Dividend Declaration

Scottish American Investment Co PLC
27 May 2004


           The Scottish American Investment Company P.L.C. ('SAINTS')

                    Announcement of First Interim Dividend.

The Board of SAINTS announces that it is declaring a first interim dividend of
1.47p per ordinary share in respect of the year to 31 December 2004.  This
payment represents a 3.5% increase when compared to the final dividend of 1.42p
per share which was paid on 2 April 2004.

Brian Ivory, Chairman of SAINTS, said:

'A planned return to a progressive dividend policy was announced when Baillie
Gifford and Co. were appointed as Managers in December last year and this rise
represents such a move.  Current indications are that this rate of dividend will
be covered by earnings.'

The first interim dividend is payable on 2 July 2004 to shareholders on the
register on 11 June 2004. It is planned that the second interim payment will be
announced on 30 July 2004.

As announced in December, the accounting treatment of finance costs and
management fees was changed in the current year with 50% of such costs, as
opposed to 75%, being allocated to capital.

                                                                     26 May 2004

For further information please contact

Robert O'Riordan
Baillie Gifford & Co                          0131 275 3181

Mike Lord
Broadgate Marketing                           0207 776 0511



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