Final Results

Scottish American Investment Co PLC
13 February 2003

                THE SCOTTISH AMERICAN INVESTMENT COMPANY PLC


  Preliminary Results (extracted from the audited Accounts) for the year 
                       ended 31st December 2002


The Scottish American Investment Company PLC (SAINTS) is a general investment
trust within the Global Growth sector. The Company's investment objective is to
offer private investors a well diversified portfolio that achieves a balance
between growth of capital and income. The Company has a focus on quoted
equities, with substantial overseas exposure, but it also holds direct
investments in UK property, fixed interest, cash and unquoted shares. SAINTS,
which has total assets of £319 million, is managed by First State Investment
Management (UK) Limited, part of the Commonwealth Bank of Australia Group.


The Scottish American Investment Company PLC today announces its preliminary
results for the year ended 31st December 2002.


Summary


•       The net asset value total return fell 26.1 per cent. This compares to 
        a fall in the Company's benchmark (65 per cent FTSE All-Share Index: 
        35 per cent FTSE World ex-UK Index) of 24.3 per cent.

•       Final dividend up to 1.41p per share (2002:1.40p) payable on 2nd April 
        2003.

•       At 31st December 2002 the Company's dividend yield was 4.2%, almost 
        twice the average yield for investment trusts in this sector.

•       The capital value of the property portfolio increased by 5% and the 
        portfolio yielded 7.9%.


Commenting on the results, the Chairman, Brian Ivory said:


This has been another exceptionally difficult year for equity investors. The
Company's net asset value at 31st December 2002 was 161.9p compared to 225.7p at
31st December 2001. The total return per share of minus 26.1% compares with a
fall of 24.3% in the Company's benchmark (65% FTSE All-Share Index : 35% FTSE
World (ex-UK) Index) over the same period. Global equity markets have fallen
sharply over recent months and trading conditions have been hazardous against
the backdrop of an uncertain and volatile political and economic environment.
Stock markets globally experienced their worst conditions since 1974. In the
year to 31st December 2002 the Company performed more closely in line with its
benchmark than it has in recent years. The Company's portfolio has also
performed broadly in line with a peer group of comparative trusts over the last
12 months and has in fact outperformed this peer group in the second half of the
year.


Summary of Results

Summary of Results:                                    2002                2001
Shareholders' Funds (£'000)                         222,867             332,576
Net Asset Value per Share                            161.9p              225.7p
Dividend per Share                                    5.61p               5.57p
Share Price at Year End                              132.8p              192.3p



Total return - over the year to 31st December 2002         %                  %
SAINTS NAV                                             -26.1              -22.2
SAINTS UK Equity Portfolio                             -27.4              -24.9
SAINTS GLOBAL (ex UK) Equity Portfolio                 -26.3              -15.8
Composite Benchmark Index                              -24.3              -13.6



Earnings per share and Dividend


As at 31st December 2002, the Company had a dividend yield of 4.2%, almost twice
the average yield in the Global Growth sector that forms the Company's peer
group. I am pleased to report that there has been an increase in the revenue
account over the period and that earnings per ordinary share have risen by 3.3%
from 5.46p last year to 5.64p for the year to 31 December 2002.


The Board of SAINTS recommends a final dividend of 1.41p net per share for the
year ended 31st December 2002, payable on 2nd April 2003 to shareholders
registered on 7th March 2003. This will make a total dividend for the year of
5.61p (2001 - 5.57p). This is an increase of 0.7%.  SAINTS has had a good long
term record of increasing dividends. Income returns will continue to be
important to investors, as well as growth in capital.


Borrowings


Borrowings are unchanged from last year. As at 31st December 2002 the Company
had total borrowings of £89.7 million. The Board has been extremely cautious in
the use of this long term debt and took the decision not to increase exposure to
equity markets in response to the short term rallies experienced in the fourth
quarter of 2002. Other than the borrowings used to finance the property
portfolio, the borrowings were held throughout the year in cash and fixed
interest.


Property


The SAINTS property portfolio contains 16 properties with a capital value of
£28.8 million. This represents 12.9% of shareholders funds as at 31st December
2002. The properties are predominantly pubs, restaurants, hotels and retail
properties. Net rental income for the year was £2.3 million providing a yield of
7.9%. Your board is mindful of the outlook for the future capital performance of
the property portfolio. However, these concerns need to be weighed against the
significant contribution to total shareholder return from the income generated
by the property portfolio.


Share Buy Backs


We have continued our policy of buying back our own shares where this provides a
benefit to continuing investors. Over the year we took the opportunity to buy
back a total of 9.7 million shares at a discount to NAV. This has added an
estimated 1.9p to the closing NAV per share. During the second half of the year,
market volatility increased markedly and investment trust discounts as well of
those our peer group widened significantly.  The Company will continue to buy in
shares as a purchaser of last resort and where there are attractive
opportunities to improve the NAV for continuing investors.


At the Annual General Meeting to be held on 28th March 2003 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


The Directors were delighted to welcome Sir John Kerr to the Board in September
2002. He is Secretary General of the European Convention and a director of Shell
Transport & Trading.  He has wide experience of international affairs having
been the Head of the Diplomatic Service until January 2002. Sir John will stand
for election at the AGM. Dr Janet Morgan and David Price will also stand for re
election at this meeting.

Sir John Shaw (Chairman of the Company from March 1991 to June 2001) will retire
at the end of this year's AGM on 28th March. Sir John has always been a very
active member of the Board and we shall miss his counsel at our meetings. I
would like to thank Sir John personally and on behalf of the Board for his
contribution to the Company over many years.



Outlook


Your Board's focus is on generating total return to shareholders. The management
changes which your Board has overseen are designed to ensure that performance
improves and that the company is well placed to take advantage of a recovery in
equity markets.  The track record of the new management team, and your Company's
ability to deliver an above average yield in an environment where lower capital
returns are expected to continue, should make SAINTS attractive to private
investors.



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:



Lucy Allan
Head of Investment Trusts
First State Investments, Edinburgh              Tel: [phone]



12th February 2003




                           STATEMENT OF TOTAL RETURN
                       (incorporating the income account)
                      FOR THE YEAR ENDED 31 DECEMBER 2002


                                                          2002                                   2001
                                             Income*      Capital      Total        Income*      Capital     Total
                                             £'000        £'000        £'000        £'000        £'000       £'000

Losses on investments                        -            (89,756)     (89,756)     -            (111,759)   (111,759)
Gains on Equities Index Unsecured
Loan Stock                                   -            -            -            -            1,848       1,848
Income from investments                      8,890        -            8,890        9,670        -           9,670
Other income                                 3,185        -            3,185        2,881        -           2,881
Investment management fees                   103          310          413          121          362         483
Currency (losses)/gains                      -            (67)         (67)         -            104         104
Other expenses                               (1,041)      -            (1,041)      (1,272)      -           (1,272)

Net return before finance costs and
taxation                                     11,137       (89,513)     (78,376)     11,400       (109,445)   (98,045)
Finance costs of borrowing                   (1,473)      (4,420)      (5,893)      (1,704)      (4,336)     (6,040)

Return on ordinary activities before

taxation                                     9,664        (93,933)     (84,269)     9,696        (113,781)   (104,085)
Tax on ordinary activities                   (1,732)      1,605        (127)        (1,359)      1,166       (193)

Return attributable to equity                7,932        (92,328)     (84,396)     8,337        (112,615)   (104,278)
shareholders
Ordinary dividends on equity shares **
                                             (7,742)      -            (7,742)      (8,356)      -           (8,356)

Transfer to/(from) from reserves (after
aggregate dividends paid and proposed of
2002 - 7,742,241
(2001 - 8,355,511))                          190          (92,328)     (92,138)     (19)         (112,615)   (112,634)

Return per ordinary share                    5.64p        (65.63p)     (59.99p)     5.46p        (73.79p)    (68.33p)



* 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 5.61p (2001 - 5.57p).




                             SUMMARY BALANCE SHEET
                            AS AT 31 DECEMBER 2002
                                                                             2002               2001
                                                                             £'000              £'000

Total Investments                                                            282,367            400,920
Current Assets:
Debtors                                                                      1,784              1,336
Cash and deposits                                                            34,528             26,970
Current liabilities due within one year:
Creditors                                                                    4,104              4,313
Recommended final dividend                                                   1,941              2,063
Net Current Assets                                                           30,267             21,930
Creditors due after one year:
8 per cent Debenture Stock 2022                                              (89,767)           (90,274)
Total Net Assets                                                             222,867            332,576

Net Asset Value per share                                                    161.9p             225.7p


                              CASH FLOW STATEMENT
                      FOR THE YEAR ENDED 31 DECEMBER 2002
                                                                         2002                2001
                                                                         £'000               £'000

Cash and deposits at the start of the year                               26,970              20,654
Income
Dividends received                                                       6,393               7,177
Interest received                                                        2,796               3,647
Underwriting commission and other income                                 2,274               2,118
Investment management fee                                                117                 224
Other administrative expenses paid                                       (1,074)             (1,211)
Income less administrative expenses                                      10,506              11,955

Interest paid on borrowings                                              (1,600)             (2,185)
Dividends paid to shareholders                                           (7,994)             (8,581)
Cash paid in respect of interest and dividends                           (9,594)             (10,766)

Tax paid                                                                 (128)               (714)

Capital
Purchases of investments                                                 (297,799)           (364,427)
Sales of investments                                                     326,646             378,942
                                                                         28,847              14,515

Repurchase of Ordinary share capital                                     (17,563)            (19,636)
Issue of 8% Debenture Stock 2022                                         -                   35,436
Repayment of Equities Index Unsecured Loan Stock 2004                    -                   (20,802)
Repayment of 4% Irredeemable Stock                                       -                   (476)
Investment management fee                                                357                 671
Interest paid on borrowings                                              (4,800)             (3,971)
Currency (losses)/gains                                                  (67)                104
Cash received in respect of capital transactions                         6,774               5,841
Increase in cash and deposits in the year                                7,558               6,316
Cash and deposits at the year end                                        34,528              26,970




Notes



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

                                                                             2002               2001
                                                                             £'000              £'000

Total income per the Statement of Total Return                               12,075             12,551
Total expenses per the Statement of Total Return                             (938)              (1,151)
(Increase) / decrease in dividends accounted for but 
for which the cash had not been received at the year end                     (612)              192
Decrease in other debtors                                                    65                 376
(Decrease) in creditors                                                      (84)               (13)
Income less administrative expenses                                          10,506             11,955



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

Cash                                                 9,970        (5,427)          -               4,543
Short term deposits                                  17,000       12,985           -               29,985
                                                     26,970       7,558            -               34,528
8% Debenture Stock 2022                              (90,274)     -                507             (89,767)
Net Debt                                             (63,304)     7,558            507             (55,239)





Notes to the Preliminary Results

(1) The financial information contained within this Preliminary Announcement
does not constitute statutory accounts as defined in Section 240 of the
Companies Act 1985. The results for the years ended 31st December 2002 and 2001
are an abridged version of the statutory accounts for those years, which
received unqualified audit reports and did not contain statements under sections
237(2) or (3) of the Companies Act 1985. Statutory accounts for 2001 have been
filed with the registrar of Companies and those for 2002 will be delivered in
due course.



(2) The accounting policies applied in preparing these accounts are consistent
with those applied in the latest published annual accounts except for the
accounting policy relating to deferred tax which has been changed in accordance
with FRS 19.



(3) The terms of the annual report and the preliminary announcement were
approved by the Board on 12th February 2003.





12th February 2003


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