Banking / Div announcement

Acorn Income Fund Ld
10 June 2003

In the Chairman's Statement dated 5 March 2003 in the Company's accounts for the
year ended 31 December 2002, the Chairman stated that, following discussions
with the Company's bankers, the Company would place £5m into a loan offset
account, thereby increasing the then current loan-to-value ratio. The Board is
pleased to announce that due to recent increases in the value of the Company's
investments, and the attendant improvement in the Company's loan-to-value ratio,
it has not in fact been necessary to place any monies into a loan offset
account. The Board is currently considering the most appropriate use of the
Company's current cash balances, amounting to approximately £8m, and a further
announcement will be made to shareholders shortly.

The Company announces a second interim dividend for the year ended 31 December
2003 as follows:-


SECURITY TITLE                       : Ordinary Shares
MNEMONIC CODE                        : AIF
SEDOL CODE                           : 482-943
DIVIDEND AMOUNT                      : 1.5p
PERIOD                               : 31-12-03
PROVISIONAL EX DATE                  : 18-06-03
RECORD DATE                          : 20-06-03
PAYMENT DATE                         : 25-06-03


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