The problem of a periodic scalar eld on a two-dimensional lattice with uctuating local connectivity is studied, using matrix model techniques, with the inclusion of vortices in the action. This represents, for example, c = 1 string theory at nite temperature or (under duality) the SOS approximation for thermal uctuations of a uid surface in a periodic potential. By reduction to an eigenvalue problem, an exact solution is obtained at a speci c radius in the vortex-plasma phase on genus zero as as a function of the vortex chemical potential | it represents the rst exact solution of a non-critical string theory with non-treelike e m beddings | vortex{anti-vortex pairs forming cuts in the scalar eld which disorder it in the infra-red limit ( str = 1=2). The system represents a Coulomb gas of charges in the presence of 2D quantum gravity. The class of matrix models employed here on the circle, of Weingarten type, is expressible as a lattice gauge theory with matter in the adjoint representation and easily generalizes to c > 1 string theory and uid membranes with rigidity; the prospects for exact solutions are brie y addressed.? Address after September 1993: Department o f P h ysics, Theoretical Physics, Oxford University, Oxford OX1 3NP, United Kingdom.