Portfolio Update

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

In accordance with UKLA Listing Rule 21.20(l)(ii), the following list
represents, as at 30 June 2005, 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                2.33                      
                                                                             
Dignity                    Ordinary                2.25                      
                                                                             
DTZ Holdings               Ordinary                2.10                      
                                                                             
Wilmington Group           Ordinary                2.08                      
                                                                             
Dechra Pharmaceuticals     Ordinary                1.89                      
                                                                             
Richmond Foods             Ordinary                1.86                      
                                                                             
Codascisys                 Ordinary                1.85                      
                                                                             
Comino Group               Ordinary                1.77                      
                                                                             
Chloride Group             Ordinary                1.75                      
                                                                             
Ricardo                    Ordinary                1.70