Interim Results

Scottish Oriental Smlr Co Tst PLC
22 March 2001

              THE SCOTTISH ORIENTAL SMALLER COMPANIES TRUST PLC

   Preliminary Results (Unaudited) for the six months to 28th February 2001

The Board of The Scottish Oriental Smaller Companies Trust plc is pleased to
announce the results for the six months to 28th February 2001.

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

SUMMARY STATEMENT OF TOTAL RETURN
                                              Six months            Six months
                                                  to                    to
        (Unaudited)                                                     
                                                 28th                  29th
                                               February              February
                                                 2001                  2000
                                                                     
                                               £'000                   £'000

Dividends                                        579                     408
                                          
Interest on deposits                              18                      13
                                           
                                                 597                     421
                                             
Investment management fee                      (119)                   (129)
  
Loan interest payable                           (28)                    (26)
 
Other expenses                                  (79)                    (85)    

Income before tax                                371                     181

Tax                                            (103)                    (46)
   
                                                268                      135

Return attributable to shareholders
(undiluted):

Income                                          268                      135
 
Capital                                     (1,463)                    3,189
 
Total                                       (1,195)                    3,324
  
Per share
Income                                       1.05p                     0.53p
 
Capital                                    (5.75p)                    12.52p

Total                                      (4.70p)                    13.05p
                                              


                                           
        SUMMARY BALANCE SHEET               As at                   As at
                                      28th February 2001    31st August 2000(1)
(Unaudited)
                                                                 
                                        £'000                 £'000
                                       
        Total investments              27,724                30,252
                                   
        Net liabilities                 (645)               (1,978)
                                    
        Shareholders' funds            27,079                28,274

                                      
        Net asset value per share -   106.33p (2)           111.03p
        undiluted


CASH FLOW STATEMENT (Unaudited)

for the six months to 28th February 2001

                                           Six months to        Six months to
                                           28th February        29th February
                                               2001                  2000
 
                                               £000                  £000
OPERATING ACTIVITIES:    
Dividends and interest received from            644                   504
investments

Interest received                                15                    14
                                                659                   518

Investment management fee                     (121)                 (124)

Secretarial fee                                (20)                  (19)

Directors' fees                                (21)                  (21)

Other cash payments                            (38)                  (37)

Net cash inflow from operating activities       459                   317

RETURNS ON INVESTMENTS AND SERVICING OF
FINANCE

Interest paid on borrowings                     (8)                  (27)

TAXATION:
Total tax received / (paid)                      12                  (50)

CAPITAL EXPENDITURE AND
FINANCIAL INVESTMENT:

Purchases of investments                    (3,506)              (11,224)

Sales of investments                          3,984                12,825

Currency gains / (losses)                        29                   (6)

Net cash inflow from capital expenditure and    507                 1,595
financial investment

EQUITY DIVIDEND PAID                          (329)                 (216)

Increase in cash                                641                 1,619



 1. The position as at 31st August 2000 is an abridged version of that
    contained in the full accounts for that year, which received an
    unqualified audit report and which have been filed with the Registrar of
    Companies.

 2. Including Revenue Reserve uplift for the 6 months to 28th February 2001
    (see note overleaf).



BOARD STATEMENT

Investment Performance

Compared to its peer group and the relevant indices, Scottish Oriental
recorded a very satisfactory performance for the six months to 28th February
2001. Over this period the undiluted net asset value per share (capital only
basis) declined 4.7 per cent to 105.15p. This compares with sterling-adjusted
falls of 15.4 per cent in the SG Asian (ex Japan) Smaller Companies Index (the
Trust's benchmark) and 15.5 per cent in the MSCI AC Asia Free (ex Japan) Index
respectively. The Trust's share price declined 3.6 per cent, slightly less
than its net asset value, reflecting in a narrowing of the discount. The
Trust's performance compares favourably with that of the FTSE All-Share Index
which fell 10.6 per cent over the period.


Scottish Oriental's encouraging performance relative to its benchmark Index is
attributed to its relatively high exposure to Thailand as well as to
China-focused companies listed in Hong Kong. The privatisation of a number of
holdings also provided positive returns. Nevertheless, overall the performance
is a little disappointing in absolute terms.


Review


The decline in Asian stockmarkets over the six months ending February 2001 was
largely driven by fears of a sharp slowdown in the US economy and its likely
impact on Asian economic growth. Korea and Taiwan were the worst performing
markets because of their exposure to the electronics sector, for which the
outlook has deteriorated significantly in recent months. Indonesia fell
sharply owing to political uncertainty, which threatens to delay essential
economic reforms. Changes in the political leadership of the Philippines and
Thailand earlier this year were positively received by investors.


Smaller companies generally performed in line with their larger counterparts
over the six month period, but have significantly outperformed recently. This
can be attributed to their limited exposure to the technology and
telecommunication sectors, which have fallen sharply since August 2000.


Outlook


Asian stockmarket volatility is expected to continue this year as investors
weigh the positive impact of falling interest rates against the adverse
effects of a slowing US economy. Provided the US economy does not suffer a
severe recession, we expect a steady expansion of domestic consumption within
the region to offset weaker export growth. The global trend towards
outsourcing should underwrite Asian export growth over the longer term.


The recent decline in stockmarkets is encouraging a more positive attitude to
corporate restructuring and management issues within the region. Given the
more cautious approach to risk now prevailing, capital is less likely to be
made available at national or corporate level unless such matters are
addressed.


Valuations within Asia are very attractive, especially on any international
criteria. Outperformance is expected from those companies with sustainable
earnings growth and reasonable valuations. Falling interest rates should also
encourage the return of individual investors to regional stockmarkets,
particularly in Hong Kong and Thailand where dividend yields on a number of
smaller and well-financed companies are substantially higher than deposit
rates. Supported by the attractive valuations currently prevailing, the recent
trend towards privatisations is expected to continue, particularly in Hong
Kong and Singapore.


Scottish Oriental will continue to focus on those companies with exposure to
domestic consumption, particularly in China and Thailand. While
technology-related companies may be vulnerable to earnings downgrades in the
short term, a correction should provide an opportunity to add to those well
managed companies that will benefit from the longer term outsourcing trend.


Borrowing


Scottish Oriental's borrowings of 500 million yen (£3.0m) represent
approximately 11 per cent of net assets at 28th February 2001. This borrowing
continues to give the Trust greater flexibility to enhance long term returns.


Dividend


A dividend of 1.29p per share net (equivalent to 1.43p gross) was paid on 22nd
January 2001 for the year ending 31st August 2000. This represents an increase
of 52 per cent on the previous year's figure. Your Board expects to maintain
the dividend at this level.


Summary Data (Unaudited) at 28th February 2001
Shares in issue     25,466,250         Shareholders' Funds £26.78m
Warrants in issue    4,747,400         Market Capitalisation £20.75m (excluding
                                       warrants)

Net Asset Value per
share
Undiluted              105.15p         Warrant Price 23.50p
                                       Package Price 86.20p
                                     
Share Price             81.50p         Package equates to one share and one-    
                                       fifth of a warrant.

Share Discount to Net Asset            Package Discount to Net Asset Value
Value
Undiluted             22.5%            Undiluted 18.0%


Performance (Unaudited) for the six months to 28th February 2001
Net Asset Value (undiluted)  -4.7%       Warrant Price                    -3.1%
Share Price                  -3.6%       Package Price                    -3.5%

SG Asian (ex Japan)         -15.4%       MSCI AC Asia Free               -15.5%
Smaller Companies Index (£)              (ex Japan) Index (£)

                          FTSE All-Share Index -10.6%


The NAV figures at 28th February 2001 are stated on a capital only basis, and
do not include any income retention at that date. This is because the Company
only pays one dividend per year for which no provision has been made at this
stage. However, the NAV figures given with the Balance Sheet do include the
Revenue Reserve uplift for the period.

Enquiries:

                               Susie Rippingall

          Colonial First State Investments, Singapore 0065 580 1431

                                      or

                        Angus Tulloch / Gillian Davies

          Colonial First State Investments, Edinburgh 0131 473 2200


22nd March 2001