Exercise of Warrants

Shires Smaller Companies PLC
5 June 2000


Glasgow  Investment Managers, secretaries  to  Shires  Smaller
Companies  Plc,  announce that, following  the  final  warrant
exercise date on 1st June 2000, 1,443,065 new ordinary  shares
of  £0.50  each were allotted on 2nd June 2000 as a result  of
the  exercise of 1,443,065 warrants to subscribe for  ordinary
shares at 100p per share. Pursuant to the terms of the warrant
particulars, the appointed trustee has exercised the remaining
790,352   warrants.   The  total  issued  share  capital   has
therefore  increased to 21,886,538 ordinary shares  and  there
are no longer any warrants in issue.

The  ordinary shares arising on the exercise by the  appointed
trustee  were sold on 2nd June, 2000 at a price  of  154p  per
share.   The  surplus arising will be paid pro rata  to  those
warrantholders who did not exercise their warrants.

Application  will be made for 2,233,417 shares to be  admitted
to the Official List in due course.