Change of Manager

Scottish American Investment Co PLC
09 December 2003


The Scottish American Investment Company P.L.C. ('SAINTS')


9 December 2003



Following a comprehensive review of investment performance, the board of SAINTS
has today appointed Baillie Gifford & Co as managers of the Company in place of
First State Investment Management (UK) Limited ('First State').


SAINTS invests in a broad range of assets both in the UK and internationally.
SAINTS' policy is to offer private investors a diversified portfolio that
achieves a balance between growth of capital and income. Over 80% of the
Company's shares are held by private individuals, many through PEPs or ISAs. An
attraction to private individuals has been the above average yield on the
shares.


For many years, SAINTS provided progressive annual dividend growth to its
shareholders. It has however been a matter of concern to the SAINTS board that
since 1999 it has only been possible to achieve very modest dividend increases.
Despite the relatively high dividend yield, which has distinguished SAINTS from
most of its peer group, the overall share rating has reflected investor
sentiment about the level of total returns including dividend growth.


A major review has resulted in the Board deciding that the investment portfolio
should be refocused, the balance sheet more actively managed and a greater
emphasis placed on achieving progressive dividend growth as part of improving
total shareholder returns. The Company will be formally classified in the AITC's
Global Growth & Income sector*, a sector which the Board believes more
accurately reflects the Company's objectives and above average dividend yield.


The Board has also reviewed the fund management arrangements with the objective
of achieving improved investment performance and a reduction in the discount to
NAV at which the Company's shares trade. It is as a result of this review that
the Board has decided to appoint Baillie Gifford as the new managers of the
Company.


The Board is confident that Baillie Gifford has the experience and track record
to enable SAINTS to achieve its objectives. Baillie Gifford specialises in the
management of investment trusts, has consistently produced good performance
across the range of trusts it manages, has no trusts in the Global Growth &
Income category and will position SAINTS as its flagship Global Growth & Income
trust.


The investment management contract with First State has been terminated without
payment of any compensation to First State.


Brian Ivory, Chairman of SAINTS, said 'We are delighted to be appointing Baillie
Gifford as managers of SAINTS. Baillie Gifford are widely admired and respected
for their expertise and experience in the management of investment trusts. The
Board is confident that the refocusing of the investment portfolio, more active
balance sheet management together with a return to a progressive dividend policy
will be attractive to our approximately 12,000 share and plan holders.'


Richard Burns, Senior Partner of Baillie Gifford, said 'Baillie Gifford are
delighted to have been appointed to manage SAINTS. The Trust has an excellent
brand name which we hope will be further enhanced by the good performance which
we aim to deliver. We are great believers in generalist investment trusts and
feel that their attractions to private investors in particular are often
under-appreciated. We look forward to working with the Board to make SAINTS the
clear leader in the Global Growth and Income category.'



Contacts:
Brian Ivory, Chairman                                     Tel: [phone]
Richard Burns, Baillie Gifford & Co                       Tel: [phone]
Tom Durie, Close Brothers Securities                      Tel: [phone]
Mike Lord, Broadgate (PR advisors to Baillie Gifford)     Tel: [phone]



This announcement has been issued by Close Brothers Securities. Close Brothers
Securities, which is authorised and regulated in the United Kingdom by the
Financial Services Authority, is acting for The Scottish American Investment
Company P.L.C. and for no-one else in connection with the matters referred to
herein and will not be responsible to anyone other than The Scottish American
Investment Company P.L.C. for providing the protections afforded to customers of
Close Brothers Securities or for affording advice in relation to such matters.



*The Association of Investment Trust Companies ('AITC') classifies a Global
Growth and Income Trust as one which has as its objective the production of a
total return to shareholders from capital and dividend income growth and a
portfolio yield around 150% of its benchmark index. It also has less than 80% of
its assets in any one geographical area with at least 20% in UK registered
companies.


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