Repayment of Preference Stock

The Alliance Trust PLC

By  virtue  of  a  special resolution of The Alliance Trust PLC (the  "Company")
passed  on  29 April 2005 and an interlocutor of the Court of Session pronounced
on  29 June 2005, the issued capital of the Company was reduced from £14,800,000
divided into 50,400,000 ordinary shares of £0.25 each, £650,000 in nominal value
of 4 per cent. cumulative preference stock (the "4% Preference Stock"), £700,000
in  nominal  value  of 4.25% per cent. cumulative preference stock  (the  "4.25%
Preference  Stock"),  £750,000  in  nominal value  of  5  per  cent.  cumulative
preference stock (the "5% Preference Stock") and £100,000 in nominal value of  4
per  cent. "A" cumulative preference stock (the "4% A Preference Stock") by  the
cancellation and repayment at par of all of the 4% Preference Stock,  the  4.25%
Preference  Stock, the 5% Preference Stock and the 4% A Preference  Stock.   The
Registrar  of Companies issued a Certificate of Registration of Order  of  Court
and Minute on Reduction of Capital on 30 June 2005.

Accordingly, with effect from Thursday 30th June 2005 the authorised capital  of
the  Company  is  £12,600,000 divided into 50,400,000 ordinary shares  of  £0.25
each,  all  of  which have been issued and are, or are credited as being,  fully
paid.

Payment of dividends on the cancelled stocks for the period from and including 3
May  2005  (the date of payment of the most recent dividend) up to and including
30th  June 2005 and repayment of capital amount of the preference stocks at  par
will be made on 13th July 2005.


Ian Goddard
Company Secretary