Final Results

NEWS RELEASE

6 March 2003

DUNEDIN INCOME GROWTH INVESTMENT TRUST PLC

PRELIMINARY RESULTS FOR THE YEAR
 TO 31 JANUARY 2003

Highlights

·    Total return for the year of -30.8% compared to a total return for
     the FTSE All-Share Index of -28.9%

·    The equity portfolio returned -25.2% and therefore outperformed the
     benchmark by 5.2%

·    Net gearing maintained at around 20%

·    Proposed total dividend to increase by 3.7% from last year to 7.0p
     per share

·    Revenue per share increased from 6.87p to 7.08p

                                    
- END -


For further information, please contact:-

Max Ward, Chairman
Dunedin Income Growth Investment Trust PLC   0131 220 4167

David Binnie, Investment Manager
Edinburgh Fund Managers plc                0131 313 1000


Chairman's Review
No  matter which statistics one looks at, the year under review has been
a  dismal  one  for equity markets with most stockmarkets having  fallen
sharply.  The UK was no exception to this and in the year to 31  January
2003  the FTSE All-Share Index, our benchmark, recorded a negative total
return  of  28.9%. Our own performance, a negative return of 30.8%,  was
rather  worse than this. However, in the absence of gearing, the  result
would   have   been   a  negative  return  of  25.2%,  representing   an
outperformance of our benchmark of 5.2%. I make this point not to excuse
us for a disappointing result, but to draw attention to the good job our
manager   has  done  on  the  underlying  portfolio  in  very  difficult
circumstances. I shall return to the subject of gearing below.

You  will note that my comments on performance have been confined to the
NAV  total  return,  but  for those who would  like  to  consider  other
measures  a  comprehensive table of statistics is included in  the  full
Report  and Accounts and the manager's review in that document  contains
comments on the capital performance of the company's assets.

This  year, we have for the first time published a complete list of  our
investments in the Report and Accounts.


Dividend
The proposed final dividend of 4.8p per share will give a total dividend
for  the  year  of 7.0p, a rise of some 3.7% on last year's  6.75p.  For
comparison,  headline  inflation  for  the  period  was  2.9%  and  core
inflation,  which  excludes the impact of changes in  mortgage  interest
rates, was 2.7%. The revenue per share within the trust rose from  6.87p
to  7.08p. The proposed dividend is thus covered by our earnings and  we
continue  to have a substantial revenue reserve to draw upon should  the
need  arise.  However, the strength of our position is  attributable  in
part to our policy of charging to capital some 70% of our management fee
and  our  interest costs.  The board remains satisfied that this  is  an
appropriate accounting policy at present, but will keep it under  review
in the light of changing circumstances.

Gearing
Over the years, your board has taken the view that the long term returns
from  equities  would  be such as to justify the use  of  borrowings  to
finance  a  significant part of the portfolio, a strategy to  which  the
investment  trust structure is ideally suited. Whatever  the  merits  of
this  view,  with the benefit of hindsight two things are clear.  First,
the  fixed rates of interest set on our long term borrowings at the time
of  issue (in 1986, 1989 and 1997) now appear uncomfortably high, making
the  borrowings expensive to service and to redeem ahead of their  term;
and secondly, the scale of the fall in the stockmarket over the last two
years  has  been  greater  than anything we had  envisaged  as  remotely
likely.  Should  these  two observations affect our  policy  on  gearing
either  in  the  immediate future or in the long term?  As  far  as  the
immediate future is concerned, the key issues are the current  level  of
long  term interest rates (which determines the return needed  from  our
equity portfolio to make our gearing a benefit rather than a burden) and
the  overall valuation of equities (which has a major influence  on  the
likelihood  of our achieving this return). At the moment,  the  relevant
long  term  interest  rate  for DIGIT is some 5.9%,  being  the  blended
redemption  yield  on  our  outstanding debentures,  while  the  overall
valuation  of equities is in many sectors more attractive  than  it  has
been  for  much of the last twenty years. DIGIT's portfolio is currently
yielding  around 4.4%, which implies that capital growth  in  excess  of
1.5%  pa is required from it to deliver a total return above the current
cost  of  borrowing. We see this as readily achievable and thus consider
that, however badly the presence of gearing may have served us over  the
past two years, it is appropriate in today's market to maintain our  net
gearing  at  around 20%, which was the level prevailing  at  31  January
2003.  For the longer term, you may rest assured that we shall  continue
to  keep  the  level  of  gearing under constant review  and  shall  not
hesitate  to  adjust our views as circumstances change.  Above  all,  we
shall  ensure  that gearing remains within prudent limits  whatever  the
level of the market.


Discount
The  discount  to  net  asset value at which the company's  share  price
stands  is an important statistic for an investment trust. At the  year-
end  DIGIT's  discount was 12.4%, compared to 11.2% at the  end  of  the
previous  year. However, if the discount is calculated using the  market
value of the debentures instead of the par value, then the discount  has
fallen  during  the  year  from  6.1% to 2.3%.  The  discount  has  been
relatively  stable  during  the year. Our marketing  efforts  (described
below)  and the renewal of our authority to buy in our own shares should
both  be  a  help to us in achieving our objective of a low  and  stable
discount.


Marketing
The  board  works actively to stimulate demand for the company's  shares
through  the  manager's  Investment  Trust  Initiative  which  helps  to
maintain a low level of discount to asset value.  The company's website,
www.itsdigit.com,  highlights all aspects of the  company's  performance
and  strategy.  This site contains detailed information on investing  in
the shares of DIGIT in a low cost manner, either through regular savings
or  a lump sum.  Details of these products can also be found in the full
Report and Accounts.

Our  manager has a regular programme of visits to financial advisers and
potential investors throughout the country.  We continue to support  the
Association  of Investment Trust Companies and their active  campaigning
to attract more retail investors to the industry.


Management
Our manager, Edinburgh Fund Managers plc (EFM), has had a difficult year
and  attracted some unwelcome publicity. We should like to make it clear
that  DIGIT  has not suffered any adverse consequences as  a  result  of
this: the standard of service we have received has remained consistently
high  and the key people providing this service have remained in  place.
For  as  long as this continues and appears sustainable to us, EFM  will
continue to command our full support.


Outlook
With  the myriad uncertainties of the Middle East, hesitant progress  in
many  of  the world's leading economies, the lurking threat of deflation
in some of them and a global bear market that is already among the worst
in  living  memory, it is not hard to find causes for concern.  However,
the  observation that the future is a dangerous place is not a new  one:
it  is  just that the dangers appear more visible at the moment than  is
sometimes the case. Throughout time, investors have had a choice between
buying  shares  at high prices when the outlook appears  comforting  and
buying shares at low prices when the outlook appears worrying. It is not
hard  to  work  out which strategy has produced the better  returns  for
those with a genuine long term perspective.

We  have no way of knowing how close we are to a market bottom,  but  we
think that the UK economy is relatively well placed in a global context.
There are still plenty of strong businesses in the UK and the shares  of
many  of  these  businesses,  particularly  those  with  strong  income-
producing characteristics, are attractively valued. We suspect that when
we  look back on this time in the years ahead we shall think of it as  a
period  of  opportunity  for  stockmarket  investors,  especially  those
seeking growth in income as well as capital.

The  company's  Annual General Meeting takes place in  Edinburgh  on  22
April and I look forward to seeing as many of you there as possible.


Max Ward
Chairman






STATEMENT OF TOTAL RETURN (AUDITED)
For the year ended 31 January

                                    2003
                            Revenue  Capital    Total        
                                                             
                             £000      £000      £000        
                                                                
Realised losses on                -  (26,949)   (26,949)        
investments
Unrealised losses on              -  (89,300)   (89,300)        
investments
                           _____________________________                                     
TOTAL CAPITAL LOSSES              - (116,249)  (116,249)        
ON INVESTMENTS
                                                                
Income from investments      13,698         -     13,698        
Interest receivable on          773         -        773        
short term deposits
Other income                     14         -         14        
Investment management fee     (506)   (1,181)    (1,687)        
Administrative expenses       (546)         -      (546)        
                           _____________________________                                     
NET RETURN BEFORE            13,433 (117,430)  (103,997)        
 FINANCE COSTS
AND TAXATION
                                                                
Interest payable and        (2,092)   (4,883)    (6,975)        
similar charges
                           _____________________________                                     
RETURN ON ORDINARY           11,341 (122,313)  (110,972)        
ACTIVITIES BEFORE
TAXATION
                                                                
Taxation                          -         -          -        
                           _____________________________
RETURN ON ORDINARY           11,341 (122,313)  (110,972)        
ACTIVITIES AFTER
 TAXATION
                                                                
                                                                
Dividends in respect       (11,204)         -   (11,204)        
of equity shares
                           _____________________________
                                137 (122,313)  (122,176)        
                           _____________________________
                                     
RETURN PER                 7.08p     (76.40p)    (69.32p)        
ORDINARY SHARE             ______________________________  


STATEMENT OF TOTAL RETURN (AUDITED)
For the year ended 31 January

                                     2002
                            Revenue  Capital    Total
                                                  
                             £000      £000     £000
                                                      
Realised losses on                -   (8,647)  (8,647)
investments
Unrealised losses on              -  (48,319) (48,319)
investments
                           _____________________________                          
TOTAL CAPITAL                     -  (56,966) (56,966)
 LOSSES ON
 INVESTMENTS
                                                      
Income from investments      13,956         -   13,956
Interest receivable on          497         -      497
short term deposits
Other income                      2         -        2
Investment management fee     (601)   (1,402)  (2,003)
Administrative expenses       (579)         -    (579)
                           _____________________________                          
NET RETURN BEFORE            13,275  (58,368) (45,093)
FINANCE COSTS AND
 TAXATION
                                                      
Interest payable and        (2,276)   (5,310)  (7,586)
similar charges
                           _____________________________                                                    
RETURN ON ORDINARY           10,999  (63,678) (52,679)
 ACTIVITIES BEFORE
 TAXATION
                                                      
Taxation                          -         -        -

RETURN ON ORDINARY           10,999  (63,678) (52,679)
 ACTIVITIES AFTER
TAXATION
                                                      
                                                      
Dividends in respect       (10,806)         - (10,806)
of equity shares
                           _____________________________
                                193  (63,678) (63,485)
                           _____________________________
                                                      
RETURN PER ORDINARY        6.87p     (39.77p)   (32.90p)
 SHARE                     _____________________________

The revenue column of this statement represents the revenue account of
the company
All revenue and capital items in the above statement derive from
continuing operations



BALANCE SHEET (AUDITED)
As at 31 January
                                           2003                 2002     
                                           £000                 £000     
FIXED ASSETS                                                          
Investments                          296,469              428,890      
                                                                         
CURRENT ASSETS                                                           
Debtors                              2,183                1,284          
UK Treasury Bills                    2,979                4,960          
AAA Money Market Funds               20,000               13,000         
Cash and short term deposits         5,196                3,359          
                                     ____________         ___________                                    
                                     30,358               22,603         
CREDITORS:                           8,340                10,843         
Amounts falling due within one year
                                     ____________         ___________                                    
NET CURRENT ASSETS                   22,018               11,760         
                                     ____________         ___________
                                    
TOTAL ASSETS LESS                    318,487              440,650        
CURRENT LIABILITIES
                                                                         
CREDITORS:                           69,779               69,766         
 Amounts falling due after one year  ____________         ___________

                                                                         
                                     248,708              370,884
                                     _____________        ___________                                     
                                                                         
CAPITAL AND RESERVES                                                     
Called up share capital - equity     40,025               40,025         
Share premium                        4,543                4,543          
Capital reserve - realised           258,805              291,818        
Capital reserve - unrealised         (61,748)             27,552         
Revenue reserve                      7,083                6,946          
                                                                         
                                     _____________        ___________                                    
TOTAL EQUITY                         248,708              370,884        
SHAREHOLDERS' FUNDS                  _____________        ___________
                                                                        
Net asset value per                  155.21p              231.51p        
ordinary 25p share
                                                                        



CASHFLOW STATEMENT (AUDITED)
For the year ended 31 January
                                                            
                               2003      2003             2002      2002
                               £000      £000             £000      £000
                                                   
                                                                          
Net cash inflow from                   12,068                     12,705
operating activities
                                                                          
Servicing of finance                                                      
Interest paid                (6,962)                    (7,572)   
                                                                          
Net cash outflow from                   (6,962)                    (7,572)
servicing of finance
                                                                          
Taxation                                                                  
UK tax paid                        -                      (412)              
                             _______                   ________  
             
Total tax paid                         -                             (412)
                                                                  
Financial investment                                              
Purchase of investments      (91,635)                 (199,101) 
Sales of investments         104,269                    211,400   
                             ________                  ________                                     
Net cash inflow from                   12,634                       12,299
financial investment
                                                                  
Equity dividends paid                  (10,884)                   (10,565)
                                       ________                   _________        
Net cash inflow before use                                      
of liquid resources and                   6,856                       6,455
financing
                                                                  
Net cash outflow from                   (5,019)                     (8,061)
management of liquid
resources
                                                                  
Financing                                                         
Loan drawn down                     -                  25,000    
Loan repaid                         -                 (25,000)  
                             _________                _________                      
Net cash inflow from                          -                         -
financing                              _________                  ________
                                                                  
Increase/(Decrease) in cash               1,837                    (1,606)
                                       _________                  ________


Notes:

1.The  directors  recommend that a final dividend of 4.8p  per  ordinary
share be paid, making a total of 7.0p for the year ended 31 January 2003
(2002  -  6.75p).  The final dividend will be paid on 25 April  2003  to
shareholders on the register at 4 April 2003.  The ex-dividend  date  is
2 April 2003.

2.  The  accounts have been prepared under the same accounting  policies
used  for the year to 31 January 2002.  The statutory accounts for  2003
contain  an  unqualified  audit report and  will  be  delivered  to  the
Registrar  of  Companies following the company's Annual General  Meeting
which  will be held at Donaldson House, 97 Haymarket Terrace, Edinburgh,
EH12 5HD, on Tuesday 22 April 2003 at 12 noon.

3. The financial information for the year ended 31 January 2002 has been
extracted  from the annual report and accounts of the company which  has
been  filed  with the Registrar of Companies and on which the  auditors'
report was unqualified.

4   The  statement of total return  (incorporating the revenue account),
balance sheet and cash flow statement do not represent full accounts  in
accordance with Section 240 of the Companies Act 1985. The accounts have
been  prepared in accordance with the Statement of Recommended  Practice
'Financial Statements of Investment Trust Companies'.

5.The annual report will be posted to shareholders on 17 March 2003 and
copies will be available at the head office of the Secretary - Edinburgh
Fund Managers plc, Donaldson House, 97 Haymarket Terrace, Edinburgh EH12
5HD.

Please  note  that past performance is not necessarily a  guide  to  the
future  and that the value of investments and the income from  them  may
fall  as  well  as  rise.  Investors may not get back  the  amount  they
originally invested.