Holding by Utd.Assurance Grp.

3i Smaller Quoted Companies Trust PLC
24 January 2000

LETTER TO:  3i SMALLER QUOTED COMPANIES TRUST PLC

Companies Act 1985 Section 198 disclosure notice

In compliance with Part VI of the above mentioned Act, I write to inform of
United Assurance Group plc's new combined shareholding in 3i Smaller Quoted
Companies ordinary 25p shares.

Following acquisitions on 20th January 2000 at a price of £2.665 per share, we
now have a holding of 5,785,000 ordinary 25p shares.  This takes our percentage
of the share capital from 9.69% to 9.99%.

Registered Shareholder            Purchase     Holding          %

Chase Nominees Ltd. a/c LENDNON    55,000     1,808,000       3.12

Chase Nominees Ltd                120,000     3,977,000       6.87

TOTAL                             175,000     5,785,000       9.99

From:  Chris Grove (United Assurance plc)