Renewal of Buy Back Authority

Scottish Mortgage & Trust PLC
5 July 2001

              THE SCOTTISH MORTGAGE & TRUST PLC (THE 'COMPANY')

                        RENEWAL OF BUY BACK AUTHORITY


At the ninety-second Annual General Meeting of the Company held earlier today,
shareholders approved a resolution renewing the Company's authority to make
market purchases of up to 14.99 per cent of the Company's current issued share
capital, being 48,499,079 shares. Such authority unless previously varied,
revoked or renewed will expire at the conclusion of the Annual General Meeting
of the Company to be held in 2002 or 4 January 2003, whichever is the earlier.
Future purchases of shares will only be made at prices which, after allowing
for costs, will enhance the net asset value of the Company. Under the previous
share buy-back authority granted on 29 June 2000 the Company made market
purchases for cancellation of 11,783,479 shares, representing 3.51 per cent of
the 14.99 per cent authority granted at that date. Such purchases increased
net asset value for shareholders by approximately 0.58 per cent.


                                                         Baillie Gifford & Co.

                                                           Company Secretaries