Final Results- Significant Performance Improvement

SCOTTISH ORIENTAL SMALLER COMPANIES TRUST PLC
21 October 1999


                                       
            Preliminary Results for the year ended 31st August 1999
                     (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 1999.

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 1999

                                      1999                  1998
                                £'000      £'000      £'000      £'000
                                                                              
Dividends                       709                   701        
Other income                    16                    45         
                                725                   746        
                                                                 
Expenses                        (372)                 (324)      
Income before tax               353                   422        
Tax                             (78)                  (103)      
Income attributable to          275                   319               
shareholders
Dividend                        (216)                 (216)             
                                                                        
Transferred to Revenue Reserve  59                    103               
                                                                        
Return attributable to                                                  
shareholders:
Income                                     275                   319
Capital                                    12,972                (15,713)
                                                                 
Total                                      13,247                (15,394)
                                                                 
Total return per share -                   52.02p                (60.45p)
undiluted                                                        
Income return per share -                  1.08p                 1.25p
undiluted
Dividend per share (net)                   0.85p                 0.85p
                                                                    
Summary Balance Sheet as at 31st August 1999

                                       1999                  1998
                                £'000      £'000      £'000      £'000
                                                                    
Total investments                          26,789                10,787
    Debtors                     213                   205        
    Cash                        939                   943        
    Creditors                   (413)                 (273)      
Net current assets                         739                   875
                                           27,528                11,662
Foreign currency loan                      (2,836)               -
Provision for deferred tax                 (33)                  (34)
Shareholders' funds                        24,659                11,628
                                                                    
Net asset value per share -                96.83p                45.66p
undiluted

Summary Cash Flow Statement for the year ended 31st August 1999

                                           1999         1998
                                           £'000        £'000
                                                        
Net cash inflow from operating             426          423
activities
Interest paid on borrowings                (13)         -
Taxation                                   (106)        (106)
Net cash outflow for capital                            
expenditure and financial investment       (2,713)      (432)
Equity dividend paid                       (216)        (171)
Net cash outflow before financing          (2,622)      (286)
Financing                                  2,618        -
Decrease in cash                           (4)          (286)

Reconciliation of Total Income to Net Cash Inflow from Operating Activities

                                           1999         1998
                                           £'000        £'000
                                                        
Income                                     725          746
Expenses                                   (359)        (324)
Decrease in debtors                        26           24
Increase/(decrease) in creditors           34           (23)
Net cash inflow from operating             426          423
activities

BOARD STATEMENT

Investment Performance

There has been a significant improvement in the performance of the Trust
during the  year  ending 31st August 1999.  A turnaround in the economic
outlook  for Asia  resulted  in  a  substantial appreciation of the
stockmarkets  over  the period.   Although underperforming their larger
counterparts, smaller companies participated  in the recovery as low interest
rates made bank deposits  a  less attractive alternative for local investors.  A
more positive perception towards the  Region  has also been evidenced by the
decline in the Trust's discount  to net asset value.

Scottish  Oriental's undiluted net asset value appreciated 112.1  per  cent 
to 96.83p, more than doubling over the twelve-month period.  This compares with 
a sterling  adjusted increase of 69.9 per cent in the SG Asian Smaller 
Companies Index (the Trust's new benchmark) and a 118.3 per cent rise in the
MSCI AC Asia Free  (ex Japan) Index.  The FT-SE-A All-Share Index rose 20.4 per
cent in  the year.

Ordinary Share Buy-Backs

The Board had previously intended to seek shareholders' authority at the AGM
to repurchase  a limited number of ordinary shares from the market.   However, 
it has  today  been decided that this would not be an appropriate measure  as 
the Company  has limited revenue reserves for this purpose and the Board 
considers that  the costs involved in seeking such authority would outweigh any 
benefits to shareholders.

Gearing

During  the course of the year, Scottish Oriental borrowed £2.6 million in
yen, which  currently represents  12 per cent of net assets.  This gearing gives
the Trust greater flexibility to enhance long-term returns.

Summary Data at 31st August 1999
                                                              
Shares in issue       25,466,250 Shareholders' Funds            £24.66m
Warrants in issue      4,747,400 Market Capitalisation          £19.35m
                                                                       
Net Asset Value per                                                    
share
Undiluted                 96.83p Warrant Price                   23.50p
Share Price               76.00p Package Price                   80.70p
                                 Package equates to one                
                                 share and one-fifth of a
                                 warrant
                                                                       
Share Discount to                Package Discount to Net               
Net Asset Value                  Asset Value
Undiluted                  21.5% Undiluted                        16.7%

Performance for the year ended 31st August 1999
                                                              
Net Asset Value          +112.1% Warrant Price                  +129.3%
(undiluted)
Share Price              +145.2% Package Price                  +144.2%
                                                                       
SG Asian (ex Japan)       +69.9% MSCI AC Asia Free (ex          +118.3%
Smaller Companies                Japan) Index (£)
Index (£)                    
                                                              
           FT-SE-A All-Share Index        +20.4%

Outlook

Since  reaching  their nadir in August 1998, Asian stockmarkets  have 
achieved outstanding returns.  Although a similar performance is unlikely in the
short- term, the long-term outlook for the Region remains positive.

As  Asia  emerges  from the crisis, opportunities abound for  well-managed 
and soundly  financed  companies  to  strengthen  their  market  position.  
Whilst portfolio  flows  into  the Region may initially favour the  larger 
companies, their smaller counterparts should also benefit given their above
average growth prospects and attractive valuations.

Dividend

An  unchanged final dividend of 0.85p per share (equivalent to 0.94p per 
share gross)  for the year ended 31st August 1999 is recommended to be paid  on 
21st January  2000 to shareholders registered on 17th  December 1999.  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, Susie Rippingall or Michael Tulloch
                  Stewart Ivory & Company Limited
                  Tel: [phone]