Issue of Equity

Capital Gearing Trust PLC
18 July 2002

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
35,000 ordinary shares at a price of 1193p per share on 17 July 2002. 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 2,355,906 ordinary shares in issue.


Enquiries:

Peter Spiller

CG Asset Management           020 7776 5448

END


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