Novation Agreements

ABERFORTH GEARED CAPITAL & INCOME TRUST PLC

Aberforth Geared Capital & Income Trust PLC (the "Company") announces that on 12 October 2005 the Board approved the
terms of a novation agreement to be entered into between the Company, Aberforth Partners (the "Partnership") and
Aberforth Partners LLP (the "LLP") pursuant to which the investment management, administration and company secretarial
services currently provided to the Company by the Partnership will be novated to the LLP with the effect that such
services shall from the date of the novation be provided to the Company by the LLP instead of the Partnership. It is
intended that the Company and the LLP contract will be on the same terms as currently exists between the Company and the
Partnership.

The Partnership intends to transfer its entire business and assets to the recently formed LLP and intends that the
personnel involved in providing the investment management, administration and secretarial services to the Company will
be identical after the novation. The purpose of the Company entering into the novation agreement is to enable the
provision of the services to continue to be provided to the Company by the new LLP entity. It is anticipated that the
novation will be effected in early December 2005 and a further announcement will be made at that time.

Aberforth Partners
Company Secretary
0131 220 0733

12 October 2005

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