Exercise of Warrants

Foreign & Colonial U.S. Smaller Companies PLC
6 December 1999

                      EXERCISE OF WARRANTS

109 warrantholders exercised their right to subscribe for ordinary shares on
30th November 1999.

This resulted in the allotment of 46,392 ordinary shares of 25p ranking pari
passu with the existing ordinary shares in issue.

The number of issued ordinary shares outstanding is now therefore 35,772,883 and
the number of warrants has decreased to 4,342,484 accordingly.