Interim Results

To: Stock Exchange                                                     For immediate release:
                                                                       26 October 2005


                        Securities Trust of Scotland plc
             Interim results for the period ended 30 September 2005


Chairman's Statement


Introduction

It gives me great pleasure to present the inaugural report of Securities Trust
of Scotland. The company was incorporated on 15 April 2005 as `New' Securities
Trust of Scotland, being a successor to `Old' Securities Trust of Scotland,
which has been re-named STOS. You will recall that the `old' company was subject
to a hostile bid from Perpetual Income and Growth Investment Trust (PIGIT) and
that, once that bid had failed, this `new' company formed part of the
reconstruction proposals that were offered to STOS shareholders. Your company
was listed on 28 June, hence this report effectively refers to just over three
months of investment activity, notwithstanding the earlier date of
incorporation.

Although, strictly speaking, your company is an entirely separate entity from
STOS, the links between the two are obvious and strong. I would thus like to
take this opportunity to pay tribute to David Whitaker, the Chairman of the
`old' company, who stood down from the board on the successful completion of the
reconstruction. David always led from the front, both with his enthusiasm and
with his intellect, not least in defending STOS from the unwelcome attentions of
PIGIT. His colleagues, who remain with me on the board of this company, will
endeavour to direct the company's affairs as robustly as did David in his ten
years as Chairman of STOS.

Investment objective and policy

The company's investment objective is to seek to achieve rising income and long-
term capital growth through investment in a balanced portfolio constructed from
the securities of UK companies. Initially, these securities were transferred
from STOS's portfolio, and are characterised by their potential for strong
earnings and dividend growth. The portfolio is likely to consist of
approximately 50 to 60 securities, with the majority invested in larger stocks,
being those with a market capitalisation of over £1 billion. Additionally, the
company will also have the flexibility to invest up to 10% of the portfolio in
fixed interest securities, as the managers think fit.

Conscious of the need to maintain a flexible capital structure, we have decided
to adopt a prudent approach to gearing. It is anticipated that borrowings will
be managed on a short-term basis, through a revolving credit facility, and that
the amount of such borrowings will not exceed 15% of the company's net asset
value.

The board also recognises the importance to shareholders that the company's
shares do not trade at a significant discount to their prevailing net asset
value. Hence, we have adopted a discount control mechanism, which allows
shareholders to redeem their shares - at net asset value less costs - if the
average discount exceeds 7.5% over the twelve week period prior to each
financial year end. In addition, the company may use share buybacks from time to
time if the board considers that it is in shareholders' interests so to do. In
the period to 30 September, the company bought back just over one million shares
- representing just under 1% of those initially issued, at discounts ranging
from 8.2% to 9.9%.

Performance

Three months is far too short a period over which to judge the success, or
otherwise, of a long-term investment strategy, such as that followed by your
company. That said, initial indications are encouraging. In this first
accounting period, the net asset value per share increased by 8.7%, ahead of the
7.9% gain recorded by the benchmark FTSE All-Share index, notwithstanding that
the portfolio was approximately 10% invested in fixed interest securities, which
delivered significantly lower returns. The share price stood at a 9.7% discount
at 30 September.

Shareholders who elected for the company's shares in STOS's reconstruction might
recall that they have received a dividend of 2.00p per share this financial year
from the `old' company. It remains the board's current intention to move to
quarterly dividends, and to pay two dividends in respect of this financial year
totalling at least 2.70p per share. This would make a grand total of at least
4.70p per share for the year to 31 March 2006, identical to that paid by STOS in
respect of the prior year. The company has earned 1.39p per share in this
initial period.

Outlook

Although the period to 30 September has been a relatively benign one in which to
establish the company, October has witnessed a significant correction in global
stockmarkets. This appears to have been largely triggered by fears of mounting
inflationary pressures, particularly in the US, and the consequent concern that
American interest rates might increase more rapidly than expected. The impact on
the UK is more one of sentiment, although expectations of further interest rate
cuts here are probably misplaced. The UK economy remains sluggish but, with the
stockmarket significantly exposed to overseas influences, strong growth in
China, recovery in Japan and Europe, and a still robust United States provide a
reasonable foundation for further progress by equities.





Managers' report

The majority of the holdings in the company's initial portfolio transferred
across in specie from the portfolio of its predecessor. This avoided the dealing
costs that would have been associated with selling and repurchasing stock. The
managers also introduced a number of new names to the portfolio. One of these
was Halfords, a retailer, which offers an attractive yield and whose sales have
continued to grow despite a difficult trading environment for retailers. BAE
Systems, a large defence contractor with a stake in Airbus, was also added to
the portfolio.

The company's initial period of trading coincided with a strong rise in UK share
prices. The best performances came from more cyclical sectors, particularly
mining, where profits and share prices have responded to high commodity prices.
The period also saw a sharp increase in the index weighting of the oil sector,
as the reconstruction of Royal Dutch Shell more than doubled its weight in the
UK market.

The UK stockmarket is currently seeing a high level of dividend growth.
Companies are generating significant levels of cash and in many cases they are
returning it to shareholders. There continued to be a high level of corporate
activity, and the portfolio benefited from this. A holding in the life assurance
sector merged with another business to create Resolution Life. Exel, a logistics
and freight business, accepted a takeover which valued it at a 30% premium to
its pre-bid share price. Since the end of the period, Hilton Group has received
an approach for its hotel business. Meanwhile, two other portfolio holdings,
Boots and Alliance Unichem, have announced their intention to merge.

The rating of shares on the UK stock market is not high, with a prospective
price/earnings multiple of around 12.5x, which in our view represents good
value. However, UK economic growth has slowed in recent months and GDP is only
1.5% higher than it was one year ago. Interest rates have been reduced but any
further cuts may be delayed. The impact of higher energy prices is being felt in
many areas of the economy and is affecting profits in those industries that are
struggling to pass these costs on to customers. So, in the short-term share
prices may consolidate around their current levels, but the longer-term outlook
for the UK market remains firmly positive.




                                    - ends -

For further information, please contact:


Ross Watson, Tom Maxwell or Michael Woodward
Martin Currie Investment Management Ltd                         0131 229 5252
[e-mail]
[e-mail]
[e-mail]



                        SECURITIES TRUST OF SCOTLAND plc

     Statement of total return (incorporating the revenue account*) for the
                         period ended 30 September 2005


                                                                         Unaudited

                                                            Revenue           Capital             Total
                                                               £000              £000              £000

Gains on investments       - realised                             -               114               114
                           - unrealised                           -             8,927             8,927
Income                     - franked                          1,631                 -             1,631
                           - unfranked                           88                 -                88
Investment management fee                                      (45)              (84)             (129)
Other expenses                                                (107)                 -             (107)
                                                            _______           _______           _______
Net return before finance costs and taxation                  1,567             8,957            10,524

Interest payable and similar charges                           (66)             (122)             (188)
                                                            _______           _______           _______
Return on ordinary activities before taxation                 1,501             8,835            10,336

Taxation on ordinary activities                                   -                 -                 -
                                                            _______           _______           _______
Return attributable to shareholders                           1,501             8,835            10,336
                                                            _______           _______           _______
Return per ordinary share                                     1.39p             8.18p             9.57p


*  The  revenue column of this statement is the profit and loss account  of  the
company.  All  revenue  and  capital items in the above  statement  derive  from
continuing  operations.  No  operations were acquired  or  discontinued  in  the
period.


The financial information contained within this announcement does not constitute
the company's statutory financial statements as defined in section 240 of the
Companies Act 1985.

The terms of the announcement were approved by the board on 26 October 2005.






                        SECURITIES TRUST OF SCOTLAND plc

                                  Balance sheet


                                                                           As at 30 September 2005
                                                                                 (unaudited)
                                                                                   £000             £000
Investments at market value
Listed on Stock Exchange in the UK                                                               138,041

Current assets
Debtors                                                                           4,183
Cash at bank                                                                      3,234
                                                                                _______
                                                                                  7,417
Creditors
Amounts falling due within one year                                            (16,569)
                                                                                _______
Net current liabilities                                                                          (9,152)
                                                                                                 _______
Shareholders' funds (prior to shareholders' redemption liability)                                128,889

Creditors
Distributable capital and reserves attributable to shareholders on                               (8,951)
redemption
                                                                                                 _______
                                                                                                 119,938
                                                                                                 _______

Undistributable capital and reserves
Share premium                                                                                    118,437
Revenue reserves                                                                                   1,501
                                                                                                 _______
                                                                                                 119,938
                                                                                                 _______

Net asset value per ordinary share                                                               120.18p
(prior to shareholders' redemption liability)

AITC net asset value per ordinary share                                                          119.07p



                        SECURITIES TRUST OF SCOTLAND plc

                             Statement of cash flow


                                                                                  Period to
                                                                        30 September 2005 (unaudited)
                                                                                  £000              £000

Operating activities
Net dividends and interest received from investments                               850
Interest received from deposits                                                     12
Cash paid to and on behalf of directors                                           (16)
Other cash payments                                                               (22)
                                                                               _______
Net cash inflow from operating activities                                                            824

Servicing of finance
Interest paid                                                                    (127)
                                                                               _______
Net cash outflow from servicing of finance                                                         (127)

Capital expenditure and financial investment
Payments to acquire investments                                              (134,522)
Receipts from disposal of investments                                            3,006
                                                                               _______
Net cash outflow from capital expenditure and financial investment                             (131,516)
                                                                                                 _______

Net cash outflow before financing                                                              (130,819)

Financing
Issue of new ordinary share capital                                            119,518
Repurchase of ordinary share capital                                             (965)
Movement in short-term borrowings                                               15,500
                                                                               _______
Net cash inflow from financing                                                                   134,053

                                                                                                 _______
Increase in cash for the period                                                                    3,234
                                                                                                 _______





                        SECURITIES TRUST OF SCOTLAND plc
Notes

1. Accounting policies

These statements have incorporated the requirements of FRS 25 "Financial
Instruments: Disclosure and Presentation" and FRS 26 "Financial Instruments:
Measurement".  The impacts of these new standards on the financial statements
are:

 ·    Under FRS 25, the ordinary share capital of the company is classified as a liability rather than
     equity.  This classification arises from the company's prospectus, which allows shareholders to
     redeem their shares if the average discount exceeds 7.5% over the twelve week period before the
     financial year-end.  Accordingly, a long-term liability for net assets attributable to shareholders
     on redemption has been recognised.

 ·    In relation to FRS 26, the company's investments are classified as "financial assets at fair value
     through profit and loss" and are therefore valued at bid price.




2.  Returns and net asset value

The return and net asset value per share are calculated with reference to the
following figures:

                                                                                            Period ended
Revenue return                                                                         30 September 2005

Revenue return attributable to ordinary shareholders                                          £1,501,000
Average number of shares in issue during period                                              108,058,258
Revenue return per ordinary share                                                                  1.39p


Capital return
Capital return attributable to ordinary shareholders                                          £8,835,000
Average number of shares in issue during the period                                          108,058,258
Capital return per ordinary share                                                                  8.18p

Net asset value per share                                                        As at 30 September 2005
Total assets less current liabilities                                                       £128,889,000
Number of shares in issue at period end                                                      107,246,570
Net asset value per share                                                                        120.18p


Reconciliation of accounting and AITC net asset values

                                                                                 As at 30 September 2005

Accounting net asset value per share                                                             120.18p
Adjustment per share from bid to mid price valuation of investments                                0.28p
Exclusion of undistributed current period revenue                                                (1.39p)
                                                                                                 _______
AITC net asset value per share                                                                   119.07p