Final Results

ACM European Enhanced Inc.Fund PLC
29 April 2005



ACM EUROPEAN ENHANCED INCOME FUND PLC


PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2004


29 APRIL 2005

ACM European Enhanced Income Fund Plc announces its preliminary results for the
year ended 31 December 2004.


The Fund's articles of association require that a resolution be proposed at its annual general meeting held after the 
year ending 31 December 2004 to the effect that the Fund continue in existence for a further period of five years.  The 
Board confirms that it is considering the options available to the Fund in the light of this requirement, including 
mechanisms to provide shareholders with an opportunity to remain invested in assets providing an attractive level of 
income.  A further announcement and notice of the annual general meeting will be released by the Fund in due course.


For further information, please contact:


ACM
Geoffrey Hyde

Tel. [phone]


Manager's Report

This report contains investment results and market activity for ACM European
Enhanced Income Fund Plc (the 'Company') for the annual reporting period ended
31 December 2004.


INVESTMENT RESULTS


The following table provides performance data for the Company for the six- and
12-month periods ended 31 December 2004. For comparison, we have included a
custom blended benchmark consisting of 50% Merrill Lynch European High Yield
Index (hedged into euros) and 50% Lehman Brothers European Corporate Bond Index
converted into sterling. This benchmark represents an unmanaged measure of the
markets and instruments in which the Company is able to invest. The performance
presented below is

reported in sterling.



INVESTMENT RESULTS*
Periods Ended 31 December 2004
                                                       Returns
                                                6 Months   12 Months
ACM European Enhanced Income Fund Plc          16.35%     14.44%
Merrill Lynch European High Yield Index        15.51%     15.50%
(hedged into euros)
Lehman Brothers European Corporate Bond Index  11.13%     7.88%
Custom Benchmark**                             13.30%     11.64%
Unleveraged Custom Benchmark***                15.32%     14.64%



* The Company's investment results are monthly compounded total returns for the
periods shown and are based on the net asset value (NAV) as of 31 December 2004.
All fees and expenses related to the operation of the Company have been
deducted. For each index and benchmark, the results shown are monthly compounded
returns converted into sterling. Past performance is no guarantee of future
results.



** The custom benchmark is comprised of equal 50% weightings of two indices, the
Merrill Lynch European High Yield Index (hedged into euros) and the Lehman
Brothers European Corporate Bond Index. The Merrill Lynch European High Yield
Index is a euro-denominated index and is comprised of corporate bonds with
maturities greater than or equal to one year. The Lehman Brothers European
Corporate Bond Index is a multiple currency index and is a measure of fixed-rate
securities with at least one year remaining until maturity. An investor cannot
invest directly in an index, and its results are not indicative of the
performance for any particular investment, including the Company. Neither the
index nor the custom benchmark includes the operating expenses associated with
an investment in an investment company.


*** The leveraged custom benchmark is the custom benchmark leveraged by 25%.



During the annual reporting period ended 31 December 2004, the Company
outperformed its custom benchmark, however, slightly underperformed the
leveraged custom benchmark. The custom benchmarks are reported on a gross basis,
and so their performance does not reflect the costs and expenses associated with
the operation of the Company, including the interest cost on the borrowing,

transaction costs, custodial costs, and administrative and management fees.
Contributing positively to performance relative to the custom benchmarks was the
Company's overweighted exposure to high yield, particularly the insurance
sector, which outperformed during the reporting period. The Company's
overweighted allocation to investment grade subordinated bank securities, which
outperformed significantly for the year, also contributed positively to overall
performance. Over the course of the year, the currency impact to the Company
from hedging into Euro was minimal.



MARKET REVIEW AND INVESTMENT STRATEGY



During 2004, the euro zone economy grew 1.8%. Weak domestic demand, held back by
sluggish labour markets in the major euro zone economies of Germany and France,
was offset by solid external demand, supported by strong global growth. Despite
the potential inflationary effects of the rising price of oil (a record $55/
barrel) and the rising euro (a record $1.36/euro), inflation remained in check,
though above the European Central Bank (ECB) target of 2.0% for much of the
year. With euro area growth below its historic trend and the outlook
deteriorating in the second half of the year, the ECB left its main rate
unchanged at 2.0%. Investment grade corporate bonds returned 7.55% for the year,
according to the Lehman Brothers European Corporate Bond Index. Throughout 2004,
corporate fundamentals continued to improve and market technicals (demand versus
supply) remained strong, helping corporate bonds outperform government debt by
1.0% on a duration-adjusted basis. High yield investments returned 15.15% for
the year, according to the Merrill Lynch European High Yield Index (hedged into
euros). High yield securities benefited from improving corporate fundamentals,
declining default rates, strong market technicals and low equity market
volatility. As a general indicator of improving corporate fundamentals, the
Moody's global high yield default rate fell to 2.3%, down from 5.2% at the start
of the year. Record new issuance was easily absorbed by investors hungry for
additional yield. The average yield on the Merrill Lynch European High Yield
Index ended the year at 5.9%, down from 7.7% at the beginning of the year, and
the yield spread over government bonds fell from 4.2% to 2.8%. During the year,
the Company continued to be overweight in both B-rated debt and the high yield
sector, where we were focused on smaller issues with better value rather than in
large 'fallen angels.' ('Fallen angels' are bonds that were investment-grade at
the time of issuance but have since declined in quality to below investment
grade.) Within the investment grade sector, we found subordinated bank
securities, industrials and telecoms attractive.



Alliance Capital Management L.P.
Investment Manager



STATEMENT OF TOTAL RETURN
For the year ended 31 December 2004


                                                                                  2004          2003
                                                       Revenue      Capital       Total         Total
                                                          £            £            £             £
Net gains/(losses) on investments during the year        -0-       2,040,771    2,040,771     6,739,613
Net gains/(losses) on foreign exchange                   -0-        617,143       617,143     (322,087)

Net investment gains/(losses) during the year            -0-       2,657,914    2,657,914     6,417,526

Gross income                                          3,447,691       -0-       3,447,691     3,437,631
Expenses                                              (575,798)    (191,932)    (767,730)     (805,583)

Net income for the year                               2,871,893    (191,932)    2,679,961     2,632,048


Return on ordinary activities                         2,871,983    2,465,982    5,337,875     9,049,574

Distributions                                        (2,842,048)      -0-      (2,842,048)   (2,355,619)

Net increase/(decrease) in Shareholder's funds from      29,845    2,465,982     2,495,827     6,693,955
investment activities




STATEMENT OF MOVEMENTS IN SHAREHOLDERS' FUNDS
For the year ended 31 December 2004


                                                          2004              2003
                                                            £                 £
Net assets at the start of the year                    39,579,296        32,885,341
Net increase/(decrease) in Shareholders' funds from     2,495,827         6,693,955
investment activities
Net assets at the end of the year                      42,075,123        39,579,296



All returns are generated by continuing operations. There were no gains or
losses other than those included in the Statement of Total Return.



BALANCE SHEET

as at 31 December 2004


                                                           2004             2003
                                                          Total            Total
                                                            £                £
Portfolio of investments                                48,320,586       45,931,956
Current assets
Debtors                                                  1,641,117        1,355,489
Cash and bank balances                                     946,356        1,092,123
                                                         2,587,473        2,447,612
Less: Current liabilities
Creditors (less than one year)                           (162,273)        (149,100)
Loan                                                   (8,670,663)      (8,651,172)
                                                       (8,832,936)      (8,800,272)
Net current liabilities                                (6,245,463)      (6,352,660)

Net assets                                              42,075,123       39,579,296
Shareholders' funds (all equity interests)              42,075,123       39,579,296

Number of Shares in issue                               54,654,743       54,654,743
Net Asset Value per Share                                  £0.7698          £0.7242




CASH FLOW STATEMENT

For the year ended 31 December 2004


                                                           2004             2003
                                                          Total            Total
                                                            £                £
Net cash flow from operating activities                 3,186,597        2,467,339

Servicing of finance
Interest paid                                           (161,948)         (251,899)
Net cash outflow from servicing of finance              (161,948)         (251,899)

Capital expenditure and financial investment
Acquisition of investments                           (40,657,579)      (45,657,370)
Sale of investments                                    40,309,720        44,836,552
Net cash outflow from capital expenditure and           (347,859)         (820,818)
financial investment

Dividends paid                                        (2,842,048)       (2,355,619)

Financing
Increase (Decrease) in short term loans                   19,941         1,350,950
Net cash inflow/(outflow) from financing                  19,491         1,350,950

Increase/(Decrease) in cash                             (145,767)          389,953

Closing cash balance                                      946,356        1,092,123
Opening cash balances                                   1,092,123          702,170
Movement in cash balance                                (145,767)          389,953




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