Portfolio Update

BLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC

All information is at 31 December 2012 and unaudited.

Performance at month end with net income reinvested

                              One   Three    Since    One  Three   Five
                            month  months  1 April   year  years  years 
                                              2012
Sterling:

Share price                  3.7%    2.9%     9.5%  14.4%  21.8%  -5.7%
Net asset value             -0.6%    3.3%     6.4%  14.8%  23.8%  -3.3%
FSTE All-Share Total Return  1.0%    3.8%     5.8%  12.3%  24.2%  13.2%

Sources: BlackRock and Datastream

BlackRock took over the investment management of the Company with effect from 1
April 2012.

At month end

Sterling:

Net asset value - capital only:   146.69p
Net asset value - cum income*:    150.17p
Share price:                      141.50p
Total assets (including income):   £42.6m
Discount to cum-income NAV:          5.8%
Gearing:                             2.2%
Net yield:                           3.7%
Ordinary shares in issue**:    28,379,268

*includes net revenue of 3.48 pence per share
** excludes 4,554,664 shares held in treasury

Benchmark

Sector Analysis                    Total assets(%)

Oil & Gas Producers                         15.80
Pharmaceuticals & Biotechnology              9.47
Banks                                        9.44
Tobacco                                      9.27
Media                                        6.77
Mobile Telecommunications                    5.58
General Retailers                            4.93
Mining                                       4.77
Electronic & Electrical Equipment            4.54
Non Life Insurance                           4.31
Life Insurance                               3.79
Food Producers                               3.57
Gas, Water & Multiutilities                  2.71
Non Equity Investment Instruments            2.58
Financial Services                           2.39
Aerospace & Defence                          2.37
Electricity                                  1.97
Real Estate Investment & Services            1.93
Support Services                             1.93
Software & Computer Services                 1.35
Technology Hardware & Equipment              0.49
Equity Investment Instruments                0.22
Automobiles & Parts                          0.02
Net Current Liabilities                    (0.20)
                                           ------
Total                                      100.00
                                           ------

Ten Largest Equity Investments(in alphabetical order)

Company                         % of Total assets

British American Tobacco                     6.85
British Sky Broadcasting                     3.23
GlaxoSmithKline                              3.49
HSBC                                         8.26
Royal Dutch Shell B                          8.11
Shire                                        3.29
Tate & Lyle                                  3.73
Tullow Oil                                   4.44
UBM                                          3.85
Vodafone                                     5.84

Commenting on the markets, Nick McLeod-Clarke & Adam Avigdori, representing the
Investment Manager noted:

Markets

December was the seventh consecutive month of positive performance for UK
equities, which ended the year 12% higher on a total return basis. With macro
data improving globally basic materials enjoyed a month of good performance;
large defensive sectors - mobile telecoms, tobacco and beverages - were amongst
the negative contributors to overall market performance due to the risk
reversal in markets.

Portfolio Performance

The portfolio underperformed the FTSE All-Share Index during December with a
return of -0.6% compared to the index total return of 1.0%.

The largest detractor from portfolio returns was Tullow Oil after the company
announced disappointing drilling results. Tullow has been a notably successful
exploration company in recent years, and we retain our position since we
believe that the company holds a valuable exploration portfolio and a reliable
management team. The exploration potential of the company remains strong. The
portfolio's underweight exposure to the mining sector, Rio Tinto and BHP
Billiton especially, had an adverse impact on relative performance as the
sector rose ahead of the market, benefiting from improving sentiment as
investors favoured cyclical companies.

In contrast, Spectris, the instrumentation and controls producer, continued to
perform well after announcing better than expected third quarter results in
October, particularly in China, where revenues grew by 15% despite weak
industrial markets. Specialty pharmaceutical company Shire, which focuses on
Attention Deficit and Hyperactivity Disorders (ADHD) and Human Genetic
Therapies, had a better month after enduring a difficult year in 2012. The
market had become fixated on a patent challenge to Intuniv, a prescription
medicine for ADHD that represents 5% of its sales. Shire has a unique portfolio
compared to its peers, which gives it pricing power and strong growth prospects
that should enable the company to generate sustained earnings growth.

During the month we purchased a new position in Rio Tinto, added to holdings of
Vodafone Group, Tullow Oil and Antofagasta and trimmed the holding of 3i
Infrastructure.

Outlook

In recent months macro data globally has increasingly pointed towards an
economic environment that has stabilised but remains depressed. Underlying GDP
growth of the UK economy in the coming year may be around 1%, and the euro area
crisis remains a key risk for the UK economy. The government is expected to
maintain its existing fiscal plans as the speed of the planned fiscal
adjustment in the UK is slower than in most other advanced economies and fiscal
policy is likely to continue to act as a drag on growth.

As we look forward into 2013 we are clearly aware of the remaining fiscal cliff
issues and there will be a point where they will dominate market focus. However
at this point economic stimuli applied by various central banks appear to be
having some modest positive effects and indicators are continuing to point
upwards. With increased liquidity we believe that the market's emphasis will
shift towards cyclical, reflation trades, and we are also prepared to invest in
some UK domestically focused companies when we believe they are gaining market
share. Our overall view is that in this post credit crunch world, strong
companies that have continued to invest are now increasingly gaining market
share at the expense of weak companies that have not, and consequently we
continue to maintain an overall emphasis on good quality, well financed
international companies.

15 January 2013