Portfolio Update

Merrill Lynch British Smaller Companies Trust plc
As at 31 August 2007

Top 10 holdings:   
  
AVEVA GROUP                    
BREWIN DOLPHIN                 
BSS GROUP                      
DECHRA PHARMACEUTICALS         
DOMINO PRINTING                
ITE GROUP                      
RATHBONE BROTHERS              
SPIRAX-SARCO ENGINEERING    
VICTREX                        
WSP GROUP                      
  
Other holdings over 5%:

n/a

Holdings in restricted UK listed investment companies:

n/a

4 September 2007