Interim Management Statement

British & American Investment Trust PLC

Interim Management Statement - 3 months to 30 September 2008

To the members of British & American Investment Trust PLC

This interim management statement has been produced solely to provide
additional information to shareholders as a body to meet the relevant
requirements of the UK Listing Authority's Disclosure and Transparency Rules.
It should not be relied upon by any other party or for any other purpose.

This interim management statement relates to the period from 1 July 2008 to 30
September 2008, and contains information that covers this period, and up to the
date of publication of this interim management statement, unless otherwise
specified.

Investment objective

To achieve a balance of growth of income and capital from a portfolio invested
predominantly in companies listed or quoted in the United Kingdom.

Benchmark

FTSE All-Share Index

Material developments

On 29 August 2008 the company reported its Half Year results to 30 June 2008.
An interim ordinary dividend of 2.7p is to be paid on 13 November 2008 to
shareholders on the register at 17 October 2008. A dividend of 1.75p per share
is to be paid to preference shareholders on 13 November 2008.

Ten largest equity holdings at 30 September 2008 (group basis)

                                                     %                         
                                                                               
Geron Corporation - Common Stock US$ 0.001           15.8                      
                                                                               
Liberty International Plc - Ord 50p                  10.5                      
                                                                               
Rit Capital Partners plc - Ord £1                    9.9                       
                                                                               
Prudential Plc - Ord 5p                              9.3                       
                                                                               
Alliance Trust PLC - Ord 2.5p                        6.6                       
                                                                               
Electra Private Equity PLC - Ord 25p                 5.7                       
                                                                               
Dunedin Income Growth Inv. Trust Plc - Ord 25p       5.6                       
                                                                               
British Assets Trust Plc - Ord 25p                   5.0                       
                                                                               
St James Place International Unit Trust - Income     4.4                       
Units                                                                          
                                                                               
Scottish American Investment Company P.L.C. - Ord    2.3                       
25p                                                                            
                                                                               
Total                                                75.1                      

Sector allocation as at 30 September 2008 (group basis)

                                                  %                
                                                                   
Investment Trusts                                 43.38            
                                                                   
Biomedical - USA                                  15.75            
                                                                   
Property                                          10.49            
                                                                   
Life Assurance                                    9.61             
                                                                   
Unit Trusts                                       4.94             
                                                                   
Software and computer services                    2.23             
                                                                   
Other Services & Businesses                       1.96             
                                                                   
Banks retail                                      1.18             
                                                                   
General Financial                                 1.12             
                                                                   
Leisure, Entertainment, Hotels                    0.82             
                                                                   
Telecommunications                                0.74             
                                                                   
Information technology - hardware                 0.28             
                                                                   
Overseas                                          0.23             
                                                                   
Biotechnology                                     0.21             
                                                                   
Other Financial                                   0.17             
                                                                   
Construction                                      0.12             
                                                                   
Financial Services                                0.05             
                                                                   
Pharmaceuticals                                   0.04             
                                                                   
Media                                             0.03             
                                                                   
Oil exploration & production                      0.01             
                                                                   
Property units                                    2.61             
                                                                   
Fixed Interest Stocks excluding Preference        1.54             
                                                                   
Preference                                        1.45             
                                                                   
Permanent Interest Bearing                        1.04             
                                                                   
Total                                             100.00           

Key facts

Performance

                        As at       As at       As at       As at       As at
                           30          30          30          30          30
                    September   September   September   September   September
                         2008        2008        2007        2005        2003
                                 3 months      1 year     3 years     5 years
                                                                             
Total assets           32,405                                                
(000)                                                                        
                                                                             
Short term               £nil                                                
borrowings                                                                   
                                                                             
Actual gearing          nil %                                                
                                                                             
NAV (p)                  92.6       -2.6%      -26.4%      -23.5%       -1.2%
                                                                             
FTSE All-Share       2,483.67      -13.0%      -24.3%       -9.5%      +22.5%
                                                                             
Share price (p)          82.5       +1.9%      -25.7%      -22.2%       +8.6%
                                                                             
Discount                10.9%       14.8%       11.8%       12.4%       18.9%
                                                                             
Dividend yield          6.43%                   4.65%       5.78%       6.36%
                                                                             
Total expense           1.05%                                                      
ratio                                                                        
(year ended 31/12/07)                                                                         
                                                                             
                                               1 year     3 years     5 years
                                                                             
Value of £100                                    79.3        93.2       147.2
invested                                                                     
(dividends                                                                   
reinvested)                                                                  

Total Return; Net Income Reinvested, GBP

Source: Walker Crips Stockbrokers Limited and Fundamental Data Limited.

The Board is not aware of any significant events or transactions which have
occurred between 30 September 2008 and the date of publication of this interim
management statement which would have a material impact on the financial
position of the Company. For latest performance information, please refer to
the Company's website, www.baitgroup.co.uk.

For British & American Investment Trust PLC

11 November 2008