Interim Management Statement

British & American Investment Trust PLC

Interim Management Statement - 3 months to 31 March 2008

To the members of British & American Investment Trust PLC

This interim management statement has been produced solely to provide
additional information to shareholders as a body to meet the relevant
requirements of the UK Listing Authority's Disclosure and Transparency Rules.
It should not be relied upon by any other party or for any other purpose.

This interim management statement relates to the period from 1 January 2008 to
31 March 2008, and contains information that covers this period, and up to the
date of publication of this interim management statement, unless otherwise
specified.

Investment objective

To achieve a balance of growth of income and capital from a portfolio invested
predominantly in companies listed or quoted in the United Kingdom.

Benchmark

FTSE All-Share Index

Material developments

On 29 April 2008 the company made a preliminary announcement of its results for
the year ended 31 December 2007. The preliminary announcement contained a
proposed final ordinary dividend of 3.7p payable on 26 June 2008 to
shareholders on the register at 30 May 2008. A dividend of 1.75p will be paid
to preference shareholders on 26 June 2008 resulting in a total payment for the
year of 3.5p per share.

Ten largest equity holdings at 31 March 2008 (group basis)

                                                     %                         
                                                                               
Geron Corporation - US$ 0.001                        16.6                      
                                                                               
Prudential Corporation Plc 5p Ords                   10.5                      
                                                                               
Liberty International Plc - Ord 50p                  9.0                       
                                                                               
Rit Capital Partners plc - Ord £1                    8.6                       
                                                                               
Alliance Trust PLC - Ord 2.5p                        6.9                       
                                                                               
Electra Private Equity Ord GBP0.25                   6.2                       
                                                                               
Dunedin Income Growth Trust Plc - Ord 25p            6.2                       
                                                                               
British Assets Trust Plc                             5.2                       
                                                                               
St James Place International Unit Trust - Income     4.2                       
Units                                                                          
                                                                               
Scottish & American Investment Company Plc - Ord 25p 2.4                       
                                                                               
Total                                                75.8                      


Sector allocation as at 31 March 2008 (group basis)

                                           %                         
                                                                   
Investment Trusts                       43.63                     
                                                                   
Biomedical - USA                        16.55                     
                                                                   
Life Assurance                          10.85                     
                                                                   
Property                                 8.98                      
                                                                   
Unit Trusts                              4.75                      
                                                                   
Other Services & Businesses              2.09                      
                                                                   
Banks retail                             1.45                      
                                                                   
Telecommunications                       0.90                      
                                                                   
Leisure, Entertainment, Hotels           0.66                      
                                                                   
Software and computer services           0.56                      
                                                                   
Pharmaceuticals                          0.31                      
                                                                   
Biotechnology                            0.24                      
                                                                   
Other Financial                          0.21                      
                                                                   
Media                                    0.18                      
                                                                   
Overseas                                 0.17                      
                                                                   
Information technology - hardware        0.16                      
                                                                   
Financial Services                       0.05                      
                                                                   
Oil exploration & production             0.02                      
                                                                   
Property units                           2.63                      
                                                                   
Fixed Interest Stocks excluding          2.62                      
Preference                                                         
                                                                   
Preference                               1.20                      
                                                                   
Permanent Interest Bearing               0.93                      
                                                                   
Convertible loan stocks                  0.86                      
                                                                   
Total                                  100.00                    

Key facts

Performance

                        As at       As at       As at       As at       As at
                     31 March    31 March    31 March    31 March    31 March
                         2008        2008        2007        2005        2003
                                 3 months      1 year     3 years     5 years
                                                                             
Total assets           37,052                                                
(000)                                                                        
                                                                             
Short term               £nil                                                
borrowings                                                                   
                                                                             
Actual gearing          nil %                                                
                                                                             
NAV (p)                 105.9       -6.5%      -20.1%       -7.1%       31.9%
                                                                      
                                                                             
FTSE All-Share       2,927.05      -11.5%      -10.8%       19.1%       68.6%
                                                               
Share price (p)          91.0       -8.5%      -30.0%      -10.8%       83.8%
                                                              
Discount                14.1%       13.8%        2.0%       10.5%       38.4%
                                                                     
Dividend yield          6.43%                   4.65%       5.78%       6.36%
                                                               
Total expense ratio     1.05%                                                
(year ended 31/12/07)                                                                         
                                               1 year     3 years     5 years
                                                                             
Value of £100                                    74.0       106.9       253.2
invested (dividends reinvested)                                                                  

Total Return; Net Income Reinvested, GBP

Source: Walker Crips Stockbrokers Limited and Fundamental Data Limited.

The Board is not aware of any significant events or transactions which have
occurred between 31 March 2008 and the date of publication of this interim
management statement which would have a material impact on the financial
position of the Company. For latest performance information, please refer to
the Company's website, www.baitgroup.co.uk.

For British & American Investment Trust PLC

May 2008