000
                             ---------   --------   -------- ---------  --------  --------   -------- --------  --------
Capital losses from                  -   (80,648)   (80,648)         -  (40,832)  (40,832)          - (72,856)  (72,856)
investments

Income from fixed asset          7,896          -      7,896     7,451         -     7,451     17,697        -    17,697
investments

Other interest receivable
and similar income                  94          -         94        63         -        63        156        -       156

                              --------   --------   --------  --------  --------  --------   -------- --------  --------
Gross revenue and capital        7,990   (80,648)   (72,658)     7,514  (40,832)  (33,318)     17,853 (72,856)  (55,003)
losses

Management fee (note 2)          (213)      (496)      (709)     (307)     (718)   (1,025)      (516)  (2,535)   (3,051)
Other administrative             (293)          -      (293)     (216)         -     (216)      (400)        -     (400)
expenses
                              --------   --------   --------  --------  --------  --------   -------- --------  --------
Net return/(loss) on
ordinary activities before
interest payable and
taxation                         7,484   (81,144)   (73,660)     6,991  (41,550)  (34,559)     16,937 (75,391)  (58,454)

Interest payable                 (675)    (1,577)    (2,252)     (648)   (1,510)   (2,158)    (1,310)  (3,056)   (4,366)
                              --------   --------   --------  --------  --------  --------   -------- --------  --------
Net return/(loss) on
ordinary activities before       6,809   (82,721)   (75,912)     6,343  (43,060)  (36,717)     15,627 (78,447)  (62,820)
taxation

Taxation on net return on
ordinary                          (61)         50       (11)      (40)        40         -       (85)       85         -
activities
                              --------   --------   -------- --------- --------- ---------   -------- --------  --------
Net return/(loss) on
ordinary activities after        6,748   (82,671)   (75,923)     6,303  (43,020)  (36,717)     15,542 (78,362)  (62,820)
taxation

Dividends:
Preference and preferred
ordinary                          (95)          -       (95)      (95)         -      (95)      (190)        -     (190)
stocks
                              --------   --------   -------- --------- --------- ---------   -------- --------  --------
Net return/(loss)
attributable to the              6,653   (82,671)   (76,018)     6,208  (43,020)  (36,812)     15,352 (78,362)  (63,010)
ordinary shares
                              --------   --------   -------- --------- --------- ---------   -------- --------  --------
Dividends:
Ordinary shares
First interim 2.00p (2001:     (4,118)          -    (4,118)   (4,064)         -   (4,064)    (4,064)        -   (4,064)
1.98p)
Second interim 2.00p
(2001: 1.98p)                  (4,122)          -    (4,122)   (4,064)         -   (4,064)    (4,064)        -   (4,064)

Third interim (2002: 1.98p)          -          -          -         -         -         -    (4,064)        -   (4,064)
Fourth interim (2002:                -          -          -         -         -         -    (4,105)        -   (4,105)
2.00p)
                              --------   --------   -------- --------- --------- ---------   -------- --------  --------
                               (8,240)          -    (8,240)   (8,128)         -   (8,128)   (16,297)        -  (16,297)
                              --------   --------   --------  --------  -------- ---------  --------- -------- ---------
Transfer from reserves         (1,587)   (82,671)   (84,258)   (1,920)  (43,020)  (44,940)      (945) (78,362)  (79,307)
                                 =====      =====      =====     =====     =====     =====      =====    =====     =====
Return/(loss) per ordinary
share                            3.24p   (40.23p)   (36.99p)     3.02p  (20.95p)  (17.93p)      7.48p (38.18p)  (30.70p)
(note 3)

The revenue columns of this statement represent the revenue accounts of the
company.


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                    THE CITY OF LONDON INVESTMENT TRUST PLC

       Unaudited Interim Results for the half year ended 31 December 2002


Balance Sheet

As at 31 December 2002
                                                                 (Unaudited)           (Unaudited)             (Audited)
                                                                 31 December           31 December               30 June
                                                                        2002                  2001                  2002
                                                                       £'000                 £'000                 £'000
                                                               -------------         -------------         -------------
Fixed asset investments

Listed at market value                                               438,691               547,007               513,924
Shares in subsidiary undertakings                                        347                   347                   347
                                                                  ----------            ----------            ----------
Fixed asset investments                                              439,038               547,354               514,271
                                                                  ----------            ----------            ----------
Current assets
Debtors                                                                1,650                 1,509                 2,332
Bank balances                                                            468                   966                    52
                                                                  ----------            ----------            ----------
                                                                       2,118                 2,475                 2,384

Creditors: amounts falling due within one year                      (15,156)               (6,431)               (7,623)
                                                                  ----------            ----------            ----------
Net current liabilities                                             (13,038)               (3,956)               (5,239)

Total assets less current liabilities                                426,000               543,398               509,032

Creditors: amounts falling due after more than one                  (46,000)              (46,000)              (46,000)
year                                                                
                                                                  ----------            ----------            ----------
Total net assets                                                     380,000               497,398               463,032
                                                                  ----------            ----------            ----------
Capital and reserves
Called-up share capital                                               53,557                53,398                53,398
Share premium account                                                 29,316                28,249                28,249
Other capital reserves                                               287,392               405,404               370,063
Revenue reserve                                                        9,735                10,347                11,322
                                                                  ----------            ----------            ----------
Total shareholders' funds (including non-equity                      380,000               497,398               463,032
interests of £2,086,000)
                                                                      ======                ======                ======
Net asset value per ordinary share (note 4)                          183.56p               241.32p               224.58p



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                    THE CITY OF LONDON INVESTMENT TRUST PLC

       Unaudited Interim Results for the half year ended 31 December 2002

Cash Flow Statement

for the half year ended 31 December 2002
                                                                    (Unaudited)            (Unaudited)         (Audited)
                                                                Half year ended        Half year ended        Year ended
                                                               31 December 2002       31 December 2001      30 June 2002
                                                                          £'000                  £'000             £'000
                                                                    -----------            -----------       -----------
Net cash inflow from operating activities                                 6,777                  6,710            15,374
Net cash outflow from servicing of finance                              (2,331)                (2,253)           (4,551)
Total tax recovered                                                           -                      -                18
Net cash (outflow)/inflow from purchases and sale of
investments                                                             (5,094)                  4,442             5,147
Equity dividends paid                                                   (8,223)                (8,131)          (16,259)
                                                                     ----------             ----------        ----------
Net cash (outflow)/inflow before financing                              (8,871)                    768             (271)
Net cash inflow/(outflow) from financing                                  9,190                  (346)             (345)
                                                                     ----------             ----------        ----------
Increase/(decrease) in cash                                                 319                    422             (616)
                                                                         ======                 ======            ======
Reconciliation of operating revenue to net cash inflow
from operating activities

Net revenue before interest payable and taxation                          7,484                  6,991            16,937
Decrease/(increase) in prepayments and accrued income                       459                    591              (21)
(Decrease)/increase in other creditors                                    (653)                  (154)               993
Management fees taken to other capital reserves                           (496)                  (718)           (2,535)
Overseas withholding tax                                                   (17)                      -                 -
                                                                     ----------             ----------        ----------
Net cash inflow from operating activities                                 6,777                  6,710            15,374
                                                                         ======                 ======            ======
Reconciliation of net cash flow to movement in net debt

Increase/(decrease) in cash as above                                        319                    422             (616)
Exchange movements                                                         (91)                      -               124
Cash inflow from drawdown of loans                                      (7,964)                      -                 -
Net debt at the beginning of the period                                (45,948)               (45,456)          (45,456)
                                                                    -----------            -----------        ----------
Net debt at the end of the period                                      (53,684)               (45,034)          (45,948)
                                                                         ======                 ======            ======
Represented by:
Cash at bank less bank overdrafts                                           340                    966                52
Debt falling due within one year                                        (8,024)                      -                 -
Debt falling due after more than one year                              (46,000)               (46,000)          (46,000)
                                                                     ----------             ----------        ----------
                                                                       (53,684)               (45,034)          (45,948)
                                                                         ======                 ======            ======

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                    THE CITY OF LONDON INVESTMENT TRUST PLC

       Unaudited Interim Results for the half year ended 31 December 2002


Notes

1.     Expenses charged to capital

       The Company charges to capital 70% of its finance costs and management fees. The performance fee is charged to
       capital. All other expenses are charged wholly to revenue. Expenses which are incidental to the purchase or sale
       of a fixed asset investment are included in the cost or deducted from the proceeds of the sale of investment.

2.     Management Fee

       No accrual has been made for a performance fee in respect of the half year ended 31 December 2002, reflecting the
       movement of the Company's net asset value relative to that of its benchmark, the FTSE All-Share Index, Total
       Return. The performance fee for the half year ended 31 December 2001 was £171,000 and for the year ended 30 June
       2002 was £1,330,000. For the half year ended 31 December 2001 70% of the performance fee was charged to capital.
       For the year ended 30 June 2002 100% was charged to capital. All amounts quoted are inclusive of irrecoverable
       VAT.

3.     Return/(loss) per ordinary share

       Revenue return per ordinary share is based on the earnings attributable to the ordinary shares of £6,653,000
       (half year ended 31 December 2001: £6,208,000; year ended 30 June 2002: £15,352,000) and 205,529,606 ordinary
       shares being the weighted average number of ordinary shares in issue for the period (half year ended 31 December
       2001: 205,272,758; year ended 30 June 2002: 205,261,977.
       Capital loss per share is based on net capital losses of £82,671,000 (half year ended 31 December 2001: losses of
       £43,020,000; year ended 30 June 2002: losses of £78,362,000) and on the weighted average number of ordinary
       shares in issue as stated above.

4.     Net asset value per share

       The net asset value per ordinary share is based on the net assets attributable to the ordinary shares of
       £377,914,000 (31 December 2001: £495,312,000; 30 June 2002: £460,946,000) and on 205,885,294 ordinary shares (31
       December 2001: 205,251,018; 30 June 2002: 205,251,018) being the number of ordinary shares in issue at the end of
       the period.

5.     Allotments

       During the half year to 31 December 2002, the Company allotted a total of 634,276 shares. Between the half year
       end and the date of this report a further 738,000 shares were allotted.

6.     Buy-Backs

       During the half year to 31 December 2002, the Company made no purchases for cancellation of its own issued
       ordinary shares of 25p.

7.     Interim Dividends

       The first interim dividend of 2.00p was paid on 30 November 2002. The second interim dividend of 2.00p will be
       paid on 28 February 2003 to shareholders on the Register of Members on 17 January 2003. The third interim
       dividend of 2.00p will be paid on 31 May 2003 to shareholders on the Register of Members on 7 March 2003.

8.     Accounts for the year ended 30 June 2002

       The figures and financial information for the year ended 30 June 2002 are an extract from the latest published
       accounts of the Company and do not constitute statutory accounts for that year. These accounts have been
       delivered to the Registrar of Companies and included in the report of the auditors which was unqualified and did
       not contain a statement under either section 237(2) or 237(3) of the Companies Act 1985.


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                    THE CITY OF LONDON INVESTMENT TRUST PLC

       Unaudited Interim Results for the half year ended 31 December 2002


9.     Interim Report

       Copies of the Company's interim report for the half year ended 31 December 2002 will be posted to shareholders in
       February 2003 and will be available thereafter from the Secretary at the Registered Office, 4 Broadgate, London
       EC2M 2DA.

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                    THE CITY OF LONDON INVESTMENT TRUST PLC

       Unaudited Interim Results for the half year ended 31 December 2002


Largest Investments

The 60 largest investments, convertibles and all classes of equity in any one
company being treated as one investment, were as follows:


                                                   Market value                                             Market value

                                               31 December 2002                                         31 December 2002
                                                          £'000                                                    £'000

BP                                                       27,755      Allied Domecq                                 3,573
GlaxoSmithKline                                          25,032      Slough Estates                                3,390
Shell Transport & Trading                                24,540      BSkyB                                         3,307
HSBC                                                     23,684      Associated British Ports                      3,196
Vodafone                                                 19,819      BHP Billiton                                  3,177
Royal Bank of Scotland                                   16,368      Wolseley                                      3,129
AstraZeneca                                              11,766      BOC                                           3,108
Barclays                                                 11,550      Cadbury Schweppes                             3,096
Diageo                                                   10,125      Gallaher                                      3,085
British American Tobacco                                  9,928      BG                                            3,082
HBOS                                                      9,825      Bovis Homes                                   2,880
Lloyds TSB                                                8,920      Hammerson                                     2,826
National Grid Transco                                     8,816      Compass                                       2,805
Aviva                                                     7,088      Sainsbury (J)                                 2,787
Tesco                                                     6,984      Scottish Power                                2,719
Land Securities                                           6,869      Rank                                          2,665
Rio Tinto                                                 6,820      Reed Elsevier                                 2,660
Unilever                                                  6,501      United Utilities                              2,652
Legal & General                                           5,141      Rodamco Europe                                2,624
Scottish & Southern Energy                                5,100      Next                                          2,578
Reckitt Benckiser +                                       4,681      Marks & Spencer                               2,550
BT                                                        4,680      GUS                                           2,308
Anglo American                                            4,612      Tomkins                                       2,280
Prudential                                                4,390      BAA                                           2,268
Kingfisher                                                4,045      Liberty International                         2,258
Smith & Nephew                                            3,805      Severn Trent                                  2,256
Imperial Tobacco                                          3,693      Alliance & Leicester                          2,238
Johnston Press                                            3,611      Safeway                                       2,132
Boots                                                     3,604      Smiths                                        2,086
Six Continents                                            3,598      Abbey National                                2,072


These investments total £375,137,000 or 85.51% of the portfolio.

+ includes convertibles


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                    THE CITY OF LONDON INVESTMENT TRUST PLC

       Unaudited Interim Results for the half year ended 31 December 2002


For further information please contact :


Job Curtis

Portfolio Manager, The City of London Investment Trust plc

Telephone: 020 7818 4367

Stephen Westwood

Head of Investment Trusts, Henderson Global Investors

Telephone: 020 7818 5517

Stephen Phillips

Investor Relations Manager, Henderson Global Investors

Telephone: 020 7818 6417

or

Vicki Staveacre

Henderson Press Office

Telephone: 020 7818 4222


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