Substantial Acquisitions of Shares Disclosure

Capital Gearing Trust PLC
13 June 2000

                                                        FORM SAR 3


                                       Date of disclosure    13th JUNE 2000

                 DISCLOSURE UNDER RULE 3 OF THE RULES GOVERNING
                   SUBSTANTIAL ACQUISITIONS OF SHARES ('SARs')

                 
Date of acquisition......  8th JUNE 2000

Acquisition in...........  CAPITAL GEARING TRUST       (name of company)


(1) Class of voting shares    Number of shares/rights   If rights over shares
    (eg ordinary shares)      over shares acquired      acquired, as opposed
                                                        to the shares
                                                        themselves, specify
                                                        nature of rights

    ORDINARY 25p                 25,000 ......shares    .....................
                              ...N/A..........rights


(2) Resultant total holding   Resultant total holding   Total percentage
    of voting shares (and %   of rights over shares
    of total voting shares    (and % of total voting
    in issue)                 shares in issue)

    591,586   (25.38%)        ...............(    %)      ........(25.38%)


(3) Party making disclosure.........  CAZENOVE & CO  

(4)  (a)  Name of person acquiring shares or rights over shares 

               DISCRETIONARY CLIENTS OF CAZENOVE FUND MANAGEMENT LIMITED
           
          and, if different, beneficial owner............................... 

     (b)  Names of any other persons acting by
          agreement or understanding (see SAR 5)............................


Signed, for and on behalf of the party named in (3) above...................

(Also print name of signatory)      A A D McKERRELL

Telephone and extension number      0207 588 2828  EXT 2321

Note. Under SAR 5, the holdings of and acquisitions by persons acting by
agreement or understanding must be aggregated and treated as a holding of or
acquisition by one person.  Note 3 on SAR 5 requires persons who must aggregate
holdings to disclose certain disposals.

For full details of the SARs disclosure requirements, see Rules 3 and 5 of the
SARs.  If in doubt, contact the Panel on Takeovers and Mergers, 
Tel. No: 020 7382 9026.