Interim Results

ACM European Enhanced Inc.Fund PLC
31 August 2005



ACM EUROPEAN ENHANCED INCOME FUND PLC

PRELIMINARY RESULTS FOR THE SIX MONTH PERIOD ENDED JUNE 2005


31 AUGUST 2005

ACM European Enhanced Income Fund Plc announces its results for the
six month period to 30 June 2005.

For further information, please contact:

Winterflood Investment Trusts
Nathan Brown


Tel. [phone]


Manager's Report


This report contains investment results and market activity for ACM European
Enhanced Income Fund Plc (the 'Company') for the semi-annual reporting period
ended 30 June 2005.

INVESTMENT RESULTS

The following table provides performance data for the Company for the six- and
12-month periods ended 30 June 2005. For comparison, we have included a custom
blended benchmark consisting of 50% Merrill Lynch European High Yield Index
(hedged into euros) and 50% Lehman Brothers European Corporate Bond Index,
converted into sterling. This benchmark represents an unmanaged measure of the
markets and instruments in which the Company is able to invest. The performance
presented below is reported in sterling.

    INVESTMENT RESULTS*

Periods Ended 30 June 2005
                                                       Returns
                                                6 Months   12 Months
ACM European Enhanced Income Fund Plc          -1.39%     14.74%
Merrill Lynch European High Yield Index        -2.35%     12.80%
(hedged into euros)
Lehman Brothers European Corporate Bond Index  -0.76%     10.28%
Custom Benchmark**                             -1.54%     11.56%
UnLeveraged Custom Benchmark***                -0.77%     14.43%



* The Company's investment results are monthly compounded total returns for the
periods shown and are based on the net asset value (NAV) as of 30 June 2005. All
fees and expenses related to the operation of the Company have been deducted.
For each index and benchmark, the results shown are monthly compounded returns
converted into sterling. Past performance is no guarantee of future results.

**The custom benchmark is comprised of equal 50% weightings of two indices, the
Merrill Lynch European High Yield Index (hedged into euros) and the Lehman
Brothers European Corporate Bond Index. The custom blended benchmark is then
converted into sterling. The Merrill Lynch European High Yield Index is a
euro-denominated index and is comprised of corporate bonds with maturities
greater than or equal to one year. The Lehman Brothers European Corporate Bond
Index is a multiple currency index and is a measure of fixed-rate securities
with at least one year remaining until maturity. An investor cannot invest
directly in an index, and its results are not indicative of the performance for
any particular investment, including the Company. Neither the index nor the
custom benchmark includes the operating expenses associated with an investment
in an investment company.

*** The leveraged custom benchmark is the custom benchmark in euros, leveraged
by 25% and converted into sterling.



Detracting from the Company's relative performance was the Company's overweight
position in high yield during the middle of the semi-annual period, as high
yield underperformed higher-quality credit. During the latter half of the first
quarter and the beginning of the second quarter, the high-yield market
experienced weakness due to concerns about the impact on the overall market of a
downgrade of General Motor's (GM's) bonds to non-investment grade. In
particular, there were concerns that such a downgrade would lead to forced
selling by certain investors which would have driven spreads wider. By the end
of the second quarter, however, the market remained resilient and spreads began
to tighten as fears about such a market impact subsided.

In July, the Company outperformed due to its overweight position in high yield
which continued to rebound from the weakness experienced earlier in the year.
Euro area economic data grew more positive in July, providing evidence that the
economy troughed in the second quarter. The European Central Bank held its main
lending rate at 2%. Government bond markets sold off as economic data turned
more positive and a rate cut grew less likely. Confidence returned to corporate
and high yield bond markets on the back of a sustained rally in equity markets
and as the downgrade of GM and Ford Motor Company to high yield was fully
digested. Broad credit metrics continued to provide evidence of healthy
underlying corporate fundamentals. The Company continues to be modestly
overweight in high yield debt relative to the custom unleveraged benchmark,
given our cautiously optimistic outlook on the economy and the overall tight
level of spreads.

MARKET REVIEW AND INVESTMENT STRATEGY

During the reporting period, European gross domestic product growth picked up
modestly in the first quarter but rose only slightly in the second. Economic and
employment growth remained sluggish in France and Germany but was very strong in
Spain. With euro area growth below trend, the European Central Bank left its
main rate unchanged at 2%. During the reporting period, the dollar/euro ($/€)
exchange rate fell from a record 1.36 $/€, down to 1.21 $/€ at the end of June.

European government bonds and fixed-income markets in general performed well in
the first quarter of 2005, helped by the low growth, benign inflation economic
environment and strong investor demand for fixed-income securities. Investment
grade corporate bonds outperformed government bonds in the first two months of
2005 as corporate fundamentals continued to improve and market technicals
(demand versus supply) remained strong. However, corporate bonds sold off in
March 2005 when GM issued a profit warning. The speed and scale of GM's
financial deterioration caught investors off guard, while the uncertainties
surrounding the potential loss of its investment grade rating curbed investors'
appetite for additional risk. Though market technicals (demand vs. supply)
suffered in March, corporate fundamentals remained strong as indicated by the
number of companies upgraded by Moody's compared to the number downgraded. The
European investment grade corporate bond market recovered somewhat in the second
quarter, resulting in a return of -0.76% for the six-month reporting period (as
measured by the Lehman Brothers European Corporate Bond Index).

The European high-yield market started 2005 strong, benefiting from improving
corporate fundamentals, declining default rates, strong market technicals and
low equity market volatility. However, concerns surrounding the implications of
GM falling into the high-yield universe sparked a risk reduction sell-off in
March. High-yield bonds posted their worst quarter since the third quarter of
2002 for the quarter ending in March but recovered somewhat in the second
quarter.

As spreads began to widen during the semi-annual period, we reduced the
Company's exposure to riskier names. We had concerns about the possibility of
extensive selling in the marketplace over the coming months that would have been
the result of a downgrade of GM to non-investment grade levels. However, as the
market absorbed the news and it became apparent that such wholesale selling
would be less likely, we began increasing the level of risk in the portfolio
toward prior levels by increasing the weight in high yield. As the market began
to realize the lower risk of a sell-off in credit, spreads in the market began
to narrow, particularly for the lower-quality, higher risk issuers.

Throughout the period we have maintained the Company's underweight duration
position, given our belief that growth will continue to improve over the
remainder of the year and yields will eventually rise from their currently low
levels. We have become marginally more optimistic on economic growth for the
second half of this year, and are maintaining our short duration position.



Thank you for your continued interest and investment in ACM European Enhanced
Income Fund Plc.



Sincerely,

Alliance Capital Management L.P.

Investment Manager


STATEMENT OF TOTAL RETURN
From 1 January 2005 to 30 June 2005 (unaudited)

                                                                                  June         June
                                                                                  2005         2004
                                                      Revenue      Capital       Total       Total *
                                                         £            £            £            £

Net (losses)/gains on investments during the period     -0-        -706,084     -706,084    -2,119,038
Net (losses)/gains on foreign exchange                  -0-       -1,256,089  -1,256,089     194,064

Net investment (losses)/gains for the period            -0-       -1,962,173   -1,962,173   -1,924,974

Gross income                                         1,774,231       -0-       1,774,231    1,651,062
Expenses                                              -316,530     -105,513     -422,043     -372,913

Net income for the period                            1,457,701     -105,513    1,352,188    1,278,149


Return on ordinary activities                        1,457,701    -2,067,686    -609,985     -646,825

Distributions                                        -1,421,024      -0-       -1,421,024   -1,421,024

Net (decrease)/increase in Shareholders' funds from    36,677     -2,067,686   -2,031,009    -2,067,849
investment activities



STATEMENT OF MOVEMENTS IN SHAREHOLDERS' FUNDS

From 1 January 2005 to 30 June 2005 (unaudited)


                                                          June              June
                                                          2005              2004
                                                          Total            Total *
                                                            £                 £

Net assets at the start of the period                  42,075,123        39,579,296
Net (decrease)/increase in Shareholders' funds from    -2,031,009        -2,067,849
investment activities

Net assets at the end of the period                    40,044,114        37,511,447


All returns are generated by continuing operations. There were no gains or
losses other than those included in the Statement of Total Return.

* June 2004 comparatives represents the period from 1 January 2004 to 30 June
2004.



BALANCE SHEET
as at 30 June 2005 (unaudited)


                                                           June             June
                                                           2005             2004
                                                          Total            Total
                                                            £                £

Portfolio of investments                                47,620,220       43,440,778
Current assets
Debtors                                                 2,130,233        1,551,881
Cash and bank balances                                    6,956           883,258
                                                        2,137,189        2,435,139
Less: Current liabilities
Creditors (less than one year)                           -454,592         -146,534
Loan                                                    -9,185,663       -8,217,936
Bank Overdraft                                           -73,040            -0-
                                                        -9,713,295       -8,364,470
Net current liabilities                                 -7,576,106       -5,929,331

Net assets                                              40,044,114       37,511,447
Shareholders' funds (all equity interests)              40,044,114       37,511,447

Number of Shares in issue                               54,654,743       54,654,743
Net Asset Value per Share                                £0.7327          £0.6863




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