Interim Results

DUNEDIN INCOME GROWTH INVESTMENT TRUST PLC


               INTERIM RESULTS FOR THE 6 MONTHS ENDED 31 JULY 2004


The objective of Dunedin Income Growth Investment Trust is to achieve growth  of
income and capital from a portfolio invested in the United Kingdom.




                                   Highlights


-  Net  Asset  Value per share rose by 0.3%, compared to a 0.2% rise in the  FTSE
   All-Share Index over the same period.
-  The  interim  dividend  has been increased to 2.5p, in  order  to  reduce  the
   imbalance between interim and final dividends.  The Board expects to  declare
   a final dividend of 5p.



For further information, please contact:-

David Binnie / Stewart Methven
Edinburgh Fund Managers plc                  0131 313 1000



Chairman's Statement

The  half  year to 31 July 2004 was a directionless period for the stock  market
with the FTSE All-Share Index rising by 0.2% in capital terms and generating a
total return of 2.1%. Against this, DIGIT's net asset value rose by 0.3% during
the period, from 200.0p  to 200.6p, producing a total return (based on net asset
value) of  2.9%.  The share price fell by 3%, as the discount widened slightly.

We  are  declaring an interim dividend of 2.50p (2.25p previous year) and expect
to declare a final dividend of 5p.

Economic and Market Background
The  period  saw the UK stock market trade in a relatively narrow range.  Equity
investors were more confident at the start of our year, which, in April,  pushed
the  market up to its highest level since mid 2002. Since then, however,  rising
interest  rates and an unexpectedly high oil price have produced a more  subdued
tone.  Bond  prices have also tended to weaken, with the yield on 10 year  gilts
rising to 5%.

The  global  economy  continued  to strengthen over  the  period,  driven  by  a
combination of historically low interest rates and increased levels of inventory
building.  It is this acceleration in economic growth, coupled with steep  rises
in  such  visible  input  costs as oil and steel,  that  has  prompted  monetary
authorities to raise interest rates. Not only do higher commodity prices have  a
direct influence on inflation, but they also hurt corporate margins.

With  the notable exception of the oils, the major sectors of the equity  market
struggled  to make headway, and this did not help sentiment. Indeed, it  was  an
unusual  mixture of defensive and cyclical sectors that performed well.  Winners
included  utilities, tobacco, leisure and general retailers. On the other  hand,
many  of  the areas that had performed strongly in the preceding twelve  months,
including some of the more market sensitive areas such as speciality financials,
media and technology, were generally weak.

Share Buyback
DIGIT,  like  many  other  investment trusts, saw its discount  widen  over  the
period. This provided us with the opportunity to enhance our net asset value  by
buying shares back in the market. In aggregate, we bought 1,600,000 shares at  a
discount (valuing our debentures at par) of 19.4%, thus adding 0.38p to our  net
asset value per share. We shall continue to use share buybacks to add value  for
shareholders.

Outlook
Rising  commodity  prices  and  a gradual tightening  of  monetary  policy  have
inhibited  equity  markets in recent months. These and other concerns,  such  as
terrorism, may continue to restrict the scope for short term progress.  But  the
news  is  not  all bad: an improving economy has boosted profits  and  benefited
corporate  balance  sheets,  thus enhancing dividend  prospects.  As  ever,  our
emphasis is on the quality of DIGIT's holdings and their stock market valuations
rather than on the possible short term fluctuations in their share prices.  This
longer term perspective allows us to view the future with confidence.

Max Ward
Chairman
9 September 2004



STATEMENT OF TOTAL RETURN
6 months ended 31 July 2004


                                       Revenue   Capital     Total
                                          £000      £000      £000

Realised gains on investments                -     3,835     3,835
Unrealised losses on investments             -    (3,543)   (3,543)
                                       _______   _______   _______

TOTAL CAPITAL GAINS ON INVESTMENTS           -       292       292
Income from investments                  8,370         -     8,370
Interest receivable on short term          382         -       382
deposits
Other income                                 1         -         1
Investment management fee                 (239)     (559)     (798)
Administrative expenses                   (321)        -      (321)
                                       _______   _______   _______

NET RETURN BEFORE FINANCE                8,193      (267)    7,926
COSTS AND TAXATION
Interest payable and similar charges    (1,046)   (2,442)   (3,488)
                                       _______   _______   _______

RETURN ON ORDINARY                       7,147    (2,709)    4,438
ACTIVITIES BEFORE TAXATION
Taxation                                     -         -         -
                                       _______   _______   _______

RETURN ATTRIBUTABLE TO EQUITY            7,147    (2,709)    4,438
SHAREHOLDERS
Dividends in respect of equity          (3,961)        -    (3,961)
shares
                                       _______   _______   _______

                                         3,186    (2,709)      477
                                       _______   _______   _______
RETURN PER ORDINARY SHARE                4.49p    (1.70p)    2.79p
                                       _______   _______   _______
INTERIM DIVIDEND PER ORDINARY SHARE      2.50p
                                       _______

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.



STATEMENT OF TOTAL RETURN
6 months ended 31 July 2003


                                       Revenue   Capital     Total
                                          £000      £000      £000

Realised losses on investments               -    (2,747)   (2,747)
Unrealised gains on investments              -    58,507    58,507
                                       _______   _______   _______

TOTAL CAPITAL GAINS ON INVESTMENTS           -    55,760    55,760
Income from investments                  7,667         -     7,667
Interest receivable on short term          485         -       485
deposits
Other income                                 -         -         -
Investment management fee                 (210)     (490)     (700)
Administrative expenses                   (306)        -      (306)
                                       _______   _______   _______

NET RETURN BEFORE FINANCE                7,636    55,270    62,906
COSTS AND TAXATION
Interest payable and similar charges    (1,046)   (2,442)   (3,488)
                                       _______   _______   _______

RETURN ON ORDINARY                       6,590    52,828    59,418
ACTIVITIES BEFORE TAXATION
Taxation                                     -         -         -
                                       _______   _______   _______

RETURN ATTRIBUTABLE TO EQUITY            6,590    52,828    59,418
SHAREHOLDERS
Dividends in respect of equity          (3,602)        -    (3,602)
shares
                                       _______   _______   _______

                                         2,988    52,828    55,816
                                       _______   _______   _______
RETURN PER ORDINARY SHARE                4.12p    32.99p    37.11p
                                       _______   _______   _______
INTERIM DIVIDEND PER ORDINARY SHARE      2.25p
                                       _______

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.



STATEMENT OF TOTAL RETURN
12 months ended 31 January 2004

                                       Revenue   Capital     Total
                                          £000      £000      £000

Realised losses on investments               -    (2,413)   (2,413)
Unrealised gains on investments              -    79,939    79,939
                                       _______   _______   _______

TOTAL CAPITAL GAINS ON INVESTMENTS           -    77,526    77,526
Income from investments                 13,810         -    13,810
Interest receivable on short term          941         -       941
deposits
Other income                                 -         -         -
Investment management fee                (441)   (1,029)   (1,470)
Administrative expenses                  (584)         -     (584)
                                       _______   _______   _______

NET RETURN BEFORE FINANCE               13,726    76,497    90,223
COSTS AND TAXATION
Interest payable and similar charges   (2,093)   (4,883)   (6,976)
                                       _______   _______   _______

RETURN ON ORDINARY                      11,633    71,614    83,247
ACTIVITIES BEFORE TAXATION
Taxation                                     -         -         -
                                       _______   _______   _______

RETURN ATTRIBUTABLE TO EQUITY           11,633    71,614    83,247
SHAREHOLDERS
Dividends in respect of equity         (11,602)        -   (11,602)
shares
                                       _______   _______   _______

                                            31    71,614    71,645
                                       _______   _______   _______
RETURN PER ORDINARY SHARE                7.27p    44.73p    52.00p
                                       _______   _______   _______
INTERIM DIVIDEND PER ORDINARY SHARE



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

                                      At 31 July      At 31      At 31
                                            July    January       July
                                            2004       2004       2003

                                            £000       £000       £000

FIXED ASSETS
Investments                              371,002    372,618    347,959
                                         _______    _______    _______

CURRENT ASSETS
Debtors                                    2,056      2,107      5,010
UK Treasury Bills                              -          -      1,986
AAA Money Market Funds                    17,800     23,600     21,800
Cash and short term deposits               1,677        421      4,249
                                         _______    _______    _______

                                          21,533     26,128     33,045
CREDITORS: Amounts falling due within     (4,647)    (8,686)    (6,694)
one year
                                         _______    _______    _______

NET CURRENT ASSETS                        16,886     17,442     26,351
                                         _______    _______    _______

TOTAL ASSETS LESS CURRENT LIABILITIES    387,888    390,060    374,310

CREDITORS: Amounts falling due after
more than one year                       (69,800)   (69,793)   (69,786)
                                         _______    _______    _______

                                         318,088    320,267    304,524
                                         _______    _______    _______

CAPITAL AND RESERVES
Called up share capital - equity          39,613     40,013     40,025
Other reserves                           278,475    280,254    264,499
                                         _______    _______    _______

TOTAL EQUITY SHAREHOLDERS' FUNDS         318,088    320,267    304,524
                                         _______    _______    _______
Net asset value per 25p ordinary         200.62p    199.97p    190.07p
share
                                         _______    _______    _______


CASHFLOW STATEMENT

                                         6 months  6 months  12 months
                                            ended     ended      ended
                                          31 July   31 July 31 January
                                             2004      2003       2004

                                             £000      £000       £000

Revenue before finance costs and            8,193     7,636     13,726
taxation
(Increase)/decrease in accrued income        (413)     (492)        40
Increase in other debtors                      (3)       (6)        (2)
Increase/(decrease) in creditors               21        (8)         1
Expenses charged to capital                  (559)     (490)    (1,029)
                                         ________   _______    _______
Net cash inflow from operating              7,239     6,640     12,736
activities

Net cash outflow from servicing of         (3,481)   (3,481)    (6,962)
finance

Total tax paid                                  -         -          -

Net cash inflow from financial              2,356     4,386      1,442
investment

Equity dividends paid                      (8,003)   (7,685)   (11,284)
                                          _______   _______    _______

Net cash outflow before financing          (1,889)     (140)    (4,068)

Management of liquid resources              5,800      (807)      (621)

Net cash outflow from financing            (2,656)        -        (86)
                                          _______   _______    _______
Increase/(decrease) in cash                 1,255      (947)    (4,775)
                                          _______   _______    _______

Notes:
1. The  directors have declared an interim dividend of 2.5p (2003 -  2.25p)  per
   ordinary  share  for the year ending 31 January 2005. The  interim  dividend,
   payable  on  24 September 2004, will be paid to shareholders on the  register
   on 17 September 2004.  The ex dividend date is 15 September 2004.
2. The  accounts have been prepared under the same accounting policies used  for
   the year ended 31 January 2004.
3. The  financial  information  for the year ended  31  January  2004  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 cashflow statement set out above 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  interim  report  will be posted to shareholders mid September  2004  and
   copies  will be available at the registered office of the company,  Donaldson
   House, 97 Haymarket Terrace, Edinburgh EH12 5HD.
6. The  financial information set out above for the periods ended 31  July  2004
   and 31 July 2003 is unaudited but has been reviewed by the auditors.



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



                 INDEPENDENT REVIEW REPORT BY KPMG AUDIT PLC


To Dunedin Income Growth Investment Trust PLC

Introduction
We  have been engaged by the company to review the financial information set out
on  pages  6  to 10 of the interim report and we have read the other information
contained in the interim report and considered whether it contains any  apparent
misstatements or material inconsistencies with the financial information.

This  report is made solely to the company in accordance with the terms  of  our
engagement  to  assist the company in meeting the requirements  of  the  Listing
Rules  of  the Financial Services Authority.  Our review has been undertaken  so
that we might state to the company those matters we are required to state to  it
in this report and for no other purpose. To the fullest extent permitted by law,
we  do not accept or assume responsibility to anyone other than the company  for
our review work, for this report, or for the conclusions we have reached.

Directors' responsibilities
The  interim  report, including the financial information contained therein,  is
the  responsibility of, and has been approved by, the directors.  The  directors
are  responsible for preparing the interim report in accordance with the Listing
Rules which require that the accounting policies and presentation applied to the
interim  figures  should  be  consistent with those  applied  in  preparing  the
preceding annual accounts except where they are to be changed in the next annual
accounts  in  which  case  any changes, and the reasons  for  them,  are  to  be
disclosed.

Review work performed
We  conducted  our  review  in accordance with guidance  contained  in  Bulletin
1999/4: Review of interim financial information issued by the Auditing Practices
Board  for  use in the United Kingdom. A review consists principally  of  making
enquiries  of  management and applying analytical procedures  to  the  financial
information and underlying financial data and, based thereon, assessing  whether
the  accounting policies and presentation have been consistently applied  unless
otherwise  disclosed.  A review is substantially less in  scope  than  an  audit
performed in accordance with Auditing Standards and therefore provides  a  lower
level of assurance than an audit. Accordingly we do not express an audit opinion
on the financial information.

Review conclusion
On  the basis of our review we are not aware of any material modifications  that
should  be  made  to the financial information as presented for the  six  months
ended 31 July 2004.


KPMG Audit Plc
Chartered Accountants
Edinburgh, 9 September 2004