Final Results

Scottish American Investment Co PLC
14 February 2002



                                                             14th February 2002

             THE SCOTTISH AMERICAN INVESTMENT COMPANY PLC (SAINTS)

  Preliminary Results (extracted from the audited Accounts) for the year ended
                               31st December 2001

Results

The Scottish American Investment Company today announces its preliminary results
for the year ended 31 December 2001. For the year, the total return per share
was minus 22.2 per cent compared with the corresponding figures for the FTSE
All-Share Index of minus 13.3 per cent, and for the benchmark of minus 13.6 per
cent. (The benchmark is a composite of 65% FTSE All-Share and 35% FTSE World Ex
UK indices).

All of the underperformance was in the first nine months of the year. The
primary cause of underperformance relative to the benchmark was the emphasis on
growth companies in a period when such companies were out of favour. Following a
review of people and process during the autumn, important changes were made to
the key positions of responsibility for the management of SAINTS' investments,
and the final quarter saw a significant improvement. SAINTS total return in the
fourth quarter was 10.8 per cent, compared with 9.2 per cent for the benchmark.


Dividend

The Board of SAINTS recommends a final dividend of 1.40p net per share for the
year ended 31st December 2001, payable on 2nd April 2002 to shareholders
registered on 1st March 2002. This will make a total dividend for the year of
5.57p (2000 - 5.53p). At yesterday's share price of 191p, the yield on the
ordinary shares was 2.9 per cent.


Investment Managers

Stuart Paul, First State Investment's Chief Investment Officer, has been
appointed as overall Portfolio Manager for SAINTS. Derek Lygo has taken over
responsibility for the SAINTS UK portfolio. He has significantly restructured
the UK portfolio since joining First State Investments in October. The number of
stocks held has been increased as has the yield on the portfolio, reducing the
risk profile.


Gearing

During the year SAINTS repaid the balance of the Equities Index Unsecured Loan
Stock and redeemed the small amount outstanding of 4% undated Debenture Stock.
As was reported last year, a third tranche of 2022 Debenture Stock was issued in
January 2001 at an interest cost of just under 6.4 per cent.

The initial issue of Debenture stock in 1997 was used to finance a portfolio of
properties. It is intended that the two subsequent tranches are used for equity
investment. At the year end the majority of the latter two were held in cash and
short dated gilts.


Share Buy Backs

During the year SAINTS bought back 9.3 million shares, at a cost of £19.6m.
Buying back the shares at a discount enchanced the net asset value of the
remaining shares by 2.1p per share.

At the Annual General Meeting to be held on 28th March 2002 the Board will seek
renewal of a general authority to buy back shares in appropriate circumstances
subject to the defined limit of 14.99 per cent of the shares then in issue.


The Board

In last year's Chairman's Statement, Sir John Shaw made it clear that he would
stand down as Chairman but proposed to continue to serve as a Director until he
retired by rotation at the March 2002 AGM. The Board is pleased to report that
he has agreed to continue to offer his services as a Director for a further
period.


Outlook

The aggressive action taken by central banks, particularly by the Federal
Reserve in the US has flooded the financial system with liquidity, creating the
environment for a recovery in global economic growth. However, excess
manufacturing capacity and record levels of corporate and consumer debt in a
number of countries will limit the potential for economic growth and for
corporate profits. Some caution is, therefore, still in order after the recovery
in stockmarkets over the final quarter of 2001.


Results

Attached is a copy of the preliminary results. These are presented in a format
which summarises the information which will be given in the forthcoming Annual
Report and Accounts.

        For further information, please contact:

        Sara Dennehy, Media Relations Manager

        First State Investments, London           Tel: [phone]



    14th February 2002



                           STATEMENT OF TOTAL RETURN
                      FOR THE YEAR ENDED 31 DECEMBER 2001

                                                         2001         Total        Income*      2000        Total
                                            Income*      Capital      £'000        £'000        Capital     £'000
                                            £'000        £'000                                  £'000

Losses on investments                       -            (111,759)    (111,759)    -            (46,907)    (46,907)

Gains on Equities Index Unsecured           -            1,848        1,848        -            7,121       7,121
Loan Stock


Income from investments                     9,670        -            9,670        9,496        -           9,496

Other income                                2,881        -            2,881        3,850        -           3,850

Investment management fees +                121          362          483          (44)         (134)       (178)

Currency gains/(losses)                     -            104          104          -            (374)       (374)

Other expenses                              (1,272)      -            (1,272)      (1,866)      -           (1,866)


Net return before finance costs and         11,400       (109,445)    (98,045)     11,436       (40,294)    (28,858)
taxation

Finance costs of borrowing                  (1,704)      (4,336)      (6,040)      (2,855)      (2,826)     (5,681)


Return on ordinary activities before        9,696        (113,781)    (104,085)    8,581        (43,120)    (34,539)
taxation

Tax on ordinary activities                  (1,359)      1,166        (193)        (787)        466         (321)


Return attributable to equity               8,337        (112,615)    (104,278)    7,794        (42,654)    (34,860)
shareholders

Ordinary dividends on equity shares **      (8,356)      -            (8,356)      (8,662)      -           (8,662)

                                            

Transfer from reserves (after
aggregate dividends paid and proposed       (19)         (112,615)    (112,634)    (868)        (42,654)    (43,522)
of 2001 - 8,355,511 (2000 - 8,622,104))


Return per ordinary share                   5.46p        (73.79p)     (68.33p)     4.87p        (26.66p)    (21.79p)


* The income column of this statement is the Profit and Loss Account of the
Company.

All income and capital items derive from continuing operations.

** Total dividend per share of 5.57p (2000 - 5.53p).

+ The figures for the investment management fees reflect the rebate of the
investment management fees following the sale of Stewart Ivory & Company Limited
to Colonial Limited in March 2000 and a performance related adjustment.



                             SUMMARY BALANCE SHEET
                             AS AT 31 DECEMBER 2001
                                                                              2001                 2000
                                                                              £'000                £'000

Total Investments                                                             400,920              526,238

Net Current Assets                                                            21,930               17,013

Creditors due after one year:

Equities Index Unsecured Loan Stock                                           -                    (22,650)

Debenture Stocks                                                              (90,274)             (55,821)

Total Net Assets                                                              332,576              464,780


Net Asset Value per share                                                     225.7p               296.8p




                         SUMMARY CASH FLOW STATEMENT
                      FOR THE YEAR ENDED 31 DECEMBER 2001
                                                                              2001                 2000
                                                                              £'000                £'000

Cash and deposits at the start of the year                                    20,654               66,005

Income less administrative expenses                                           11,955               11,397

Cash paid in respect of interest and dividends                                (10,766)             (12,417)

Tax (paid) / received                                                         (714)                712

Cash received / (paid) in respect of capital transactions                     5,841                (45,043)

Cash and deposits at the year end                                             26,970               20,654


Notes

 a. Reconciliation of total income as shown in the Statement of Total Return to
    income less administrative expenses in the Cash Flow Statement


                                                                              2001                 2000
                                                                              £'000                £'000

Total income per the Statement of Total Return                                12,551               13,346

Total expenses per the Statement of Total Return                              (1,151)              (1,910)

Decrease in dividends accounted for but for which the cash had not been       192                  138
received at the year end

Decrease / (increase) in other debtors                                        376                  (407)

(Decrease) / increase in creditors                                            (13)                 230

Income less administrative expenses                                           11,955               11,397




(b) Analysis of changes in net debt
                                                   At the start of    Cash             Other           At the end 
                                                   the year           Flows            Changes         of the year
                                                   £'000              £'000            £'000           £'000

Cash                                               20,654             (10,684)         -               9,970

Short term deposits                                -                  17,000           -               17,000

                                                   20,654             6,316            -               26,970

Equities Index Unsecured Loan Stock 2004           (22,650)           20,802           1,848           -

8% Debenture Stock 2022                            (55,345)           (35,436)         507             (90,274)

4% Irredeemable Debenture Stock                    (476)              476              -               -

Net Debt                                           (57,817)           (7,842)          2,355           (63,304)



Notes to the Preliminary Results

(1) The preliminary statement is not the Company's statutory accounts. The
statutory accounts for the year ended 31st December 2000 have been delivered to
the Registrar of Companies and contained an audit report which was unqualified
and did not contain statements under Section 237(2) or (3) of the Companies Act
1985.

(2) The accounting policies applied in preparing these accounts are consistent
with those applied in the latest published annual accounts.

(3) The terms of the annual report and the preliminary announcement were
approved by the Board on 13th February 2002.



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