Interim Management Statement

Scottish American Investment Co PLC
03 April 2008

                THE SCOTTISH AMERICAN INVESTMENT COMPANY P.L.C.

            Interim Management Statement - 3 months to 31 March 2008

SAINTS aims to be a core investment for private investors seeking income.  Its
objective is to achieve capital and income growth in order to grow the dividend
at a faster rate than inflation. The focus of the portfolio is on listed
equities, both UK and overseas, but investments are also made in bonds, property
and other asset types.

Review of the Period

•    Over the period, the Company's net asset value, with the debenture at fair 
     value, fell by 10.3% compared to a fall in the benchmark of 9.4% while the 
     share price fell by 8.9%

•    A final dividend of 2.15p per share is proposed and, subject to approval at 
     the Annual General Meeting on 10 April 2008, will be paid on 14 April 2008.


                  Asset Allocation                                         Top Ten Holdings

Category                         % of    % of total      Name                            % of      % of total
                                total     assets at                                     total      assets at
                              assets at   31/12/07                                    assets at     31/12/07
                               31/03/08                                                31/03/08
UK Quoted Equities*              39.3       45.6         Petrobras                       5.2          5.3
Overseas Quoted Equities*        34.6       30.2         Cambium Global Timberland       3.6          3.4
Quoted Equity Forestry           4.1         3.8         Royal Bank of Scotland          3.2          3.5
Investments
Quoted Equity Property           7.3         6.3         Barclays                        2.9          3.0
Investments
Direct Property                  7.1         6.5         BG 4.20% and 5.45% Notes        2.8          2.5
                                                         2008**
Unquoted                         0.4         0.3         Brazil CPI Linked 2045          2.4          3.6
Quoted Fixed Interest            6.7         6.9         Hays                            1.9          1.3
Net Liquid Assets                0.5         0.4         Vodafone                        1.8          2.1
                                                         HBOS                            1.8          2.2
                                                         CVRD                            1.8          1.6


Total                           100.0          100.0     Total                           27.4         28.5

*Excludes quoted equity property and forestry investments

**These investments are structured notes, the capital performance of which is
dependent upon the share price of the company.

                            Total Return Performance
                                                                  %
                               3 Months            1 Year              3 Years              5 Years
Share Price                      -8.9              -10.0                 30.4                123.2
Nav  (book)                      -8.9               -8.3                 32.7                94.8
Benchmark*                       -9.4               -6.0                 31.4                91.8

Source: Fundamental Data Ltd/Baillie Gifford & Co

* On 1 January 2004 the Company changed its benchmark from 65% FTSE All-Share
Index and 35% FTSE World Ex UK Index to 70% FTSE All-Share Index and 30% FTSE
World Ex UK Index.  For the purposes of the above table the returns on both
benchmarks for their respective periods have been linked to form a single
benchmark.


Past performance is not a guide to future performance

                                          General Information

                                                                    31/03/08             31/12/07
Share price                                                                 216.5p               240.0p

Net asset value per share                                                   244.5p               272.7p
(after deducting debenture at fair value)

Discount (debenture at fair value)                                           11.5%                12.0%

Total assets (before deduction of  debenture)                              £421.2m              £460.1m

Debenture (at fair value)                                                   £97.2m               £98.8m

Potential Gearing (debenture at fair value)                                  30.0%                27.3%
Gearing less cash and fixed interest (debenture at fair                      18.4%                18.1%
value)

Potential Gearing (debenture at book)                                        26.6%                23.9%
Gearing less cash and fixed interest (debenture at book)                     15.3%                14.9%


This interim management statement and up to date NAV and share price information
is available on the Managers' website www.bailliegifford.com.


For further information contact:-  Robert O'Riordan on 0131 275 3181


                      This information is provided by RNS
            The company news service from the London Stock Exchange