Final Results

BARING EMERGING EUROPE PLC

                         Preliminary unaudited announcement
                in respect of the year ended 30th September 2005






STATEMENT OF TOTAL RETURN

                                                              Year ended 30th September, 2005
                                                        Revenue            Capital              Total
                                                           £000               £000               £000

Gains on investments                                          -             111,356             111,356
Gains on foreign exchange                                     -                 169                 169
Income                                                    4,102                   -               4,102
Investment management fee                                (1,593)               (678)             (2,271)
Other expenses                                           (1,016)                  -              (1,016)
Net return before interest payable and                    1,493             110,847             112,340
taxation

Interest payable                                            (23)                 -                  (23)
Net return before taxation                                1,470             110,847             112,317

Taxation                                                   (572)                 -                 (572)
Return attributable to ordinary shareholders                898             110,847             111,745

Dividend*                                                  (627)                 -                 (627)
Transfers to reserves                                       271             110,847             111,118


                                                        Revenue            Capital              Total

Return per ordinary share                                  2.07p             255.43p             257.50p

Dividend per ordinary share                                1.50p                  - p              1.50p




* See note 5





















Preliminary unaudited announcement (continued)



STATEMENT OF TOTAL RETURN

                                                               Year ended 30th September, 2004
                                                        Revenue            Capital              Total
                                                           £000               £000               £000

Gains on investments                                          -              30,116              30,116
Losses on foreign exchange                                    -                (333)              (333)
Income                                                    3,434                   -               3,434
Investment management fee                                (1,171)               (116)             (1,287)
Other expenses                                             (693)                  -                (693)
Net return before interest payable and                    1,570              29,667              31,237
taxation

Interest payable                                            (18)                 -                  (18)
Net return before taxation                                1,552              29,667              31,219

Taxation                                                   (467)                 -                 (467)
Return attributable to ordinary shareholders              1,085              29,667              30,752

Dividend*                                                  (887)                 -                 (887)
Transfers to reserves                                       198              29,667              29,865


                                                        Revenue            Capital              Total

Return per ordinary share                                  2.45p              66.88p              69.33p

Dividend per ordinary share                                2.00p                 - p               2.00p

































Preliminary unaudited announcement (continued)


BALANCE SHEET

                                                                            30th               30th
                                                                      September,         September,
                                                                            2005               2004
                                                                            £000               £000

Fixed assets
Investments                                                               254,214             146,674

Current assets
Debtors                                                                       656               1,745
Cash at bank and in hand                                                    3,444                 285
                                                                            4,100               2,030
Creditors: Amounts falling due within one year                             (4,425)             (2,395)
Net current liabilities                                                      (325)               (365)
Net assets                                                                 253,889             146,309

Capital and reserves
Called-up share capital                                                     4,436               4,436
Share premium account                                                       1,411               1,411
Special Reserve                                                            79,917              79,917
Redemption reserve                                                            352                 352
Capital reserve-realised                                                   41,794              29,904
Capital reserve-unrealised                                                128,782              29,825
Revenue reserve                                                               735                 464
Own shares held                                                            (3,538)                 -
Total equity shareholders' funds                                          253,889             146,309


Net asset value per share                                                  586.89p             329.82p
























Preliminary unaudited announcement (continued)

CASHFLOW STATEMENT

                                                                        Year ended         Year ended
                                                                              30th               30th
                                                                        September,         September,
                                                                              2005               2004
                                                                              £000               £000

Operating activities
Investment income received                                                    4,174              3,917
Deposit interest received                                                         5                 22
Investment management fees paid                                              (1,622)            (1,050)
Other cash payments                                                            (955)            (1,195)
Net cash inflow from operating activities                                     1,602              1,694


Servicing of finance
Interest paid                                                                   (23)              (18)


Taxation
Overseas tax paid                                                              (572)             (467)


Financial investment
Purchases of investments                                                    (75,649)         (133,816)
Sales of investments                                                         82,035           135,427
Net cash inflow from financial investments                                    6,386             1,611


Equity dividends paid                                                          (865)             (488)
Net cash inflow before financing                                              6,528             2,332


Financing
Buyback of ordinary shares                                                   (3,538)                -
Net cash outflow from financing                                              (3,538)                -

Increase in cash                                                              2,990               2,332





Preliminary unaudited announcement (continued)

NOTES

1. Current year's information
The abridged figures for 2005 are an extract from the latest financial statements
and do not constitute statutory financial statements. The financial statements
have not yet been delivered to the Registrar of Companies, nor have the Auditors
yet reported on them.

2. Comparative information
The figures and financial information for the year ended 30th September, 2004
are an extract from the latest published accounts and do not constitute
statutory accounts. Full accounts for that period have been delivered to the
Registrar of Companies and included the report of the auditors which was
unqualified and did not contain a statement under section 237 of the Companies
Act 1985.

3. Posting of Annual Report
The Annual Report will be posted to shareholders on or around 19th December,
2005.

4. Annual General Meeting
The Annual General Meeting will be held at 155 Bishopsgate, London EC2 on
Thursday 26th January, 2006 at 2.30pm.

5. Dividend
Subject to the approval of the Annual General Meeting, the annual dividend will
be paid on 17th February, 2006 to members on the register at the close of
business on 20th January, 2006. The shares will be marked ex-dividend on 18th
January, 2006.





Preliminary unaudited announcement (continued)


CHAIRMAN'S STATEMENT

Company Performance
The year to 30th September 2005 was a very good one for your Company. Regional
markets performed excellently and your Company's benchmark appreciated by 74.7%.
The Investment Manager was able to outperform the benchmark so that the net
asset value rose by 78.0%. Towards the end of the period increased interest in
the shares caused the discount to fall to 0.02% having started the year at 9.2%.
Together these effects resulted in an impressive 95.9% rise in the share price
and contributed to the Company winning the coveted Bloomberg Money award for the
Best Global Investment Trust in 2005.

The dividend income from the underlying portfolio grew modestly but the
investment management and custodian fees, both of which are based on the net
assets of the Company, rose considerably faster so that the income available for
distribution fell from 2.45p per share in the year to 30th September 2004 to
2.07p per share out of which the Directors are recommending a dividend of 1.5p
per share.

Discount Management
The Board believes that shareholders' interests are best served by containing
the volatility of the discount. Over the last three years the Board has been
willing to repurchase shares whenever the discount exceeded 10% and a further
1.1m shares were bought into treasury during the financial year with the last
purchase being in January 2005.

In recent months there has been an encouraging amount of interest from retail
investors and the discount has narrowed materially. Hopefully this enthusiasm
will be sustained and the shares will establish a trading range around net asset
value. Should a premium emerge the Board's intention will be to provide the
market with additional shares, initially using those currently held in treasury,
so as to discourage too high a premium from developing.

From 1st October 2005 the Company has been publishing its net asset value on a
daily basis, as opposed to its previous practice of weekly, so as to keep the
market better informed about the true level of the discount.

Investment Manager
The sale of the investment management business of Baring Asset Management to
Massachusetts Mutual Life Insurance Company and its financial services business
to Northern Trust was completed smoothly without any disruption in the personnel
involved with the Company's affairs. The Board will continue to pay particular
scrutiny to the communications between its various service providers until it is
confident that the new arrangements are fully bedded in.

Bid Price Valuations
Among the various accounting changes which the Company will need to implement
from 1 October 2005 is the requirement to value listed investments at bid price
as opposed to mid-market price. This will not have a material affect on the
Company's valuations. By way of illustration, applying a bid price approach to
the portfolio as of 30th September 2005 would have reduced the net asset value
by 1.54p per shares to 585.35p.




Preliminary unaudited announcement (continued)


CHAIRMAN'S STATEMENT CONTINUED

Benchmark
The primary objective of the Company as set by the Board is to outperform the
competition. It is therefore sensible to ensure that the Company's benchmark
remains close to the average asset allocation of competitors' portfolios. A
review of the current benchmark is presently being undertaken by the investment
manager with a view to implementing any appropriate changes during 2006.

Board
Prince Abbas Hilmi has indicated his intention to step down from the Board with
effect from the forthcoming AGM. I would like to thank him for his many years of
service to the Company and its predecessor. An investment of £100 at the
original launch would have grown to £884 at 30 September 2005 (on a share price
total return basis)so he will be leaving the Company with the feeling of a job
well done. The Nomination Committee will not be seeking to replace him, as it
believes the remaining Directors have sufficient breadth of experience to manage
the Company's affairs effectively.

In addition, with effect from the AGM, Jo Dixon will take over from John Cousins
as the Chairman of the Audit Committee. John has diligently chaired the
Committee since it was established and considers that it is now appropriate to
hand over the responsibility to a newer member of the Board.

Annual General Meeting
The Annual General Meeting is being held on Thursday, 26th January 2006 at 155
Bishopsgate, London EC2 commencing at 2.30pm. The formal business will be
followed by a presentation from the Investment Manager, after which there will
be an opportunity for shareholders to raise any specific issues with the
Investment Manager or any member of the Board.

Outlook
Despite the exceptionally high returns during the year under review  we continue
to see  value in the region and remain excited by the longer term opportunities
as the markets develop and broaden.


Iain Saunders
Chairman
1st December, 2005



155 Bishopsgate, London, EC2M 3XY
020 7628 6000