Proposed Scheme of Reconstruction

ABERFORTH GEARED CAPITAL & INCOME TRUST PLC

The Boards of Aberforth Geared Capital & Income Trust plc ("AGCiT") and
Aberforth Geared Income Trust plc ("AGIT") today announce that they are in
discussions in relation to the proposed acquisition of assets of AGCiT by AGIT
to be effected through a scheme of reconstruction of AGCiT (the "Scheme") in
advance of its planned winding up date of 31 December 2011.

Under the terms of the proposed Scheme, AGIT would be the continuing company
and AGCiT shareholders would be entitled to elect to realise all or part of
their investment in AGCiT for cash or to roll-over all or part of their
investment into new ordinary shares issued by AGIT.

It is anticipated that the acquisition of assets of AGCiT would be funded by
the issue by AGIT of new ordinary shares and ZDP shares in the existing ratio
of 6:4.

Discussions in relation to the Scheme are at a preliminary stage and there is
no certainty as to whether or not any such Scheme will be offered to
shareholders or implemented. The Boards of AGCiT and AGIT expect to make a
further announcement in relation to the proposals in due course.

For further information please contact:

Aberforth Partners LLP                                                  
0131 220 0733
David Ross / Alan Waite

Dickson Minto W.S.
020 7628 4455
Douglas Armstrong