Interim Management Statement

Securities Trust of Scotland plc
Growing long-term, delivering high income
Interim management statement - 1 April to 30 June 2008
Date of announcement: 21 August 2008

Profile
Objective      To achieve rising income and long-term capital growth by investment in the UK.
Benchmark      FTSE All-Share index
Sector         UK Growth & Income
Listed         28 June 2005

Portfolio
Asset class    31 Mar         30 Jun
Equities       106.3%         106.8%
Fixed interest 2.6%           2.9%
Cash           1.8%           2.0%
Borrowings     10.7%)        (11.8%)

Equity allocation   31 Mar         30 Jun
Financials          32.5%          27.2%
Oil and gas         12.2%          15.0%
Basic materials     9.3%           11.4%
Consumer goods      11.3%          10.9%
Industrials         8.9%           8.4%
Consumer services   7.7%           7.8%
Telecommunications  6.9%           7.0%
Healthcare          4.9%           5.6%
Utilities           5.2%           5.4%
Technology          1.0%           1.2%

Top 10 equity holdings (47.7% of total portfolio)
BP                       7.9%
Royal Dutch Shell        7.1%
British American Tobacco 6.1%
Royal Bank of Scotland   4.4%
Vodafone                 4.3%
HSBC                     4.1%
Aviva                    3.8%
GlaxoSmithKline          3.5%
Xstrata                  3.3%
Rio Tinto                3.2%
Number of holdings         52

Key facts
Net assets                    £118 million
Share price                   100.3p
Net asset value per share     115.5p
Discount/(premium)            13.2%
Net yield**                   5.4%

**Dividend of 5.45p paid in the year to 31 March 2008.

Manager's commentary
After  the trials of the first quarter, equity markets staged a revival in April
and  early  May. But as economic news deteriorated and inflation spiked  higher,
this rally proved short-lived, with sharp falls in late May and June erasing the
gains seen earlier. The FTSE All- Share index fell by 1.4% overall.

With a fall of 1.6%, the fund marginally underperformed. Our banking holdings  -
Barclays, RBS, HBOS and Lloyds TSB - were notably weak. Elsewhere, many  of  the
medium-sized  companies that had performed well earlier in the year  -  such  as
SIG,  Inchcape  and  Carillion - succumbed to profit-taking  on  concerns  about
declining economic growth.

Among  the  positives, chemicals group Elementis did well, while  media  company
Informa   rose   sharply  after  becoming  a  bid  target.   Our   holdings   in
GlaxoSmithKline  and AstraZeneca finally started to show signs  of  improvement.
Thanks  to  positive  news  on profits, our decision  to  increase  exposure  to
transport group Go-Ahead also paid off.

Ross Watson


Change in equity allocation
From 31 Mar to 30 Jun
Financials          (5.3%)
Oil and gas          2.8%
Basic materials      2.1%
Consumer goods      (0.4%)
Industrials         (0.5%)
Consumer services    0.1%
Telecommunications   0.1%
Healthcare           0.7%
Utilities            0.2%
Technology           0.2%

Performance
Discrete performance over 12 months to 30 June
                2008      2007      2006      2005      2004
Share Price    (22.5%)   17.5%     15.4%       -         -
NAV            (20.4%)   20.2%     20.0%       -         -
Benchmark      (13.0%)   18.4%     19.7%       -         -

Cumulative performance over periods to 30 June 2008
                One       Three     Six       One       Three     Five      Since
                month     months    months    year      years     years     launch*
Share Price    (14.9%)   (12.0%)   (18.9%)   (22.5%)     5.0%       -       10.2%
NAV            (8.8%)    (1.6%)    (16.2%)   (20.4%)    14.8%       -       15.3%
Benchmark      (7.1%)    (1.4%)    (11.2%)   (13.0%)    23.2%       -       23.8%

Past performance is not a guide to future returns.
Source:  Martin  Currie and Fundamental Data. Bid to bid basis with  net  income
reinvested  over  the  periods shown in sterling terms.  These  figures  do  not
include the costs of buying and selling shares in an investment trust. If  these
were included, performance figures would be reduced.

The  risks  outlined at the end of this document relating to gearing and  single
country  markets are particularly relevant to this trust but should be  read  in
conjunction with all warnings and comments given.
All sources (unless indicated): Martin Currie as at 30 June 2008.



Capital structure
Ordinary shares       101,970,223

Board of directors
Neil Donaldson (chairman)
Charles Berry
Anita Frew
Andrew Irvine
Edward Murray

Material events and transactions
During the three month period, no shares were bought back for
cancellation.

At the AGM on 15 July all resolutions were passed.

Gearing at the end of the period was 11.8% (10.7% as at 31/03/08).

A  final  dividend  for  the year to 31 March 2008 of 2.15p  has  been  paid  to
shareholders on the register as at 30 May 2008. This made the total dividend for
the  year  to 31 March 2008 5.45p, an increase of 7.9% on the year to  31  March
2007.

The  first interim dividend for the year ending 31 March 2009 of 1.15p per share
will  be  paid on 5 September 2008 to shareholders on the register on 15  August
2008.

Website
The  trust  has its own website at www.securitiestrust.com. There you will  find
further  details  about  the trust, information on Martin  Currie,  daily  share
prices, and you can access regular webcasts by the manager.

www.securitiestrust.com




Key information
Year end                                     31 March
Annual general meeting                       July
Interim dividends paid                       March, June, September, December
Annual management fee as at 31 March 2008†   0.3%
Total expense ratio as at 31 March 2008*     0.6%
Epic code                                    STS
Reuters code                                 STS.L

†Percentage of net assets.
*Percentage of shareholders' funds. Includes annual management fee.

Net asset value and dividend history
As at          Share     NAV            Discount/     Dividend
31 March       price     per share     (premium)      per share
2006           125.5p    135.6p         7.4%           2.85p
2007           141.3p    148.8p         4.8%           5.05p
2008           116.0p    121.53p        3.8%           5.45p

Past performance is not a guide to future returns.


Risk factors
Please  note  that,  as  the  shares  in  investment  trusts  are  traded  on  a
stockmarket, the share price will fluctuate in accordance with supply and demand
and may not reflect the underlying net asset value of the shares.

Depending  on  market conditions and market sentiment, the  spread  between  the
purchase and sale price can be wide. As with all stock exchange investments  the
value  of  investment  trust  shares purchases  will  immediately  fall  by  the
difference between the buying and selling prices, the bid-offer spread.

Investment  trusts  may also borrow money in order to make further  investments.
This is known as "gearing" and can enhance shareholder returns in rising markets
but, conversely, can reduce them in falling markets.

Past performance is not a guide to future returns.

The  value of investments and the income from them may go down as well as up and
is not guaranteed. An investor may not get back the amount originally invested.

The  majority  of charges will be deducted from the capital of the  trust.  This
will  constrain the capital growth of the trust in order to maintain the  income
streams.

Exposure to a single country market increases potential volatility.


Important  notice:  This  information is issued and approved  by  Martin  Currie
Investment Management Ltd in its capacity as investment manager.
It  does  not  in  any  way constitute investment advice  or  an  invitation  or
inducement to invest. This document is for the recipient only and should not  be
given or sent to other parties.

Martin Currie Investment Management Ltd, registered in Scotland (no 66107)
Registered office: Saltire Court, 20 Castle Terrace, Edinburgh EH1 2ES
Tel: [phone]           Fax: [phone]       www.martincurrie.com
Authorised and regulated by the Financial Services Authority and a member of the
Investment Management Association.
Please note that calls to the above number will be recorded.