Transaction in Own Shares

MONTANARO UK SMALLER COMPANIES INVESTMENT TRUST PLC

The Company announces that 400,000 Ordinary shares of 10p each were today sold
by the Company from the shares held in treasury at a price of £1.70 per share.

The resultant total number of Ordinary shares held in treasury by the Company
is 1,496,400. The number of Ordinary shares that the Company has in issue, less
the total number of Ordinary shares held in treasury following this sale, is
35,021,178.

Enquiries:

Charles Montanaro - Montanaro Investment Managers Limited

Tel: [phone]

16.05.05