Interim Management Statement

BARING EMERGING EUROPE PLC                           

                         Interim Management Statement                          

            Review of the period from 1 April 2009 to 30 June 2009             

This Interim Management Statement relates to the period from 1 April 2009 to 30
June 2009 and contains information that covers that period, unless otherwise
stated.

INVESTMENT OBJECTIVE

The investment objective of the Company is to achieve long-term capital growth,
principally through investment in Emerging European securities.

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

The Directors confirm the following material events and transactions which have
occurred since the Company's half year end on 31 March 2009.

Portfolio:

Emerging equities performed well over the period under review, with Emerging
Europe up 24% (GBP). We have been active during the period, reducing exposure
to the Turkish and Polish markets, and adding to the Czech Republic and
Hungary. Our weighting in Russia remained almost unchanged.

Major changes to sector weights took place in materials and telecommunications.
We reduced our weighting in commodity related stocks into rising markets and
allocated more funds to the telecommunications sector, thereby increasing the
defensive characteristics of the portfolio. We kept the weighting of the
financial sector unchanged but decided to reduce exposure to Turkey and Poland
in favour of more attractively priced banks in Russia and Hungary.

We believe that default risks on the country and stock specific level have
continued to recede as investors are reassured by decisive action taken by
Central Banks and supranational organisations such as the IMF. Further, many
companies managed to improve their financial strength by cutting costs, running
down inventory or obtaining long-term credit facilities over the last months.
Corporate earnings generally surprised on the positive side during the period.

Among the best performing stocks held during the period were Turkish Bank
Garanti, the Russian steel and mining group Evraz, and consumer goods retailers
BIM and Magnit, in Turkey and Russia respectively. Over and above these, the
Polish real estate developer GTC, the Russian mobile telephony company
Vimpelcom and the Hungarian generics producer Gedeon Richter also delivered
very strong performances.

At the other end of the scale, the weakest performances came from the Russian
oil blue chip Lukoil, the Czech electricity utility CEZ, the Polish consumer
goods wholesaler Eurocash, Bank PKO from Poland and the Czech telephone company
O2 Czech Republic. It is worthwhile noting, however, that even the worst
performing stocks in the portfolio delivered double digit returns in US dollar
terms.

Discount:

During the period from 1 April 2009 to 30 June 2009 the average share price
discount to net asset value was 9.4%.

Share Capital:

During the period from 1 April 2009 to 30 June 2009 the Company bought back
745,240 ordinary shares at a cost of £3.6 million. At 30 June 2009 the
Company's issued share capital consisted of 37,043,590 ordinary shares
(excluding the 3,318,207 ordinary shares held in treasury.During the period
from 1 July 2009 to 5 August 2009 a further 143,105 shares have been
repurchased for cancellation.

VAT:

On 30 June 2009 the Company announced that it had recovered £959,698 of VAT on
management fees invoiced since 31 March 2005. This recovery had not previously
been recognised as an asset by the Company due to the uncertainty of the
recovery and has resulted in an uplift of 2.59 pence to the net asset value. In
addition on 21 July 2009 a further £79,155 has been received in respect of
interest on the amount recovered. The VAT recovered and interest has been
credited to the Company's revenue and capital accounts in accordance with the
Board's policy for allocation of management fees and finance costs. In addition
a further reclaim of VAT for the period from the Company's inception in
December 2002 up until 31 March 2005 has been submitted to HMRC. Credit for
this will be taken once the amount of the reclaim and the timing of the receipt
has been agreed.

The directors are not aware of any other significant events or transactions up
to the date of this report which would have a material impact on the financial
position of the Company.

COMPANY STATISTICS

                                       30 June 2009              5 August 2009

Gross Assets                           £207.3 million            £237.2 million
Net Asset Value Per Ordinary Share      559.7p                     642.82p
Share Price                             518.0p                     580.00p
Discount to Net Asset Value              7.5%                       9.8 %


CUMULATIVE PERFORMANCE TO 30 June 2009 (Total Return in percentage terms)

Performance Over                         3m          1 Year        3 Years

Share Price*                            +31.1         -42.9         -13.3
Net Asset Value*                        +26.6         -45.5         -12.9
Benchmark+                              +24.0         -41.7         -13.2

* Source - Fundamental Data Limited
+ Source - Baring Asset Management

PORTFOLIO INFORMATION AT 30 June 2009

                                                            % of Total Assets
Ten largest holdings:

Gazprom                                                            10.4
Lukoil Holdings                                                     9.1
Rosneft                                                             7.8
CEZ                                                                 7.1
Vimpel Comms                                                        6.7
Sberbank                                                            6.6
Turkiye Garanti Bankasi                                             6.2
Mobile Telesystems                                                  5.3
OTP Bank                                                            3.5
Turkiye Petrol Rafinerileri                                         3.3


Geographical breakdown:                                              %                             

Russia                                                             55.7
Turkey                                                             15.5
Czech Rep                                                          10.9
Poland                                                              8.3
Hungary                                                             5.0
Kazakhstan                                                          1.3
Other                                                               1.1
Cash & Equivalents                                                  2.2

                                                                  100.0

6 August 2009