INVESTMENT POLICY

The Board of British & American Investment Trust PLC notes the publication of the Investment Entities (Listing Rules
and Conduct of Business) Instrument 2003 and announces that, in accordance with its stated and long-held investment
policy to invest in other investment trusts, the Company's policy is to have an unlimited percentage of its gross
assets in other listed investment companies.
Pursuant to Para 21.9(1) of the Listing Rules, the Company will restrict any future investment in listed investment
companies which themselves do not have a policy of restricting their investments in other listed investment companies
to 15 percent (or less) of their gross assets in order to remain within the limit of 10 percent of the Company's gross
assets of  investments in such companies in accordance with the requirements of Rule 21.9(1).