(BSCT) www.bankofscotland.co.uk/

Bank of Scotland plc provides retail banking merchant banking treasury services fund
management finance leasing debt factoring credit card and other financial services in the
United Kingdom and internationally. The groups principal subsidiaries are NWS Bank
plc British Linen Bank Kellock Holdings Ltd and Bank of Wales in the United Kingdom and
Bank of Western Australia in Australia. During 1998 the group disposed of Countrywide Bank
in New Zealand.

Why we bought the share

From Paul

I would like to propose we buy £1000 worth of Bank of Scotland.

The banking sector is one of the very few that are tipped to do anything at
all during 2001. Bank shares normally benefit from lower interest rates
and with the recent reduction in US interest rates the move in the UK and
Europe is likely to be downwards to head off any threats of recession/slow
Down.

Bank of Scotland is involved in the three-way tussle with Abbey National
and Lloyds TSB. Whatever the result it is likely to be one of the better
performers in the sector. If it ties up with Abbey the earnings boost potential
is considered to be significant and if it does not it would seem ripe for
merger/takeover with another suitable suitor.

The CEO Peter Burt is well liked in the City and has a lot of supporters including HSBC!

Recently tipped by Mail on Sunday as one to have in the portfolio it would also bring some
much needed defensive/safe stocks to our portfolio to avoid our cash disappearing completely.
It also increases the spread of sectors within our portfolio.

STANDING DATA

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BANK OF SCOTLAND
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Industry: Finance

BANK OF SCOTLAND
THE MOUND
PO BOX NO 5
EDINBURGH EH1 1YZ

TEL: (44)131 442 7777
FAX: (44)1312435546

Employees: N/A
Market Cap (MIL): 9,396.26M

Officers:
CEO: P A BURT
COB: JOHN SHAW
Secretary: H K YOUNG