Notice of Early Redemption

Scottish American Investment Co PLC
23 May 2001

23rd May 2001

For immediate release

The Scottish American Investment Company P.L.C.

Equities Index Unsecured Loan Stock 2004 (the 'Stock')

Notice of early redemption

The Scottish American Investment Company P.L.C. announces that it has today
given notice to redeem all the outstanding Stock.

Under the terms of the Trust Deed constituting the Stock dated 8 September
1989 (and as amended), the whole of the outstanding Stock is to be redeemed
with a redemption date of 25 June 2001.

The register of Stockholders will finally close at the close of business on 18
June 2001 and no transfer relating to the Stock will be registered after that
time.

The repayment price will be based on the level of the FTSE All-Share Index at
the close of business on 25 June 2001 and, for each £1,000 nominal of Stock,
will equal the index level on that date, expressed in £.

In accordance with the terms of the Trust Deed and notice to Stockholders, the
Company will post out to Stockholders, on 28 June 2001, cheques for both the
Capital Value of their Stock on the Redemption date (calculated in accordance
with the Trust Deed) and the interest monies due (for the period 1 April 2001
to the Redemption Date) on the total holding prior to repayment.



Further information:

The Scottish American Investment Company P.L.C.

James Ayling 0131 473 2200

Cazenove & Co. Ltd

Francis Burkitt, Director 020 7825 9942



This annnouncement has been approved for the purposes of section 57 of the
Financial Services Act 1986 by Cazenove & Co. Ltd, which is regulated by the
Securities and Future Authority.