Issue of Equity

Merchants Trust PLC
19 May 2006

The Merchants Trust PLC (the 'Company')



Issue of Shares



19 May 2006



The Board of the Company announces its participation in a scheme of
reconstruction of Allianz Dresdner Income Growth Investment Trust plc ('ADIGIT
'), a split capital investment trust with net assets of £67.6 million, under
section 110 of the Insolvency Act 1988 (the 'Scheme') that was announced by
ADIGIT today.



Under the Scheme, all shareholders in ADIGIT will be given the opportunity to
roll their investment into the Company or (in the case of zero dividend
preference shareholders only) the Sterling Total Return Fund, a sub-fund of
Allianz UK & European Investment Funds, a UK authorised open-ended investment
company. ADIGIT shareholders can also elect to receive cash in respect of all or
some of their investment. The default option under the Scheme will be cash.



The issue price of the new ordinary shares to be issued by the Company pursuant
to the Scheme (the 'New Shares') will be calculated as at close of business on
27 June 2006 (the 'Calculation Date') and, in order to offset the Company's
costs of participation in the Scheme, will be calculated by applying a premium
of 0.6 per cent to the net asset value per share at that time (with debt valued
at market value and including accrued but undeclared net income). The maximum
number of New Shares which may be issued will not exceed 9.99 per cent of the
issued share capital of the Company as at close of business on the Calculation
Date. The New Shares will be issued under the existing shareholder authorities
and there is no requirement to publish a prospectus. The Company will only
receive cash or cash equivalent assets from ADIGIT under the Scheme.



It is expected that the Scheme will become effective on 29 June 2006 and that
the New Shares will be admitted to the UKLA's Official List and to trading on
the main market of the London Stock Exchange on 30 June 2006.





Enquiries
Simon White                                          020 7065 1539
RCM (UK) Limited






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