Recovery of VAT on Management Fees

ABERFORTH SMALLER COMPANIES TRUST plc

The Board is delighted to announce that Aberforth Smaller Companies Trust
(ASCoT) has received a full refund of all VAT on management fees charged by
Aberforth Partners LLP (Aberforth) since 1 January 2001.  ASCoT has received a
total of £4,688,881 in this respect. This comprises both that recovered by
Aberforth from HMRC and a repayment directly from Aberforth of VAT previously
offset by them.  In addition, ASCoT has received £526,486 from Aberforth in
respect of associated interest received by it from HM Revenue & Customs.  These
sums have already been recognised in the published Net Asset Value (NAVs).

ASCoT also expects to receive a further £707,916 from Aberforth in relation to
VAT incurred on management fees in periods up to 30 September 1996, plus
associated interest of £458,144.  These sums will be recognised in the NAVs due
to be published on Friday 20th June 2008.

Chairman David Shaw said:

"This is excellent news for shareholders.  The Managers have followed
developments in VAT law diligently and were well placed to progress matters when
favourable decisions were reached in the relevant cases.  Given the sums
involved and the fact that these claims go back as far as 1 January 1991, I am
particularly pleased that matters have been settled so timeously."


CONTACT:  Alan Waite, Aberforth Partners LLP, 0131 220 0733

Aberforth Partners LLP, Secretaries - 17th June 2008

ANNOUNCEMENT ENDS