Portfolio Update

Merrill Lynch Greater Europe IT PLC
26 September 2006

MERRILL LYNCH GREATER EUROPE INVESTMENT TRUST plc

All information is at 31 August 2006 and unaudited.

Performance at month end with net income reinvested

                                             One                Three              One                Since launch
                                             Month              Months             Year               (20Sep04)

Net asset value                              1.0%               1.2%               23.1%              59.9%
Share price                                  1.7%               4.1%               24.4%              53.0%
FTSE World Europe ex UK                      1.7%               3.4%               20.3%              49.2%

Sources: Merrill Lynch Investment Managers and Datastream.

At month end
Net asset value:                        157.95p            Includes net revenue of 2.62p
Share price:                            151.00p
Discount to NAV:                           4.4%
Gearing:                                   3.8%
Net yield:                                 1.1%
Total assets:                           £210.0m
Ordinary shares in issue:               130,238,932



Benchmark
Sector Analysis                         Total Assets         Index Country Analysis                         Total Assets
                                                 (%)           (%)                                                   (%)

Financials                                     33.0           34.4 Germany                                         21.3
Industrials                                    13.1           10.6 France                                          18.8
Oil & Gas                                       9.1            6.1 Switzerland                                     13.0
Basic Materials                                 8.8            5.0 Italy                                            9.1
Utilities                                       8.5            7.1 Netherlands                                      7.1
Telecoms                                        7.0            6.0 Spain                                            4.9
Consumer Goods                                  6.9           12.8 Russia                                           4.4
Healthcare                                      4.8            8.2 Belgium                                          4.4
Technology                                      3.6            5.3 Ireland                                          4.3
Consumer Services                               3.5            4.5 Sweden                                           3.7
Other Investments                               2.4              - Finland                                          2.2
Net current liabilities                        (0.7)             - Norway                                           1.9
                                                                   UK                                               1.7
                                                                   Poland                                           1.6
                                                                   Israel                                           1.3
                                                                   Turkey                                           1.0
                                                                   Net current liabilities                         (0.7)
                                              -----          -----                                                 -----
                                              100.0          100.0                                                 100.0
                                              -----          -----                                                 -----



Ten Largest Equity Investments

Company                                                      Country of Risk

AXA                                                            France
BBVA                                                           Spain
E.On                                                           Germany
ENI                                                            Italy
Nestle                                                         Switzerland
Novartis                                                       Switzerland
RWE                                                            Germany
Total                                                          France
UBS                                                            Switzerland
Unicredito Italiano                                            Italy




Commenting on the markets, James Macmillan, representing the Investment Manager noted:

European equity markets continued to rebound during August with the FTSE World Europe ex UK (net) returning 1.7%.
Performance from Emerging Europe was more mixed with the MSCI Emerging Europe Index returning 0.3% in sterling terms.
Markets were driven by a sharply falling oil price, leading to a significant drop in long term bond yields and an
expectation that the US Federal Reserve Bank's monetary tightening cycle was coming to an end.  Another 0.25% increase
(to 3.0%) in the European Central Bank's official interest rates in early August had been widely anticipated and was
hence shrugged off as a non-event by most investors.

The Company's NAV returned 1.0% during August underperforming the reference index by 0.7%.  The contribution from the
Emerging Europe region was negative, due to poor performance from Poland.  The use of flexible gearing was advantageous
with the Company benefiting from being positively geared in a rising market.

During August the Company benefited from a number of holdings across a range of sectors.  The best performing stocks
were speciality chemical company Umicore which saw a sharp rise in first half profits, and steel pipe manufacturer
Vallourec.  Other strong performing stocks were Anglo Irish Bank and Allied Irish Bank, and within the telecoms sector
Teliasonera, and Russian telecoms companies, Sistema and Mobile Telesystems.

The stocks which detracted from performance were mainly found in the energy sector, which pulled back along with the
oil price.  The worst performing stocks were those with leverage to the oil price through refining and upstream
exposure, such as PKN and Statoil.  Other stocks to have a negative effect were low cost airline Ryan Air, Dutch retail
bank SNS Reaal, and in the material sector, Novolipetsk Iron and Thyssenkrupp.

During the month the Company established new positions in investment bank UBS, speciality steel manufacturer Vallourec
and power utility company E.On.  These transactions were partially funded by selling shares in pharmaceutical company
AstraZeneca, Deutsche Telekom and Ryan Air.

The Company continues to have a bias towards the financials, mainly through banks and diversified financials,
materials, energy and utilities.  Exposure to Emerging Europe marginally decreased during the month to finish at 8.3%.
The Company ended the month with a net market exposure of 104%.

Recent surveys continue to suggest that both business and consumer confidence is rising strongly in Continental Europe
signalling that economic growth is accelerating significantly in 2006.  Unlike in previous years, growth is not simply
driven by strong export demand: after many years of weakness there are signs that domestic demand is now picking up in
countries such as Germany and Italy; growth rates in periphery countries such as Denmark, Greece, Ireland, Norway,
Spain and Sweden and Emerging Europe remain buoyant.  Meanwhile the operating performance of European listed companies
remains highly satisfactory as a result of strenuous cost control and restructuring efforts.  This provides a very
favourable backdrop for corporate profits in Europe and we remain positive in the medium term.



Latest information is available by typing www.mlim.co.uk/its on the internet, 'MLIMINDEX' on Reuters, 'MLIM' on
Bloomberg or '8800' on Topic 3 (ICV terminal).


26 September 2006






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