Substantial Shareholding

Montanaro UK Smlr Cos Inv Tst PLC
10 January 2001



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 sale of 500,000 ordinary 10p shares on 8
December 2001, Merchant Investors Assurance Company Limited are now interested
in 4,920,249 ordinary 10p shares, representing 12.27% of the issued class of
capital.

As a result of this transaction the aggregate holding of Allianz (UK) Limited,
the holding Company of Merchant Investors Assurance Company Limited, is
6,120,249 ordinary 10p shares, representing 15.26% of the issued class of
capital.