Update on Reconstruction Proposals (4192D)

TIDMENG

RNS Number : 4192D

Electric & General Inv Tst PLC

22 March 2011

Electric & General Investment Trust plc

Update on Reconstruction Proposals

The board (the "Board") of Electric & General Investment Trust plc (the "Company") wishes to update shareholders on progress of its intended reconstruction proposals announced in February 2011.

The Board is conscious of the need to maximise shareholder value and is now in a position to confirm that if the reconstruction was effected today (i.e. with reference to the net asset value of the Company as at 21 March 2011), the value attributable to a shareholder electing for either cash or rolling into the new OEIC (the "New Fund") would be expected to exceed 99.3% of net asset value.

Since Taube Hodson Stonex's appointment in September 2004 (but disregarding the period until 1 December 2004 when a tender offer provided a one-off NAV uplift and during which it was necessary for the portfolio to carry high levels of liquidity), the Company has delivered an NAV total return of 77.4%, substantially in excess of the benchmark, the MSCI World Index, which has returned 54.3%. The Board believes retention of the Investment Manager for the rollover option is in shareholders' best interests. A reduced management fee (0.3% of net assets) will apply to shares rolled over and to additional future subscriptions from these shareholders.

The performance is for the period from 1 December 2004 to close of business on 21 March 2011.

The Board hopes to implement these proposals as soon as is possible and will make a further announcement with the timing detail as soon as practicable. In the meantime, the Board confirms that the Company's reserve position precludes an accelerated cash exit structure or extensive share repurchase programme.

The Board will undertake a further round of shareholder consultation to detail the merits of its proposals.

Enquiries:

William Simmonds 020 7588 2828

J.P. Morgan Cazenove

22 March 2011

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