Portfolio Update

MONTANARO UK SMALLER COMPANIES IT PLC

In accordance with UKLA Listing Rule 21.20(l)(ii), the following list
represents, as at 31 December 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      
                                                                             
Wilmington Group           Ordinary                2.36                      
                                                                             
Care UK                    Ordinary                2.07                      
                                                                             
Linx Printing Technology   Ordinary                2.07                      
                                                                             
Dignity                    Ordinary                1.92                      
                                                                             
Fisher (James) & Sons      Ordinary                1.85                      
                                                                             
Isotron                    Ordinary                1.77                      
                                                                             
White Young Green          Ordinary                1.74                      
                                                                             
Dechra Pharmaceuticals     Ordinary                1.73                      
                                                                             
Comino Group               Ordinary                1.73                      
                                                                             
Richmond Foods             Ordinary                1.69