RNS Number:0089L
Smaller Companies Inv Trust PLC
13 May 2003



The Smaller Companies Investment Trust PLC (the "Company")

Announcement of Realisation Proposals

13 May 2003

The board of The Smaller Companies Investment Trust PLC (the "Board") announces
that, following an approach from a major shareholder and mindful of the
requirement to propose a continuation resolution before the end of the year,
proposals are being considered which may lead to an early liquidation of the
Company. It is anticipated that the proposals will involve a scheme of
reconstruction which, if implemented, would enable shareholders to elect to
receive an early cash exit (at a material discount to the then net asset value
of an ordinary share), to rollover their holding into one (or more) ongoing
investment alternatives or to participate in a managed realisation of the
Company's remaining assets.

The Board intends to write to shareholders in due course to set out the detail
of the proposals and to convene the necessary shareholder meetings to approve
their implementation.

As announced on 6 March 2003 the Board continues to believe it is in
shareholders' interests for the Company to take advantage of opportunities to
realise part of its investment portfolio to raise cash to fund further buybacks
of equity-linked unsecured loan stock units ("ELULS") which are due for
repayment on 31 October 2003 unless repaid earlier as part of the
reconstruction. Since 6 March 2003 the Company has repurchased for cancellation
a total of 6,977,645 ELULS leaving a balance of 3,840,835 in issue. As at 12 May
2003 the Company held cash balances of approximately #9.5 million against the
ELULS liability at that date of approximately #7.5 million.

It is the Board's current intention to maintain a modest level of cash in the
portfolio in addition to that required for the repayment of the prevailing ELULS
liability.

Enquiries:

Fred Carr, Chairman
The Smaller Companies Investment Trust PLC
Tel. 020 7597 1203

William Hemmings, Investment Manager
Aberdeen Asset Managers Limited
Tel. 020 7463 6000

David Benda, Corporate Broker to the Fund
Close Brothers Securities
Tel. 020 7621 5562

Close Brothers Securities (a division of Winterflood Securities Limited), is
regulated in the United Kingdom by The Financial Services Authority and is
acting exclusively for the Company and for no-one else in connection with the
unsolicited proposals and will not be responsible to anyone else other than the
Company for providing the protections afforded to customers of Close Brothers
Securities or for providing advice in relation to the unsolicited proposals.




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

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