RNS Number:0183U
Blue Chip Value & Income Fund Ld
08 January 2004

Blue Chip Value and Income Fund Limited (the "Company") announces that it has
agreed with Bank of Scotland (the "Bank") a new cash set-off arrangement with
the Bank, the details of which are set out below.

The Company has existing unsecured borrowings of #28.5m with the Bank.  The loan
agreement requires that the ratio of the value of the Company's investments
(including cash) to the total amount of its indebtedness shall not be less than
1.7 to 1.  The Company has agreed with the Bank that up to #11m may be deposited
under a new cash set-off arrangement that will run until 31 December 2004.

Under this arrangement, the Company has agreed to place on fixed deposit with
the Bank an amount of #7m until 30 June 2004 and that this amount may be set off
against existing borrowings for the purposes of determining the covenant.
During the period 1 July 2004 to 31 December 2004, the Company is not obliged to
deposit any monies under the cash set-off arrangement save that on 31 December
2004, or earlier determination of the arrangement, the Company will ensure that
the ratio of the value of the Company's investments (including cash) to the
total amount of its indebtedness shall not be less than 1.9 to 1 immediately
following any required prepayment of the loan.  The Company has also agreed with
the Bank that the interest margin paid in respect of the loan be increased from
0.975 per cent. to 1.00 per cent.


Enquiries

Andrew Duquemin

Tel 01481 731942


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