Final Results

Scottish Oriental Smlr Co Tst PLC
24 October 2002



               THE SCOTTISH ORIENTAL SMALLER COMPANIES TRUST PLC

            Preliminary Results for the year ended 31st August 2002
                     (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 2002.


Financial Highlights

• Undiluted net asset value per ordinary share rose by 25.1% from
110.72p to 138.56p and fully diluted net asset value rose by 18.9% from 112.55p
to 133.77p. This compares with an increase in the SG Asian (ex Japan) Smaller
Companies Index of 11.2% and a decrease in the MSCI AC Asia Free (Ex Japan)
Index of 0.7%.

• Share price rose by 34.5% from 92.0p to 123.75p.

• Warrant price rose by 65.0% from 30.0p to 49.5p.

• A final dividend of 1.50p net is recommended to be paid on 27th
January 2003 to shareholders registered on 20th December 2002.

• Discount to undiluted net asset value decreased from 16.9% to 10.7%.



Statement of Total Return for the year ended 31st August 2002




                                                               2002                                2001
                                            Income*        Capital        Total        Income*         Capital    Total
                                            £'000          £'000          £'000        £'000           £'000      £'000

Gains / (losses) on investments             -              6,923          6,923        -               (524)      (524)
Income from investments                     1,132          -              1,132        1,323           -          1,323
Other income                                79             -              79           64              -          64
Investment management fees                  (351)          -              (351)        (260)           -          (260)
Currency gains                              -              103            103          -               254        254
Other administrative expenses               (205)          -              (205)        (163)           -          (163)

Net return before finance costs and
taxation                                    655            7,026          7,681        964             (270)      694
Finance costs of borrowing                  (49)           -              (49)         (53)            -            (53)

Return on ordinary activities before
taxation                                    606            7,026          7,632        911             (270)      641
Tax on ordinary activities                  (161)          -              (161)        (257)           -          (257)

Return attributable to equity               445            7,026          7,471        654             (270)      384
shareholders
Ordinary dividends on equity shares         (382)         -              (382)        (461)           -            (461)

Transfer to/(from) reserves **              63             7,026          7,089        193             (270)      (77)

Basic return per ordinary share             1.75p          27.59p         29.34p       2.56p           (1.06p)    1.50p
Fully diluted return per ordinary share     1.72p          27.10p         28.82p       2.67p           (1.10p)    1.57p
(in accordance with FRS 14)



* The income column of this statement is the Profit and Loss Account of the
Company.

All income and capital items derive from continuing operations.

** after dividend proposed for 2002 - £381,994 (2001: £460,939)




Summary Balance Sheet as at 31st August 2002

                                                                  2002                           2001
                                                         £'000           £'000           £'000          £'000

Total investments                                                        36,947                         28,146
Current Assets:
    Debtors                                              261                             204
    Cash and deposits                                    1,428                           3,473
                                                         1,689                           3,677
Current Liabilities (due within one year)
    Creditors                                            (2,906)                         (214)
    Dividend payable                                     (382)                           (461)
                                                         (3,288)                         (675)
Net current (liabilities) / assets                                       (1,599)                        3,002
                                                                         35,348                         31,148
Creditors (due after one year)
    Foreign currency loan                                                -                              (2,897)
Provision for liabilities and charges
    Deferred tax                                                         (62)                           (54)
Shareholders' funds                                                      35,286                         28,197

Capital and reserves                                                     35,286                         28,197

Net asset value per share - undiluted                                    138.56p                        110.72p
Net asset value per share - fully diluted                                133.77p                        112.55p





Summary Cash Flow Statement for the year ended 31st August 2002

                                                                               2002                2001
                                                                               £'000              £'000

Net cash inflow from operating activities                                      615                 921
Interest paid on borrowings                                                    (50)                (47)
Taxation                                                                       (204)               (85)
Net cash (outflow) / inflow from capital expenditure and financial investment  (1,945)             1,511
Equity dividend paid                                                           (461)               (329)
(Decrease) / Increase in cash                                                  (2,045)             1,971



(a) Reconciliation of Total Income to Net cash inflow from operating activities


                                                                             2002                2001
                                                                             £'000               £'000

Income                                                                       1,211               1,387
Administration expenses                                                      (556)               (423)
Increase in debtors                                                          (57)                (45)
Increase in creditors                                                        17                  2
Net cash inflow from operating activities                                    615                 921



(b) Analysis of changes in cash and net debt during the year


                                                     At the start of   Cash            Currency         At the end of 
                                                     the year          Flows           Movements        the year
                                                     £'000             £'000           £'000            £'000
                                                                            
Cash                                                 3,473             (2,045)         -                1,428
Foreign Currency Loan                                (2,897)           -               171              (2,726)
Net debt                                             576               (2,045)         171              (1,298)




BOARD STATEMENT

Investment Performance

The tragic events of September 11th last year resulted in unprecedented
volatility in stockmarkets worldwide. As a consequence, investors' appetite for
risk declined, induced by uncertainty over corporate, economic and political
developments. Notwithstanding this environment, Scottish Oriental achieved
strong returns from smaller Asian companies, helped by the Trust's focus on
inexpensive valuations and sound balance sheets.

Scottish Oriental's satisfactory performance relative to its peer group and
benchmark is attributed to overall stock selection, especially in Hong Kong,
South Korea and Thailand.  Country allocation, in so far as it can be separated
from the stock selection process, provided a negative contribution to
performance.

Scottish Oriental's fully diluted net asset value rose 18.9 per cent to 133.77p
and the undiluted net asset value rose 25.1 per cent to 138.56p over the
twelve-month period.  This compares with a sterling-adjusted increase of 11.2
per cent in the SG Asian Smaller Companies Index (the Trust's benchmark) and a
decline of 0.7 per cent in the MSCI AC Asia Free (ex Japan) Index.  The FT-SE
All-Share Index fell 21.0 per cent in the year ending 31st August 2002.

For those investors who acquired their holdings at the Trust's inception in late
March 1995, it is pleasing to note that the market value of the original package
(one share and one-fifth of a warrant) rose 36.4 per cent to 133.65p over the
course of the financial year.

Gearing

Scottish Oriental's borrowings of £2.7m in yen represents approximately 7.7 per
cent of net assets at 31st August 2002 (2001: 10.3 per cent).  The current loans
will mature by 31st August 2003. It is your Board's intention to replace this
borrowing, given the flexibility it provides the Trust to enhance long-term
returns.



Summary Data at 31st August 2002

Shares in issue                                    25,466,250 Shareholders' Funds                            £35.29m
Warrants in issue                                   4,747,400 Market Capitalisation                          £31.51m

Net Asset Value per share - undiluted                 138.56p Warrant Price                                   49.50p
                          - fully diluted             133.77p Package Price                                  133.65p

Share Price                                           123.75p Package equates to one share and
                                                              one-fifth of a warrant

Share Price Discount to Net Asset                             Package Price Discount to Net Asset
Value  - undiluted                                      10.7% Value - undiluted                                 3.5%
       - fully diluted                                   7.5%       - fully diluted                             0.1%


Performance for the year ended 31st August 2002

Net Asset Value - undiluted                        +25.1% SG Asian (ex Japan)
                - fully                            +18.9% Smaller Companies Index (£)                      +11.2%
diluted
Share Price                                        +34.5% MSCI AC Asia Free (ex Japan)
Warrant Price                                      +65.0% Index (£)                                         -0.7%
Package Price                                      +36.4% FTSE All-Share Index                             -21.0%




Outlook

The appreciation of the share price over the period has been satisfactory,
reflecting both a substantial rise in the underlying net assets as well as a
narrowing of the discount to net asset value.

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

Dividend

A final dividend of 1.50p net (2001: 1.81p net) for the year ended 31st August
2002 is recommended to be paid on 27th January 2003 to shareholders registered
on 20th December 2002. As Scottish Oriental's objective is to achieve long-term
capital growth, the Board deems it desirable to retain the most cautious
dividend policy permitted, commensurate with maintaining investment trust
status.

Notes:

(1) The financial information contained within this Preliminary Announcement does not constitute statutory accounts as
defined in Section 240 of the Companies Act 1985. The results for the years ended 31st August 2002 and 2001 are an
abridged version of the statutory accounts for those years, which received unqualified audit reports and did not contain
statements under sections 237(2) or (3) of the Companies Act 1985. Statutory accounts for 2001 have been filed with the
registrar of Companies and those for 2002 will be delivered in due course.


(2) The accounting policies applied in preparing these accounts are consistent with those applied in the latest
published annual accounts except for the accounting policy relating to deferred tax which has been changed in accordance
with FRS 19.


(3) The terms of the Preliminary Announcement were approved by the Board on 24th October 2002.


(4) Copies of the Annual Report will be posted to shareholders shortly and further copies may be obtained from the
registered office at 23 St Andrew Square, Edinburgh, EH2 1BB.




Enquiries:                          Susie Rippingall
                                    First State Investments, Hong Kong 00852 2846 7526
                                    or
                                    Lucy Allan
                                    First State Investments, London 0207 332 6500
24th October 2002


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