Novation Agreement

ABERFORTH SMALLER COMPANIES TRUST PLC

Aberforth  Smaller  Companies Trust PLC (the "Company")  announces  that  on  13
October  2005 the Board approved the terms of a novation agreement to be entered
into  between the Company, Aberforth Partners (the "Partnership") and  Aberforth
Partners   LLP  (the  "LLP")  pursuant  to  which  the  investment   management,
administration  and  company  secretarial services  currently  provided  to  the
Company by the Partnership will be novated to the LLP with the effect that  such
services shall from the date of the novation be provided to the Company  by  the
LLP  instead  of the Partnership. It is intended that the Company  and  the  LLP
contract  will be on the same terms as currently exists between the Company  and
the Partnership.

The  Partnership  intends  to transfer its entire business  and  assets  to  the
recently  formed  LLP and intends that the personnel involved in  providing  the
investment  management, administration and secretarial services to  the  Company
will  be identical after the novation. The purpose of the Company entering  into
the novation agreement is to enable the provision of the services to continue to
be  provided  to the Company by the new LLP entity. It is anticipated  that  the
novation will be effected in early December 2005 and a further announcement will
be made at that time.

Aberforth Partners
Company Secretaries
0131 220 0733

13 October 2005

End