Portfolio Update

MONTANARO UK SMALLER COMPANIES IT PLC (the "Company")

In accordance with UKLA Listing Rule 15.4.1l(2), the following list represents,
as at 31 December 2006, the Company's 10 largest investments and where
appropriate, any investment with a value greater than 5% of the Company's gross
assets:

Name of company            Class of share          Percentage Weighting      
                                                                             
Fisher (James) & Sons      Ordinary                2.84                      
                                                                             
DTZ Holdings               Ordinary                2.79                      
                                                                             
Datamonitor                Ordinary                2.61                      
                                                                             
Scott Wilson Group         Ordinary                2.37                      
                                                                             
Chloride Group             Ordinary                2.32                      
                                                                             
White Young Green          Ordinary                2.27                      
                                                                             
Latchways                  Ordinary                2.20                      
                                                                             
Wilmington Group           Ordinary                2.18                      
                                                                             
Care UK                    Ordinary                2.11                      
                                                                             
Genus                      Ordinary                2.08