Re: Investment Policy

Schroder UK Growth Fund PLC
05 September 2006





                                                                5 September 2006




                      Proposed change in investment policy


The Board of Schroder UK Growth Fund plc (the 'Company') announces that it will
shortly be writing to shareholders to provide details of a proposed change of
investment policy and to give notice of an extraordinary general meeting at
which shareholder approval will be sought for those proposals.


The proposals involve:


-  A marked change in the way in which the Company's portfolio is managed. 
   Whilst the investment objective remains unaltered, the Company's investment
   policy will be amended so that the portfolio will be managed in line with 
   the policy adopted by Schroder's UK Alpha Plus Unit Trust.

-  The creation of a more concentrated portfolio of stocks with the size of 
   individual positions determined by their potential for absolute growth 
   rather than by reference to a benchmark or index.

-  The introduction of a discount management policy pursuant to which the 
   Company will seek ordinarily to maintain a discount level in the long-term 
   of no greater than 5 per cent., subject to adverse market conditions.

-  The introduction of powers allowing the Company to buy shares into treasury,
   and to re-issue them at or above net asset value.



Richard Buxton, who manages the Schroder UK Alpha Plus unit trust, will continue
as the Company's portfolio manager.





Enquiries:

John Spedding
Schroder Investment Management Limited
Tel: [phone]


Tom Harris
Dresdner Kleinwort
Tel: [phone]



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