Final Results

Scottish Oriental Smlr Co Tst PLC
19 October 2000

              THE SCOTTISH ORIENTAL SMALLER COMPANIES TRUST PLC


           Preliminary Results for the year ended 31st August 2000

                    (Extracted from the Audited Accounts)


The Board of The Scottish Oriental Smaller Companies Trust PLC is pleased to
announce the results for the year ended 31st August 2000.

These results are presented in a format which summarises the information which
will be given in the forthcoming Annual Report and Accounts.

Summary Statement of Total Return for the year ended 31st August 2000

                                     2000                             1999

                             £'000        £'000         £'000        £'000      
            
                       
        Dividends            1,144                        709
                         
        Other income            36                         16

                             1,180                        725
                         
        Expenses              (499)                      (372)

        Income before          681                        353
        tax
                         
        Tax                   (183)                       (78)

        Income                 498                        275
        attributable to
        shareholders

        Dividend              (329)                      (216)

        Transferred to         169                         59
        Revenue Reserve

        Return
        attributable to
        shareholders:

        Income                              498                         275     
        Capital                           3,446                      12,972     
     
        Total                             3,944                      13,247     
      
        Total return per                 15.49p                      52.02p
        share -
        undiluted

        Income return                     1.96p                       1.08p
        per share -
        undiluted

        Dividend per                      1.29p                       0.85p
        share (net)


Summary Balance Sheet as at 31st August 2000

                                     2000                             1999

                             £'000        £'000         £'000        £'000      

        Total investments                30,252                     26,789

        Debtors                245                        213

        Cash                 1,502                        939

        Creditors             (460)                      (413)

        Net current assets                1,287                        739

                                         31,539                     27,528

        Foreign currency yen loan        (3,222)                    (2,836)

        Provision for deferred tax          (43)                       (33)

        Shareholders' funds              28,274                     24,659

        Net asset value per share       111.03p                     96.83p
        - undiluted

        Net asset value per share      114.96p                     102.89p
        - fully diluted



Summary Cash Flow Statement for the year ended 31st August 2000

                                                              2000        1999

                                                              £'000       £'000

Net cash inflow from operating activities                     692         426
Interest paid on borrowings                                   (62)        (13)
Taxation                                                      (115)       (106)
Net cash inflow / (outflow) for capital expenditure and
financial investment                                          264       (2,713)
Equity dividend paid                                          (216)       (216)
Net cash inflow / (outflow) before financing                  563       (2,622)
Financing                                                     -           2,618
Increase / (Decrease) in cash                                 563         (4)

Reconciliation of Total Income to Net Cash Inflow from Operating Activities

                                                             2000         1999

                                                            £'000        £'000

Income                                                      1,180        725
Administrative Expenses                                     (443)        (359)
(Increase) / Decrease in debtors                            (34)         26
(Decrease) / Increase in creditors                          (11)         34
Net cash inflow from operating activities                   692          426

BOARD STATEMENT


Investment Performance


There was a wide divergence in the performance of Asian stockmarkets over the
period as country specific issues came to the fore. The dominance of the
telecommunications, media and technology (TMT) sectors throughout the global
investment universe resulted in funds flowing into those Asian countries with
the greatest exposure, for example India and Taiwan. Likewise, Asia did not
escape the 'Internet bubble' with many investors attracted by the possibility
of inflated returns from 'new economy' stocks, mainly in Hong Kong and Korea.
Politics has become more of an issue, particularly in Indonesia and the
Philippines where a lack of leadership undermined the confidence of both
domestic and foreign investors. China related companies performed well towards
the end of the period owing to the improved outlook for the domestic economy,
coupled with optimism about the country's imminent membership of the World
Trade Organisation.


Smaller companies generally underperformed over the period owing to their
limited representation within the heavily favoured TMT sectors. Your Trust,
however, benefited from its investments in a number of well-positioned
Internet and e-commerce related companies.


Scottish Oriental's undiluted net asset value appreciated 14.7 per cent to
111.03p over the twelve month period. This compares with a sterling-adjusted
decline of 13.2 per cent in the SG Asian (ex Japan) Smaller Companies Index
(the Trust's benchmark) and a 2.3 per cent rise in the MSCI AC Asia Free (ex
Japan) Index. The FT-SE All-Share Index rose 9.2 per cent in the year ending
31st August 2000.


For those investors who acquired their holdings at the Trust's inception in
late March 1995, it is reassuring to note that the market value of the
original package (one share and one-fifth of a warrant) rose 10.7 per cent to
89.35p at the end of the financial year. That said, our original shareholders
are still losing money on their initial investment.


Notwithstanding the borrowing costs incurred, the Trust's income rose
substantially over the period. This reflects favourably on the strong balance
sheets and high dividend payouts of a number of the Trust's holdings.


Gearing


Scottish Oriental's borrowings of 500 million yen (£3.2 million), represents
approximately 11.4 per cent of net assets at 31st August 2000 (1999 : 11.5 per
cent). This borrowing continues to give the Trust greater flexibility to
enhance long-term returns.


Ordinary Share Buy-Backs


The Trust's share price remains at a disappointingly high discount to net
asset value. Your Directors continue to monitor this situation closely, but
note that both the Trust's size and shareholding structure make any share
buy-back programme difficult to implement.



Summary Data at 31st August 2000

Shares in issue          25,466,250 Shareholders' Funds                £28.27m
Warrants in issue         4,747,400 Market Capitalisation              £21.52m  
            
Net Asset Value per
share
Undiluted                111.03p Warrant Price                          24.25p
Share Price               84.50p Package Price                          89.35p

                                 Package equates to one share and
                                 one-fifth of a warrant

Share Discount to Net            Package Discount to Net Asset Value
Asset Value
Undiluted                  23.9% Undiluted                                19.5%

Performance for the year ended 31st August 2000

Net Asset Value (undiluted)   +14.7% SG Asian (ex Japan)
                                     Smaller Companies Index (£)        -13.2%
Share Price                   +11.2% MSCI AC Asia Free (ex Japan)
Warrant Price                  +3.2% Index (£)                           +2.3%
Package Price                 +10.7% FTSE All-Share Index                +9.2%


Outlook


With its high quality portfolio and a closed-end structure particularly suited
to smaller company investment, Scottish Oriental is ideally positioned to take
advantage of the excellent investment opportunities currently available
amongst Asian smaller companies.


Dividend

A final dividend of 1.29p per share (equivalent to 1.43p per share gross) for
the year ended 31st August 2000 is recommended to be paid on 22nd January 2001
to shareholders registered on 22nd December 2000. Although increased by over
50 per cent, this figure is well-covered by the Trust's per share income
return for the period. The Directors would remind shareholders that the
principal objective of the Trust is capital growth and the dividend payout
could consequently fluctuate from year to year.

Enquiries:          Angus Tulloch or Michael Tulloch

                    Colonial First State Investments

                    Tel: [phone]


19th October 2000