Portfolio Update

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

In accordance with UKLA Listing Rule 15.4.1l(2), the following list represents,
as at 31 December 2005, 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      
                                                                             
DTZ Holdings               Ordinary                2.88                      
                                                                             
Fisher (James) & Sons      Ordinary                2.29                      
                                                                             
Dignity                    Ordinary                2.26                      
                                                                             
Wilmington Group           Ordinary                2.23                      
                                                                             
Richmond Foods             Ordinary                2.22                      
                                                                             
Chloride Group             Ordinary                2.16                      
                                                                             
Datamonitor                Ordinary                2.13                      
                                                                             
Care UK                    Ordinary                2.09                      
                                                                             
Ultra Electronic           Ordinary                2.07                      
                                                                             
Comino Group               Ordinary                2.07