Issue of Equity

Edinburgh Small Companies Trust PLC
25 August 2000

                            
ISSUE OF £10,000,000 7.75% DEBENTURE STOCK 2023
                            
The Directors of Edinburgh Small Companies Trust plc
('ESCT') announce that it will issue £10,000,000 of 7.75%
Debenture Stock 2023 (the 'Stock').  HSBC Bank
plc will act as sole placement agent.

The Stock will be secured by a first floating charge over
the whole of ESCT's property and undertaking.  The Stock
will rank pari passu with ESCT's existing £30,000,000 7.75%
Debenture Stock 2023.

The Stock has been priced at £107.017 per £100 nominal of the
Stock (the 'Issue Price').  At this price the gross
redemption yield on the Stock is 7.125% and represents a                     
margin of 233 basis points over the yield on the 8% Treasury 
Stock 2021, the reference gilt.
The Issue Price will be payable in full on acceptance by
10.00 am on 2nd October 2000.

The Stock will carry a coupon to be payable by equal half-
yearly instalments on 31 March and 30 September in each
year.

ESCT is managed by Edinburgh Fund Managers and has the
principal objective to achieve long term capital growth
by investing in small United Kingdom quoted companies
mainly with a market capitalisation below £150 million.

It is expected that the Offering Circular will be available
from 29th September 2000 at the office of Edinburgh Small Companies
Trust plc, Donaldson House, 97 Haymarket Terrace,Edinburgh, 
EH12 5HD and for inspection at the Companies Announcement Office
of the UK Listing Authority.

Application will be made to the UK Listing Authority for
the Stock to be admitted to the Official List and for the Stock to
be admitted to trading on the main market of the London Stock
Exchange.  It is expected that official dealings in the Stock will
commence on 3rd October 2000.



For further information, please contact:

David Holland, Edinburgh Fund Managers 0131 313 1000

Kayode Akinkugbe, HSBC Bank plc        020 7336 9343