Transaction in Own Shares

MONTANARO UK SMALLER COMPANIES INVESTMENT TRUST PLC              

The Company announces that on 2 July 2004 it purchased 2,750,000 Ordinary
shares at a price of 135.5 pence per share. The shares so purchased will be
held in treasury.

The number of Ordinary shares in issue will remain as 36,517,578. This figure
is inclusive of the 2,750,000 Ordinary shares held in treasury.

06.07.04