Pre Close Trading Update

City of London Investment Group PLC
12 June 2006





For release at 0700h, 12 June 2006


                      CITY OF LONDON INVESTMENT GROUP PLC

               ('City of London', 'the Group', or 'the Company')


                            PRE-CLOSE TRADING UPDATE


City of London Investment Group PLC (AIM: CLIG), a leading emerging market asset
management group, was admitted to AIM on 12 April 2006 after placing 24.51% of
its issued share capital in order to provide existing institutional shareholders
with liquidity and the ability to realise part of their investment. The Company
raised no new money. In the admission document, the audited accounts for the
nine months ended 28 February 2006 showed operating profit of £3.4 million and
profit after tax of £1.9 million, with funds under management of approximately
US$2.7 billion.


The Company's year end was 31 May and for the year to that date, City of London
reports that operating profit will be approximately £5.2 million (2005: £2.1
million) and that profits after interest receivable of £0.1 million, AIM
admission costs of £0.5 million and tax of £1.7 million will be approximately
£3.1 million (2005: £1.9 million). At the year end, funds under management
totalled US$2.8 billion.


Stock markets across the world declined throughout May, and the Group's funds
under management fell from US$3.1billion at the end of April to the year end
level of $2.8bn, a decrease of 9.7%. This compares to a fall in the MSCI
Emerging Markets Composite Total Return Index of approximately 11% in the same
period. Since the year end markets have fallen further, but the company has
continued to outperform its benchmarks.

City of London expects to announce preliminary results for the year to 31 May
2006 on 5 September 2006.



For further information, please visit www.citlon.com or contact:

Doug Allison (CFO) / Barry Olliff (CEO)        Simon Hudson / Clemmie Carr
City of London Investment Group PLC            Tavistock Communications
Tel: [phone]                             Tel: [phone]





NOTES TO EDITORS


City of London is an asset management group whose principal activity is
providing emerging market asset management products and services predominantly
to institutional investors via its principal operating company City of London
Investment Management Company Limited. The Group is based in the UK and also has
offices in the US and Singapore. Clients include some of the US's leading blue
chip institutions and endowment funds.


With total funds under management of approximately US$2.8 billion, the Group
manages several Open Ended Funds as well as a number of segregated accounts. The
Group's fund mandates are mainly in emerging markets, although the Group has
more recently diversified its asset management product portfolio by the launch
of a natural resources fund and has also seeded three new funds: a global fund,
a frontier fund and an emerging markets yield fund. The Group seeks to provide
capital growth for clients through active country allocation and stock
selection.




                      This information is provided by RNS
            The company news service from the London Stock Exchange