Interim Results

Scottish American Investment Co PLC
2 August 2000

              THE SCOTTISH AMERICAN INVESTMENT COMPANY PLC
                                    
                                   
  Preliminary Results (Unaudited) for the six months to 30th June 2000

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 £650 million, is managed by Stewart Ivory  &
Company   Limited,   part  of  the  Colonial   First   State
Investments Group.

                               Highlights

  Second quarter dividend of 1.38p payable on 2nd October
  2000 (previously announced).

  Net  asset value total return per share was minus 2.4%
  in  the  first half of the year slightly behind the  total
  return for SAINTS benchmark of minus 1.8% but ahead of the
  total return for the FTSE All-Share of minus 5.5%.

  Investment management fee and debenture interest costs
  split between capital (75%) and income (25%).

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:

Marcus Brooks     Stewart Ivory & Company  0131 226 3271


                 Preliminary Results (Unaudited) for the six months to
                             30th June 2000

MANAGER'S REPORT

SUMMARY
                        30th June   31st December    %
                           2000         1999       change
                                                   
Asset Value per Share     309.7p       319.9p       -3.2
Dividend per Share         2.76p*       5.51p       +0.4**
Share Price               256.0p      267.75p       -4.4

*  For half year ** Change from same period last year

During  the  six  months the change of ownership of Stewart  Ivory,  our
Investment Managers, to Colonial Group about which the Chairman wrote to
you  in  February  was  completed and we expect to  enjoy  the  benefits
anticipated from this change.

As we explained in our last Annual Report, SAINTS' investment policy has
increasingly   emphasised  capital  growth,  reflecting   the   relative
advantages  of  growth  companies compared to cyclical  companies  in  a
period   of  low  inflation.   We  also  explained  the  difficulty   of
maintaining SAINTS' dividend against the generally low level  of  yields
in all major stockmarkets.

We therefore think it is appropriate now to concentrate on SAINTS' total
return on net assets per share as a measure of performance.  That is the
increase  or  decrease in the asset value per share plus  the  dividends
paid by SAINTS' during the period.  We believe that this will provide  a
clear  indication of the performance of SAINTS' assets against  the  two
indices that constitute the benchmark.  It is also the basis upon  which
the investment management fee is now calculated.

We  also indicated we would review the accounting policy under which  we
charged  all  investment management fees and interest paid  on  the  two
debenture  stocks  against  income.   Having  regard  to  the   relative
importance  in total return of capital gains as compared with dividends,
we  have  decided  it is more appropriate that three quarters  of  these
expenses  will now be charged to the Capital Account and one quarter  to
the   Income   Account.   The  comparative  figures  in  the  accounting
information which follows have been re-stated on this basis.

INVESTMENT PERFORMANCE

In  what  have been volatile markets the total return on net assets  per
share  was  minus 2.4 per cent over the six months.  During the  period
10.2  million shares were bought in at prices well below the  net  asset
value  per  share.  This increased the net asset value of the  remaining
shares by 3.5p improving the overall total return by 1.1 per cent.   The
total return for our benchmark (65 per cent FTSE All-Share Index and  35
per  cent  FTSE  World  (ex-UK) Index) was  minus  1.8  per  cent.   The
comparable figure for the FTSE All-Share Index was minus 5.5 per cent.

Shares  in  rapidly growing companies, notably in the technology,  media
and  telecommunications sectors world-wide, performed  strongly  in  the
first  few  months  of  the  year  but  gave  up  much  of  this  ground
subsequently.  Fears that excessive growth in the US economy might  lead
to  inflation  became prevalent and resulted in the US  Federal  Reserve
raising interest rates: this called into question some of the valuations
being  put on these favoured stocks.  We took some profits in technology
and  telecommunications shares at the end of the first quarter  but  not
enough  to insulate the portfolio from the steep declines in many  share
prices.   We  are comfortable with the present concentration  on  higher
growth  companies within the portfolio because they have  the  scope  to
produce  superior  returns.   We  have  pursued  a  relatively  cautious
investment  strategy over the half-year with minimal gearing  to  equity
markets.   Our one significant change in asset allocation in  the  first
half was to increase the investment in European equities.

EQUITY INVESTMENTS AS % OF SHAREHOLDERS' FUNDS

                                30th June   31st December
                                  2000          1999
                                    %             %
United Kingdom*                    60            63
North America                      16            13
Continental Europe                 14            10
Japan                               6             7
Pacific Rim/Emerging Markets        4             4
Unquoted                            1             2
                                  101            99

*  Net of Equities Index Unsecured Loan Stock and FTSE Futures

DIVIDEND (previously announced)

SAINTS  will  pay  a second interim of 1.38p per share  on  2nd  October
2000 making  a  total for the year to date of 2.76p compared with 2.75p
last year.

OUTLOOK

The  direction of the US economy will be critical for investment returns
over  the rest of the year.  There are tentative signs that the move  to
higher  interest  rates, which began this time  last  year,  is  finally
beginning to take the heat out of the economy.  If this is confirmed  in
coming months and the economy slows to a more sustainable rate of growth
without  entering recession it will be positive for markets in  general.
Despite  high  GDP  growth in the US and definite economic  recovery  in
Europe  and  the  Far East outside Japan, inflation  is  not  a  serious
problem world-wide.  This also makes us confident that markets can  rise
during  the  rest of the year provided the US slows down.   Recovery  in
global  economic growth outside the US, combined with buoyant conditions
within it, is positive for corporate profits.

Many markets have made little progress in the past year, while corporate
profits, earnings and dividends have all moved ahead and valuations  are
therefore  beginning  to  look  more appealing.   Within  global  equity
markets we continue to believe that Europe remains attractive.  Economic
growth  within most countries in the Eurozone is accelerating, companies
are  restructuring  and further appreciation of  the  Euro  relative  to
sterling  should enhance returns.  As regards the US we require  further
confirmation that GDP growth is slowing before we rebuild our  position.
However,  we  recognise that US leadership in many of  the  technologies
that  will  shape the global economy in coming years should continue  to
offer  many  profitable investment opportunities.   The  UK  economy  is
showing definite signs of slowing and the growth in corporate profits is
pedestrian  relative to companies in other markets so we are  likely  to
remain  underweight.  In the low inflation environment, which we  expect
to  prevail  globally, those companies with excellent  growth  prospects
that we favour should return to prominence.


SUMMARISED STATEMENT OF TOTAL RETURN (UNAUDITED)
for the six months to 30th June 2000

                              6 months to        6 months to
                             30th June 2000    30th June 1999
                                                (Restated)(1)
                                                           
                            £'000     £'000    £'000     £'000
                                                                              
 
Dividends and interest      6,256              9,250     
receivable
Other income                1,225                943       
                            7,481             10,193    
                                                            
Expenses                   (1,119)              (730)     
Interest payable           (1,682)            (1,732)    
Income before tax           4,680              7,731     
Tax                          (338)              (552)     
Income attributable to      4,342              7,179     
shareholders
Dividends                  (4,319)            (6,051)    
                                                            
Surplus for the period         23              1,128     
                                                            
Return attributable to                                      
shareholders:

Income                                4,342               7,179
Capital                             (22,376)             40,361
Total                               (18,034)             47,540
                                                                 
Total return per share               (11.11p)             21.33p

SUMMARISED BALANCE SHEET (UNAUDITED)
As at 30th June 2000

                           30th June           31st December
                              2000                1999 (2)
                             £'000                 £'000
                                                 (Restated)
                                                      
Total Investments            630,467              654,806
Net Current Assets            19,973               61,252
                                                  
Total Assets less            650,440              716,058
Current Liabilities
Creditors due after         (159,272)            (176,044)
one year                   
                                                  
Equity Shareholders' Funds   491,168              540,014

Net asset value per share      309.7p               319.9p
                                                  
Share price                    256.0p               267.75p


CASH FLOW STATEMENT (UNAUDITED)
AS AT 30TH JUNE 2000

                                    2000            Six     Year to
                                                  months     31st
                                                 to 30th   December
                                   £'000           June      1999
                                                   1999    (Restated)
                                           (Restated)(1)   
                                                    £'000    £'000
                                          
                                                         
Cash and deposits at the start of 66,005            6,272    6,272
the year
Income                                                       
Dividends received                 4,900            6,852   12,761
Interest received                  1,050            2,726    5,118
Underwriting commission and other  1,210              712    1,898
income                                   
Investment management fee           (168)            (283)    (563)
Other administrative expenses paid  (988)          (1,158)  (1,503)
Income less administrative         6,004            8,849   17,711
expenses                                            
                                                             
Interest paid on borrowings       (1,653)          (1,354)  (1,853)
Dividends paid to shareholders    (4,602)          (8,340) (13,752)
Cash paid in respect of interest  (6,255)          (9,694) (15,605)
and dividends                             
                                                             
Tax received/(paid)                   85             (954)  (1,346)
Capital                                                      
Purchases of investments        (151,052)        (155,302)(276,341)
Sales of investments             147,544          166,465  447,640
                                  (3,508)          11,163  171,299
                                                             
Repurchase of Ordinary share     (26,623)         (13,317)(137,785)
capital                                   
Issue of 8% Debenture Stock 2022    (160)               7   30,937
Repayment of Equities Index       (9,036)          (1,446)  (1,446)
Unsecured Loan Stock 2004                   
Foreign currency loans               -              5,000     (300)
Investment management fee           (505)            (848)  (1,690)
Interest paid on borrowings       (1,331)          (1,032)  (2,531)
Taxation                             182              420      645
Currency gains/(losses)               90              115     (156)
Cash (paid)/received in respect  (40,891)              62   58,973
of capital transactions                         
Total cash (paid) / received     (41,057)          (1,737)  59,733
Cash and deposits at end of the   24,948            4,535   66,005
period                                      
                                                        
Notes                                                   
                                                        
a)Reconciliation of total                       
  income as shown in the Statement                      
  of  Total Return to income less                       
  administrative expenses in  the                    
  Cash Flow Statement.            
  Total income per the Statement  7,481            10,193   17,955
  of Total Return                                    
  Total expenses per the         (1,119)             (730)  (2,220)
  Statement of Total Return                          
                                  6,362             9,463   15,735
  (Increase)/Decrease in           (274)              (47)   1,066
  dividends accounted for but                        
  for which cash had not been                        
  received at the year end      
  
  (Increase)/Decrease in other      (55)             (347)     886
  debtors
  (Decrease)/Increase in            (29)             (220)      24
  creditors
  
   Income less administrative     6,004             8,849   17,711
   expenses per Cash Flow
   Statement

                                                            
b) Analysis of changes in net                          
   debt.

                         At the      Cash       Other      At the
                        start of     Flows     Changes     end of
                           the                              the 
                         period                            period 
                          £'000       £'000      £'000       £'000
                                                                
Cash                     56,005     (31,057)        -       24,948
Short term deposits      10,000     (10,000)        -          -
                         66,005     (41,057)        -       24,948
                                                                
Equities Index Unsecured
Loan Stock 2004        (119,972)      9,036      7,607    (103,329)
8% Debenture Stock 2022 (55,596)        160        (31)    (55,467)
4% Irredeemable            (476)         -          -         (476)
Debenture Stock          
                       (110,039)    (31,861)     7,576    (134,324)


Notes:

(1)Figures restated in accordance with FRS16 - Current Tax  and
   to  reflect  the  Board's decision to charge the  management
   fee  and  debenture  interest to capital  (75%)  and  income
   (25%) in line with the expected long-term split of returns.
(2)The  position  as  at  31st December  1999  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.