Holding(s) in Company

TR-1(i): NOTIFICATION OF MAJOR INTERESTS IN SHARES

(1). Identity of the issuer or the underlying issuer of existing shares to
which voting rights are attached (ii):

            Merrill Lynch British Smaller Companies Trust plc

(2). Reason for the notification (please tick the appropriate box or boxes):

An acquisition or disposal of voting rights: (X)

An acquisition or disposal of financial instruments which may result in the
acquisition of shares already issued to which voting rights are attached: ( )

An event changing the breakdown of voting rights: ( )

Other (please specify) :  (  )



(3). Full name of person(s) subject to the notification obligation (iii):

            HBOS plc

(4). Full name of shareholder(s) (if different from 3.) (iv):

            See Section 9

(5). Date of the transaction (and date on which the threshold is crossed or
reached if different) (v):

            22 November 2007

(6). Date on which issuer notified:

            23 November 2007

(7). Threshold(s) that is/are crossed or reached:

            Increase to above 10% indirect

(8). Notified details:


A: Voting rights attached to shares

Class/type of shares (if possible using the ISIN code):  Ord 25p/GB0006436108

Situation previous to the triggering transaction(vi):
     Number of Shares:  4,458,211
     Number of Voting rights(viii):  4,458,211

Resulting situation after the triggering transaction(vii):
     Number of shares:
          DIRECT:  4
     Number of voting rights (ix):
          Direct (x):  4
          Indirect (xi):  4,988,209

% of voting rights:
     Direct:  0%
     Indirect:  10.25%

B. Financial Instruments

Resulting situation after the triggering transaction (xii):

Type of financial instrument:  N/A

Expiration date (xiii): 

Exercise/Conversion Period/Date (xiv): 

Number of voting rights that may be acquired if the instrument is exercised/
converted:

% of voting rights:

Total (A + B):

Number of voting rights:  4,988,209

% of voting rights:  10.25%


(9). Chain of controlled undertakings through which the voting rights and/or
the financial instruments are effectively held, if applicable (xv):

            Insight Investment Management (Global) Limited* ('IIMGL') -
(Indirect) - 4,964,459 (10.20%)

IIMGL manages holdings on behalf of other HBOS Group companies, and other third
parties external to the HBOS Group, under various discretionary management
agreements.

(* - wholly owned subsidiaries of HBOS plc.)

Proxy Voting:

(10). Name of the proxy holder:  N/A

           

(11). Number of voting rights proxy holder will cease to hold:  N/A

           

(12). Date on which proxy holder will cease to hold voting rights:  N/A

           


(13). Additional information:

            Notification using the total voting rights figure of 48,674,708

 

HBOS Contact Name:  Kenny Melville

HBOS Contact Telephone Number: 0131 243 8671

(14). Contact name:

            Mrs A B Powley
            For BlackRock Investment Management (UK) Limited
            Secretary

(15). Contact telephone number:

            020 7743 5610


23 November 2007