Change of Manager

Scottish American Investment Co PLC
11 December 2003


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


Following the announcement of 9th December that SAINTS has appointed Baillie
Gifford & Co as managers of the Company, the Board are pleased to provide the
following further details of the arrangements:

Baillie Gifford will assume management of the portfolio and act as Company
Secretaries from 1st January 2004. Richard Burns, senior partner of Baillie
Gifford, will lead the management team and the Baillie Gifford portfolio manager
will be Patrick Edwardson.

SAINTS invests in a broad range of assets both in the UK and internationally.
The fundamental investment objective is, and remains, to offer private investors
a diversified portfolio that achieves a balance between growth of capital and
income. In addition, the Company will return to a progressive dividend policy as
part of the total return to shareholders.

In light of the greater emphasis placed on achieving a progressive dividend
policy the UK element of the Company's portfolio will be managed to achieve an
above average yield, which is initially expected to be around 4%. The balance
sheet including borrowings will be actively managed, with the aim of increasing
total shareholder returns. Funds not invested in equities will be placed in a
high quality corporate bond portfolio actively managed by Baillie Gifford, or in
the UK direct property portfolio, which will continue to be managed by OLIM.

The benchmark against which the performance will be measured going forward will
be a Composite Benchmark Index of 70% FTSE All-Share Index: 30% FTSE World (ex
UK) Index compared with the present Benchmark Index of 65% FTSE All-Share Index:
35% FTSE World (ex UK) Index. In comparing performance, both liabilities and
assets will be measured at market value.

To reflect the Company's objective of achieving a balance between the growth of
capital and income and in view of the expected future income and capital returns
from the portfolio, the Board has decided to revise the accounting treatment of
interest charges and management fees and allocate only 50% of such costs to
capital (formerly 75%). This change will become effective from 1 January 2004.

An annual management fee of £1.25m fixed for two years has been agreed with
Baillie Gifford. There will be no performance related fee. A secretarial fee of
£100,000 will be paid annually. The management contract is subject to a six
month period of notice.

Contacts:

Brian Ivory, Chairman SAINTS                                0131 311 6909
Richard Burns, Senior Partner Baillie Gifford               0131 275 2000
Tom Durie, Close Brothers Securities                        0207 621 5564


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