Issue of Debt

Scottish American Investment Co PLC
6 December 2000


For immediate release


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

       Placing of a further tranche of 8 per cent. Debenture Stock 2022


The Company has outstanding an issue of £50,000,000 nominal of 8 per cent.
Debenture Stock 2022 (the 'Existing Stock'). Today it has announced the issue
of a further £30,000,000 in nominal amount (the 'New Stock') which, on issue,
will be consolidated with, form a single series with, and be fully fungible
with, the Existing Stock.


The Board considers that current conditions in the UK bond markets offer the
Company the opportunity to raise long-term debt at attractive rates through
this issue.


The New Stock will be secured by a first floating charge over the whole of the
Company's assets. The charge will rank pari passu with the Existing Stock.


In connection with the placing, the Company will seek to obtain a credit
rating for the issue within 12 weeks of the closing date.


The New Stock will be issued at a price to be determined before 3.00 p.m.
today, such that the gross redemption yield on the New Stock at the issue
price will be a margin of 1.85 per cent. over that of the 8 per cent. Treasury
Stock 2021 at the time of pricing. In addition, accrued interest will be
payable at the rate of £2.066 per £100 in nominal amount of the New Stock, for
the period from and including 10th October 2000 to but excluding 12th January
2001.


A second announcement later today will state the issue price and yield on the
New Stock, but no other details. The New Stock will be fully paid up.


The sole lead-manager of the issue is Cazenove & Co.


Application will be made to the UK Listing Authority and the London Stock
Exchange to list and trade the New Stock. The closing date for the issue will
be 12th January 2000. The New Stock will be available in registered form. It
is expected that official dealings in the New Stock will commence at 8.00 a.m.
on 15th January 2001.

For further information, please contact:

Teddy Tulloch/ Marcus Brooks                                  0131 473 2200

The Scottish American Investment Company

Duncan Hunter / Francis Burkitt/ Donald Fleming               020 7588 2828

Cazenove & Co.




In connection with the issue of the New Stock, Cazenove & Co. may over-allot
or effect transactions which stabilise or maintain the market price of the New
Stock and Existing Stock on the London Stock Exchange at a level which might
not otherwise prevail on that exchange. Such stabilisation, if commenced, may
be discontinued at any time.