Final Results

Scottish Mortgage Inv Tst PLC
27 April 2005

                     SCOTTISH MORTGAGE INVESTMENT TRUST PLC

                     Results for the year to 31 March 2005



Against a background of the continuing recovery in global stockmarkets and
corporate profitability, Scottish Mortgage recorded a 9.6% rise in net asset
value. Its benchmark  increased by 8.6%.  The outperformance benefited from good
stock selection and gearing.  As many large developing countries become
significantly richer, we believe the outlook for global equity investors remains
encouraging.


•    Growth continued.

     Global economic growth continued during the year with companies reporting
     increases in profits and dividends. While the pace of profits growth may
     slow this year, the Managers continue to identify companies they believe
     capable of producing sustained long term growth.

•    Exposure to Asia Pacific and Other Emerging Markets increased.

     After Asia Pacific and Other Emerging Markets faltered in the first half, 
     exposure to these markets was increased and they now account for 18% of the
     equity content. The growth of these economies is likely to be the major
     global economic factor for some years to come.

•    Real dividend increase.

     The proposed total dividend for the year of 7.35p is 5% higher than the
     previous year and represents the 23rd successive year of dividend growth in
     excess of inflation.  Earnings per share were 7.37p.

•    Low cost.

     Scottish Mortgage, with a total expense ratio of 0.5% (ratio of total 
     operating costs to average shareholders' funds), represents a low cost 
     alternative for global investment.


•    Second half.

     In the second half, net asset value rose by 9.9% compared to a 6.8% rise in 
     the benchmark.  A final dividend of 5.05p is being recommended.


•    Financial Strength.

     During the year the Company was given a Aaa Issuer Rating by Moody's
     becoming the first investment trust and only company in the FTSE All Share
     Index to be issued with their highest possible rating. Issuer Ratings are
     opinions of the ability of entities to honour senior unsecured financial
     obligations and contracts.

•    Global Approach.

     The Managers continue to operate an integrated global approach investing in
     well managed businesses with long term growth potential throughout the
     world.  The focus remains long term and on the overall result and not on
     regional indices. Neither a Manager of Manager nor an Index Tracking approach
     are being followed.  Instead, the Board expects the Managers to add value
     over the long term through distinctive and committed stock selection.


Scottish Mortgage Investment Trust PLC is a low cost investment trust that aims
to maximise total returns from a focused and actively managed portfolio of
equities.  It invests globally, with a core exposure to the UK, looking for
strong businesses with above-average returns.  The trust has total assets of
£1.4 billion (before deduction of debentures, long and short-term borrowings of
£213 million).



Scottish Mortgage is managed by Baillie Gifford & Co., the Edinburgh based fund
management group with over £32 billion under management and advice.



Scottish Mortgage Investment Trust PLC - Your low cost alternative for global
investment.

                                                                   27 April 2005





                                    - ends -



For further information please contact:



Robert O'Riordan,                          0131 275 3181
Baillie Gifford & Co.                      07730 412007

Mike Lord, Director,
Broadgate Marketing                        020 7726 6111





SCOTTISH MORTGAGE INVESTMENT TRUST PLC



The following is the unaudited preliminary statement for the year to 31 March
2005 which was approved by the Board on 26 April 2005.  The Board of Scottish
Mortgage Investment Trust PLC is recommending to the Annual General Meeting of
the Company to be held on 30 June 2005 the payment of a final dividend of 5.05p
(0.40p last year) per ordinary share making 7.35p (7.00p last year) for the year
ended 31 March 2005.





                           STATEMENT OF TOTAL RETURN

               (unaudited and incorporating the revenue account*)


                                          For the year ended                      For the year ended
                                            31 March 2005                            31 March 2004
                                    Revenue      Capital       Total         Revenue     Capital       Total
                                      £'000        £'000       £'000           £'000       £'000       £'000

Gains on investments                      -      114,325     114,325               -     285,687     285,687
Currency gains                            -        1,534       1,534               -       5,980       5,980
Income (note 2)                      35,456            -      35,456          35,829           -      35,829
Investment management fee            (2,385)      (2,385)     (4,770)         (2,276)     (2,276)     (4,552)
Other administrative expenses        (1,382)           -      (1,382)         (1,404)          -      (1,404)
Net return before finance costs
and taxation                         31,689      113,474     145,163          32,149     289,391     321,540

Finance costs of borrowings          (7,385)      (7,385)    (14,770)         (7,290)     (7,303)    (14,593)
Return on ordinary activities
before taxation                      24,304      106,089     130,393          24,859     282,088     306,947

Tax on ordinary activities          (2,495)          392      (2,103)           (928)          -        (928)
Return on ordinary activities
after taxation                       21,809      106,481     128,290          23,931     282,088     306,019

Dividends in respect of equity
shares                              (21,727)           -     (21,727)        (20,779)          -     (20,779)

Transfer to reserves                     82      106,481     106,563           3,152     282,088     285,240
Return per ordinary share
(note 3)                               7.37p       35.96p      43.33p           8.05p      94.86p     102.91p
Dividend per ordinary share
(note 4)                               7.35p                                    7.00p




* The revenue column of this statement is the profit and loss account of the
  Company.
  All revenue and capital items in the above statement derive from continuing
  operations.



                     SCOTTISH MORTGAGE INVESTMENT TRUST PLC

                            SUMMARISED BALANCE SHEET

                                at 31 March 2005

                                  (unaudited)


                                                                                      31 March         31 March
                                                                                          2005             2004
                                                                                         £'000            £'000
FIXED ASSETS
Investments                                                                          1,450,095        1,338,496

CURRENT ASSETS
Debtors                                                                                  9,293           16,404
Cash and short term deposits                                                            10,892           20,394
                                                                                        20,185           36,798
CREDITORS
Amounts falling due within one year (note 5)                                            (59,514)        (95,302)
NET CURRENT LIABILITIES                                                                 (39,329)        (58,504)

TOTAL ASSETS LESS CURRENT LIABILITIES                                                  1,410,766      1,279,992
CREDITORS
Amounts falling due after more than one year
Loans and debentures (note 5)                                                          (181,330)       (152,211)
                                                                                      1,229,436       1,127,781
CAPITAL AND RESERVES
Called-up share capital                                                                  73,901          74,326
Capital reserves                                                                      1,101,412         999,414
Revenue reserve                                                                          54,123          54,041
EQUITY SHAREHOLDERS' FUNDS                                                            1,229,436       1,127,781

NET ASSET VALUE PER ORDINARY SHARE
After deduction of debentures at par                                                      418.1p          381.5p
After deduction of debentures at market value                                             394.4p          362.8p

ORDINARY SHARES IN ISSUE (note 6)                                                    295,605,115     297,305,115



                              DISTRIBUTION OF ASSETS

                                  at 31 March 2005

                                    (unaudited)



                                                                    31 March 2005         31 March 2004
                                                                            %                      %

Equities:   United Kingdom                                                  42.1                 42.0
            Continental Europe                                               9.8                  8.9
            North America                                                   21.7                 21.7
            Japan                                                            4.8                  5.7
            Asia Pacific                                                     9.1                  9.2
            Other Emerging Markets                                           7.8                  5.2
Total equities                                                              95.3                 92.7
United Kingdom bonds                                                         3.9                  4.3
European bonds                                                               1.0                  1.5
North American bonds                                                         0.3                  0.2
Net liquid (liabilities)/assets                                             (0.5)                 1.3
Total assets (before deduction of debentures, long and short-term          100.0                100.0
borrowings)





                       SCOTTISH MORTGAGE INVESTMENT TRUST PLC

                          SUMMARISED CASH FLOW STATEMENT

                                   (unaudited)


                                                                             For the               For the
                                                                          year ended            year ended
                                                                       31 March 2005         31 March 2004
                                                                               £'000                 £'000
Net cash inflow from operating activities                                     30,443                31,040
Net cash outflow from servicing of finance                                   (14,766)              (14,431)
Total tax paid                                                                (1,024)                 (895)
Net cash inflow/(outflow) from financial investment                            14,424               (2,619)
Equity dividends paid                                                        (21,069)              (19,919)


NET CASH INFLOW/(OUTFLOW) BEFORE USE OF LIQUID RESOURCES AND
FINANCING                                                                      8,008                (6,824)

Net cash outflow from use of  liquid resources                                   107                    -
Shares purchased for cancellation                                             (4,908)               (3,184)
Net cash (outflow)/inflow from bank loans                                    (12,709)               26,487

(DECREASE)/INCREASE IN CASH                                                   (9,502)               16,479

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
(Decrease)/increase in cash in the period                                     (9,502)               16,479
Decrease/(increase) in bank loans                                             12,709               (26,487)
Exchange movement on bank loans                                                1,695                 6,091
Increase in short term investments                                              (107)                   -
Exchange movement on short term investments                                      107                    -
Other non-cash changes                                                            73                    61

MOVEMENT IN NET DEBT IN THE PERIOD                                             4,975                (3,856)

NET DEBT AT START OF THE PERIOD                                             (207,166)             (203,310)

NET DEBT AT THE END OF THE PERIOD                                           (202,191)             (207,166)


RECONCILIATION OF NET REVENUE BEFORE FINANCE COSTS AND TAXATION TO
NET CASH INFLOW FROM OPERATING ACTIVITIES

Net revenue on ordinary activities before finance costs and taxation          31,689                32,149
Investment management fees charged to capital                                 (2,385)               (2,276)
Changes in debtors and creditors                                               1,139                 1,167

NET CASH INFLOW FROM OPERATING ACTIVITIES                                     30,443                31,040






                     SCOTTISH MORTGAGE INVESTMENT TRUST PLC

                          THIRTY LARGEST EQUITY HOLDINGS

                                 at 31 March 2005


                                                                                             Market % of total
                                                                                              value     assets
Name                      Region                   Business                                   £'000

Vodafone                  United Kingdom           Mobile telecommunication services         66,486        4.6
Royal Bank of Scotland    United Kingdom           Banking                                   42,555        3.0
Barclays                  United Kingdom           Banking                                   36,737        2.5
GlaxoSmithKline           United Kingdom           Pharmaceuticals                           32,751        2.3
Samsung Electronics       Asia Pacific             Electronics manufacturer                  31,181        2.2
Petrobras                 Other Emerging Markets   Oil company                               31,135        2.2
British American Tobacco  United Kingdom           Tobacco                                   29,623        2.1
Golden West Financial     North America            Savings and loans                         25,614        1.8
BHP Billiton              Asia Pacific             Diversified resources                     25,604        1.8
Aviva                     United Kingdom           Life assurance                            24,282        1.7
SAP                       Continental Europe       Business software                         24,003        1.6
Atlas Copco               Continental Europe       Engineering                               23,616        1.6
EOG Resources             North America            Gas and oil exploration and               22,802        1.6
                                                   production
Suncor Energy             North America            Oil company                               21,849        1.5
Moody's                   North America            Bond rating agency                        20,840        1.4
Northern Rock             United Kingdom           Mortgage banking                          20,644        1.4
Man Group                 United Kingdom           Hedge fund manager and asset gatherer     20,610        1.4
Altria                    North America            Tobacco and food                          20,521        1.4
Omnicom                   North America            Advertising agency                        20,425        1.4
Diageo                    United Kingdom           Branded spirits                           20,291        1.4
ConcoPhillips             North America            Integrated oil company                    19,974        1.4
Imperial Tobacco          United Kingdom           Tobacco                                   19,752        1.4
Teva Pharmaceuticals      Other Emerging Markets   Generic drugs manufacturer                19,561        1.4
Gazprom                   Other Emerging Markets   Gas producer                              19,417        1.3
Standard Chartered        United Kingdom           Banking                                   17,622        1.2
Wolseley                  United Kingdom           Builders' merchant                        16,886        1.2
Sandvik                   Continental Europe       Engineering                               16,557        1.1
BG Group                  United Kingdom           Oil and gas exploration and               16,351        1.1
                                                   production
BMW                       Continental Europe       Automobiles                               16,275        1.1
Hershey Foods             North America            Confectionery                             15,614        1.1
                                                                                            739,578       51.2




SCOTTISH MORTGAGE INVESTMENT TRUST PLC



NOTES


1.   The financial statements for the year to 31 March 2005 have been prepared 
     on the basis of the accounting policies set out in the Company's financial 
     statements as at 31 March 2004.

     None of the views expressed in this document should be construed as advice 
     to buy or sell a particular Investment.


                                                                   31 March 2005                 31 March 2004
                                                                           £'000                         £'000
2.   Income

     Income from investments and interest receivable                      35,386                        35,699
     Other income                                                             70                           130


3.   Return per ordinary share

     Revenue return                                                       21,809                        23,931
     Capital return                                                      106,481                       282,088


     Return per ordinary share is based on the above returns and on 296,098,814 
     (2004 - 297,361,946) ordinary shares, being the weighted average number of 
     ordinary shares in issue during the year.


4.   The total cost of the dividend for the year is £21,727,000 (2004 - 
     £20,779,000).  If approved the final dividend will be paid on 6 July 2005 
     to all shareholders on the register at the close of business on 
     10 June 2005.  The ex dividend date is 8 June 2005.


5.   Amounts falling due within one year include US$60 million drawn down under 
     a short term facility (31 March 2004 - Y5,900 million and US$81.8 million, 
     drawn down under the three year and the short term facilities). Loans and 
     debentures include Y5,900 million drawn down under a three year multi-
     currency loan facility (31 March 2004 - Nil).

     Net asset value per share (after deducting debentures at market value) was 
     394.4p (2004 - 362.8p). The market value of debenture stocks at 
     31 March 2005 was £215,808,000 (2004 - £201,270,000).


6.   On 11 February 1999 authority was first granted to the Company to buy back 
     its ordinary shares (equivalent to 14.99% of its issued share capital at 
     that date).  The authority has been renewed at each subsequent AGM and was 
     last reviewed at the AGM on 1 July 2004 in respect of 44,566,036 ordinary
     shares (equivalent to 14.99% of its issued share capital at that date).  In 
     the year to 31 March 2005 a total of 1,700,000 ordinary shares with a 
     nominal value of £425,000 were bought back at a total cost of £4,908,000.  
     At 31 March 2005 the Company had authority to by back a further 42,866,036
     ordinary shares.


7.   The financial information set out above does not constitute the Company's 
     statutory accounts for the year ended 31 March 2005.  The financial 
     information for 2004 is derived from the statutory accounts for 2004
     which have been delivered to the Registrar of Companies.  The Auditors have 
     reported on the 2004 accounts, their report was unqualified and did not 
     contain a statement under section 237(2) or (3) of the Companies Act 1985.  
     The statutory accounts for 2005 are unaudited, however it is expected that
     the Auditors will issue an unqualified opinion. The statutory accounts for 
     2005 will be finalised on the basis of the financial information presented 
     in this preliminary announcement and will be delivered to the Registrar of 
     Companies following the Company's Annual General Meeting.





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