Interim Management Statement

Securities Trust of Scotland plc Growing long-term, delivering high income Interim management statement - 1 April to 30 June 2008 Date of announcement: 21 August 2008 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 106.3% 106.8% Fixed interest 2.6% 2.9% Cash 1.8% 2.0% Borrowings 10.7%) (11.8%) Equity allocation 31 Mar 30 Jun Financials 32.5% 27.2% Oil and gas 12.2% 15.0% Basic materials 9.3% 11.4% Consumer goods 11.3% 10.9% Industrials 8.9% 8.4% Consumer services 7.7% 7.8% Telecommunications 6.9% 7.0% Healthcare 4.9% 5.6% Utilities 5.2% 5.4% Technology 1.0% 1.2% Top 10 equity holdings (47.7% of total portfolio) BP 7.9% Royal Dutch Shell 7.1% British American Tobacco 6.1% Royal Bank of Scotland 4.4% Vodafone 4.3% HSBC 4.1% Aviva 3.8% GlaxoSmithKline 3.5% Xstrata 3.3% Rio Tinto 3.2% Number of holdings 52 Key facts Net assets £118 million Share price 100.3p Net asset value per share 115.5p Discount/(premium) 13.2% Net yield** 5.4% **Dividend of 5.45p paid in the year to 31 March 2008. Manager's commentary After the trials of the first quarter, equity markets staged a revival in April and early May. But as economic news deteriorated and inflation spiked higher, this rally proved short-lived, with sharp falls in late May and June erasing the gains seen earlier. The FTSE All- Share index fell by 1.4% overall. With a fall of 1.6%, the fund marginally underperformed. Our banking holdings - Barclays, RBS, HBOS and Lloyds TSB - were notably weak. Elsewhere, many of the medium-sized companies that had performed well earlier in the year - such as SIG, Inchcape and Carillion - succumbed to profit-taking on concerns about declining economic growth. Among the positives, chemicals group Elementis did well, while media company Informa rose sharply after becoming a bid target. Our holdings in GlaxoSmithKline and AstraZeneca finally started to show signs of improvement. Thanks to positive news on profits, our decision to increase exposure to transport group Go-Ahead also paid off. Ross Watson Change in equity allocation From 31 Mar to 30 Jun Financials (5.3%) Oil and gas 2.8% Basic materials 2.1% Consumer goods (0.4%) Industrials (0.5%) Consumer services 0.1% Telecommunications 0.1% Healthcare 0.7% Utilities 0.2% Technology 0.2% Performance Discrete performance over 12 months to 30 June 2008 2007 2006 2005 2004 Share Price (22.5%) 17.5% 15.4% - - NAV (20.4%) 20.2% 20.0% - - Benchmark (13.0%) 18.4% 19.7% - - Cumulative performance over periods to 30 June 2008 One Three Six One Three Five Since month months months year years years launch* Share Price (14.9%) (12.0%) (18.9%) (22.5%) 5.0% - 10.2% NAV (8.8%) (1.6%) (16.2%) (20.4%) 14.8% - 15.3% Benchmark (7.1%) (1.4%) (11.2%) (13.0%) 23.2% - 23.8% 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. 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 2008. Capital structure Ordinary shares 101,970,223 Board of directors Neil Donaldson (chairman) Charles Berry Anita Frew Andrew Irvine Edward Murray Material events and transactions During the three month period, no shares were bought back for cancellation. At the AGM on 15 July all resolutions were passed. Gearing at the end of the period was 11.8% (10.7% as at 31/03/08). A final dividend for the year to 31 March 2008 of 2.15p has been paid to shareholders on the register as at 30 May 2008. This made the total dividend for the year to 31 March 2008 5.45p, an increase of 7.9% on the year to 31 March 2007. The first interim dividend for the year ending 31 March 2009 of 1.15p per share will be paid on 5 September 2008 to shareholders on the register on 15 August 2008. 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. www.securitiestrust.com Key information Year end 31 March Annual general meeting July Interim dividends paid March, June, September, December Annual management fee as at 31 March 2008† 0.3% Total expense ratio as at 31 March 2008* 0.6% Epic code STS Reuters code STS.L †Percentage of net assets. *Percentage of shareholders' funds. Includes annual management fee. 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 2008 116.0p 121.53p 3.8% 5.45p Past performance is not a guide to future returns. 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. The majority of charges will be deducted from the capital of the trust. This will constrain the capital growth of the trust in order to maintain the income streams. Exposure to a single country market increases potential volatility. 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: 0808 100 21 25 Fax: 0131 222 2532 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.

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