Purchase of Own Securities

Foreign & Colonial U.S.Smllr.Co PLC
16 December 1999

On 15 December 1999 Foreign & Colonial U.S. Smaller Companies Plc purchased for
cancellation, through Cazenove & Co, 175,000 ordinary shares in the market at a
price of 183 1/2p per share.

Following this purchase, the total number of ordinary shares in issue stands at
35,597,883.