Response to the PIGIT Offer

Securities Trust of Scotland PLC
08 April 2005



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES,
CANADA, AUSTRALIA, THE REPUBLIC OF IRELAND OR JAPAN.

Securities Trust of Scotland plc

Response to the Revised PIGIT Offer announcement

The Board of Securities Trust of Scotland plc ('Securities Trust') notes the
revised Offer announcement made by Perpetual Income and Growth Investment Trust
plc ('PIGIT').  PIGIT approached Securities Trust with an outline of the
proposed terms of its revised Offer (the 'Revised PIGIT Offer') in advance of
their public announcement.

Since this approach, the Board has considered carefully the terms of the Revised
PIGIT Offer which have also been the subject of a detailed analysis by its
advisers. However, the Board, which has been so advised by JPMorgan Cazenove,
has concluded that the Revised PIGIT Offer is not in the best interests of
shareholders as a whole and remains strongly of the view that the Board's
Proposals are superior and better for Shareholders.

In reaching this decision, the Board has concluded that the Revised PIGIT Offer:

•        Does not offer as much choice as the Board's proposals

•        Does not offer a full cash alternative at 100% of FAV, which the
Board's proposals do.  The value of the cash alternative is greater under the
Board's proposals than under the Revised PIGIT Offer.

•        Does not offer the choice of  shares in a successor to Securities
Trust, which aims to provide an increase in annual income for Shareholders and
substantially more income  than under the Revised PIGIT Offer

•        Does not offer the option of shares in Lowland, a better performing,
better rated trust which has grown its dividend significantly faster than PIGIT.


Furthermore, the Revised PIGIT Offer:

•        would result in a reduction in income of up to 34.8% for Securities
Trust shareholders

•        does not adjust for the effects of future dilution of the PIGIT net
asset value if the new subscription securities ('warrants') PIGIT proposes to
issue are exercised

•        uses, for calculation purposes, share prices and discount / premium
levels that have arisen as a result of short term market considerations in
connection with the Offer rather than proven averages  taken over the longer
term

•         introduces a degree of undue complexity and uncertainty for Securities
Trust shareholders.


The Board reiterates its unanimous recommendation to Shareholders to support the
Board's proposals and to reject the Revised PIGIT Offer.

The Board will be writing to Shareholders shortly with full details of its
response.

Chairman designate, Neil Donaldson said

'We have carefully reviewed these revised terms, in advance of their
announcement, and our advisers have been engaged with PIGIT's advisers. We are
committed to achieving the best possible result for our shareholders, and for no
one else. The PIGIT offer ignores the fundamental pillars of our proposition of
free choice, higher income, a 100% cash exit and better performance all of which
are embedded in our proposals. Against these, PIGIT is offering restricted
choice, only a partial cash exit, a substantial reduction in income, shares in a
trust which has not performed as well as Lowland and an overly complex
structure.

The Board's proposals are clear, definitive, deliverable and have been
structured with the views of shareholders in mind.  Supporting the Board's
proposals remains the clear best choice for shareholders'


Enquiries:

Neil Donaldson / Anita Frew

Securities Trust of Scotland plc                 via 020 7353 4200

Angus Gordon Lennox

JPMorgan Cazenove Limited                        07768 503516

Kirstie Hamilton / Kate Inverarity


Tulchan Communications                           020 7353 4200

JPMorgan Cazenove Limited is acting for Securities Trust in relation to the
matters referred to in this announcement and no one else and will not be
responsible to anyone other than Securities Trust for providing the protections
offered to clients of JPMorgan Cazenove Limited nor for providing advice in
relation to the matters referred to in this announcement.

JPMorgan Cazenove Limited of 20 Moorgate, London EC2R 6DA, which is authorised
and regulated by the Financial Services Authority, has approved the contents of
this announcement for the purposes of Section 21 of the Financial Services and
Markets Act 2000.


Appendix I



Definitions



Board or Directors             the directors of the Company from time to time



JPMorgan Cazenove              JPMorgan Cazenove Limited





Lowland                        Lowland Investment Company plc



PIGIT                          Perpetual Income and Growth Investment Trust plc



PIGIT Offer or Offer           the formal offer made by Intelli Corporate 
                               Finance Limited on behalf of PIGIT on 10 March 
                               2005 for the entire issued and to be issued share 
                               capital of the Company



Proposals                      the Board's proposals as described in the 
                               circular dispatched to Shareholders dated 23 
                               March 2005



Securities Trust or Company    Securities Trust of Scotland plc



Shareholders                   holders of Securities Trust Shares



US or the United States        the United States of America, its territories and 
                               possessions, any state of the United States of 
                               America and the District of Columbia and all 
                               other areas subject to the jurisdiction of the
                               United States of America





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