Holding in Company

Perpetual UK Smaller Co's IT PLC
21 September 2000


                  DEALINGS BY SUBSTANTIAL SHAREHOLDERS


1)   NAME OF COMPANY

     PERPETUAL UK SMALLER COMPANIES INVESTMENT TRUST


2)   NAME OF SHAREHOLDERS HAVING A MAJOR INTEREST

     ALLIANZ (UK) LIMITED
     CORNHILL INSURANCE PLC
     MERCHANT INVESTORS ASSURANCE COMPANY LIMITED

3)   Please state whether notification indicates that it is in respect of 
     holding of the Shareholder named in 2 above or in respect of a 
     non-beneficial interest or in the case of an individual holder if it is a
     holding of that person's spouse or children under the age of 18

     BENEFICIAL

4)   Name of the registered holder(s) and, if more than one holder, the 
     number of shares held by each of them.

     THE BANK OF NEW YORK (NOMINEES) LTD

5)   Number of shares/amount of stock acquired.

     MERCHANT INVESTORS 50,000

6)   (0.36%) of issued Class

7)   Number of shares/amount of stock disposed



8)   ( N/A %) of issued Class

9)   Class of security

     ORDINARY

10)  Date of transaction

     19TH SEPTEMBER 2000

11)  Date company informed

     20TH SEPTEMBER 2000

12)  Total holding following this notification

     TOTAL: ALLIANZ (UK) LTD: 1,452,700 OF WHICH MERCHANT INVESTORS 
     ASSURANCE LTD: 1,302,700;  CORNHILL INSURANCE PLC: 150,000
               
              
13)  Total percentage holding of issued class following this notification

     10.356% OF WHICH MERCHANT INVESTORS: 9.286% AND CORNHILL INSURANCE: 1.069%

14)  Any additional information



15)  Name of contact and telephone number for queries

     VANESSA BOYD: [phone]

16)  Name and signature of authorised company official responsible for 
     making this notification

     Date of Notification ....21ST SEPTEMBER 2000....