Appointment of New Director

Scottish Mortgage & Trust PLC
31 October 2001

                     THE SCOTTISH MORTGAGE AND TRUST PLC

                         Appointment of New Director

The Board is pleased to announce that Mr JPHS Scott has today been appointed a
Director of The Scottish Mortgage and Trust PLC, his appointment falls to be
ratified by Shareholders at the Company's Annual General Meeting in July 2002.

John Scott, aged 49, has recently retired from Lazard Brothers & Co. Limited
after 14 years as an Executive Director with that firm. During his 20 years
with Lazard, he was deeply involved with the merchant bank's Asian activities
and was on the Board of Lazard India for 11 years. Mr Scott who holds a degree
in Economics from Cambridge University and an MBA from INSEAD(France),
specialises in financial advisory and re-structuring work.

Mr Scott has a beneficial interest in 2,076 ordinary shares of the Company.



                                                         Baillie Gifford & Co.

                                                      Managers and Secretaries

                                                               31 October 2001