Final Results

Dunedin Income Growth Inv Tst PLC
15 March 2001

15 March 2001


DUNEDIN INCOME GROWTH INVESTMENT TRUST PLC PRELIMINARY RESULTS FOR THE YEAR TO

                               31 JANUARY 2001

Highlights

  * Net asset value total return was 14.1%, outperforming the FTSE All Share
    Index which produced a total return of 4.1%
  * Share price total return 20.9%
  * Revenue per share up from 5.93p to 7.18p reflecting the portfolio's
    greater focus on higher yielding shares and careful cost controls.
  * Dividend for the year increased by 3.1%, making the total dividend for
    the year 6.55p
  * The trust is ranked 5th out of 20 in the UK Income Growth Investment
    Trust Sector over 5 years

                                   - END -

For further information, please contact:-

Ewan Brown, Chairman

Dunedin Income Growth Investment Trust PLC      0131 226 7011

Mike Balfour, Director

Edinburgh Fund Managers plc     0131 313 1000

Chairman's Review

The past twelve months has been a very successful period for the company. The
net asset value total return was 14.1% compared with a total return of 4.1%
for the FTSE All Share Index, our benchmark. With a narrowing of the discount
at which the company's shares trade, the share price total return was a
creditable 20.9%.

Over three years the net asset value total return was 36.8% compared to the
benchmark's total return of 28.0%. Over five years the returns were 100.4% and
86.7% respectively and the company ranked 5th out of 20 comparable investment
trusts included in the UK Income Growth Investment Trust sector as defined by
the Association of Investment Trust Companies.

Revenue return and dividends

The revenue return per share has risen from 5.93p to 7.18p. The increase
reflects the portfolio's greater focus on higher yielding shares during the
year and on the careful control of costs. The total expense ratio as a
percentage of shareholders funds has fallen from 0.70% to 0.64% during the
year.

The proposed final dividend of 4.45p per share will make the total dividend
for the year 6.55p, a rise of 3.1% which compares with the core inflation rate
of 1.8% over the same period and a headline rate of 2.7%. Over the last few
years we have dipped into the revenue reserves in order to maintain a steady
increase in dividends. As the company has a covered dividend this year, your
board believes it prudent to rebuild the revenue reserves once again.

Performance

I mentioned in my last annual report that a dose of reality within equity
markets was likely to be seen. The technology bubble duly burst shortly after
our year began and fundamentals have reasserted themselves over the last
twelve months. Enthusiasm for blue sky projects, so evident a year ago, has
waned almost to the point of extinction. During the year under review, in
contrast to the situation the previous year, we benefited from the dramatic
outperformance of higher yielding UK equities. This, combined with good stock
selection, resulted in the company's investments outperforming the FTSE All
Share Index. The purchase of Robert Fleming by Chase Manhattan Bank in April
2000 also added to performance, accounting for 3.7% of the net asset value
increase.

The board

I have served as Chairman of the company for over five years. It has been a
successful period for the company as evidenced by the good performance and the
increase in the number of private individual shareholders. I have greatly
enjoyed being part of a strong and independently minded board which has been
well served by its investment manager. Because of other business commitments,
I have decided to step down from the board and the Chairmanship of the company
and therefore I shall not stand for re-election at the forthcoming annual
general meeting. Val Fleming, who has been on the board for 22 years and has
been a wonderful servant of the company, retired from the board on 13 March
2001. Max Ward, who has many years of investment experience particularly in
the investment trust field and who joined the board on 25 January 2000, will
take over from me as Chairman. John Scott, who has developed a wide financial
experience from a long career at Lazards, joined the board on 13 March 2001
and will stand for election at the annual general meeting.

Change of portfolio manager

Graham Campbell, who has been the portfolio manager of the company for over
five years, will shortly be leaving Edinburgh Fund Managers. He has done a
fine job with his team in repositioning the portfolio and achieving sustained
good performance. There is a strong team behind Graham and his successor as
portfolio manager will be announced in the near future.

Discount

The gap between the company's share price and the underlying value of its
investments stood at 16.8% at the beginning of the year. As investors rushed
to buy technology stocks this rose to a high of 23.3%. Since then the discount
has narrowed and stood at 12.2% at the year end. When we value our debt to
market rates, the discount reduces to approximately 6.8%.

The discount is a function of the number of buyers and sellers of the
company's shares in the market. The board has taken a number of steps which it
hopes will encourage ongoing demand for the shares in the longer term.

At the last annual general meeting approval was granted for the company to buy
back its own shares. As a result of the narrowing of the discount shortly
after that approval was granted, the board has so far not considered it
desirable to purchase any shares. We keep this situation under constant review
and will use the power when we believe that it would be in the interests of
shareholders.

For the second year, the company provided financial support to the AITC 'its'
campaign. This campaign is aimed at increasing the awareness of savers to
investment trusts. Our managers spend a considerable amount of time promoting
the company's merits, visiting financial advisors and potential investors
around the country. The company also contributes to the promotion of the
manager's range of investment trust savings products which includes ways of
purchasing shares at low cost either as a lump sum or by regular savings.
There is also an ISA and a pension product.

We have developed our own website, www.itsdigit.com. This includes a number of
new features including an automatic monthly e-mail facility which will keep
investors and potential investors up to date with the company's progress
throughout the year.

Prospects for the year ahead

At present there is pervasive gloom within equity markets globally. Investors
are concerned about the potential severity of the slowdown in the US economy
and what impact that will have on economies and corporate earnings around the
world. The market's return to the reality of favouring fundamentally sound
companies with growing earnings and dividends is very much in tune with our
approach. The fact that interest rates are coming down, that inflation is
likely to remain under control, that the UK equity market seems attractively
priced compared to bonds and that sentiment is so poor, all combine to make me
rather optimistic. When investors' horizons rise above immediate judgments of
economic news, I would expect that the appetite for good long term equity
prospects will not be long in reviving.

Ewan Brown

Chairman     15 March 2001

STATEMENT OF TOTAL RETURN (AUDITED)

For the year ended 31 January

                               2001                            2000   
                   Revenue  Capital     Total    Revenue    Capital      Total

                      £000     £000      £000       £000       £000       £000

  Realised               -   48,282    48,282          -     46,605     46,605
  gains on                                                                    
  investments                                                                 
  Unrealised             -    1,257     1,257          -   (18,565)   (18,565)
  gains/(losses)                                                              
  on investments                                                              
  Currency gains         -      236       236          -          -          -
  TOTAL CAPITAL          -   49,775    49,775          -     28,040     28,040
  GAINS ON                                                                    
  INVESTMENTS                                                                 
  Income from       13,416        -    13,416     11,930          -     11,930
  investments                                                                 
  Interest           1,327        -     1,327        909          -        909
  receivable on                                                               
  short term                                                                  
  deposits                                                                    
  Other income          26        -        26         17          -         17
  Investment         (624)  (1,457)   (2,081)      (592)    (1,381)    (1,973)
  management fee                                                              
  Other expenses     (563)        -     (563)      (635)       (55)      (690)
  NET RETURN        13,582   48,318    61,900     11,629     26,604     38,233
  BEFORE                                                                      
  FINANCE COSTS                                                               
  AND TAXATION                                                                
  Interest         (2,093)  (4,883)   (6,976)    (2,108)    (4,883)    (6,991)
  payable and                                                                 
  similar                                                                     
  charges                                                                     
  RETURN ON         11,489   43,435    54,924      9,521     21,721     31,242
  ORDINARY                                                                    
  ACTIVITIES                                                                  
  BEFORE                                                                      
  TAXATION                                                                    
  Taxation               -        -         -          -          -          -
  RETURN ON         11,489   43,435    54,924      9,521     21,721     31,242
  ORDINARY                                                                    
  ACTIVITIES                                                                  
  AFTER TAXATION                                                              
  Preference             -        -         -       (25)          -       (25)
  stock                                                                       
  dividends -                                                                 
  non equity                                                                  
  RETURN            11,489   43,435    59,924      9,496     21,721     31,217
  ATTRIBUTABLE                                                                
  TO EQUITY                                                                   
  SHAREHOLDERS                                                                
  Dividends in    (10,484)        -  (10,484)   (10,166)          -   (10,166)
  respect of                                                                  
  equity shares                                                               
                     1,005   43,435    44,440      (670)     21,721     21,051
  RETURN PER         
  ORDINARY SHARE     7.18p   27.13p    34.31p      5.93p     13.57p     19.50p  
                                                       



The revenue column of this statement represents the revenue account of the
company

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

BALANCE SHEET (AUDITED)

As at 31 January
                                                     2001     2000
                                                     £000     £000
FIXED ASSETS
Investments                                          494,604  452,499
CURRENT ASSETS
Debtors                                              6,434    10,591
UK Treasury bills                                    9,899    -
Cash and short term deposits                         4,965    7,539
                                                     21,298   18,130
CREDITORS: Amounts falling due within one year       11,781   10,961
NET CURRENT ASSETS                                   9,517    7,169
TOTAL ASSETS LESS CURRENT LIABILITIES                504,121  459,668
CREDITORS: Amounts falling due after one year        69,752   69,739
                                                     434,369  389,929
CAPITAL AND RESERVES
Called up share capital - equity                     40,025   40,025
Share premium                                        4,543    4,543
Capital reserve - realised                           307,177  264,999
Capital reserve - unrealised                         75,871   74,614
Revenue reserve                                      6,753    5,748

TOTAL EQUITY SHAREHOLDERS' FUNDS                     434,369  389,929

Net asset value per ordinary 25p share               271.16p  243.39p



CASHFLOW STATEMENT (AUDITED)

For the year ended 31 January

                                   2001        2001       2000        2000    
                                   £000        £000       £000        £000 
   
  Net cash inflow from operating               11,575                 10,412  
  activities                                                                  
  Servicing of finance                                                        
  Interest paid                    (6,963)                (6,977)             
  Preference dividends paid        -                      (40)                
  Net cash outflow from                        (6,963)                (7,017) 
  servicing of finance                                                        
  Taxation                                                                    
  UK corporation tax recovered     -                      978                 
  UK income tax (paid) recovered   (47)                   247                 
  Total tax (paid)/ recovered                  (47)                   1,225   
  Financial investment                                                        
  Purchase of investments          (319,895)              (320,379)           
  Sales of investments             332,663                317,863             
  Net cash inflow/ (outflow)                   12,768                 (2,516) 
  from financial investment                                                   
  Equity dividends paid                        (10,244)               (9,974) 
  Net cash inflow/ (outflow)                   7,089                  (7,870) 
  before use of liquid resources                                              
  and financing                                                               
  Net cash (outflow)/inflow from               (9,899)                13,884  
  management of liquid resources                                              
  Financing                                                                   
  Repayment of preference stock    -                      (895)               
  and related expenses                                                        
  Net cash outflow from financing              -                      (895)   
  (Decrease)/Increase in cash                  (2,810)                5,119   

                                         
    Notes :

    1.     The directors recommend that a final dividend of 4.45p per ordinary
    share be paid, making a total of 6.55p for the year ended 31 January 2001
    (2000 - 6.35p). The final dividend will be paid on 27 April 2001 to
    shareholders on the register at 30 March 2001. The ex-dividend date is 28
    March 2001.

    2.     The accounts have been prepared under the same accounting policies
    used for the year to 31 January 2000. The statutory accounts for 2001
    contain an unqualified audit report and will be delivered to the Registrar
    of Companies following the company's Annual General Meeting which will be
    held at Donaldson House, 97 Haymarket Terrace, Edinburgh on Thursday 26
    April 2001 at 12 noon.

    3.     The financial information for the year ended 31 January 2000 has
    been extracted from the annual report and accounts of the company which
    has been filed with the Registrar of Companies and on which the auditors'
    report was unqualified.

    4     The statement of total return (incorporating the revenue account),
    balance sheet and cash flow statement do not represent full accounts in
    accordance with Section 240 of the Companies Act 1985. The accounts have
    been prepared in accordance with the Statement of Recommended Practice '
    Financial Statements of Investment Trust Companies'.

    5.     The annual report will be posted to shareholders on 24 March 2001
    and copies will be available at the head office of the Secretary -
    Edinburgh Fund Managers plc, Donaldson House, 97 Haymarket Terrace,
    Edinburgh EH12 5HD.

Please note that past performance is not necessarily a guide to the future and
that the value of investments and the income from them may fall as well as
rise. Investors may not get back the amount they originally invested.