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: 020 7711 0771 Tel: 020 7920 3150 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