Proposed Issue of Shares

Lowland Investment Co PLC
23 May 2005


LOWLAND INVESTMENT COMPANY PLC

HENDERSON GLOBAL INVESTORS

23 May 2005


                         LOWLAND INVESTMENT COMPANY PLC

                            PROPOSED ISSUE OF SHARES


The Board is today recommending proposals, announced in outline on 23 March
2005, for an issue of new Shares in connection with the reconstruction of
Securities Trust of Scotland plc.

A circular setting out the details of the Proposals, and the Board's
recommendation that Shareholders vote in favour of the resolution required to
implement them, together with a prospectus relating to the issue, will be
dispatched to Shareholders today.


Expected Timetable

Latest time and date for receipt of Forms of Proxy                                     3.00 p.m. 12 June 2005

Extraordinary General Meeting                                                          3.00 p.m. 14 June 2005

Dealings commence in new Shares issued under the Securities Trust                      8.00 a.m. 28 June 2005
Scheme.

New Shares issued under the Securities Trust Scheme issued in                     Week commencing 4 July 2005
certificated form.



Terms used in this announcement shall, unless the context otherwise requires,
bear the meaning given to them in the Company's circular to Shareholders dated
23 May 2005.

Copies of the circular and prospectus have been submitted to the UK Listing
Authority and will shortly be available for inspection at the UK Listing
Authority's Document Viewing Facility which is situated at:

Financial Services Authority
25 The North Colonnade
Canary Wharf
London E14 5HS

Telephone: [phone]

                                    - ENDS -


Enquiries:

James de Sausmarez                              020 7818 3349
Henderson Global Investors

Robin Archibald                                 020 7621 5564
Close Brothers Securities



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