Transaction in Own Shares

Scottish American Investment Co PLC
12 May 2004

                 The Scottish American Investment Company P.L.C

                           Purchase of Own Securities

On 12 May 2004, the Company purchased for cancellation 645,000 ordinary shares
at a price of 153.00p.

There remains 132,485,943 ordinary shares in issue.



                                                           Baillie Gifford & Co.

                                                             Company Secretaries

                                                                     12 May 2004


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