Bank Loan

The Zero Preference Growth Trust PLC

Bank Facilities

The Company confirms that on 30 May 2004, it repaid £250,000 of its bank loan

with Bank of Scotland, at no penalty cost to the Company, leaving £16,250,000

outstanding.

Whilst the Company remains in default under the terms of its facility agreement

with Bank of Scotland, the Company has been informed by the Bank that it has no

present intention of demanding immediate repayment of the loans made by the

Bank to the Company.

30 June 2004

Enquiries

William van Heesewijk

BFS Investments plc 01483 237773

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