Portfolio Update

BLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC

All information is at 31 August and unaudited.

Performance at month end with net income reinvested

                               One   Three  One Three  Five
                             month  months year years Years

Sterling:

Share price                    1.1% 10.8% 12.6% 31.9% -9.8%
Net asset value                2.4% 9.5%  12.2% 35.6% -7.4%
FSTE All-Share Total Return    2.2% 8.6%  10.2% 30.7%  9.5%

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:        142.62p
Net asset value - cum income*:         144.88p
Share price:                           135.50p
Total assets (including income):       £41.1m
Discount to cum-income NAV:               6.5%
Gearing:                                  6.7%
Net yield:                                3.8%
Ordinary shares in issue**:         28,379,268

*includes net revenue of 2.26 pence per share
** excludes 4,554,664 shares held in treasury

Benchmark

Sector Analysis                       Total assets (%)

Oil & Gas Producers                             13.45
Pharmaceuticals & Biotechnology                 10.54
Mobile Telecommunications                        9.13
Media                                            8.19
Banks                                            7.87
Tobacco                                          7.59
Mining                                           7.05
Food Producers                                   4.60
Non Life Insurance                               3.68
Equity Investment Instruments                    3.08
Life Insurance                                   2.90
Software & Computer Services                     2.80
Non Equity Investment Instruments                2.77
Support Services                                 2.59
General Retailers                                2.42
Aerospace & Defense                              2.31
Electronic & Electrical Equipment                2.13
Electricity                                      1.97
Gas, Water & Multiutilities                      1.76
Real Estate Investment & Services                1.61
Financial Services                               1.47
Technology Hardware & Equipment                  1.31
Oil Equipment, Services & Distribution           0.51
Net Current Liabilities                        (1.73)
                                               ------
Total                                          100.00
                                               ------

Ten Largest Equity Investments

Company                             % of Total assets

Vodafone                                         9.13
Royal Dutch Shell B                              8.37
HSBC                                             5.98
GlaxoSmithKline                                  4.96
British American Tobacco                         4.67
UBM                                              3.84
Antofagasta                                      3.75
Unilever                                         3.61
Tullow Oil                                       3.42
BHP Billiton                                     3.30

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

Markets

The UK equity market produced positive returns in August, with the rally driven
by an earnings season that produced no material negatives and greater
confidence that European policymakers are ready to act. A mix of cyclicals and
financials were the most positive contributors to market returns, although
mining was the exception and was one of the worst performing sectors. Companies
with more defensive earnings - pharmaceuticals, tobacco and mobile telecoms -
were amongst the most negative contributors to market performance.

Portfolio Performance

The Company returned 2.4% over the month, ahead of its benchmark, the FTSE All
Share (Total Return) Index, which returned 2.2%.

Amongst the contributors to portfolio returns, plumbing goods supplier Wolseley
gained on signs that the US housing market is seeing signs of revival. Recent
acquisitions helped Spectris, the supplier of precision instrument and
industrial controls, overcome tough trading conditions as customers continue to
seek productivity gains. The company's interim results showed a good first half
performance and were in line with expectations. Carphone Warehouse reported
first quarter results at the end of July that were ahead of expectations.
Shares of business information and exhibitions group UBM continued to do well
after reporting a good set of interim numbers at the end of July, with its
events division performing well, particularly in China. Shares of Playtech
climbed after the gaming software company reported a strong set of interim
results as revenue doubled in the first half of the year.

Being underweight the mining sector was again beneficial as the sector
performed poorly on weaker commodity prices and hence not owning Rio Tinto and
Anglo American helped portfolio returns. As doubts grew over Glencore's
proposed merger with Xstrata - after further scrutiny of the terms of the deal
- the shares of both companies (neither of which are held in the portfolio)
recovered from the previous month's falls, which had detracted from returns.
Other detractors were modest, with Vodafone, Unilever and Imperial Tobacco
lagging as investors favoured cyclical companies.

Outlook

Macro risk has been a key feature across financial markets again this year. The
continuing euro crisis, lower Chinese growth and broader slowdown fears across
emerging markets combined with concerns about the US budget deficit have
dominated investor debate in recent months.

Consequently this remains an environment that is dominated by short term
trading patterns where macro-economic factors dominate market returns. We
prefer to make investments where we believe we have a competitive edge and an
information advantage.

We continue to position the portfolio towards companies where the fundamentals
are strong and the business can take advantage of geographies that are growing
strongly. Overall equity valuations look attractive relative to other asset
classes and we continue to believe that emerging economies offer the best
economic fundamentals. UK equity valuations still look attractive compared to
those of most other asset classes, with the prospect of high quality earnings
and dividend growth.

14 September 2012