Issue of Equity

Capital Gearing Trust PLC
3 October 2001


Capital Gearing Trust p.l.c.

Issue of Ordinary Shares

The Board of Capital Gearing Trust p.l.c. are pleased to announce the issue of
55,000 ordinary shares at a price of 1150p per share on 2nd October, 2001. The
shares were allotted for cash at a premium to the net asset value under
section 95 (disapplication of pre-emption provisions) of the Companies Act
1985. Following the issue, there will be 2,320,906 ordinary shares in issue.

The issue is subject to the listing of the shares on the London Stock Exchange
and an application has been made to the UK Listing Authority (the hearing to
be held on 5th October, 2001) with dealings expected to commence on 8th
October, 2001.

Enquiries:

Peter Spiller
CG Asset Management   020 7776 5448