Holding in Company

Foreign & Colonial Smaller Co's PLC
3 January 2001


                  DEALINGS BY SUBSTANTIAL SHAREHOLDERS


1)   NAME OF COMPANY

     FOREIGN & COLONIAL SMALLER COMPANIES PLC

2)   NAME OF SHAREHOLDER HAVING A MAJOR INTEREST

     M&G INVESTMENT MANAGEMENT LTD.

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.

     PRUCLT HSBC GIS NOM (UK) PAC AC                10,130,384
     CLYDESDALE BK NOMS LTD MGT                          6,000
                                                    ----------
                                                    10,136,384
                                                    ----------

5)   Number of shares/amount of stock acquired.

     N/A

6)   ( - %) of issued Class

7)   Number of shares/amount of stock disposed

     N/A

8)   ( - %) of issued Class

9)   Class of security

     ORDINARY SHARES OF 25P EACH

10)  Date of transaction

     N/A

11)  Date company informed

     3RD JANUARY 2001

12)  Total holding following this notification

     10,136,384
               
13)  Total percentage holding of issued class following this notification

     10.6%

14)  Any additional information

     THIS NOTIFICATION ARISES DUE TO PRUDENTIAL PORTFOLIO MANAGERS BEING
     RENAMED AS M&G INVESTMENT MANAGEMENT LIMITED.  NO CHANGE OF BENEFICIAL
     OWNERSHIP HAS TAKEN PLACE.

15)  Name of contact and telephone number for queries

     D. HARDING          020 7628 8000

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

     Date of Notification ....3RD JANUARY 2001....................