Substantial Shareholding

Montanaro UK Smlr Cos Inv Tst PLC
22 August 2000

Montanaro UK Smaller Companies Investment Trust plc - Holding in Company

The Company has today been informed, under Section 203 of the Companies Act
(1985), that as the result of the purchase of 150,000 ordinary 10p shares on
18 August 2000, Merchant Investors Assurance Company Limited are now
interested in 3,323,444 ordinary 10p shares, representing 8.29% of the issued
class of capital.

As a result of this transaction the aggregate holding of Allianz (UK) Limited,
the holding Company of Merchant Investors Assurance Company Limited, is
4,523,444 ordinary 10p shares, representing 11.28% of the issued class of
capital