Change of Investment Manager

    Pavilion Geared Recovery Trust PLC ("PGRT" or the "Company")

Effective 2 January 2003 PGRT and Pavilion Asset Management Limited ("PAM")
have agreed to terminate their Investment Management Agreement in view of the
retirement on 31 December 2002 of the designated fund manager .

The Company has appointed Montanaro Investment Managers Limited ("Montanaro")
as Manager of PGRT with effect from 2 January 2003 and has entered into a new
Investment Management Agreement with Montanaro . Montanaro manages the
Montanaro UK Smaller Companies Trust PLC, which has outperformed its benchmark
for seven consecutive years.

The Board and Montanaro believe that the Company's focus on recovery investment
opportunities provide s a sound basis for building value for shareholders in
the future.

PGRT intends to call a shareholder's meeting in the New Year at which a r
esolution will be proposed to adopt a new name for the Company .



END