Interim Management Statement

Scottish Mortgage Inv Tst PLC
05 July 2007


                     SCOTTISH MORTGAGE INVESTMENT TRUST PLC

            Interim Management Statement - 3 months to 30 June 2007

Scottish Mortgage is a low cost investment trust that aims to maximize long term
total returns from a focused and actively managed portfolio of equities.  It
invests globally, looking for strong businesses with above-average returns.

                              Review of the Period

     
•    With effect from 1 April 2007, the benchmark was changed to 100% FTSE All 
     World Index (in sterling terms) from 50% FTSE All-Share Index and 50% FTSE 
     World Ex UK Index (in sterling terms).

•    Over the period, the Company's net asset value rose by 9.3% and the share 
     price rose by 11.2%.  The benchmark rose by 5.3%.  All figures are total 
     return.

•    During the period 4.8 million shares were bought back at a cost of £28.8m 
     enhancing NAV per share by 0.2%.

•    The final dividend of 5p per share was approved at the Annual General 
     Meeting on 27 June and will be paid on 4 July 2007.

•    Short term loans of Y5.9bn were repaid. Long term loans of Swiss Francs 
     121m; US$ 30m and Y8.5bn were drawn down expiring 8 June 2010.

                                        Top Twenty Equity Holdings

                           % of total   % of total                                % of total   % of total 
                            assets at    assets at                                 assets at    assets at     
Name                        30/06/07     31/03/07      Name                         30/06/07     31/03/07               
Petrobras                     3.9         3.6          SAP                            2.0          1.9
CVRD                          3.2         2.8          Amazon.com                     2.0          1.3
eBay                          3.1         3.4          Tesco                          1.9          2.0
Atlas Copco                   3.1         2.7          Schlumberger                   1.9          1.7
British American Tobacco      3.0         2.5          Omnicom                        1.9          2.0
Gazprom                       3.0         3.1          Standard Chartered             1.9          1.8
Sandvik                       2.9         2.7          Norilsk Nickel                 1.8          1.4
Canon                         2.3         2.1          UBS                            1.8          1.2
Porsche                       2.1         1.7          Teva Pharmaceuticals           1.8          1.8
Wolseley                      2.0         2.2          Reed Elsevier                  1.6          1.7
                                                       Total                          47.2         43.6


                            Total Return Performance


                            3 Months               1 Year                3 Years              5 Years
Share Price                  11.2%                  27.3%                110.3%               111.6%
NAV                           9.3%                  23.0%                 92.4%               102.5%
Benchmark*                    5.3%                  17.5%                 59.2%                66.2%


              Source: Fundamental Data Ltd/Baillie Gifford & Co



*Benchmark - On 1 April 2007 the Company changed its benchmark to 100% FTSE All
World  Index (in sterling terms) from 50% FTSE All-Share Index and 50% FTSE
World Ex UK Index (in sterling terms).

For the purposes of the performance data above, the returns for their respective
periods have been calculated by sequentially linking the original benchmark data
until 31 March 2007 with the new benchmark data from 1 April 2007.

             Past performance is not a guide to future performance

                                          General Information


                                                             30/06/07                  31/03/07
Share price                                                   597.5p                    542.0p

Net asset value per share +                                   656.7p                    607.1p

(after deducting borrowings at fair value)
Net asset value per share +                                   677.6p                    631.0p

(after deducting borrowings at par)

Discount (borrowings at fair value)                            9.0%                     10.7%
Discount (borrowings at par)                                  11.8%                     14.1%

Total assets (before deduction of  borrowings)              £2,213.9m                 £2,045.5m

Total borrowings (at fair value)                             £397.3m                   £336.7m
Total borrowings (at par)                                    £339.4m                   £269.4m

Potential Gearing (borrowings at fair value)                  21.9%                     19.7%
Actual Gearing (borrowings at fair value)                     15.4%                     14.1%

Potential Gearing ( borrowings at par)                        18.1%                     15.2%
Actual Gearing (borrowings at par)                            11.8%                      9.7%



+ Dividends are not reinvested.

This interim management statement and up to date NAV and Share Price are
available at www.bailliegifford.com.


For further information, contact Robert O'Riordan - 0131 275 3181.


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