Final Results

Scottish Oriental Smlr Co Tst PLC
17 October 2007



               THE SCOTTISH ORIENTAL SMALLER COMPANIES TRUST PLC


             Preliminary Results for the year ended 31 August 2007
                     (Extracted from the Audited Accounts)


The Board of The Scottish Oriental Smaller Companies Trust PLC is pleased to
announce the results for the year ended 31 August 2007.

These results are presented in a format which summarises the information which
will be given in the forthcoming Annual Report.


Financial Highlights

•  Net asset value per ordinary share rose by 34.5% from 256.22p to 344.67p
•  This compares with a rise of 40.2% in the benchmark index - the MSCI AC
   Asia (ex Japan) Index.
•  The Nomura Asia Small Cap Index rose 56.2% and the FTSE All-Share Index
   rose 11.8% respectively over the same period.
•  The share price rose by 27.9% from 245.50p to 314.00p
•  A final dividend of 4.6p, an increase of 27.8% on the Trust's final
   dividend of 3.6p for 2006.


Comment on Results


Although satisfactory in absolute terms, to some Scottish Oriental's performance
may appear disappointing relative to its benchmark, the MSCI Asia (ex Japan)
Index. In its pursuit of capital preservation as well as growth, the trust's
Board and its Investment Manager have always accepted that it is sometimes
necessary to forego short term gains. For instance, as valuations have been
increasingly hard to justify in China, the Investment Manager has reduced
significantly the Trust's exposure there on fundamental valuation grounds. In
the past such an investment approach has led to long term outperformance of the
benchmark and, more important, exceptional capital returns.

Performance for the year ended 31 August 2007 (Total Return)

Net Asset Value        +34.5%  MSCI AC Asia (ex Japan)                   +40.2%
                               Index (£)

Share Price            +27.9%  Nomura Asia Small Cap                     +56.2%
                               Index (£)

                               FTSE All-Share Index (£)                  +11.8%

Performance for the period 31st August 1997 to 31st August 2007

Net Asset Value       +225.6%  MSCI AC Asia (ex Japan)                   +71.3%
                               Index (£)
                               FTSE All-Share Index (£)                  +91.6%


CHAIRMAN'S STATEMENT


When I wrote a year ago it had been becoming increasingly difficult for our
Manager to find shares that appeared to offer good value. This continued to be
the case during the twelve months to 31st August 2007 and became more acute as
most of the markets in which we invest rose strongly, influenced by the euphoria
for the prospects of Asia.


The net asset value per share increased by 34.5% over the financial year. The
MSCI AC Asia (ex Japan) rose by 40.2%. Smaller companies did well in general but
our choice of markets, with too much of the portfolio invested in South East
Asia, held back performance, as did our cautious approach to the investment of
the cash produced by the exercise of the warrants in January 2007. As a
consequence no performance fee is payable. The longer term performance remains
satisfactory with the net asset value ahead of the Index over five years despite
the relative disappointment of the last year.


The earnings per share again increased sharply, being 6.35p compared to 4.78p
last year. The Board is proposing a dividend of 4.6p net (2006, 3.6p net). The
balance of £422,000 will be added to the revenue reserve. It is intended at
least to maintain the proposed level of dividend, using the reserve if necessary
to smooth fluctuations in Scottish Oriental's income.



David Pike will retire from the board before the end of the calendar year. He
was one of the founding directors of Scottish Oriental. The Company has
benefited from his great experience as an investor and his considerable
knowledge of Asia, and we shall miss him. Sir Hamish Macleod will succeed him as
the senior independent director.


As this is written, five per cent of the portfolio is in cash reflecting a
somewhat cautious view on the immediate outlook. However, our optimism about the
exciting long term prospects for good quality smaller companies in Asia remains
undiminished.


James Ferguson


Review by Investment Manager


In the year ending 31 August 2007, Asian equity markets again achieved
substantial gains. The international investment community's appetite for risk
remained strong despite growing unease over the deteriorating outlook for
America's sub-prime debt market. These fears were finally realised in August
with a sharp correction in both global debt and equity markets. However, the
fall in equities was short lived as Central Banks in Europe and the US provided
emergency funding for the cash markets.


China related shares rose sharply during the period, initially driven by strong
demand from domestic investors, and latterly as a result of the Qualified
Domestic Institutional Investor programme which allows Chinese banks and
insurance companies to buy financial assets outside the People's Republic of
China.



Outlook by Investment Manager


Asian stockmarkets are likely to remain volatile over the short term as the
collapse of the sub-prime debt market results in a decline in the supply of
money globally. Higher mortgage rates and falling house prices are likely to
result in a slowdown in consumer spending in the US. Although Asia's exposure to
the global economy has fallen over the past 10 years, exports remain a key
factor in driving the Region's economic growth and would be negatively affected
by a slowdown in the global economy. The situation has been complicated by the
re-emergence of inflation, most recently from higher food prices, which may
limit Central Banks' abilities to reduce interest rates.


The longer term outlook remains positive supported by the ongoing trend to
outsource both manufacturing and services to the Region combined with relatively
high savings rates and improving corporate governance. Scottish Oriental
continues to invest in reasonably priced, good quality companies with strong
management teams and tried and tested business franchises.


Susie Rippingall


Dividend


A final dividend of 4.6p net (2006 3.6p) is recommended to be paid on 25 January
2008 to shareholders registered on 21 December 2007.


Income Statement for the year ended 31 August 2007

2007 2006
                     Revenue*   Capital    Total   Revenue*   Capital    Total
                       £'000     £'000     £'000     £'000     £'000     £'000

Gains on investments       -    26,257    26,257         -    10,413    10,413
Income from
investments            3,187         -     3,187     2,199         -     2,199
Other income             192         -       192       217         -       217
Investment
management fee          (481)        -      (481)     (371)        -      (371)
Currency losses            -      (226)     (226)        -       (42)      (42)
Other administrative
expenses                (308)        -      (308)     (277)        -      (277)
                      --------  --------  --------  --------  --------  --------

Net return before
finance costs and
taxation               2,590    26,031    28,621     1,768    10,371    12,139
Finance costs of
borrowing                 (1)        -        (1)      (12)       (5)      (17)
                      --------  --------  --------  --------  --------  --------

Return on ordinary
activities before
taxation               2,589    26,031    28,620     1,756    10,366    12,122
Tax on ordinary
activities              (777)        -      (777)     (517)        1      (516)
                      --------  --------  --------  --------  --------  --------

Return attributable
to equity              1,812    26,031    27,843     1,239    10,367    11,606
shareholders
                      --------  --------  --------  --------  --------  --------

Return per ordinary
share                   6.35p    91.19p    97.54p     4.78p    39.99p    44.77p
Fully diluted return
per ordinary share
(in accordance with
FRS 14)                 6.11p    87.80p    93.91p     4.36p    36.48p    40.84p


* The total column of this statement is the Profit and Loss Account of the
Company.

All revenue and capital items derive from continuing operations.

A Statement of Total Recognised Gains or Losses has not been prepared as any
gains or losses are

recognised in the Income Statement.

.


Summary Balance Sheet as at 31 August 2007

                                                          2007               2006
                                        £'000        £'000     £'000        £'000

Total investments                                   95,492                 68,722
Current Assets:
Debtors                                 2,351                    487
Cash and deposits                       6,877                  4,825
                                       --------               --------
                                        9,228                  5,312
Current Liabilities (due within one
year)
Creditors                                (469)                  (695)
                                       --------               --------
                                         (469)                  (695)
Net current assets                                   8,759                  4,617
                                                    --------               --------
                                                   104,251                 73,339
Creditors (due after one year)                           -                      -

Provision for liabilities and charges
Deferred tax                                          (113)                   (78)
                                                    --------               --------
Equity shareholders' funds                         104,138                 73,261
                                                    ========               ========

Capital and reserves
Ordinary share capital                               7,554                  6,559
Share premium account                               21,337                 18,354
Warrant reserve
unexercised                                              -                  1,105
exercised                                            1,319                    214
Capital Reserves
realised                                            44,151                 32,610
unrealised                                          26,275                 11,785
Revenue Reserve                                      3,502                  2,634
                                                    --------               --------
                                                   104,138                 73,261
                                                    ========               ========

Net asset value per share                           344.67p                256.22p
Net asset value per share (undiluted)                    -                 279.24p

Reconciliation of Movements in
Shareholders Funds
Opening shareholders' funds                         73,261                 61,571
Total return attributable to                        27,843                 11,606
shareholders
Warrants exercised                                   3,978                    747
Dividend paid                                         (944)                  (663)
                                                    --------               --------
Closing shareholders' funds                        104,138                 73,261
                                                    ========               ========



Summary Cash Flow Statement for the year ended 31 August 2007

                                                              2007        2006
                                                             £'000       £'000

Net cash inflow from operating activities                    2,455       1,683
Interest paid on borrowings                                     (1)        (13)
Taxation                                                      (837)       (415)
Net cash outflow from capital expenditure and financial
investment                                                  (2,599)       (700)
Equity dividend paid                                          (944)       (663)
Financing                                                    3,978      (2,553)
                                                          ----------  ----------
Increase/(decrease) in cash                                  2,052      (2,661)
                                                          ==========  ==========


(a) Reconciliation of total income to net cash inflow from operating activities

                                                              2007        2006
                                                             £'000       £'000

Income                                                       3,379       2,416
Administration expenses                                       (789)       (648)
(Increase)/Decrease in debtors                                 (10)         14
Increase in dividends accounted for but not yet received      (151)        (37)
Increase/(Decrease) in creditors                                26         (62)
                                                          ----------  ----------
Net cash inflow from operating activities                    2,455       1,683
                                                          ==========  ==========


(b) Analysis of changes in cash and net debt during the year

       At the start of the Year       Cash           At the end of the Year
                         £'000       Flows                               £'000
                                        £'000
Cash                     4,825          2,052                            6,877
                      ----------      ---------                       ----------




Summary Data at 31 August 2007

Shares in issue    30,213,650   Shareholders' Funds                    £104.14m
                                Market Capitalisation                   £94.87m

Net Asset Value
per                    344.67p  Share Price Discount to Net Asset          8.9%
share                           Value

Share Price            314.00p



Notes:

(1) The financial information contained within this Preliminary Announcement
does not constitute statutory accounts as defined in Section 240 of the
Companies Act 1985. The results for the years ended 31st August 2007 and 2006
are an abridged version of the statutory accounts for those years, which
received unqualified audit reports and did not contain statements under sections
237(2) or (3) of the Companies Act 1985. Statutory accounts for 2006 have been
filed with the Registrar of Companies and those for 2007 will be delivered in
due course.

(2) The terms of the Preliminary Announcement were approved by the Board on 17
October 2007.

(3) Copies of the Annual Report will be posted to shareholders shortly and
further copies may be obtained from the registered office at 23 St Andrew 
Square, Edinburgh, EH2 1BB.

Enquiries:     Gillian Davies,
               First State Investments, Ph: 44 (0) 131 473 2224
               Susie Rippingall, Portfolio Manager,
               First State Investments, Ph: 00 852 2846 7526
               Angus Tulloch, Portfolio Manager
               First State Investments, Ph 44 (0) 131 473 2271

17 October 2007



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