Funds under Management & Trading Update

CITY OF LONDON INVESTMENT GROUP PLC

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

FUNDS UNDER MANAGEMENT AS AT 30 NOVEMBER 2010, TRADING UPDATE

City of London Investment Group Plc (LSE: CLIG) announces that its total funds under management (FuM) at the Group's half year end on 30 November 2010 were US$5.5 billion (£3.5 billion). This compares with US$4.7 billion (£2.9 billion) at 30 November 2009, and US$4.4 billion (£3.0 billion) at 31 May 2010. Quarter on quarter, FuM has increased by $0.7 billion, or 13.7%, reflecting net new client monies as well as outperformance over and above the MSCI Emerging Markets Index (MXEF), which increased by 11.3% over the same period.

Unaudited profit for the six months ended 30 November 2010, before listing costs of £0.4 million and before taxation, is approximately £6.1 million, which compares to £4.8 million for the equivalent period to 30 November 2009. The monthly "run-rate" of unaudited pre tax profit (profit after deduction of profit share) at the current level of FuM is approximately £1.1 million per month.

A close period for the Company began on 1 December 2010 and will end with the publication of results for the six months ended 30 November 2010 on 25 January 2011.

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