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Schroder Inc Growth (BC!)

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Thursday 31 March, 2005

Schroder Inc Growth

Interim Results

Schroder Income Growth Fund PLC
31 March 2005


Press Release
                                                                   31 March 2005

                         UNAUDITED INTERIM RESULTS

The Directors of Schroder Income Growth Fund plc announce the unaudited interim
results for the six months ended 28 February 2005:

Unaudited Preliminary Statement of Results

                                                            Six months ended                 Six months ended
                                                            28 February 2005                 29 February 2004
Statement of total return                        Revenue        Capital      Total    Revenue    Capital      Total
                                                      £'000       £'000      £'000      £'000      £'000      £'000

Net gains on investments                                  -      15,373     15,373          -     10,594     10,594
Income                                                2,160           -      2,160      1,767          -      1,767
Investment management fees                            (287)       (287)      (574)      (253)      (253)      (506)
Performance fee                                           -       (112)      (112)          -      (133)      (133)
Administrative expenses                                (97)           -       (97)      (109)          -      (109)
Return before finance costs, taxation and             1,776      14,974     16,750      1,405     10,208     11,613
premium on purchase of warrants for cancellation
Premium on purchase of warrants for cancellation          -           -          -          -      (705)      (705)
Interest payable                                          -           -          -          -          -          -
Net return on ordinary activities before              1,776      14,974     16,750      1,405      9,503     10,908
taxation
Tax on ordinary activities                                -           -          -          -          -          -
Return on ordinary activities after tax for the       1,776      14,974     16,750      1,405      9,503     10,908
period attributable to equity shareholders
Dividends:
1st interim dividend of 1.34p (2004:1.30p)per       (1,012)           -    (1,012)      (929)          -      (929)
share paid 31 January 2005
2nd interim dividend of 1.34p (2004:1.30p) per      (1,012)           -    (1,012)      (989)          -      (989)
share payable 29 April 2005
Transfer (from)/to reserves                           (248)      14,974     14,726      (513)      9,503      8,990
Return per ordinary share                             2.35p      19.82p     22.17p      1.93p     13.03p     14.96p
Dividends for the period per ordinary share           2.68p           -      2.68p      2.60p          -      2.60p


Unaudited Preliminary Statement of Results
                                                                    Six months ended            Six months ended
                                                                    28 February 2005            29 February 2004
Abridged Cash Flow Statement                                                   £'000                       £'000

Net cash inflow from operating activities                                      1,707                       1,368

UK tax recovered                                                                   -                           -

Dividends paid                                                               (2,787)                     (2,493)

Net cash (outflow)/inflow from investing activities                          (5,243)                         418

Net cash inflow from financing                                                     -                       3,039

Net cash (outflow)/inflow                                                    (6,323)                       2,332


                                                                  At 28 February 2005           At 31 August 2004
Assets                                                                          £'000                       £'000

Listed investments at market value                                            134,532                     117,650

Net current assets                                                              5,627                       7,783

Net Assets                                                                    140,159                     125,433

Net asset value per share                                                     185.55p                     166.05p



Investment Manager's Review

Market Background

So far this year attention has remained focussed on generally favourable factors
for equity markets and merger and acquisition activity in particular has buoyed
sentiment.  Whilst this activity has highlighted the underlying value in a
number of businesses, the attention paid to it has meant that other potential
concerns have been overlooked such as the potential for rising interest rates or
high oil prices.

Investment Approach

As investors will be aware the Company seeks to look for opportunities in
companies that suffer from negative sentiment and where the valuation is
relatively low.  This will inevitably lead to a higher degree of volatility in
the Company's return when compared with the FTSE All-Share Index over short time
periods.  However, we believe this approach will reward the investor over the
longer term.

Outlook

The range of individual company valuations across the market is unusually
compressed, a sign that investors are not differentiating significantly between
the future growth prospects of companies and the risks associated with these.
As a consequence attractive future growth has sometimes not commanded the
premium it should given investors' recent emphasis on short term earnings
visibility and high current yields.  In general, we have continued to find more
interesting opportunities in larger companies than for some time as they no
longer sell at a valuation premium to smaller ones.

Schroder Investment Management Limited
31 March 2005

                            SECOND INTERIM DIVIDEND
                      FOR THE YEAR ENDING 31 AUGUST 2005

The Directors of the Company have declared the payment of a second interim
dividend of 1.34p net per share for the year ending 31 August 2005. This
represents an increase of 3.08% over the second interim dividend for the
previous financial year.

Ex-Dividend Date:                                  6 April 2005
Transfers must be lodged by:                       2.00 p.m. on 8 April 2005
Dividend Warrants:                                 Despatched on 28 April 2005
Payment Date:                                      29 April 2005
Dividend per share:                                1.34p net



Enquiries:                           Schroder Investment Management Limited
John Spedding                        (020 7658 3206)

31 March 2005



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            The company news service from the London Stock Exchange          FERVDILVIE