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 30 June 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      
                                                                             
DTZ Holdings               Ordinary                3.14                      
                                                                             
Fisher (James) & Sons      Ordinary                2.68                      
                                                                             
Datamonitor                Ordinary                2.62                      
                                                                             
Scott Wilson Group         Ordinary                2.49                      
                                                                             
Latchways                  Ordinary                2.48                      
                                                                             
Dignity                    Ordinary                2.41                      
                                                                             
Codascisys                 Ordinary                2.40                      
                                                                             
European Motor Holdings    Ordinary                2.37                      
                                                                             
Wilmington Group           Ordinary                2.37                      
                                                                             
Genus                      Ordinary                2.21