Dividend Declaration

ACM European Enhanced Inc.Fund PLC
11 October 2002





ACM EUROPEAN ENHANCED INCOME FUND PLC



Announcement of dividend



11 October 2002







The Board of ACM European Enhanced Income Fund Plc (the 'Fund') announces that
the interim dividend for the three months to 30 September 2002 will be 1.05p per
share, to be paid on 31 October 2002 to shareholders on the register on 25
October 2002.  Ex dividend dealings are expected to commence on 23 October 2002.



The dividend of 1.05p per share represents a reduction of 0.15p per share
compared to the previous two quarters, which is consistent with the reduced
level of underlying earnings in this period.  The distribution represents
substantially all of the net income received in the period.



The reduction in the net income reflects the Fund's current, defensive asset
allocation stance which the Investment Manager has adopted since February 2002
through holding higher levels of government securities, in anticipation of
slower economic growth in Europe and heightened risk in the financial markets.
This has reduced the portfolio yield, particularly given the recent sharp
decline in yields on government and investment grade bonds.



As at the end of September 2002, the Fund's assets were allocated as to 48.3% in
high yield bonds, 38% in investment grade debt and 13.2% in government bonds,
with the balance in cash.  This defensive allocation has enabled the Fund better
to protect its capital base.



The Board will keep the current, defensive positioning of the portfolio and the
associated level of dividends payable under close review in the light of
changing market conditions. The Board intends that the Fund will continue to
distribute to shareholders substantially all of the Fund's net income.









Enquiries:





Geoffrey Hyde

Alliance Capital Limited

Tel. [phone]






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