Interim Results

F&C Capital & Income Inv Tst PLC
15 May 2007

Date:              15 May 2007

Contact:           Julian Cane
                   F&C Management Limited
                   020 7628 8000

                  F&C CAPITAL AND INCOME INVESTMENT TRUST PLC
                    Unaudited Interim Statement of Results
                     for the half-year ended 31 March 2007

HIGHLIGHTS OF RESULTS

SUMMARY OF UNAUDITED RESULTS FOR THE HALF-YEAR TO 31 MARCH 2007

•         The net asset value total return was 8.0% while the FTSE All-Share
          total return index rose 9.2%;
•         Revenue return per share rose 12.2%;
•         Dividends for the first six months total 3.2 pence per share, an
          increase of 10.3%;
•         At the end of March the discount was 6.0% having started the financial
          year at a discount of 6.2%.



                                                               31 March 2007       30 September 2006       % Change

Net assets                                                          £211.24m                £200.76m           +5.2

Net asset value per share                                            263.34p                 249.03p           +5.7

Share price                                                          247.50p                 233.50p           +6.0

                                                                 6 months to             6 months to
                                                               31 March 2007           31 March 2006       % Change

Revenue earnings per share                                             3.68p                   3.28p          +12.2

Dividends per share:
First interim dividend in respect of year ending:
      30 September 2007                                               *1.60p                       -
      30 September 2006                                                    -                   1.40p
Second interim dividend in respect of year ending:
      30 September 2007                                              **1.60p                       -
      30 September 2006                                                    -                   1.50p
Total dividends relating to the period                                 3.20p                   2.90p          +10.3


*   Paid on 30 March 2007.

** Payable on 29 June 2007 to shareholders registered on 8 June 2007.

Chairman's Statement



Dear Shareholder,

During the six months under review from 30 September 2006 to 31 March 2007, the
UK stock market made further progress as the FTSE All-Share total return index
rose by 9.2%.  Over the same period, your Company produced a net asset value
total return of 8.0%; and the share price rose by 6.0%.

The second interim dividend for the period from 31 December 2006 to 31 March
2007 is 1.6 pence per share, which together with the first interim, also of 1.6
pence, gives a total of 3.2 pence, an increase of 10.3% on the equivalent period
last year.

Capital Performance

From the nadir of March 2003 that marked the end of the bear market, the FTSE
All-Share Index has risen over 90 per cent to achieve a new record high, finally
surpassing the levels seen in 1999 and 2000.  Although the rise has been
substantial, it has occurred during a period of strong economic growth and
company earnings are estimated to have risen by more than 120%.  The market has
been strongly influenced by this earnings growth but has failed to reflect it
fully in valuation levels.  The market is by comparison valued lower in terms of
the simple price / historic earnings multiple (12.5x) than four years ago
(14.4x).  Further positive factors for the market include mergers and take-over
activity facilitated by the availability of cheap money with low interest rates
and narrow bond spreads.  Bid targets have included Alliance Boots, Corus,
Gallaher and Scottish Power, and rumoured take-over candidates have included a
number of others such as Cadbury, J. Sainsbury, Scottish & Southern and Scottish
& Newcastle.

Overall, the portfolio of your Company recorded a level of capital growth that
was reasonable in absolute terms, although it somewhat lagged the broader index.
  This was largely due to the portfolio's underweight exposure to companies
involved in take-over activity, whether real or rumoured, and to significant
exposure to some of the largest companies as these have performed poorly.  The
most disappointing investments over the last six months include AstraZeneca
(-18%), HSBC (-8%), Royal Dutch Shell (-7%) and BP (-5%); some of these
performed badly for company-specific reasons, but they are also seen as too
large to be take-over targets.  Their more positive characteristics, such as
diversified international exposure, financial strength and low valuations are,
at least temporarily, being ignored.

Dividend

Dividend growth in the UK stockmarket has been about 12% over the last year as
companies have continued to report good levels of earnings growth, and their
cash generation and balance sheets have remained strong.  Your Company's
increase in revenue return per share of 12.2% was therefore closely in line with
the general experience of the market, and builds on the exceptionally strong
increase of 21.9% last year.

In line with your Company's objective to build on its record of steady dividend
growth, dividends for the first six months total 3.2 pence per share, an
increase of 10.3% on last year and broadly in line with the Company's own level
of income growth.  Over the last two years, dividends for the first six months
of the financial year have grown by 17.4% from 2.725 pence per share, a rate far
in excess of inflation.

Gearing

Throughout the last six months, your Company has used borrowings to invest in
the stock market in anticipation of achieving a return greater than the cost of
borrowing.  The amount borrowed has been relatively modest at about 5% of the
total portfolio.  The returns from the portfolio in capital appreciation and
dividends have comfortably exceeded the relatively low interest cost.

Discount to Net Asset Value ("NAV") and Share Buy-Backs

The Board continues to believe that shareholders appreciate a share price that
trades close to NAV.  To this end the Company purchased 402,000 shares during
the six months under review to remove surplus shares from the market that might
have caused the shares to trade at a wider discount.  At the end of March the
discount was 6.0% having started the financial year at a discount of 6.2%.

Outlook

Given the overall economic and corporate background companies are expected to
report further reasonable levels of growth in earnings and dividends during the
rest of 2007.  This would tend to favour a further rise in the market. But there
are also risks.  The large Oil & Gas producers will find it difficult to match
profits relative to last year when the oil price was high.  The most significant
concern is over the future path of inflation, and hence interest rates.  With
the RPI showing price increases at almost 5% and strong asset price inflation,
interest rates may be raised higher than currently anticipated.  At a time when
the level of personal debt is at very high levels, this could cause a
considerable slow-down in the growth of consumer expenditure. The Bank of
England has recently warned that the level of credit risk of some financial
institutions may be under-estimated.  The current strength of sterling against
the dollar will also reduce the sterling value of overseas dollar earnings of UK
companies and may reduce export growth.  These factors could combine to depress
the market.

Despite these caveats, current valuation levels, continued high level of merger
and acquisition activity and growth potential still make equities look
attractive compared to other asset classes and should allow your Company to make
further progress in terms of capital and income growth.

Pen Kent
May 2007

UNAUDITED INCOME STATEMENT

                                                             6 months to 31 March 2007        6 months to 31 March 2006
                                                         Revenue     Capital     Total      Revenue   Capital     Total
                                                          £'000s      £'000s    £'000s       £'000s    £'000s    £'000s

Gains on investments                                           -      13,071    13,071            -    20,261    20,261
Exchange gains/(losses) on currency balances                   -           1         1            1      (24)      (23)
Income                                                     3,594           -     3,594        3,264         -     3,264
Management fee                                             (255)       (255)     (510)        (230)     (230)     (460)
Other expenses                                             (254)         (1)     (255)        (260)      (15)     (275)
Net return before finance costs and taxation               3,085      12,816    15,901        2,775    19,992    22,767
Interest payable and similar charges                       (121)       (121)     (242)         (95)      (95)     (190)
Return on ordinary activities before taxation              2,964      12,695    15,659        2,680    19,897    22,577
Taxation on ordinary activities                              (4)           -       (4)         (14)         -      (14)
Return attributable to equity shareholders                 2,960      12,695    15,655        2,666    19,897    22,563

Return per ordinary share - pence                           3.68       15.78     19.46         3.28     24.50     27.78


The total column is the profit and loss account of the Company.

All revenue and capital items in the above statement derive from continuing
operations.

A statement of Total Recognised Gains and Losses is not required as all gains
and losses of the Company have been reflected in the above statement.

UNAUDITED RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

                                    Called-up      Share       Capital                                     Total equity
                                        share    premium    redemption   Special     Capital    Revenue   Shareholders'
                                      capital    account       reserve   reserve    reserves    reserve           Funds
                                       £'000s     £'000s        £'000s    £'000s      £'000s     £'000s          £'000s
Balance brought forward at
    1 October 2005                     20,548     76,334         3,154    11,960      63,621      3,729         179,346
Dividends paid                              -          -             -         -           -    (2,499)         (2,499)
Purchase of ordinary share held
    in treasury                             -          -             -     (556)           -          -           (556)
Return attributable to equity
    shareholders                            -          -             -         -      19,897      2,666          22,563
Balance carried forward at
    31 March 2006                      20,548     76,334         3,154    11,404      83,518      3,896         198,854
Balance brought forward at
    1 October 2005                     20,548     76,334         3,154    11,960      63,621      3,729         179,346
Dividends paid                              -          -             -         -           -    (4,850)         (4,850)
Purchase of ordinary share held
    in treasury                             -          -             -   (1,647)           -          -         (1,647)
Return attributable to equity
    shareholders                            -          -             -         -      22,027      5,879          27,906
Balance carried forward at
30 September 2006                      20,548     76,334         3,154    10,313      85,648      4,758         200,755
Balance brought forward at
    1 October 2006                     20,548     76,334         3,154    10,313      85,648      4,758         200,755
Dividends paid                              -          -             -         -           -    (4,184)         (4,184)
Purchase of ordinary share held
    in treasury                             -          -             -     (989)           -          -           (989)
Return attributable to equity
    shareholders                            -          -             -         -      12,695      2,960          15,655
Balance carried forward at
31 March 2007                          20,548     76,334         3,154     9,324      98,343      3,534         211,237

UNAUDITED BALANCE SHEET
                                                   At 31 Mar 2007          At 31 Mar 2006           At 30 Sep 2006
                                                           £'000s                  £'000s                   £'000s
Fixed assets
Listed investments                                        220,497                 206,394                  203,978
Current assets
Debtors                                                     1,731                   1,554                    3,069
Cash at bank and short-term deposits                           18                       9                    3,152
                                                            1,749                   1,563                    6,221
Current liabilities
Short-term loans                                          (9,000)                 (8,000)                  (8,000)
Other creditors                                           (2,009)                 (1,103)                  (1,444)
                                                         (11,009)                 (9,103)                  (9,444)
Net current liabilities                                   (9,260)                 (7,540)                  (3,223)
Net assets                                                211,237                 198,854                  200,755
Shareholders' equity
Called-up share capital                                    20,548                  20,548                   20,548
Share premium account                                      76,334                  76,334                   76,334
Capital redemption reserve                                  3,154                   3,154                    3,154
Special reserve                                             9,324                  11,404                   10,313
Capital reserves                                           98,343                  83,518                   85,648
Revenue reserve                                             3,534                   3,896                    4,758
Total equity shareholders' funds                          211,237                 198,854                  200,755
Net asset value per ordinary share
- pence                                                    263.34                  245.15                   249.03


UNAUDITED CASH FLOW STATEMENT
                                                                               6 months to             6 months to
                                                                             31 March 2007           31 March 2006
                                                                                    £'000s                  £'000s

Net cash inflow from operating activities                                            1,928                   1,814
Interest paid                                                                        (234)                   (190)
Total tax paid                                                                         (3)                     (1)
Equity dividends paid                                                              (4,188)                 (2,499)
Net cash outflow from purchases and sales of investments                           (2,076)                    (40)
Net cash outflow before use of liquid resources and financing                      (4,573)                   (916)
Decrease in short-term deposits                                                          -                   1,700
Net cash outflow from financing                                                      (144)                 (1,170)
Decrease in cash during the period                                                 (4,717)                   (386)

Reconciliation of net cash flow to movement in net debt
Decrease in cash during the period                                                 (4,717)                   (386)
Decrease in short-term deposits                                                          -                 (1,700)
(Increase)/decrease in short-term loans                                            (1,000)                     500
Exchange movement                                                                        1                    (24)
Movement in net funds in the period                                                (5,716)                 (1,610)
Net debt at the beginning of the period                                            (4,848)                 (7,119)
Net debt at the end of the period                                                 (10,564)                 (8,729)


Notes

1    ACCOUNTING POLICIES

These results have been prepared on the basis of the accounting policies set out
in the Company's financial statements at 30 September 2006.

2    DIVIDEND

The second interim dividend in respect of the year ending 30 September 2007 of
1.60p will be paid on 29 June 2007 to shareholders registered on 8 June 2007.
The total cost of this dividend, based on 80,064,268 shares in issue and
entitled to dividend on 15 May 2007, is £1,281,000.

3    RETURN PER ORDINARY SHARE

Returns per ordinary share attributable to ordinary shareholders reflects the
overall performance of the Company in the period.  Net revenue recognised in the
first six months is not indicative of the total likely to be received in the
full accounting year.

                                                      6 months to              6 months to                 Year to
                                                      31 Mar 2007                31 Mar 06               30 Sep 06
                                                           £'000s                   £'000s                  £'000s

Revenue return                                              2,960                    2,666                   5,879
Capital return                                             12,695                   19,897                  22,027
Total return                                               15,655                   22,563                  27,906
                                                           Number                   Number                  Number
Weighted average ordinary shares in issue*             80,462,065               81,229,686              81,045,828

* Shares held in treasury have been excluded from the weighted average number of
shares in issue.

4    RESULTS

The results for the six months to 31 March 2007 and 31 March 2006, which are
unaudited, constitute non-statutory accounts within the meaning of Section 240
of the Companies Act 1985. The latest published accounts which have been
delivered to the Registrar of Companies are for the year ended 30 September
2006; the report of the auditors thereon was unqualified and did not contain a
statement under Section 237 of the Companies Act 1985. The abridged financial
statements shown above for the year ended 30 September 2006 are an extract from
those accounts (except as noted above).

5    HALF-YEARLY REPORT AND ACCOUNTS

The Report and Accounts will be posted to shareholders in late May 2007.  Copies
may be obtained during normal business hours from the Company's Registered 
Office, Exchange House, Primrose Street, London EC2A 2NY.


By order of the Board
F&C Management Limited, Secretary
Exchange House, Primrose Street, London EC2A 2NY
15 May 2007




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