Company Update

Acorn Income Fund Ld
21 February 2006


Your Board wishes to announce its position relating to the continuation vote of
the Company required to be proposed at the Company's forthcoming Annual General
Meeting which is scheduled to take place in June 2006.


The Company's articles of association provide that:


'At the Annual General Meeting of the Company to be held in 2006 a special
resolution shall be proposed that the Company ceases to continue as an
investment company.  If that resolution is passed, the Directors are required to
formulate proposals to be put to Shareholders to reorganise, unitise or
reconstruct the Company or to wind up the Company.'


Notwithstanding the above resolution, which would require 75% of those
shareholders voting to vote in favour of cessation, the Directors are of the
view that, if a simple majority of shareholders voting on the above resolution
vote in its favour, they will put forward proposals shortly thereafter to the
Company's shareholders which are expected to include the opportunity for those
shareholders that do not wish to continue with the Company to receive cash at
close to net asset value.


Further details relating to the Annual General Meeting will be circulated to
Shareholders in due course.


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