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21 February 2006

ANNOUNCEMENT RELATING TO THE SCOTTISH INVESTMENT TRUST PLC £150,000,000 5 ¾ PER CENT SECURED BONDS DUE 2030 (THE "BONDS"), ISIN XS0109354075 (BEARER); ISIN GB0002616471 (REGISTERED)

Further to the invitation to Bondholders to sell back to The Scottish Investment Trust PLC (the "Company") up to £42,000,000 nominal (the "Maximum Purchase Amount") of Bonds announced on 9 February 2006, the Company announces that £132,500,000 nominal amount of the Bonds representing 88.3% of the Bonds in issue have been offered for sale. As offers for sale have exceeded the Maximum Purchase Amount, a pro rata amount of the Bonds offered for sale by each seller, totalling £41,985,000, will be purchased.

The Company will pay £1,233.20 per £1,000 nominal, plus accrued interest of £20.28. In aggregate, this equates to £51,775,902 plus accrued interest of £851,654.

The effect of the transaction will be to reduce potential gearing (if all borrowings were invested in equities) to approximately 115%, broadly the level prevailing before the recent Tender Offer.

Following the cancellation of these Bonds, £108,015,000 nominal amount will remain in issue.

The purchase price of £1,233.20 per £1,000 was calculated based on a spread of 0.25% over the yield to maturity of the 6% Treasury Stock 2028 based on the average of the bid and the offer price as reported by Bloomberg (page PXUB) at 11:04 am London time on 21 February 2006. Settlement of the purchase will take place on 24 February 2006.