Company Buy-Back Strategy

F&C PEP & ISA Investment Trust PLC
19 September 2002

19 September 2002



F&C PEP AND ISA INVESTMENT TRUST PLC





The Board of F&C PEP and ISA Investment Trust has noted the extreme volatility
of the discount to net asset value at which the Company's shares have traded in
recent weeks. It believes that it is in the interests of shareholders to seek to
reduce this volatility, as well as reducing the level of the discount and the
size of the spread between bid and offer price.

The Board considers that having regard to the investment record of the Company
there is no justification for the shares to be standing at their recent
substantial discount to net asset value. Consequently the Board intends, so far
as it is within its power, to ensure that in the future the Company's shares do
not stand at any material discount to net asset value by exercising more
aggressively its power to buy-back shares.


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