Portfolio Update

MONTANARO UK SMALLER COMPANIES IT PLC (the 'Company')

In accordance with UKLA Listing Rule 21.20(l)(ii), the following list
represents, as at 30 September 2004, the Company's 10 largest investments and
where appropriate, any investment with a value greater than 5% of the Company's
gross assets:

Name of company            Class of share          Percentage Weighting      
                                                                             
White Young Green          Ordinary                2.30                      
                                                                             
Wilmington Group           Ordinary                2.27                      
                                                                             
Comino Group               Ordinary                2.18                      
                                                                             
Dignity                    Ordinary                2.12                      
                                                                             
Care UK                    Ordinary                2.06                      
                                                                             
Fisher (James) & Sons      Ordinary                2.02                      
                                                                             
Simon Group                Ordinary                1.84                      
                                                                             
Isotron                    Ordinary                1.82                      
                                                                             
Dechra Pharmaceuticals     Ordinary                1.76                      
                                                                             
Amlin                      Ordinary                1.75