Implementation of New Investment Policy

Securities Trust of Scotland PLC
14 December 1999

   
                       SECURITIES TRUST OF SCOTLAND plc

                   Implementation of new investment policy

The £589 million Securities Trust of Scotland investment trust is managed by
Martin Currie. Following the decision by the board in November to amend the
company's investment policy, the managers have now reorganised the portfolio.
The company's assets are now invested 95% in the UK, 3% in cash and a small
balance in overseas holdings. The top ten holdings are now:

                        BP Amoco              8.18%
                        Vodafone Airtouch     6.92%
                        British Telecom       6.81%
                        HSBC                  5.93%
                        Shell                 4.55%
                        Glaxo                 4.09%
                        Lloyds TSB            3.66%
                        SmithKline Beecham    3.48%
                        Astra Zeneca          3.02%
                        Cable & Wireless      2.09%

The company's debt has also been refinanced. The yen loan was repaid and
replaced with sterling borrowings. The new loans comprise a £50 million
facility fixed for five years at an all in cost of 7.43% and a £20 million
revolving facility which has been fully drawn down. The invested position is
currently 116%.

Application has been made to both the AITC and FTSE International to
reclassify the trust within the UK Income Growth sector. The board hopes this
will be ratified in January.
                                       
For further information, please contact:

Tom Maxwell/Allan MacLeod
Martin Currie Investment Management Ltd                      0131 229 5252
[e-mail] or [e-mail]

Fiona Harris
Biddick Harris                                               0171 539 5757
[e-mail]