Substantial Shareholding

Montanaro UK Smlr Cos Inv Tst PLC
25 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 1,446,805 ordinary 10p shares
(representing 3.61% of the issued class of capital) on 23 August 2000,
Merchant Investors Assurance Company Limited are now interested in 4,770,249
ordinary 10p shares, representing 11.90% 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
5,970,249 ordinary 10p shares, representing 14.89% of the issued class of
capital