Interim Management Statement

Securities Trust of Scotland plc
Growing long-term, delivering high income
Interim management statement - 1 October to 31 December 2007

February 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                 30 Sep     31 Dec
Equities                    106.8%      104.9%
Fixed interest                2.6%        2.6%
Cash                          0.8%        1.4%
Borrowings                  (10.2%)      (8.9%)

Equity allocation           30 Sep     31 Dec
Financials                   32.3%       29.4%
Oil and gas                  11.8%       13.1%
Consumer goods                9.8%       11.3%
Consumer services            10.9%       10.5%
Industrials                   9.1%        9.4%
Basic materials               9.6%        8.8%
Telecommunications            8.4%        7.6%
Utilities                     4.9%        5.5%
Healthcare                    3.2%        3.3%
Technology                     -          1.1%

Top 10 equity holdings (45.7% of total portfolio)
BP                                        6.9%
Royal Dutch Shell                         6.1%
British American Tobacco                  5.7%
HSBC                                      5.3%
Vodafone                                  4.5%
Aviva                                     4.2%
Royal Bank of Scotland                    3.7%
GlaxoSmithKline                           3.3%
BT                                        3.1%
Xstrata                                   2.9%

Number of holdings                         56

Key facts
Net assets                       £144 million
Share price                             127.0p
Net asset value per share               141.3p
Discount/(premium)                       10.1%
Net yield**                               4.1%

**A second interim dividend for year to 31 March 2008 of 1.10p was paid on 14
December 2007.

Manager's commentary
This was another volatile quarter for the UK market. November wiped out the
gains seen in October, while December ended quietly. Ongoing concerns over the
global financial system continued to dominate sentiment and money markets
remained in disarray. The threats to economic growth have now begun to manifest
themselves in stock valuations. We saw material falls in economically sensitive
sectors such as real estate, retail, engineering and banks. Sentiment and
earnings prospects in these sectors are deteriorating in response to a scarcity
of credit and high levels of existing consumer debt. In such sectors, apparently
low valuations have provided no compensation for diminishing prospects.

Medium-sized and smaller companies had a very poor quarter, falling 3% and 9%
respectively. But as investors grew increasingly nervous about economic
prospects in developed economies, companies with exposure to emerging markets
continued to make good progress. This was evident in sectors such as oil and
mining, with the former responding to further rises in the oil price and the
latter gaining on M&A activity, notably the approach from BHP Billiton for Rio
Tinto.

Despite strong performance towards the end of the period, the Trust endured an
uncomfortable quarter, hurt by its exposure to medium-sized companies and to
financials. We did benefit, however, from corporate activity in holdings such as
Emap, Rio Tinto and Resolution. Over the period, we took profits in Resolution,
disposed of part of our holding in Xstrata, and opened a new position in Sage.

Ross Watson



Performance*

Discrete performance over 12 months to 31 December
                     2007     2006    2005    2004   2003
Share Price         (6.1%)    26.1%     -       -      -
NAV                 (0.4%)    21.9%     -       -      -
Benchmark            5.3%     16.8%     -       -      -

Cumulative performance over periods to 31 December 2007
                  One    Three   Six     One   Three   Five   Since
                  month  months  months  year  years   years  launch*
Share Price      (0.6%) (5.4%)  (4.5%)   (6.1%) -       -     35.9%
NAV               0.5%  (1.7%)  (5.0%)   (0.4%) -       -     37.6%
Benchmark         0.3%  (0.3%)  (2.1%)    5.3%  -       -     39.4%

*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.

Although Martin Currie complies with the Global Investment Performance Standards
(GIPS), the fund returns used in this document are calculated on the net asset
value and therefore fall outside the scope of the GIPS standards.
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 31 December 2007.

                          Change in equity allocation
                          From 30 Sep to 31 Dec

Financials                (2.9%)
Oil and gas                1.3%
Consumer goods             1.5%
Consumer services         (0.4%)
Industrials                0.3%
Basic materials           (0.8%)
Telecommunications        (0.8%)
Utilities                  0.6%
Healthcare                 0.1%
Technology                 1.1%

Capital structure
Ordinary shares            101,970,223

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

Manager's biography
Ross Watson started his investment career in 1983 as a trainee analyst with
First Scottish Investment Trust. He joined Gartmore in 1988, where he spent 12
years managing their high income UK equity portfolios. In 2000 he moved to
Aberdeen Asset Managers. During his four years there, he managed Murray Income
Trust, Jersey Phoenix Trust, Murray Extra Return Investment Trust and The Income
& Growth Trust. He joined Martin Currie in 2005.

Key dates
Year end                31 March
Annual general meeting     July
Interim dividends paid March, June, September, December

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.

Management fee and expenses at 31 March 2007
Annual management fee†    0.3%
Total expense ratio*      0.8%

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

Dealing information
Epic code STS
Reuters code STS.L

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

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.