Interim Management Statement

Securities Trust of Scotland plc
                 Interim management statement - 8th August 2007
                     For Period From 1 April to 30 June 2007

Profile
Objective: To achieve rising income and long-term capital growth by investment
in the UK.
Benchmark: FTSE All-Share index
Sector: UK Growth & Income
Listed: 28 June 2005

Portfolio
Asset class           31 Mar         30 Jun
Equities              104.7%         106.3%
Fixed interest          3.1%           0.5%
Cash                    1.3%           1.6%
Borrowings             (9.1%)         (8.4%)

Equity allocation     31 Mar         30 Jun
Financials            33.3%          32.8%
Oil and gas           12.5%          12.1%
Consumer goods        11.6%          11.5%
Consumer services     10.7%          10.6%
Industrials            8.9%           9.1%
Basic materials        8.2%           8.7%
Telecommunications     6.2%           8.2%
Utilities              5.2%           3.8%
Healthcare             3.5%           3.2%

Top 10 equity holdings (42.3% of total portfolio)
BP                            6.3%
HSBC                          6.1%
Royal Dutch Shell             5.7%
Royal Bank of Scotland        4.9%
British American Tobacco      4.6%
Vodafone                      4.6%
Barclays                      3.1%
GlaxoSmithKline               3.1%
BHP Billiton                  2.8%
BT                            2.6%
Number of holdings 58

Key facts
Net assets £154 million
Share price 135.3p
Net asset value per share 151.2p
Discount/(premium) 10.5%
Net yield** 4.0%
**On a basis of 5.05p minimum proposed dividend for year to 31 March 2007.

Manager's commentary
Review
The  FTSE All-Share enjoyed a strong quarter (+4.5%) and the portfolio performed
in  line.  Most  gains came in April and May, with June subdued.  The  FTSE  100
outperformed (+5.6%) and bonds performed poorly.
Oil  &  gas,  telecoms  and  basic materials were the strongest  sectors.  Rate-
sensitive  sectors  (housebuilders,  financials,  retailers  and  real   estate)
suffered.  Mega-caps finally did well (including portfolio holding  Rio  Tinto).
With valuations relatively low, there is scope for further outperformance.
The  fund's star performers included Reuters, Hanson and PFI Infrastructure, all
bid targets. We sold the last two. Our mega-cap holding Rio Tinto also did well.
Negatives were GlaxoSmithKline, airlines and rate-sensitive stocks.
New  holdings included Kingston Communications, Johnston Press and Rugby Estates
Investment.  We  realized profits in Go-Ahead and sold  Queens  Walk;  mortgage-
market conditions have impacted its dividend payment.
Outlook
Investors' pessimism towards rate-sensitive sectors implies negativity about the
UK's near-term economic prospects. We expect rising interest rates to impact the
consumer in 2007. This perhaps explains why small- and mid-cap stocks have begun
to  underperform after several years at the forefront. Such companies  typically
have greater exposure to the UK economy.
Ross Watson
Interim management statement - 1 April to 30 June 2007 August 2007
*Past performance is not a guide to future returns.
Source:  Martin  Currie and Fundamental Data. Bid to bid basis with  net  income
reinvested  over  the  periods shown in sterling terms.  These  figures  do  not
include the costs of buying and selling shares in an investment trust. If  these
were included, performance figures would be reduced.
Although Martin Currie complies with the Global Investment Performance Standards
(GIPS),  the fund returns used in this document are calculated on the net  asset
value and therefore fall outside the scope of the GIPS standards.
The  risks  outlined at the end of this document relating to gearing and  single
country  markets are particularly relevant to this trust but should be  read  in
conjunction with all warnings and comments given.
All sources (unless indicated): Martin Currie as at 30 June 2007.

Performance*
Discrete performance over 12 months to 30 June
                    2007      2006      2005      2004      2003
Share price        17.5%     15.4%        -        -          -
NAV                20.2%     20.0%        -        -          -
Benchmark          18.4%     19.7%        -        -          -

Cumulative performance over periods to 30 June 2007
                One      Three       Six        One      Three     Five       Since
              month     months    months       year      years     years     launch*
Share price    (2.3%)    (3.0%)    (1.7%)     17.5%        -          -       42.3%
NAV            (0.7%)     4.5%      4.8%      20.2%        -          -       44.9%
Benchmark      (0.8%)     4.5%      7.6%      18.4%        -          -       42.4%

Change in equity allocation
From 31 March to 30 June 07
Financials                    (0.5%)
Oil and gas                   (1.9%)
Consumer goods                (0.1%)
Consumer services              1.4%
Industrials                    0.2%
Basic materials                0.7%
Telecommunications             2.0%
Utilities                     (1.4%)
Healthcare                    (0.3%)



Capital structure
Ordinary shares 101,970,223



Board of directors
Neil Donaldson (chairman)
Charles Berry
Anita Frew
Andrew Irvine
Edward Murray

Manager's biography
Ross  Watson  started  his investment career in 1983 as a trainee  analyst  with
First  Scottish Investment Trust. He joined Gartmore in 1988, where he spent  12
years  managing  their high income UK equity portfolios. In  2000  he  moved  to
Aberdeen  Asset Managers. During his four years there, he managed Murray  Income
Trust, Jersey Phoenix Trust, Murray Extra Return Investment Trust and The Income
& Growth Trust. He joined Martin Currie in 2005.

Key dates
Year end                      31 March
Annual general meeting        July
Interim dividends paid        March, June, September, December

Website
The trust has its own website at www.securitiestrust.com. There you will find
further details about the trust, information on Martin Currie, daily share
prices, and you can access regular webcasts by the manager.

Management fee and expenses at 31 March 2007
Annual management fee† 0.3%
Total expense ratio* 0.8%
†Percentage of net assets.
*Percentage of shareholders' funds. Includes annual management fee.

Dealing information
Epic code STS
Reuters code STS.L

Net asset value and dividend history
As at          Share          NAV           Discount/      Dividend
31 March       price          per share     (premium)      per share
2006           125.5p         135.6p         7.4%           2.85p
2007           141.3p         148.8p         4.8%           5.05p†
†Proposed dividend.

Past performance is not a guide to future returns.
www.securitiestrust.com

Risk factors
Please note that, as the shares in investment trusts are traded on a
stockmarket, the share price will fluctuate in accordance with supply and demand
and may not reflect the underlying net asset value of the shares.
Depending on market conditions and market sentiment, the spread between the
purchase and sale price can be wide. As with all stock exchange investments the
value of investment trust shares purchases will immediately fall by the
difference between the buying and selling prices, the bid-offer spread.
Investment trusts may also borrow money in order to make further investments.
This is known as "gearing" and can enhance shareholder returns in rising markets
but, conversely, can reduce them in falling markets.
Past performance is not a guide to future returns.
The value of investments and the income from them may go down as well as up and
is not guaranteed. An investor may not get back the amount originally invested.
Charges are deducted from income and where income is low, the expenses may
exceed the total income received and the Trust may not pay a dividend and the
capital value would be reduced.
Exposure to a single country market increases potential volatility.
Funds which invest in smaller and/or medium sized companies are specialist funds
and as such are likely to carry higher risks than a more widely invested fund.

Important notice: This information is issued and approved by Martin Currie
Investment Management Ltd in its capacity as investment manager.
It does not in any way constitute investment advice or an invitation or
inducement to invest. This document is for the recipient only and should not be
given or sent to other parties.

Martin Currie Investment Management Ltd, registered in Scotland (no 66107)
Registered office: Saltire Court, 20 Castle Terrace, Edinburgh EH1 2ES
Tel: [phone] Fax: [phone] www.martincurrie.com
Authorised and regulated by the Financial Services Authority and a member of the
Investment Management Association.
Please note that calls to the above number will be recorded.