Final Results

MURRAY INCOME TRUST PLC
11 August 1999


MURRAY INCOME TRUST PLC
-----------------------
PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 1999
---------------------------------------------------

The board of directors of Murray Income Trust PLC announces the audited
results for the year to 30 June 1999, and the steps they are taking to address
the performance and discount issues. 

Highlights
----------

- Investment strategy revised and Douglas Thomson appointed as new Manager

- Performance target agreed

- Share buy-back to be implemented

- Total dividend for 1998-99 raised by 10.3%, the 25th year in succession of
  increases

- New chairman and board members


Performance
-----------

The second half recovery in share prices was sufficiently strong for the
benchmark FTSE 350 Higher Yield Index to show a total return for the year to
end-June of 15.1%, after being 2% lower at the end of the calendar year.  The
FTSE All-Share Index, in comparison, rose by 11.7%.  It is disappointing to
report that Murray Income's performance fell well short of this with a total
return, with net dividends reinvested, of only 1.2% for the year.

One reason for the discrepancy was the strong rise in BP Amoco, which
represented some 15% of the Index from January 1999. Murray Income was
prevented from being fully weighted in this stock by the terms of its Articles
of Association which restricted the amount that could be invested in any one
stock to 8% of the portfolio. 

Shareholders have already sanctioned a change in the articles to permit the
fund to invest up to 15% of its total assets in any one stock. The change,
which will become effective when the Court approves the repayment of the
Company's preference share capital, will allow greater flexibility with regard
to the portfolio's exposure to dominant stocks in the benchmark index.

Importantly, the company will in future be managed with closer attention to
the structure of the FTSE 350 Higher Yield Index, the benchmark.  The
directors believe this more defined focus will help to enhance shareholder
value.
 
The board and Murray Johnstone are determined to see an improvement in
performance and have agreed a target for growth of the fund's portfolio of one
percentage point over the benchmark index.  This performance target will
commence once the rebalancing of the portfolio has been completed.

Douglas Thomson will take over as manager of the Trust.  He joins Murray
Johnstone as an Investment Director and Head of UK Equities.  He worked
previously as head of the UK department at Dunedin Fund Managers, and latterly
with the UK Equity Research team of Robert Fleming and Co.


Discount
--------

During the year under review the discount to net asset value at which the
company's shares have traded has varied between 6% in early December 1998 and
18% in mid-April this year. At the beginning of the year under review the
discount was 9% and on 30 June 1999 it was 15.5%. The board considers this to
be unacceptably high and is taking steps to reduce it.  The greater focus and
more disciplined approach to be adopted by the manager should help the
performance and assist in narrowing the discount.

The board intends to make use of the share repurchase scheme that was approved
by shareholders on 2 August 1999, and buyback shares at a discount, which will
increase the net asset value per share for the remaining shareholders.  The
proposal for cancellation and repayment of the Company's Preference Shares has
been approved by Shareholders and Preference Shareholders and is currently
before the Court for approval.  Such approval is expected to be obtained by
the end of this month.  These matters will be reported on at the interim
stage.  In addition the directors have decided to participate in the
Association of Investment Trusts' 'its' campaign to broaden the awareness and
understanding of the advantages of investment trusts among investors. A
specific aim of this campaign is to reduce discounts of investment trusts.


Dividend
--------

For the year ended 30 June 1999 three interim dividends were paid totalling
10.2 pence and the directors recommend payment of a final dividend of 5.9
pence, on 29 October 1999 to shareholders on the register on 1 October 1999,
making a total of 16.1 pence, a 10.3% increase over the previous year.
However, 0.75p of the second interim dividend was above the amount forecast,
and was paid to compensate for the lack of a tax credit (due to changes in
taxation) on the first interim, which had been paid as a Foreign Income
Dividend. It is not proposed to repeat this special distribution in the year
ended 30 June 2000.

For the current year three interim dividends of 3.15 pence per share have
already been forecast and the board now recommends these dividends be paid on
14 January, 14 April, and 14 July of the year 2000 to ordinary shareholders on
the register on 17 December 1999, 17 March 2000 and 16 June 2000 respectively.
These dates are slightly earlier than those set out in the Interim Report. 

'B' ordinary shareholders will receive a capitalisation issue in 'B' ordinary
shares on 29 October 1999 amounting to 2.83092 for every hundred held at the
close of business on 1 October  1999, which is equivalent in net asset value
to the recommended final dividend and the interim dividends for the current
year excluding tax credit.

The board at this stage intends to recommend a final dividend for the current
year of 6.3 pence per share making a total of 15.75 pence, a 2.6% increase on
the dividend for the year to 30 June 1999, prior to the special distribution.

Murray Income expects to secure sufficient revenue growth to maintain the
company's long history of rising dividends.  Growth in the dividend has
exceeded that of the FTSE All-Share Index over the past 10 years.  


Board 
-----

On 25 January 1999 Blaise Hardman became chairman of the board of directors of
Murray Income in succession to Lord Younger. Subsequently, Joe Burnett-Stuart
retired and following the annual general meeting in October Sir Raymond
Johnstone will also be retiring.

New members of your board are Adrian Coats who is Group Treasurer of Scottish
Power, Roger Adams, a former director of closed end funds at Warburg Dillon
Read, and Patrick Gifford, a former chairman of closed end funds at Fleming
Investment Trust Management.


Outlook
-------

The progressive reductions in interest rates are beginning to have a
beneficial effect on the UK economy and accelerating growth can be predicted
with some confidence over the next year. This will underpin corporate
profitability and enhance the prospects for better earnings and dividend
growth. Immediate market progress may be constrained by historically high
valuations but, for the longer term, the fundamentals remain in place for
positive returns from the UK market. 


MURRAY INCOME TRUST PLC
STATEMENT OF TOTAL RETURN (INCORPORATING THE REVENUE ACCOUNT)
for the year ended 30 June 1999
                                                        
                                  1999                   1998
                        Revenue Capital  Total Revenue Capital   Total
                           £000    £000   £000    £000    £000    £000

(Losses) gains on 
 investments                  -  (6,629) (6,629)     -  96,713  96,713 
Income                   18,841       -  18,841 17,775       -  17,775
Investment management
 fees                    (1,307) (1,307) (2,614)(1,087) (1,087) (2,174)
Currency gains                -       -       -      -      22      22 
Other expenses             (753)    (84)   (837)  (681)      -    (681)
                        ------------------------------------------------
Net return before finance
costs and taxation       16,781  (8,020)  8,761 16,007  95,648 111,655 
Finance costs of 
 borrowing                 (829)   (829) (1,658)  (611)   (612) (1,223)
                        ------------------------------------------------
Return on ordinary
 activities before tax   15,952  (8,849)  7,103 15,396  95,036 110,432

Tax on ordinary 
 activities              (2,451)    337  (2,114)(2,872)   (340) (3,212)
                        ------------------------------------------------
Return on ordinary
activities after tax
for financial year       13,501  (8,512)  4,989 12,524  94,696 107,220

Preference dividends        (44)      -     (44)   (44)      -     (44)

Return attributable to  -----------------------------------------------
equity shareholders      13,457  (8,512)  4,945 12,480  94,696 107,176

Ordinary dividends on
 equity shares          (13,803)      - (13,803)(12,512)     - (12,512)

Transfer from reserves (after
 aggregate dividends paid
 and proposed of £13,847,000
- 1998 £12,556,000)     -----------------------------------------------
                           (346) (8,512) (8,858)    (32) 94,696  94,664 
                        ===============================================

Return per ordinary share 15.7p (9.9p)    5.8p   14.6p  110.5p  125.1p

Return per ordinary share
assuming conversion of the
'B' ordinary shares       15.6p (9.9p)    5.7p   14.4p  109.7p  124.1p 


MURRAY INCOME TRUST PLC
YEAR ENDED 30 JUNE 1999

                                           1999               1998 
                                           ----               ---- 


EQUITY SHAREHOLDERS' INTEREST          £468,421,000       £477,279,000

NET ASSET VALUE PER ORDINARY AND
'B' ORDINARY SHARE OF 25p                 542.4p             552.8p


Dividends on ordinary shares                         
                                           1999             1998
                                           £000             £000
 Interim of 10.2p (1998 - 9.00p)
 3.15p paid 26 January 1999               2,700             2,571
 3.90p paid 20 April 1999                 3,343             2,571
 3.15p payable 27 July 1999               2,700             2,570
 Proposed final of 5.90p 
  (1998 - 5.60p)                          5,060             4,800
                                         ------            ------
                                         13,803            12,512
                                         ======            ======

The results stated above for the year ended 30 June 1998 are abridged from the
full accounts for that year, which received an unqualified report from the
auditors and have been filed with the Registrar of Companies.

A summary of investment changes during the year and the twenty largest
investments as at 30 June 1999 are attached.

The next date for conversion of 'B' ordinary shares to ordinary shares is 31
December 1999.  The last date for receipt of certificates with the conversion
notice signed on the reverse is 23 December 1999.

If approved, (1) the final dividend will be paid on 29 October 1999 to holders
of Ordinary shares on the register at the close of business on 1 October 1999,
(2) in respect of the year ending 30 June 2000, three interim dividends of
3.15p per share on the Ordinary shares of the Company in issue on 17 December
1999 will be paid on 14 January 2000, 14 April 2000, and 14 July 2000
respectively to the persons who at the close of business on 17 December 1999,
17 March 2000, and 16 June 2000 respectively, are the holders of such shares,
and (3) definitive certificates in respect of the B Ordinary capitalisation
issue will be posted on 29 October 1999 to B Ordinary shareholders on the
register at the close of business on 1 October 1999.

Copies of this announcement will be available to the public at the registered
office of the Company at 7 West Nile Street, Glasgow.

The annual general meeting will be held on 25 October 1999 at 12.30 p.m.

MURRAY JOHNSTONE LIMITED

Secretary

11 August 1999   


MURRAY INCOME TRUST PLC
SUMMARY OF INVESTMENT CHANGES DURING THE YEAR
                                              
                                          Appreciation
                      Valuation     Trans-  (Deprec-    Valuation
                        30/6/98    actions   iation)     30/6/99
                     £000      %     £000     £000     £000     %
Equities
United Kingdom      514,623 107.8  (37,408) (5,776) 471,439  100.6 
Europe                    4     -        -      (4)       -      - 
                    -------  -----  ------  ------  -------  ------
                    514,627 107.8  (37,408) (5,780) 471,439  100.6 
                    -------  -----  ------  ------  -------  ------
Fixed Income  
United Kingdom       12,566   2.6     (181)   (849)  11,536    2.5 
                    ------- ------  ------- ------- -------  ------
Total Investments   527,193 110.4  (37,589) (6,629) 482,975  103.1
Other net assets     (3,983) (0.8)  14,723       -   10,740    2.3 
Prior capital &
 borrowings         (45,931) (9.6)  20,637       -  (25,294)  (5.4)
Equity shareholders'-------  ------ ------  ------  -------  ------
interest            477,279  100.0  (2,229) (6,629) 468,421  100.0 
                    =======  ====== ======  ======  =======  ======


Note:

In the above summary convertible securities are classified as equities and
preference shares issued by the company are included at nominal value as prior
capital.



MURRAY INCOME TRUST PLC

TWENTY LARGEST INVESTMENTS AS AT 30 JUNE 1999

                                        Valuation   % of    
Security                                  £000      Fund      

BP Amoco                                 33,468      7.2     
HSBC Holdings                            23,369      5.0         
*Robert Fleming Holdings                 21,940      4.7         
Shell Transport & Trading                21,505      4.6        
Lloyds TSB                               18,920      4.0         
British Telecom                          17,556      3.7         
Abbey National                           15,490      3.3         
Glaxo Wellcome                           14,985      3.2        
Barclays                                 14,768      3.2          
SmithKline Beecham                       14,178      3.0         
Vodafone Airtouch                        12,480      2.7         
National Westminster Bank                11,433      2.4         
British American Tobacco                 10,024      2.1        
Diageo                                    9,937      2.1        
Atrium Underwriting                       9,391      2.0         
Rank Group                                7,279      1.5
Astra Zeneca                              6,877      1.5        
Scottish Power                            6,770      1.4         
Bass                                      6,395      1.4        
Kingfisher                                6,034      1.3        

                                  
*   Unlisted investment included at the latest directors' valuation.