2 April 2008

BIG SHAKE-UP FOR £80 BILLION* WORTH OF PEP INVESTMENT GIVES INVESTORS MORE OPPORTUNITY TO ‘WAKE UP’ THEIR ACCOUNTS

More than 3.5 million* people will be able to breathe new life into their PEPs, when PEP and ISA consolidation comes into effect on 6 April 2008.

Claudia Philips, Managing Director of Investment Dealing at Alliance Trust, said: "Since the introduction of ISAs in 1999, many PEP investors may well have left their PEP investment sitting idle while they turned their attention to new investment accounts People should see this new tax year as the way to kick-start their new ISA."

For the first time since April 5, 1999, PEP holders will be able to subscribe new money to their PEPs, as their PEP accounts automatically become Stocks and Shares ISAs in the new tax year. Investors now have the chance to start contributing again as long as they don’t subscribe to another Stocks and Shares ISA in the same tax year.

The new rule changes also give investors the chance to manage their holdings more efficiently in an ISA. They can check their asset allocation across their whole investment portfolio and consolidate accounts with a single provider that could save them time and reduce charges for managing their money.

Claudia Philips continued: "The consolidation of PEPs into ISAs presents an opportune time for investors to look at their investments, particularly in former PEPs, and to assess whether the investments they made many years ago, including those in the old Single Company PEPs, still meet their current investment needs. With ongoing volatility in markets investors have an opportunity to look at their portfolio to make sure that it is working as hard as it possibly can for them and still meets their investment objectives. At Alliance Trust Savngs we’re automatically transferring PEPs into ISAs so investors will be able to manage their portfolios with greater ease as they can see all their holdings in one place. This could also help drive down account administration costs and reduce the amount of time spent organising a portfolio.”

Customers in the Alliance Trust Select ISA can pick from more than 1,500 investment choices including hundreds of investment trusts, as well as equities, gilts and other fixed income investments. Investors can buy and sell shares online for a flat fee of £12.50 for each trade, set up and manage direct debits and pay money into an ISA by debit card or cheque.

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Contacts

Jane Holligan, Media Relations Manager Anna Schirmer/ Stuart Lerman/ Anna Moulds

Alliance Trust Lansons Communications

Tel +44 (0)1382 306064 Tel +44 (0)20 7294 3641/ 3674/ 3681

Mobile 07745 783212 Email alliancetrust@lansons.com

Email jane.holligan@alliancetrust.co.uk

Web http://www.alliancetrust.co.uk

Simon Longfellow, Marketing Manager

Alliance Trust Savings

Email simon.longfellow@alliancetrust.co.uk

Notes to editors

1. Alliance Trust is the brand name of Alliance Trust Savings, a financial services company that offers investment dealing, self-invested personal pensions and a choice of investment wrappers. Alliance Trust Savings administers assets on behalf of more than 52,000 customers.(as at March 7, 2008). Alliance Trust Savings is a wholly-owned subsidiary of Alliance Trust PLC.

* HMRC 2007 figures show that £79.25bn was held in PEPs, held by 3,528,000 people.