Interim Results

SCOTTISH AMERICAN INVESTMENT COMPANY PLC
14 July 1999


THE SCOTTISH AMERICAN INVESTMENT COMPANY PLC
               
               
Preliminary Results (Unaudited) for the six months to 30th June 1999

The Scottish American Investment Company PLC (SAINTS) is  an
international   general  investment  trust.    The   Trust's
investment  objective is   to   offer   its  20,000  private
investors  a  balance  between  growth  of  capital  and   a
reasonable  level  of  income  by  investing  in  successful
companies in the UK and internationally.  SAINTS, which  has
total assets of £743 million, is managed by Stewart Ivory  &
Company Limited.

Highlights

*     The  share  price rose by 11.9%, finishing the  period
      just below the highest price ever.

*     Net asset value increased by 7.6% in the first half of
      the year.

*     Discount  of  the share price to the net  asset  value
      narrowed from 18.6% to 15.4%.

*     Second interim dividend of 1.38p payable on 4th October
      1999.

*     Share  buy-backs, approved at the AGM, began in  April
      and 5.7 million shares had been acquired at a cost  of 
      £13.3 million by  30th  June 1999, enhancing net asset 
      value by 1.1p per share.

*     SAINTS  intends to continue buying its own  shares  to
      increase the net asset value and to reduce  volatility 
      in the discount, and as appropriate will  seek further  
      authority from shareholders to implement this.

Results

Attached  is a copy of the preliminary results.   These  are
presented in a format which summarises the information which
will be given in the forthcoming Interim Report.

For further information, please contact:
 
Teddy Tulloch,    Director                   0131 226 3271
                  Stewart Ivory & Company
                                          
John Thomson,     Managing Director          0131 226 3271
                  Stewart Ivory & Company


Preliminary Results (Unaudited) for the six months to 30th June 1999

MANAGER'S REPORT

Investment Performance

Net  asset value per share increased by 7.6 per cent in  the
first  half  of 1999.  The share price rose 11.9  per  cent,
finishing  the period just below its highest ever level,  as
the  discount  of  the share price to the  net  asset  value
narrowed from 18.6 to 15.4 per cent.  These figures  compare
to a gain of 12.0 per cent for our benchmark (65 per cent of
the  FT All-Share Index plus 35 per cent of the FT World  ex
UK   Index).    The  Japanese  and  other  Asian  portfolios
performed  very  strongly, but did not fully compensate  for
below  index returns from Western markets.  In the  UK,  our
focus   on  strongly  growing  companies  almost  completely
excluded  the  portfolio  from the  takeover  activity  that
provided  the impetus for the smaller company sector,  while
in  North  America  large  companies  continue  to  dominate
investment  returns,  until  a  rotation  in  April  towards
cyclical stocks also benefited smaller companies.

Dividend

SAINTS will pay a  second interim  dividend of  1.38p on 4th
October to  shareholders registered  on 6th  September 1999.
This  is  a  small  increase  on the corresponding quarterly 
dividend  last  year  and  reflects  the shift in investment 
strategy  to  an  increased  emphasis   on   faster  growing 
companies with lower dividend yields.

Portfolio

We  started  the year with a relatively optimistic  view  of
world stockmarkets, but became more cautious in April,  when
we reduced overall exposure to equities.  We reinvested into
the  subsequent  market  weakness, increasing  positions  in
Asia, and at the end of June equities represented 103.5  per
cent   of  Shareholders'  Funds.   Fixed  interest  holdings
accounted  for 6.8 per cent of Shareholders'  Funds,  as  we
reduced  the  weighting  in  UK  gilts  during  the  period,
although we bought £15 million of US Treasury bonds, feeling
that  yields  over  6  per  cent offered  very  good  value.
Further   property  purchases  amounted  to   £10   million,
completing  the  investment of the proceeds  from  the  1997
issue  of  debentures.   The total level  of  investment  is
equivalent to 114.9 per cent of Shareholders' Funds.

Buying in Shares

After  obtaining approval at the last Annual General Meeting
in   April,   SAINTS  began  to  buy  its  own  shares   for
cancellation.   By the end of June, 5.7 million  shares  had
been  acquired  at  a  total cost of  £13.3  million.   This
increased  the  net asset value of the remaining  shares  by
1.1p.   We  intend  to continue to buy  in  shares  both  to
increase the net asset value and to reduce the volatility in
the discount.   We are optimistic that the general level  of
investment  trust discounts will begin to  fall,  with  many
trusts  now  buying in their own shares  and  plans  by  the
Association of Investment Trust Companies to launch a  major
marketing  campaign later this year.

Outlook

The  outlook for the world economy has improved following  a
steady  reduction  in  interest rates  since  last  October.
Activity is recovering in Asia after a severe recession  and
there  are  signs  of an improvement in  Europe.   The  main
threat  to this positive environment lies in the US  Federal
Reserve's  shift  of policy by raising short-term  rates  in
June  in  response to the strength of the  economy.  The  US
stockmarket is expensive by historical standards, and  would
be  vulnerable if higher interest rates led to a significant
slowdown  in  economic growth, but the Federal  Reserve  has
indicated that it will not make any further moves  for  some
time.   It  seems that it does not want to risk  undermining
the  US  stockmarket or economy until recovery in  Asia  and
Europe has become more soundly based.  Nevertheless, at this
stage  most governments are still taking action to stimulate
economic  growth,  creating  a  favourable  environment  for
equities.   We believe SAINTS is well positioned to  benefit
from this.


SUMMARISED STATEMENT OF TOTAL RETURN (UNAUDITED)
for the six months to 30th June 1999

                                 6 months to        6 months to
                                30th June 1999    30th June 1998
                                                           
                               £'000     £'000    £'000     £'000
                                                                              
 
Dividends and interest         9,911              11,873    
receivable
Other income                   943                772       
                               10,854             12,645    
                                                            
Expenses                       (1,578)            (1,455)    
                         
Interest payable               (2,494)            (2,830)    
                         
Income before tax              6,782              8,360     
Tax                            (793)              (1,817)    
                                              
Income attributable to         5,989              6,543     
shareholders
Dividends                      (6,051)            (6,082)    
                                                            
(Deficit)/surplus for the      (62)               461       
period
                                                            
Return attributable to                                      
shareholders:

Income                                  5,989               6,543
Capital (2)                             41,551              62,976
                                                         
Total                                   47,540              69,519
                                                         
                                                                 
Total return per share                  21.33p              31.09p
Income return per share                 2.69p               2.93p
Dividend per share (net)                2.75p               2.72p


               
SUMMARISED BALANCE SHEET (UNAUDITED)
As at 30th June 1999

                                               
                           30th June           31st December
                              1999                1998 (1)
                             £'000                 £'000
                                                      
Total Investments            743,288              702,681
Net Current                  (3,767)              (103)
Liabilities
                                                  
Total Assets less            739,521              702,578
Current Liabilities
Creditors due after          (134,195)            (125,424)
one year               
                                                  
Equity Shareholders'         605,326              577,154
Funds

Net asset value per          277.8p               258.1p
share
                                                  
Share price                  235.0p               210.0p

Notes:

(1)  The position as at 31st December 1998 is an abridged version of
     that  contained  in  the full accounts  for  that  year,  which
     received an unqualified audit report and which have been  filed
     with the Registrar of Companies.

(2)  The 1999 Capital Return figure does not take account the £11.892 
     million  premium paid  over nominal  value  of the  5.7 million 
     Ordinary shares repurchased.