Portfolio Update

BLACKROCK GREATER EUROPE INVESTMENT TRUST plc
All information is at 31 December 2008 and unaudited.

Performance at month end with net income reinvested

                             One     Three       One         Since
                           Month    Months      Year        Launch
                                                       (20 Sep 04)
Net asset value            13.5%      0.2%    -24.1%         53.7%
Share price                18.9%      4.2%    -24.8%         45.5%
FTSE World Europe ex UK    16.6%     -2.5%    -24.0%         45.3%
Sources: BlackRock and Datastream

At month end                                       
Net asset value (capital only):           144.28p  
Net asset value (including income):       144.66p* 
* includes net revenue of 0.38p                    
Share price:                              136.75p  
Discount to NAV (capital only):              5.2%  
Discount to NAV (including income):          5.5%  
Gearing:                                      Nil  
Net yield:                                   2.2%  
Total assets:                            £154.53m**
Ordinary shares in issue:             106,820,690^ 
                                                   
** includes current year revenue.                  
^ excluding 5,568,268 shares held in treasury.     

Sector Analysis       Total Assets   Index (%)  Country Analysis    Total Assets
                               (%)                                          (%)
                                                                               
Financials                   21.4         22.9  Switzerland                23.4 
Healthcare                   15.3          9.9  France                     23.1 
Industrials                  10.5         12.1  Germany                    11.4 
Consumer Services            10.1          5.5  Netherlands                 9.8 
Telecommunications            9.6          8.3  Spain                       9.6 
Utilities                     9.4          9.4  Italy                       7.4 
Consumer Goods                6.9         14.7  Emerging Europe             6.0 
Oil & Gas                     6.5          7.2  Russia                      1.7 
Basic Materials               2.4          6.3  Portugal                    1.6 
Technology                    0.4          3.7  Ireland                     1.6 
Other Investments             6.0               Greece                      1.3 
Net current assets            1.5               Belgium                     1.1 
                            -----        -----  Israel                      0.4 
                            100.0        100.0  Poland                      0.1 
                            =====        =====  Net current assets          1.5 
                                                                          ----- 
                                                                          100.0 
                                                                          ===== 

Ten Largest Equity Investments                                 
Company                                     Country of Risk             
Banco Santander Central Hispano             Spain                       
BlackRock Eurasian Frontiers Hedge Fund     Emerging Europe             
E.ON                                        Germany                     
Koninklijke                                 Netherlands                 
Nestlé                                      Switzerland                 
Novartis                                    Switzerland                 
Sanofi-Aventis                              France                      
Telefonica                                  Spain                       
Vivendi Universal                           France                      
Zurich Financial Services                   Switzerland                 

Commenting on the markets, Vincent Devlin, representing the Investment Manager
noted:

December saw a global rally in equities markets, despite macroeconomic data
that disappointed already depressed expectations. Central banks continued to be
proactive in their attempts to limit the damage from the global downturn by
implementing further interest rate cuts whilst increasing the size and scope of
their respective fiscal packages. In Europe the ECB was less aggressive with
its monetary response than the U.S. Federal Reserve but still cut rates by
75bps to 2.5%. Against this backdrop, the FTSE World Europe ex UK Index
returned 16.6% (in Sterling terms).

Emerging Europe underperformed developed European markets as questions were
raised about the ability of some nations to service large foreign exchange
liabilities in the face of diminished foreign capital inflows and several
countries agreed to terms for IMF bailout packages. Against this background,
the MSCI Emerging Europe Index posted a gain of 4% in Sterling terms.

During the month the Company's NAV returned 13.5%, underperforming the
reference index. The contribution from the Emerging Europe region was
marginally negative with Poland, Israel and the BlackRock Eurasian Frontiers
Hedge Fund detracting. Within Developed Europe stock selection was also
negative with Switzerland, France and the Netherlands being the largest
detractors. The Company was not geared as at 31 December 2008, and its
performance was hindered by a cash position in a rising market.

The Company benefited from its holding in Greek gaming company OPAP, which
performed well after recent results demonstrated that the gaming franchise was
more resilient than expected. Elsewhere, companies with defensive
characteristics such as French media conglomerate Vivendi, Italian defence
contractor Finmeccanica and French pharmaceutical company Sanofi-Aventis made a
positive contribution to performance.

The stocks to detract were mainly found in the financial sector and included
French bank, BNP Paribas, and Swiss Investment bank, Credit Suisse. Other
stocks to reduce in value included German logistics company TNT and Polish
broker Dom Maklerski. At the sector level the Company benefited from being
overweight in consumer services and underweight in technology. However, sector
allocation was negative overall and the Company's return was particularly
hampered by an underweight exposure to the financials sector, an underweight
industrials holding, and an overweight position in telecommunications.

During the month the Company increased its exposure to the material and
industrial sectors through the purchase of a holding in Russian Norlisk Nickel
and adding to existing positions. Within the utility sector, the Company
purchased Portuguese utility EDP. These additions were largely funded by
reducing our cash position which had been increased during the falling markets
of the previous month.

Exposure to Emerging Europe increased marginally during the month from 7.9% to
finish at 8.4%. Within the region, the BlackRock Eurasian Frontiers Hedge Fund
continued to account for the majority of the emerging market weight providing
diversified exposure to the region. Net market exposure was reduced during the
month from 93% to 98%.

On a sector view, the Company currently has a bias to financials. However, it
still retains an underweight stance relative to the reference benchmark,
especially in banks, diversified financials and real estate, with a small
overweight in insurance. Other key sector weights included healthcare, telecoms
and consumer staples. The Company has limited exposure to the information
technology and materials sectors.

2009 is likely to be marked by further declines in economic activity, higher
unemployment and significant earnings declines. Markets enjoyed a rally in
December and began the year with some optimism, assisted in part by further
announcements of various Government fiscal stimulus packages but it is likely
that any rally will be tested in the coming months as negative news unfolds.
However, increasingly attractive valuations, coupled with cash on the sidelines
and further fiscal and monetary support provide a positive starting point for
equities in 2009. At the portfolio level, we currently favour companies with
strong franchises, reliable earnings, strong balance sheets (high cash, low
debt) and experienced management teams. In our view, these companies have the
scope to emerge from the downturn in a much stronger position as true market
leaders.

Latest information is available by typing www.blackrock.co.uk/its on the
internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV
terminal).

26 January 2009


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