Interim Results

MONTANARO UK SMALLER COMPANIES INVESTMENT TRUST PLC              

             PRELIMINARY ANNOUNCEMENT OF UNAUDITED INTERIM RESULTS             

The Directors announce the unaudited statement of results for the period 1
April 2003 to 30 September 2003 as follows:-

SUMMARISED STATEMENT OF TOTAL RETURN

(incorporating the revenue account*)

                                                                            
                                                                            
                                   1 April 2003                 1 April 2002
                                                                            
                           to 30 September 2003         to 30 September 2002
                                                                            
                                                                            
                                                                            
                      Revenue  Capital    Total   Revenue  Capital     Total
                                                                            
                       £'000    £'000    £'000     £'000    £'000     £'000 
                                                                            
                                                                            
                                                                            
Capital gains/                                                              
(losses) on                                                                 
                                                                            
investments                -   14,262   14,262         -  (22,767)  (22,767)
                                                                            
Dividends and          1,191        -    1,191     1,244        -     1,244 
interest                                                                    
                                                                            
Investment              (189)    (189)    (378)     (216)    (216)     (432)
management fee                                                              
                                                                            
Other expenses          (108)       -     (108)     (154)       -      (154)
                                                                            
                                                                            
                                                                            
Return before                                                               
interest                                                                    
                                                                            
and taxation             894   14,073   14,967       874  (22,983)  (22,109)
                                                                            
Interest payable and    (122)    (246)    (368)     (154)    (154)     (308)
similar charges                                                             
                                                                            
Return on ordinary       772   13,827   14,599       720  (23,137)  (22,417)
activities before                                                           
and after taxation                                                          
                                                                            
                                                                            
                                                                            
Return per ordinary    2.10p   37.53p   39.63p      1.93p (62.05)p  (60.12)p
share                                                                       

* The revenue column of this statement is the revenue account of the Company.

The financial statements have been prepared using accounting standards and
policies adopted at the previous year end.

All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or discontinued in the period.

These financial statements are unaudited and are not the Company's statutory
financial accounts.

SUMMARISED BALANCE SHEET

                                                                             
                                                                             
                                               As at      As at         As at
                                                                             
                                        30 September   31 March  30 September
                                                                             
                                                2003       2003          2002
                                                                             
                                              £'000      £'000         £'000 
                                                                             
                                                                             
                                                                             
Fixed asset investments                      56,317     44,728        57,117 
                                                                             
Net current assets                            9,222      9,270         4,235 
                                                                             
Long term credit facility                    (7,500)   (10,000)      (10,000)
                                                                             
                                                                             
                                                                             
Net assets                                   58,039     43,998        51,352 
                                                                             
Less current period revenue                    (772)         -          (720)
                                                                             
                                                                             
                                                                             
Net assets for the purpose of                57,267     43,998        50,632 
calculating the net asset value per                                          
ordinary share                                                               
                                                                             
                                                                             
                                                                             
Net asset value per ordinary share           155.46p    118.00p      135.79p 

SUMMARISED STATEMENT OF CASHFLOWS                                             
                                                                              
                                              1 April 2003 to  1 April 2002 to
                                                                              
                                                 30 September     30 September
                                                                              
                                                         2003             2002
                                                                              
                                                       £'000            £'000 
                                                                              
                                                                              
                                                                              
Net cash inflow from operating activities                756              687 
                                                                              
                                                                              
                                                                              
Servicing of finance                                                          
                                                                              
- Interest and similar charges paid                     (260)            (319)
                                                                              
                                                                              
                                                                              
Net cash outflow from servicing of finance              (260)            (319)
                                                                              
Taxation                                                                      
                                                                              
-Taxation recovered                                        -                1 
                                                                              
Net inflow from taxation                                   -                1 
                                                                              
Capital expenditure and financial investment                                  
                                                                              
- Purchases of investments                           (15,246)         (12,126)
                                                                              
- Sales of investments                                17,697           10,038 
                                                                              
                                                                              
                                                                              
Net cash inflow/(outflow) from capital                                        
expenditure                                                                   
                                                                              
and financial investment                               2,451           (2,088)
                                                                              
                                                                              
                                                                              
Equity dividends paid                                   (928)            (690)
                                                                              
Financing                                                                     
                                                                              
- Proceeds of credit facility                              -            2,500 
                                                                              
- Repayment of credit facility                        (2,500)               - 
                                                                              
- Loan breakage costs                                   (124)               - 
                                                                              
- Ordinary shares repurchased and cancelled             (558)               - 
                                                                              
                                                                              
                                                                              
Net cash (outflow)/inflow from financing              (3,182)           2,500 
                                                                              
                                                                              
                                                                              
(Decrease)/increase in cash                          (1,163)               91 

These financial statements are unaudited and are not the Company's statutory
accounts. Full financial statements for the year ended 31 March 2003 include an
unqualified audit report and have been delivered to the Registrar of Companies.

INVESTMENT MANAGER'S REPORT

Charles Montanaro commented:

'PERFORMANCE

Over the six months ended 30 September 2003, the Company's net asset value
('NAV') increased by 32% compared with a gain of 45% by the SmallCap.

From its low point in March 2003, the SmallCap has gained 53%. As investor
appetite for risk increased, the greatest gains came from high beta, cyclical
sectors such as companies in TMT, biotech and the internet, many of which are
loss making. It is the investment policy of the Company not to invest in
companies that are unprofitable. This largely explains recent relative
underperformance.

In contrast, over the past six months the FTSE AllShare ('FTA') rose by a more
modest 17%. The HGSC has outperformed the FTA by over 20% so far this year, a
comparable feat only seen twice before: in 1999 (+30%) and 1977 (+50%).

From the launch of the Company in March 1995 to the end of September 2003, the
SmallCap has risen by 40%. In comparison, the NAV of the Company has
appreciated by 58%.

REVIEW

On 12 March 2003, with war in Iraq looming, the SmallCap fell to 1,640 - a
level not seen in ten years and 54% below its peak on 4 September 2000.
However, by the end of June 2003 the SmallCap had recovered by almost 30%.
These gains were extended over the following quarter as investors enjoyed five
consecutive months of positive returns. The SmallCap reached a recent peak of
2,506 on 8 September 2003, a remarkable 53% above the low point just over six
months earlier. Following a roller coaster three-year period, the SmallCap is
currently 33% below its all-time high.

This was more than a post-war rally. Within a matter of weeks, market sentiment
completely reversed. With the benefit of hindsight, stock markets were
significantly undervalued in March 2003, discounting the risks of deflation and
a global recession that have since diminished. Several prominent investors and
strategists proclaimed the start of a new 'bull' market. Private investors who
had poured money into ostensibly conservative bond funds at the start of the
year had a change of heart and ventured back into equities. Small companies
were the main beneficiaries.

OUTLOOK

The economic outlook for the UK is looking decidedly brighter than six months
ago. The year on year GDP growth at the end of September 2003 was 1.9%.
Deutsche Bank forecast that UK GDP growth will be the strongest within the EU,
increasing to 2.5% and 2.6% in 2004 and 2005 respectively. As a result, UK
interest rates may continue to rise over the coming months as indicated by the
recent increase to 3.75%, the first for four years.

Recent earnings results from UK companies have been broadly in line with
expectations. Analysts have tended to increase their forecasts, helping to
justify recent stock market gains. At 30 September 2003, the HGSC price /
earnings ratio stood at a 16.1x (not extreme by historic standards) and at a
discount of 8% relative to the FTA. In 1994/5, ahead of economic recovery in
the UK, small companies traded at a premium to large companies of around 5%.

The strong outperformance of quoted UK small companies this year highlights the
perils of being underweight during periods of recovery. With the economic
outlook for the UK looking increasingly positive, particularly in comparison
with the rest of Europe, it is likely that UK small companies will continue to
be in favour.'

SIR BRANDON GOUGH

Chairman

14 November 2003