Final Results

F&C PEP & ISA Investment Trust PLC
05 December 2002

Date:      5 December 2002

Contact:   Julian Cane, F&C Management Ltd, 020 7628 8000 /
           Lisa Stanley, Lansons Communications, 020 7294 3692


                      F&C PEP AND ISA INVESTMENT TRUST PLC
         (formerly Foreign & Colonial PEP and ISA Investment Trust PLC)
         Unaudited Preliminary Statement of Results for the year ended
                                30 September 2002

Highlights

  • Over the year to 30 September 2002 net asset value per share fell 19.6%
    while the FTSE All-Share index declined by 23.0%. The share price fell by
    16.1% to 135.5p.

  • The Company is recommending a final dividend of 3.25p per share giving a
    total for the year of 5.25p, an increase of 2.9% on the previous year.  This
    continues its record of increasing dividends every year since launch.

  • The Company's decision to implement an aggressive share buy back policy
    has ensured that the Company's shares do not stand at any material discount
    to NAV.

  • At the Annual General Meeting on 28 January 2003, shareholders will be
    asked to vote on the Company's future.

  • At the AGM it will be proposed that the name of the Company be changed to
    'F&C Capital and Income Investment Trust PLC'.

SUMMARY OF RESULTS


                                                               30 Sep             30 Sep              %
Attributable to equity shareholders                              2002               2001            change

Net assets                                                    £70.06m            £88.32m            -20.7

Net asset value per share                                     140.96p            175.40p            -19.6

Share price                                                   135.50p            161.50p            -16.1

Earnings per share                                              4.93p              5.70p            -13.5

Dividends per share                                             5.25p              5.10p             +2.9


F&C PEP AND ISA INVESTMENT TRUST PLC
 Unaudited Preliminary Statement of Results for the year ended
 30 September 2002


Unaudited Statement of Total Return (incorporating the Revenue Account*)
 for the year ended 30 September




                                                     2002                                 2001
                                 Revenue      Capital        Total        Revenue      Capital          Total
                                  £'000s       £'000s       £'000s         £'000s       £'000s         £'000s

Losses on investments                  -     (16,819)     (16,819)            -       (15,517)       (15,517)
Exchange gains/(losses) on             8            3           11            (4)            4              -
currency balances
Income                             2,869            -        2,869          3,306                       3,306
Management fee                     (209)        (209)        (418)          (236)        (236)          (472)
Other expenses                     (173)         (11)        (184)          (125)          (7)          (132)

Net return before finance          2,495     (17,036)     (14,541)          2,941     (15,756)       (12,815)
costs and taxation
Interest payable and                (15)         (15)         (30)           (52)         (52)          (104)
similar charges

Return on ordinary                 2,480     (17,051)     (14,571)          2,889     (15,808)       (12,919)
activities before taxation
Taxation on ordinary                (20)            -         (20)           (17)                        (17)
activities                                                                                   -

Return attributable to             2,460     (17,051)     (14,591)          2,872     (15,808)       (12,936)
equity shareholders
Dividends on ordinary
shares (equity):
Interim dividend of 2.00p          (986)            -        (986)          (973)            -          (973)
(2001:1.95p)                       
Proposed final dividend of       (1,615)            -      (1,615)        (1,586)            -        (1,586)
3.25p (2001: 3.15p)
                                 (2,601)            -      (2,601)        (2,559)            -        (2,559)

Amount transferred (from)/         (141)     (17,051)     (17,192)            313     (15,808)       (15,495)
to reserves

Return per ordinary share           4.93      (34.18)      (29.25)           5.70      (31.38)        (25.68)
- pence


  * The revenue column of the statement is the profit and loss account of the
    Company.

All revenue and capital items in the above statement derive from continuing
operations.


F&C PEP AND ISA INVESTMENT TRUST PLC
 Unaudited Preliminary Statement of Results for the year ended
 30 September 2002

            Unaudited Balance Sheet at 30 September

                                                          2002                                2001
                                                        £'000s                               £'000s
Fixed assets
Investments*                                            70,419                               88,833

Current assets
Debtors                                                    492                                  673
Taxation recoverable                                        19                                   17
Cash at bank and short-term deposits                       917                                  731
                                                         1,428                                1,421


Current liabilities
Creditors: amounts falling due within
one year:
Other creditors                                        (1,786)                              (1,936)
                                                       (1,786)                              (1,936)
Net current liabilities                                  (358)                                (515)
Net assets                                              70,061                               88,318


Capital and reserves
Called up equity share capital                          12,425                               12,588
Capital redemption reserve                               2,332                                2,169
Share premium                                           16,394                               16,394
Special reserve                                         18,704                               19,769
Capital reserves                                        19,191                               36,242
Revenue reserve                                          1,015                                1,156
Total equity shareholders' funds                        70,061                               88,318

Net asset value per ordinary share
- pence                                                 140.96                               175.40


*Geographical distribution of the investments at 30 September 2002 was:

UK  92.3% (2001: 91.6%)
Continental Europe  7.7% (2001: 8.4%)


F&C PEP AND ISA INVESTMENT TRUST PLC
 Unaudited Preliminary Statement of Results for the year ended
 30 September 2002



Unaudited Cash Flow Statement
for the year ended 30 September


                                                   2002                              2001
                                                 £'000s                             £'000s
Net cash inflow from operating                    2,336                              2,621
activities
Interest paid                                       (30)                              (113)
Total tax paid                                      (29)                                (5)
Net cash inflow from financial                    1,533                              5,909
investment
Equity dividends paid                           (2,572)                            (2,518)
Net cash inflow before use of                     1,238                              5,894
liquid resources and financing
(Increase)/Decrease                               (200)                                200
 in short-term deposits
Net cash outflow                                (1,063)                            (5,895)
 from financing
(Decrease)/Increase                                 (25)                               199
 in cash



The Directors recommend a final dividend of 3.25p (2001: 3.15p) per share
payable on  30 January 2003 to shareholders registered on 13 December 2002.

The financial information set out in this announcement does not constitute the
Company's statutory accounts for the years ended 30 September 2002 or 30
September 2001. The financial information for the year ended 30 September 2001
has been extracted from the statutory accounts for that year which have been
delivered to the Registrar of Companies. The auditors' report on those accounts
was unqualified and did not contain a statement under either Section 237(2) or
Section 237(3) of the Companies Act 1985. The statutory accounts for the year
ended 30 September 2002 will be finalised on the basis of the financial
information presented by the directors in this preliminary announcement and will
be delivered to the Registrar of Companies following the Company's Annual
General Meeting.

The Report & Accounts  will be posted to shareholders towards the end of
December 2002. Copies may be obtained during normal business hours from the
Company's Registered Office, Exchange House, Primrose Street, London EC2A 2NY.


By order of the Board
F&C Management Limited - Secretary
4 December 2002


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