Interim Results

ACM European Enhanced Inc.Fund PLC
31 August 2004


ACM EUROPEAN ENHANCED INCOME FUND PLC

PRELIMINARY RESULTS FOR THE SIX MONTH PERIOD ENDED JUNE 2004

31 AUGUST 2004

ACM European Enhanced Income Fund Plc announces its results for the
six month period to 30 June 2004.

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 semi-annual reporting period
ended 30 June 2004.

INVESTMENT RESULTS

The following table provides performance data for the Company for the six- and
12-month periods ended 30 June 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. The
custom blended benchmark is then leveraged by 25% and 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 pounds.


INVESTMENT RESULTS*

Periods Ended 30 June 2004
                                                    Returns
                                             6 Months   12 Months
ACM European Enhanced Income Fund Plc          -1.65%     5.45%
Merrill Lynch European High Yield Index         5.19%    13.18%
(hedged into euros)
Lehman Brothers European Corporate Bond Index   1.91%     3.00%
Custom Benchmark**                             -0.72%     6.36%
Unleveraged Custom Benchmark***                -1.57%     4.35%


     
*    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 30 June 2004. All
fees and expenses related to the operation of the Company have been deducted.
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 custom blended benchmark is
then leveraged by 25% and converted into sterling. The Merrill Lynch European
High Yield Index is a multiple currency 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 euro denominated 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
index nor the custom benchmark include the operating expenses associated with an
investment in an investment company and, in the case of the Company, its
borrowing costs.

***  The unleveraged custom benchmark has the same composition and
conversion as the custom benchmark but the 25% leverage is not applied.



For the semi-annual reporting period ended 30 June 2004, the Company reported a
negative return due to the depreciation of the euro versus sterling; the euro
lost 4.95% against sterling for the first six months of the year, more than
offsetting the positive performance of the underlying securities measured in
euros. The Company's underperformance versus the custom benchmark is primarily
due to the fact that the performance of each index is reported on a gross basis,
while the Company's performance is reported net of the costs and expenses
associated with operating the Company, including the interest cost on
borrowings, transaction and custodial costs, and administrative and management
fees. Contributing positively to performance relative to the benchmark was the
Company's overweight exposure to high yield securities, which outperformed
during the six-month reporting period.



MARKET REVIEW AND INVESTMENT STRATEGY

Global bond markets rebounded strongly in the first quarter of 2004, as
escalating geopolitical tensions and concerns regarding the sustainability of
the U.S. and global economic recovery began to surface. European economic data
was also mixed, lacking in strength and direction. Investor expectations in
Europe shifted from rate hikes to rate cuts as the outlook grew less positive.
Early in April, however, a combination of improved European economic data and a
surprisingly strong 308,000 gain in March U.S. payroll employment, according to
the U.S. labor department, led global bond markets into negative territory.
Consequently, hopes for an interest rate cut from the European Central Bank
disappeared during April, as business and industrial confidence indicators in
Europe hit three-year highs. Late in the period, inflation figures in Europe and
the U.S. came out lower than expected, easing concerns that governments would be
quick to raise key lending rates and helping bond prices. Recent data out of
Europe and the U.S. has tilted toward stronger global growth.

Investment-grade European corporate bonds returned 1.91% for the semi-annual
period according to the Lehman European Corporate Bond Index. After their record
performance in 2003, corporate bonds started 2004 trading at historically tight
levels with little room left to tighten. Still, demand for extra yield kept
credit spreads trading within a narrow range during the period. High yield
securities continued to benefit from the generally improving economic
environment and investor demand for additional yield. For the six-month
reporting period ended 30 June 2004, European high yield, as measured by the
Merrill Lynch European High Yield Index (hedged into euros), posted a very
respectable return of 5.19%.

Within the Company, we continued to overweight the high yield sector,
particularly in single-B rated issuers. The focus was on smaller issues in the
portfolio where we found better value rather than in large 'fallen angels'.
Within the investment grade sector, we maintained a diversified portfolio, with
a notable overweight position in BBB-rated securities versus AAA and AA-rated
securities which are priced at tight levels.

Thank you for your continued interest and investment in ACM European Enhanced
Income Fund Plc. We look forward to reporting to you again on market activity
and the Company's investment results in the coming periods.

Alliance Capital Management L.P.
Investment Manager



STATEMENT OF TOTAL RETURN
From 1 January to 30 June (unaudited)
                                                                                  2004         2003
                                                      Revenue      Capital       Total        Total
                                                         £            £            £            £

Net (losses)/gains on investments during the period     -0-       -2,119,038   -2,119,038   5,684,810
Net gains/(losses) on foreign exchange                  -0-        194,064      194,064      -543,522

Net investment (losses)/gains for the period            -0-       -1,924,974   -1,924,974   5,141,288

Gross income                                         1,651,062       -0-       1,651,062    1,669,552
Expenses                                              -279,685     -93,228      -372,913     -403,697

Net income for the period                            1,371,377     -93,228     1,278,149    1,265,855


Return on ordinary activities                        1,371,377    -2,018,202    -646,825    6,407,143

Distributions                                        -1,421,024      -0-       -1,421,024   -1,071,233

                                                      -49,647     -2,018,202   -2,067,849     5,335,910




STATEMENT OF MOVEMENTS IN SHAREHOLDERS' FUNDS 
                                                          2004              2003
                                                            £                 £

Net assets at the start of the period                  39,579,296        32,885,341
Net (decrease)/increase in Shareholders' funds from    -2,067,849         5,335,910
investment activities
Net assets at the end of the period                    37,511,447        38,221,251



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 30 June 2004 (unaudited)


                                                           2004             2003
                                                          Total            Total
                                                            £                £

Portfolio of investments                                43,440,778       44,836,584
Current assets
Debtors                                                 1,551,881        1,186,259
Cash and bank balances                                   883,258         1,078,599
                                                        2,435,139        2,264,858
Less: Current liabilities
Creditors (less than one year)                           -146,534         -390,281
Loan                                                    -8,217,936       -8,489,910
                                                        -8,364,470       -8,880,191
Net current liabilities                                 -5,929,331       -6,615,333

Net assets                                              37,511,447       38,221,251
Shareholders' funds (all equity interests)              37,511,447       38,221,251

Number of Shares in issue                               54,654,743       54,654,743
Net Asset Value per Share                                £0.6863          £0.6993




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