Holding(s) in Company

TR-1 (i) NOTIFICATION OF MAJOR INTERESTS IN SHARES

1. Identity of the issuer or the underlying issuer of existing shares to which
voting rights are attached (ii):

Montanaro UK Smaller Companies Investment Trust Plc

2. Reason for the notification                                        State    
                                                                     Yes/No    
                                                                               
An acquisition or disposal of voting rights                            Yes     
                                                                               
An acquisition or disposal of financial instruments which may                  
result in the                                                                  
acquisition of shares already issued to which voting rights are                
attached                                                                       
                                                                               
An event changing the breakdown of voting rights                               
                                                                               
Other (please specify):                                                        

3. Full name of person(s) subject to the notification obligation   East Riding 
(iii):                                                            of Yorkshire 
                                                                     Council   
                                                                               
4. Full name of shareholder(s) (if different from 3.) (iv):            N/A     
                                                                               
5. Date of the transaction (and date on which the threshold is    13 July 2007 
crossed                                                                        
or reached if different) (v):                                                  
                                                                               
6. Date on which issuer notified:                                 17 July 2007 
                                                                               
7. Threshold(s) that is/are crossed or reached:                        6%      
                                                                               
8. Notified details:                                                  6.46%    

A: Voting rights attached to shares

Class/type of  Situation previous    Resulting situation after the triggering   
    shares             to                        transaction (vii)              
 if possible     the Triggering                                                 
using the ISIN  transaction (vi)                                                
     CODE                                                                       
                                                                                
                Number    Number    Number    Number of voting    % of voting   
                  of        of        of        rights (ix)          rights     
                Shares    Voting    shares                                      
                          Rights                                                
                          (viii)                                                
                                                                                
                                    Direct    Direct   Indirect Direct  Indirect
                                                (x)      (xi)                   
                                                                                
   Ordinary    1,835,000 1,835,000 2,300,000 2,300,000           6.46%          
    Shares                                                                      
                                                                                
 GB0006007560                                                                   
                                                                                

B: Financial Instruments

Resulting situation after the triggering transaction (xii)

   Type of     Expiration       Exercise/        Number of voting       % of   
  financial    date (xiii)      Conversion      rights that may be     voting  
 instrument                 Period/ Date (xiv)    acquired if the      rights  
                                                    instrument                 
                                                   is exercised/               
                                                     converted                 
                                                                               

Total (A+B)                                                                    
                                                                               
Number of voting rights                 % of voting rights                     
                                                                               
2,300,000                               6.46%                                  

9. Chain of controlled undertakings through which the voting rights and/or the
financial instruments are
effectively held, if applicable (xv):

N/A                                                                            

Proxy Voting:


10. Name of the proxy holder:                                                  
                                                                               
11. Number of voting rights proxy holder will cease to hold:                   
                                                                               
12. Date on which proxy holder will cease to hold voting                       
rights:                                                                        

13. Additional information:                                   Calculation based
                                                              on 35.61 million 
                                                              Shares in issue. 
                                                                               
14. Contact name:                                             Barbara Osborne  
                                                                               
15. Contact telephone number:                                 01482 394149