Change of Investment Manager

Edinburgh Small Companies Trust PLC
15 August 2003


EDINBURGH SMALL COMPANIES TRUST PLC

CHANGE OF INVESTMENT MANAGER


15 August 2003



Background


As a result of a sustained period of poor performance, the Board of Edinburgh
Small Companies Trust plc (the 'Company') has over recent months undertaken a
review of the Company's investment management arrangements with the objective of
enhancing shareholder value by improving the Company's performance and reducing
the discount at which the Company's shares trade.


Appointment of Standard Life Investments


Following this review, the Board announces the appointment of Standard Life
Investments as the new investment manager of the Company with effect from 1
September 2003. The investment management agreement with Edinburgh Fund Managers
plc will be terminated on that date, with no compensation being payable by the
Company.


The appointment of Standard Life Investments will not affect the Company's
current investment objective, which remains the achievement of long term capital
growth through investment in UK quoted smaller companies. The Company's
benchmark will remain the Extended Hoare Govett Smaller Companies Index (ex
Investment Companies).


As a part of its review the Board has given consideration to the issues
presented by the Company's long-dated debenture stock. Standard Life Investments
has been instructed to actively manage the Company's gearing and shareholders
will be notified as soon as practicable of proposals in this regard.


Investment Management Arrangements


The Standard Life Investments UK Smaller Companies Team will manage the
Company's portfolio under the leadership of Harry Nimmo. This well established
team has the support of Standard Life Investments' substantial in-house research
and investment expertise and has a strong long-term track record in the
management of UK smaller company funds.


The Board has instructed Standard Life Investments to realign the portfolio in
line with their investment process over time in a way that minimises the costs
to shareholders as far as practicable. It is anticipated that the realignment
will largely be implemented by the end of 2003.




Management Fee


Standard Life Investments will receive an investment management fee of 0.8% per
annum of the value of the Company's total assets less current liabilities,
except to the extent that the assets are held in cash or non-equity securities
which will incur a reduced fee of 0.2% per annum. The investment management
agreement will be terminable by either party on 12 months' notice.


This fee compares with the previous arrangement whereby the Company paid 1.0%
per annum of total assets less current liabilities (after deducting cash and
commonly managed funds).


In line with the arrangements for the other investment trust managed by Standard
Life Investments, the Company's secretarial and fund administration functions
will continue to be provided by Edinburgh Fund Managers plc on terms similar to
the current arrangements.


Benefits to Shareholders


The change in investment manager will provide shareholders with the following
benefits:

-               The strong long-term track record of the Standard Life
                Investments UK Smaller Companies Team;

-               The stability and recognised brand name of the Standard Life
                Group;

-               The support of the Standard Life Investments marketing team and
                distribution channels;

-               A reduction in the Company's ongoing investment management
                costs.


The Board believes that these benefits will lead to an enhancement of
shareholder value through an improvement in the Company's performance and a
reduction in the discount at which the Company's shares trade.



Enquiries:

Donald MacDonald
Edinburgh Small Companies Trust plc                  Tel. [phone]

George Walker
Standard Life Investments                            Tel. [phone]

Brian Simmons
Press Manager, Standard Life Investments             Tel. [phone]

Tom Durie
Close Brothers Securities, Corporate Adviser to      Tel. [phone]
Edinburgh Small Companies Trust Plc                                             







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