Subsidiary Company Members Voluntary Liquidation

Small Companies Dividend Trust PLC                       

The Board of Small Companies Dividend Trust PLC ("the Company") announces that
its Subsidiary, Small Companies PLC ("the Subsidiary") has today announced
proposals for its voluntary winding up ("Liquidation"). Accordingly, the
Subsidiary will convene an Extraordinary General Meeting for 30 April 2007 at
which such winding up proposals will be put to shareholders.

The total amount required to satisfy the final capital entitlement of the Zero
Dividend Preference shares and Preference shares in the Subsidiary and to cover
the costs of the Liquidation is expected to be approximately £ 11.5 million.
The latest unaudited total asset value of the Company as at 23 February 2007
was £62.1 million. The net asset value of the Company excluding current period
revenue reserves was £54.2 million.

Dividend History

The strong share price performance of the Ordinary shares must be largely
attributed to the record of continuous increases in dividend payments since the
Group's launch. The Company paid total dividends of 9.00p per share for its
first year ended 30 April 2000, which has risen to 11.25p for the year ended 30
April 2006, and as previously announced, the current year forecast is 13.00p
for the year ending 30 April 2007. Dividends have always been covered by
earnings and this has enabled the Company to build up a very healthy revenue
reserve.

Bank Facility

The Company currently has borrowing facilities with Lloyds TSB PLC ("the Bank")
totalling £10 million, represented by a fixed term loan of £5 million and an
overdraft facility for the balance of £5 million. The fixed term loan is for
the period to 30 March 2007 upon which interest is charged at a rate of 5.595
per cent. per annum and the overdraft facility is at the rate of 1 per cent.
per annum over the Bank's base rate. It is proposed to increase the loan
facility to a total of £16.5m represented by a £10 million fixed loan and a £
6.5m overdraft facility, in order to maintain a moderate level of gearing
following the repayment of the Zero Dividend Preference shares and Preference
shares. The Bank has approved the increase in the loan facility, subject to
completion of formal documentation.

The Board intends to restrict the borrowing arrangements with the Bank, so as
to limit the total amount of borrowings, to below 30 per cent. of total assets
at the time of draw down. Following the repayment of the Zero Dividend
Preference shares and Preference shares the estimated total gearing would
reduce from 31% at present to 28% based on the total assets as at 23 February
2007. The additional funds in excess of the £6.5 million increased bank loan
and the £11.5 million total funds required to repay the Zero Dividend
Preference shares and Preference shares in full and the liquidation costs will
be met by the realisation of approximately £3 million of the Company's
portfolio, resulting in a reduction of total assets from approximately £62
million as at 23 February 2007 to some £59 million.

Further enquiries:

William van Heesewijk

Chelverton Asset Management Limited

Tel: [phone]

1 March 2007