Performance fee

To: Stock Exchange                            For immediate
                                              release:
                                              30 May 2006


                        SECURITIES TRUST OF SCOTLAND plc
                                 Performance fee

The following is extracted from the Chairman's Statement in the company's
financial report for the period ended 31 March 2006, that has been posted to
shareholders today:

"At the time of the company's listing, the directors noted that they intended to
negotiate a performance fee arrangement with Martin Currie, to further align the
manager's interests with those of shareholders. I am pleased to report that
agreement has been reached whereby, in return for an immediate reduction in the
basic management fee from 0.4% to 0.3% of total assets, Martin Currie is able to
earn 15% of any outperformance of the benchmark FTSE All-Share index by the NAV
per share, adjusted for share buybacks. This fee is assessed annually to 31
March and is subject to a cap of 1% of year-end net assets and high-watermark
provisions. If the NAV per share falls in an assessment period, the share of any
outperformance falls to 7.5%. Furthermore, there are three separate tests that
the company must meet in order for the full performance fee to become payable:
the discount must be lower than at the prior year-end; revenue return per share
must be higher than in the prior period; and NAV per share total return
performance must exceed that of the AITC UK Growth & Income peer group average.
For each of these tests that the annual outcome fails to meet, the performance
fee is reduced by 25%.

The board is satisfied that this arrangement appropriately balances the
interests of shareholders with those of the managers."



For further information, please contact:

Neil Donaldson, Chairman                 01592 760 902
Mike Woodward / Ross Watson              0131 229 5252
Martin Currie Investment Management Ltd

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