Restructure Proposals

Small Companies Dividend Trust PLC                       

                  Capital Reorganisation and Issue of Shares                   

The Board of Small Companies Dividend Trust PLC ("the Company") is pleased to
announce the appointment of Fairfax I.S. Limited, as corporate brokers and that
the Company is considering proposals for a restructuring, which will
effectively extend the life of the Group. This would involve extending the life
of the existing Zero Dividend Preference shares and a placing of new Zero
Dividend Preference shares and C shares convertible into Ordinary shares to
raise up to £35 million.

The new issue of shares is expected to raise £15m in new Zero Dividend
Preference shares and £20m in C shares with a small increase in the banking
facility, in order to maintain broadly the existing overall capital structure
of the Group.

The Company aims to launch the share issues and to post documentation to
shareholders towards the end of May 2006, to seek their approval for the issue.

Further enquiries:

William van Heesewijk
Chelverton Asset Management Limited        020 7222 8989

Paul Richards
John Korwin Szymanowski
Fairfax IS Limited                         020 7568 5368