Portfolio Update

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

In accordance with UKLA Listing Rule 15.6.8R(2), the following list represents,
as at 31 December 2007, 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       3.36                 
                                                            
Genus                   Ordinary       3.21                 
                                                            
BPP Holdings            Ordinary       2.84                 
                                                            
Dignity                 Ordinary       2.53                 
                                                            
Chloride Group          Ordinary       2.50                 
                                                            
Scott Wilson Group      Ordinary       2.39                 
                                                            
Fenner                  Ordinary       2.35                 
                                                            
Dechra Pharmaceuticals  Ordinary       2.30                 
                                                            
Wilmington Group        Ordinary       2.25                 
                                                            
MTL Instruments Group   Ordinary       2.11