Interim Results

Baring Emerging Europe Trust PLC
4 December 2001


The Baring Emerging Europe Trust PLC

Interim Unaudited Report Announcement in respect of the Six months ended 31
October 2001

________________________________________________________________________________

                    STATEMENT OF TOTAL RETURN (unaudited)

                                                Half-year to 31 October 2001

                                               Revenue      Capital     Total
                                                 $000         $000      $000




Gains/(losses) on investments                --           (8,307)      (8,307)
Gains/(losses) on foreign exchange           --           --           --
Income                                       2,949        --           2,949
Investment management fee                    (2,617)      --           (2,617)
Other expenses                               (762)        --           (762)


Net return before interest payable and       (430)        (8,307)      (8,737)
taxation
Interest payable                             (42)         --           (42)


Return on ordinary activities before         (472)        (8,307)      (8,779)
taxation
Taxation                                     (373)        --           (373)


Return attributable to ordinary shareholders (845)        (8,307)      (9,152)


Transfers to reserves                        (845)        (8,307)      (9,152)

                                             Revenue      Capital        Total


Return per ordinary share: basic             (0.71)c      (7.03)c      (7.74)c




The Baring Emerging Europe Trust PLC

Interim Unaudited Report Announcement in respect of the Six months ended 31
October 2001 (cont'd)

________________________________________________________________________________


                    STATEMENT OF TOTAL RETURN (unaudited)



                                               Half-year to 31 October 2000

                                              Revenue       Capital     Total
                                                $000         $000        $000


Gains/(losses) on investments               --           (96,441)      (96,441)
Gains/(losses) on foreign exchange          --           795           795
Income                                      2,805        --            2,805
Investment management fee                   (2,265)      --            (2,265)
Other expenses                              (996)        --            (996)


Net return before interest payable and      (456)        (95,646)      (96,102)
taxation
Interest payable                            (65)         --            (65)


Return on ordinary activities before        (521)        (95,646)      (96,167)
taxation
Taxation                                    (394)        --            (394)


Return attributable to ordinary             (915)        (95,646)      (96,561)
shareholders


Transfers to reserves                       (915)        (95,646)      (96,561)

                                           Revenue       Capital        Total


Return per ordinary share: basic            (0.75)c      (78.31)c      (79.06)c


The Baring Emerging Europe Trust PLC

Interim Unaudited Report Announcement in respect of the Six months ended 31
October 2001 (cont'd)

________________________________________________________________________________



                    STATEMENT OF TOTAL RETURN (unaudited)



                                                Full-year to 30 April 2001

                                              Revenue      Capital      Total
                                                $000        $000        $000


Gains/(losses) on investments                --         (100,345)     (100,345)
Gains/(losses) on foreign exchange           --         462           462
Income                                       3,812      --            3,812
Investment management fee                    (4,458)    --            (4,458)
Other expenses                               (1,956)    --            (1,956)


Net return before interest payable and       (2,602)    (99,883)      (102,485)
taxation
Interest payable                             (226)      --            (226)


Return on ordinary activities before         (2,828)    (99,883)      (102,711)
taxation
Taxation                                     (438)      --            (438)


Return attributable to ordinary shareholders (3,266)    (99,883)      (103,149)


Transfers to reserves                        (3,266)    (99,883)      (103,149)

                                             Revenue     Capital         Total


Return per ordinary share: basic             (2.68)c    (81.99)c      (84.67)c




The Baring Emerging Europe Trust PLC

Interim Unaudited Report Announcement in respect of the Six months ended 31
October 2001 (cont'd)

________________________________________________________________________________



                                BALANCE SHEET


                                              At            At           At
                                          31.10.2001    31.10.2000    30.4.2001
                                          (unaudited)   (unaudited)
                                             $000          $000         $000


Fixed assets
Investments                               275,874       303,796       296,037


Current assets
Debtors                                   6,845         2,517         1,888
Cash at bank and in hand                  5,236         17,243        1,121

                                          12,081        19,760        3,009

Creditors: amounts falling due within one (2,021)       (13,187)      (3,661)
year

Net current assets/(current liabilities)  10,060        6,573         (652)

Total assets less current liabilities     285,934       310,369       295,385


Capital and reserves
Called-up share capital                   11,841        12,233        11,840
Share premium account                     94,371        94,358        94,357
Warrant premium account                   12,669        13,239        12,835

Other reserves
Redemption reserve                        599           170           599
Capital reserve - realised                192,866       200,335       184,128
Capital reserve - unrealised              (14,401)      (1,150)       2,793
Revenue reserve                           (12,011)      (8,816)       (11,167)


Total equity shareholders' funds          285,934       310,369       295,385


Net asset value per share:  basic          241.87c       254.10c       249.88c

                            fully diluted  218.30c       228.26c       224.71c
     


The Baring Emerging Europe Trust PLC

Interim Unaudited Report Announcement in respect of the Six months ended 31
October 2001 (cont'd)

________________________________________________________________________________



                             CASH FLOW STATEMENT


                                   Half year     Half year ended     Year ended
                                     ended          31.10.2000        30.4.2001
                                  31.10.2001       (unaudited)
                                  (unaudited)  
                                     $000              $000             $000


Operating activities
Income received from investments,
net of tax
                                  2,269         2,028                2,915
Interest received                 307           384                  459
Investment management fees paid   (2,295)       (2,376)              (3,590)
Other cash payments               (1,063)       (1,145)              (1,827)


Net cash outflow from operating   (782)         (1,109)              (2,043)
activities

Returns on investments and
servicing of finance

Interest paid                     (77)          (65)                 (189)
                                 
Financial investments
Purchases of investments          (113,810)     (106,467)            (203,000))
Sales of investments              119,085       147,594              237,789


Net cash inflow from financial    5,275         41,127               34,789
investments

Financing
Exercise of warrants              9             45                   45
Buyback of ordinary shares        --            (3,570)              (11,361)
Buyback of warrants               (310)         --                   (601)

Net cash outflow from financing   (301)         (3,525)              (11,917)


Increase in cash                  4,115         36,428               20,640




The Baring Emerging Europe Trust PLC

Interim Unaudited Report Announcement in respect of the Six months ended 31
October 2001 (cont'd)

________________________________________________________________________________




NOTES



1.   The figures for the six months to 31 October 2001 and 31 October 2000 are  
     unaudited and do not constitute statutory accounts.  The figures for the
     year ended 30 April 2001 are an extract from the latest published accounts 
     and do not constitute statutory accounts.  Full accounts for that year have
     been delivered to the Registrar of Companies and included the Report of the
     Auditors which was unqualified.

2.   As at 31 October 2001 there were 118,219,983 Ordinary Shares of
     $US0.10 in issue (30 April 2001: 118,210,705).

3.   As at 31 October 2001 there were 23,545,017 Warrants exercisable at
     $US1.00 each in issue (30 April 2001: 23,854,295).

4.   As described in the Chairman's Statement, a new arrangement for the
     Investment Manager's fee came into effect on 1 May 2001.  This fee includes
     a performance bonus which is determined on 30 April 2002 and annually
     thereafter.  If this bonus had been payable at 31 October 2001 it would    
     have amounted to approximately $1,480,000.

The investment management fee for the half year ended 31 October 2001 which
has been charged to revenue in the Statement of Total Return comprises:


                                     $000

Basic fee                           1,137

Provision for performance bonus     1,480
                                    _____

                                    2,617
                                    _____


5.   The interim report will be sent to shareholders on 20 December 2001.
     It will not be advertised in newspapers, but copies will be available from
     that date at the Company's Registered office at 155 Bishopsgate, London,   
     EC2M 3XY.



The Baring Emerging Europe Trust PLC

Interim Unaudited Report Announcement in respect of the Six months ended 31
October 2001 (cont'd)

________________________________________________________________________________




                             CHAIRMAN'S STATEMENT



The Company's net asset value declined by 3.2% during the half year compared
to a fall of 7.7% in the Company's benchmark.  The half year under review was
dominated by the reduction in global growth and the Company's markets were
adversely impacted by reduced trade with Western Europe.  The re-rating of
Russia and the economic crisis in Turkey were the significant themes in the
region, both of which were reflected in the asset allocation.  Full details of
the investment performance are contained in the Report of the Investment
Manager.

I reported in my statement in the 2001 annual report that an amended
management contract was being concluded with Baring Asset Management Limited
('BAM') which inter alia would result in the creation of a performance element
in the Investment Managers' fee.

The new fee arrangement, which was implemented with effect from 1 May 2001,
comprises a basic fee at the rate of 0.8% per annum on the value of net assets
payable on a monthly basis and an annual performance bonus which is capped at
0.6% of opening net asset value in each period.  This compares to the previous
management fee of 1.25% per annum on the value of the net assets of the
Company at each quarter-end.  In addition, the administration fee, which is
paid to Baring Investment Services Limited, was reduced from 0.25% to 0.125%
per annum on the net asset value of the Company at each quarter end with
effect from 1 May 2001.

The performance fee is payable at the rate of 10% of the amount by which the
change in the Company's net asset value exceeds the benchmark.  The first such
bonus will be determined on 30 April 2002 and annually thereafter.

The Board is satisfied that the above represents a more satisfactory method
for determining the remuneration of the Investment Manager.

I am pleased to report that Charles Harman has today been appointed as a
director.  He joined Cazenove & Co Ltd as a Managing Director in its corporate
finance team in May of this year having previously been a Managing Director of
Credit Suisse First Boston's European investment banking group.  Prior to that
his career had been in investment banking focusing on central and Eastern
Europe.

Markets recently have been driven more by events and global liquidity and less
and less by economic considerations.  Low company valuations in the Company's
region, a beneficial liquidity environment and the expectation of a US led
economic recovery in 2002 should provide good prospects for your Company.


Sir William Ryrie
Chairman
3 December 2001



The Baring Emerging Europe Trust PLC

Interim Unaudited Report Announcement in respect of the Six months ended 31
October 2001 (cont'd)

________________________________________________________________________________




                       REPORT OF THE INVESTMENT MANAGER



During the period under review the undiluted net asset value per share ('NAV')
of the Company declined by 3.2% from US$2.50 to US$2.42. This compares with an
average decline of 5.9% by a peer group of comparable Eastern European
regional funds (source: S&P) and a fall of 7.7% in the benchmark.



Once again, the performance of the markets in the region has to a large extent
been determined by the global environment, which has provided mixed signals.
Positive news has stemmed from continuing interest rate cuts in the US  and
elsewhere while negative news has been the absence of any tangible signs of an
economic recovery.



Despite the deteriorating economic environment the decisive reaction of the
Central Banks to the terrorist attacks in the US on 11th September combined
with highly liquid positions held by many investment funds triggered a rally
not only in developed markets but in our region as well.

Central Europe

Given the current outlook for global and Western European growth in particular
it was difficult for Central European countries to maintain the levels of
growth seen last year. Due to the high level of trade links with Western
Europe the main source of 'growth contagion' in Central Europe is obviously
through demand for their exports. The main sources of possible growth '
compensation or substitution' would come from domestic consumption and
investment. Meanwhile, Government expenditure is unlikely to provide much of a
positive boost given that most countries in the region are generally under
pressure to tighten fiscal policy rather than loosen it.



The Czech economy is the most exposed economy to regional growth contagion
given its exports are close to 50% of GDP.  Both investment and consumption
are fairly resilient but are probably not sufficient enough to compensate for
the expected decline in exports.  Neither of these two areas will receive a
boost from domestic liquidity as real interest rates are already very low and
the economy is already highly leveraged.



The Hungarian economy is also highly exposed to slower Western demand with
exports above 40% of GDP.  Exports initially held up well but have started to
decline and will not remain immune to contagion effects. However, we feel it
is possible that both consumption and investment might compensate for these
declines.  Unlike in the Czech Republic, the economy is relatively under
leveraged.  Banks indicate that they are continuing to see increasing demand
for loans both from the retail and corporate sectors. Inflation is slowing and
monetary policy is likely to maintain a loosening bias especially given the
support of a solid fiscal environment. Hence, we are confident Hungarian
growth will remain relatively robust.



The situation in Poland is noticeably different as their exports are
equivalent to a much lower proportion of GDP (less than 20%) and have been
subdued for some time due to the strength of the Polish Zloty.  The domestic
economy has also been stifled by restrictively high real interest rates. As a
result growth has been declining for quite some time. The Central Bank has
been very reluctant to reduce rates, despite falling inflation, due to the
Government's inability to either control fiscal policy or to cope efficiently
with structural reforms. These conditions have meant domestic consumption and
investment have already contracted sharply. Going forward, however, we expect
the new Social Democrat led government, elected in September, to be much
stronger and should be able to successfully address the fiscal problems. This
should allow the Central Bank to reduce interest rates further. If the
Government and Central Bank can work together more efficiently there is
potential, finally, for a positive boost to the

The Baring Emerging Europe Trust PLC

Interim Unaudited Report Announcement in respect of the Six months ended 31
October 2001 (cont'd)

________________________________________________________________________________



economy.  Towards the end of the reporting period the market was well
supported by demand from local pension funds, which had been significantly
underweight Polish equities.



At the end of the reporting period the Company maintained weights in each of
these countries which were close to neutral versus the benchmark.  Despite the
continued uncertainty regarding a delayed recovery in Western Europe
valuations remain supportive to this strategy.



Russia

Forecast growth in the region remains strongest in Russia despite the recent
weakening in the oil price.  Instead growth is being driven by a recovery in
domestic demand and spending as wages rise and consumption increases from
depressed levels.  At the same time Russian companies across all sectors have
strong cash flows that are being used for domestic investment.  Oil and gas
companies also continue to invest and have indicated they would maintain this
policy unless the oil price fell below US$16 per barrel.  These strong
impulses should ensure robust growth going forward.



President Putin continues to be the force behind a number of important
structural reforms. The land code, which enables the sale and purchase of
land, was passed in the Duma, while progress has also been made on the initial
stages of judicial reform and a further simplification of the tax code. Russia
now has one of the lowest tax rates in the world.  Putin has also intervened
to replace the management at Gazprom, the major gas company.



The President has demonstrated his pragmatic approach to politics in the
aftermath of the 11th September when he showed his willingness for
co-operation with the West in the fight against terrorism.  This has already
improved the external image of the country and not surprisingly the marginal
buyer of the Russian market during the recent rally came from the US.



Despite the concerns regarding a weaker oil price and the lack of banking
reform the Company remains overweight in Russia due to low valuations and the
progress on other reforms.



The Eastern Mediterranean

During the reporting period Turkey could not regain the confidence of the
markets.  The economy is likely to contract by around 8% this year and there
is little indication that either consumption or investment will pick-up while
interest rates remain high and investor confidence low. Only towards the end
of the reporting period did hope of another IMF package trigger a slight
decline in interest rates and a rally in the equity market. This hope was
supported by the geo-strategic importance of Turkey in particular in the light
of the 11th September events.



The Company built up a small position in Turkey following the sharp market
declines. However, it remains to be seen whether the size of a possible IMF
package will be sufficient to regain the longer term confidence of investors.



On 1st May 2001 Greece was removed from the index following its transition to
developed market status. The country remains within the investment mandate of
the Company but due to the lack of value in the market a zero position was
maintained.



Conclusion

We believe that central banks and governments globally will continue to
undertake decisive action to support a turnaround of global economies. As long
as concerns over a global economic recovery remain high, expectations for
improved performance in our region are limited. However, due to the low
valuations we believe that Emerging Europe should continue to outperform
developed markets. We still see most potential in Russia where valuations also
remain low while risks have declined substantially.



Baring Asset Management Limited
3rd December 2001
For the Baring Emerging Europe Trust PLC
M J Nokes, Secretary
155 Bishopsgate, London EC2M 3XY
Tel: [phone]