Issue of Equity

CAPITAL GEARING TRUST plc

Issue of Ordinary Shares

The Board, in accordance with its stated intention to operate an informal
discount/premium control mechanism to satisfy major market supply and demand
imbalances, are pleased to announce the issue of 40,000 ordinary shares at a
price per share of £28.25 on 6 August 2010.

The shares were allotted for cash at a premium of 14.7% to the unaudited net
asset value as at 30 July 2010 and in accordance with the authority given to
the Directors at the 2010 Annual General Meeting to allot shares on a non
pre-emptive basis.

Following the issue, there are 2,834,906 ordinary shares in issue.

Enquiries:

Keith Hawkins, TMF Corporate Secretarial Services Limited

Email: [e-mail]

Date: 6 August 2010