Substantial Shareholding

Montanaro UK Smlr Cos Inv Tst PLC
28 June 2000

Montanaro UK Smaller Companies Investment Trust plc - Holding in Company

The Company has today been informed, under Section 203 of the Companies Act
(1985), that as the result of the purchase of 785,000 ordinary 10p shares on
23 June 2000,Cornhill Insurance PLC are now interested in 1,200,000 ordinary
10p shares.

As a result of this transaction the aggregate holding of Allianz (UK) Limited
is 4,210,944, representing 10.501% of the Company's issued share capital 
(previously 8.543%).

Allianz (UK) Limited's aggregate holding is composed of two parts: 1,200,000
(2.992%) by Cornhill Insurance PLC and 3,010,944 shares (7.508%) by Merchant
Investors Assurance Limited.These shares are held through Bank of New York
Nominees Ltd.