27 January 2006

The Scottish Investment Trust PLC - Tender Offer

Further to the announcement of 13 December 2005, the Board of Directors of The Scottish Investment Trust PLC (the 'Company') announces that, at an Extraordinary General Meeting of the Company's Stockholders held earlier today, the special resolution proposing the implementation of a Tender Offer to purchase up to 40 per cent. of the Company's issued ordinary stock was passed.

Applications under the Tender Offer were made in respect of 57,972,303 ordinary stock units, representing 27.75 per cent. of the Company's issued ordinary stock. As the Tender Offer is not fully subscribed there will be no scaling back and all stockholders tendering will have their tendered ordinary stock repurchased in full.

The price at which the Company's ordinary stock will be repurchased will be at a discount of 9.0 per cent. to the Company's Net Asset Value with borrowings valued at par as calculated on the Calculation Date.

Expected timetable:

Calculation Date
31 January 2006

Repurchase Price
announced 2 February 2006

Cheques despatched and CREST payments made in respect of the Tender Offer
8 February 2006 or as soon as practicable thereafter

Balancing stock certificates despatched and CREST accounts settled in respect of the Tender Offer
8 February 2006 or as soon as practicable thereafter