Holding(s) in Company

Shires Smaller Companies PLC
31 January 2006


NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES,
CANADA, AUSTRALIA OR JAPAN.

Shires Smaller Companies plc

31 January 2006

SALE OF SHARES

JPMorgan Cazenove Limited ('JPMorgan Cazenove') announces the sale on behalf of
Shires Income plc ('Shires Income') of 2,286,808 ordinary shares at 241p per
share in Shires Smaller Companies plc ('Shires Smaller') representing
approximately 10 per cent of Shires Smaller's issued share capital. As a result
of this sale, Shires Income holds 4,000,000 shares representing 18 per cent. of
the issued share capital of Shires Smaller.

The Shares were offered by way of an institutional bookbuilding. JPMorgan
Cazenove acted as sole bookrunner and lead manager to the offering.
The sale reflects a desire to reduce the proportion of Shires Income's portfolio
that is invested in a single investment company. Shires Income has been, and
continues to be, satisfied with the strategy and performance of Shires Smaller
and the balance of the investment in Shires Smaller remains an important part of
Shires Income's portfolio. Shires Income has confirmed it has no intention of
further reducing its shareholding in the foreseeable future.

Enquiries:

Mike Balfour (Glasgow Investment Managers) 0141 572 2700

Angus Gordon Lennox (JPMorgan Cazenove) 020 7588 2828

This announcement is issued on behalf of Shires Income by JPMorgan Cazenove who
are regulated by the Financial Services Authority and does not constitute any
offer to sell or any solicitation of any offer to purchase any securities.
JPMorgan Cazenove are acting for Shires Income in connection with the sale and
for no one else and will not be responsible to anyone other than Shires Income
for providing the protections offered to prospective customers of JPMorgan
Cazenove nor for providing advice in relation to the sale.
END




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