Portfolio Update

BLACKROCK GREATER EUROPE INVESTMENT TRUST plc
All information is at 31 August 2011 and unaudited.

Performance at month end with net income reinvested
                             One    Three     One   Three   Since Launch
                           Month   Months    Year   Years    (20 Sep 04)
Net asset value*          -11.5%   -17.0%    7.4%   17.7%         107.4%
(Undiluted)                                                         
Net asset value*           -9.9%   -14.7%    7.1%   17.4%         106.9%
(Diluted)                                                           
Share price                -7.8%   -13.2%   15.6%   24.4%         102.6%
FTSE World Europe ex UK   -10.8%   -16.3%    3.4%   -2.8%          66.4%
Sources: BlackRock and DataStream

* Net asset value and share price performance includes the subscription share
reinvestment, assuming the subscription share entitlement per share was sold
and the proceeds reinvested on the first day of trading.

At month end                                       
Net asset value (capital only):            178.70p     
Net asset value (including income):        185.93p**   
** Includes net revenue of 7.23p                   
Net asset value (capital only)***:         179.39p     
Net asset value (including income)***:     185.46p     
Share price:                               181.00p     
Premium to NAV (capital only):                1.3%     
Discount to NAV (including income):           2.7%     
Premium to NAV (capital only)***:             0.9%     
Discount to NAV (including income)***:        2.4%     
Subscription share price:                   14.75p     
Gearing:                                       Nil     
Net yield:                                    1.8%     
Total assets (including income):           £178.2m     
Ordinary shares in issue:               95,859,314#    
Subscription shares in issue:           18,351,675     
                                                   
*** Diluted for subscription shares.               
# Excluding 1,739,788 shares held in treasury.     

Benchmark                                                                      
Sector Analysis    Total Assets  Index (%)  Country Analysis   Total Assets(%)
                            (%)                                             
                                                                               
Consumer Goods             28.1       17.3  France                        23.0 
Industrials                17.8       13.3  Switzerland                   19.8 
Health Care                14.4       10.7  Germany                       16.6 
Oil & Gas                  11.0        9.4  Sweden                         5.0 
Financials                 10.9       20.8  Russia                         4.8 
Basic Materials             5.4        8.3  Finland                        4.8 
Telecommunications          5.1        6.3  Denmark                        4.5 
Consumer Services           3.2        4.8  Netherlands                    3.2 
Technology                  2.1        3.3  Norway                         3.0 
Utilities                   1.5        5.8  Portugal                       2.9 
Net current assets          0.5          -  Belgium                        2.4 
                          -----      -----  Ireland                        2.4 
                          100.0      100.0  Spain                          1.7 
                          =====      =====  Italy                          1.2 
                                            Other                          4.2 
                                            Net current assets             0.5 
                                                                         ----- 
                                                                         100.0 
                                                                         ===== 

Ten Largest Equity Investments (in alphabetical order)          
                                                               
Company                            Country of Risk             
Compagnie Financière Richemont     Switzerland                 
Danone                             France                      
DnB NOR                            Norway                      
Galp Energia                       Portugal                    
Kone                               Finland                     
LVMH                               France                      
Merck                              Germany                     
Nestlé                             Switzerland                 
Novo Nordisk                       Denmark                     
Syngenta                           Switzerland                 

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

Fund Performance & Attribution
During the month, the Company's NAV fell by 11.5% and the share price decreased
by 7.8%. For reference, the FTSE World Europe ex UK Index fell 10.8% during the
same period.

European equities plummeted in August, with many European indices recording the
worst monthly performance since October 2008. All major sectors declined during
the month, with the financials, materials and consumer discretionary sectors
performing worst. The market sell-off was triggered by a combination of
factors, including the US sovereign debt downgrade by S&P, further European
sovereign funding concerns and a continuation of the slowdown in global
economic growth. The market also began to adjust to lower growth expectations
after the second quarter results season saw significant downgrades across a
number of sectors, with GDP growth forecasts revised downwards for the second
half of 2011 and 2012.

The drawdown of the Company's NAV, relative to the broader market, was
primarily caused by positions in the consumer goods, oil & gas and health care
sectors. In particular, positions in the pharmaceuticals, autos and oil
services industries detracted from returns. This included German auto supplier
Continental and auto manufacturer Daimler, which suffered from their close
association with the global industrial cycle. Elsewhere, the Company suffered
from having a lower average weight in food producers, which performed
relatively well during a month where stocks that are regarded as `defensive'
were rewarded. In addition, holdings in more `cyclical' chemical companies
underperformed as they suffered from the negative macro economic news.

On a more positive note, holdings in defensive industrial companies performed
well, especially Kone, which generates a significant portion of its earnings
from servicing its existing installed base, and Dutch oil & chemical storage
company Vopak, which has a relatively large portion of its business in
long-term, fixed fee contracts. In addition, a holding in Legrand performed
after the company reported strong organic growth for the first half of 2011,
and a holding in more defensive chemical company Syngenta also performed
relatively well.

At the end of the month, the Company had higher weightings, relative to the
broader market, in the consumer goods, oil & gas, industrials and health care
sectors and lower weightings in the financials, utilities, basic materials,
telecoms, consumer services and technology sectors. The Company was not geared
at the end of August.

Outlook
The global economic slowdown and worsening political crisis in the Eurozone and
the US has been more severe than anticipated. We have revised down our
expectations to account for this more challenging environment. That said,
corporate balance sheets remain very strong; we continue to find quality growth
and defensive companies on very cheap valuations. Over the long term, we
continue to believe that the corporate earnings and cash generation of
companies are the key drivers of equity returns. European equities have sold
off significantly in recent weeks and whilst we are conscious of the risks
currently pervading the region we are also aware of the buying opportunity that
this represents for investors prepared to ride out short term volatility.

16 September 2011

ENDS

Latest information is available by typing www.blackrock.co.uk on the internet,
"BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV
terminal). Neither the contents of the Manager's website nor the contents of
any website accessible from hyperlinks on the Manager's website (or any other
website) is incorporated into, or forms part of, this announcement.