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 31 March 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      
                                                                             
Wilmington Group           Ordinary                2.27                      
                                                                             
Isotron                    Ordinary                1.97                      
                                                                             
Fisher (James) & Sons      Ordinary                1.93                      
                                                                             
Dignity                    Ordinary                1.93                      
                                                                             
Chloride Group             Ordinary                1.82                      
                                                                             
Dechra Pharmaceuticals     Ordinary                1.79                      
                                                                             
Ricardo                    Ordinary                1.73                      
                                                                             
European Motor Holdings    Ordinary                1.72                      
                                                                             
Comino Group               Ordinary                1.71                      
                                                                             
Greggs                     Ordinary                1.66