Portfolio Update

Merrill Lynch Greater Europe IT PLC
21 June 2006

MERRILL LYNCH GREATER EUROPE INVESTMENT TRUST plc

All information is at 31 May 2006 and unaudited.

Performance at month end with net income reinvested
                                             One                Three              One                Since launch
                                             Month              Months             Year               (20Sep04)
Net asset value                               -5.8%             -0.4%              36.7%              58.0%
Share price                                  -10.2%             -6.1%              33.8%              46.9%
FTSE World Europe ex UK                       -5.6%             -0.4%              26.2%              44.3%

Sources: Merrill Lynch Investment Managers and Datastream.


At month end
Net asset value:                        156.06p            Includes net revenue of 2.08p
Share price:                            145.00p
Discount to NAV:                           7.1%
Gearing:                                  11.1%
Net yield:                                 1.1%
Total assets:                           £228.8m
Ordinary shares in issue:               133,705,096



Benchmark
Sector Analysis                         Total Assets         Index Country Analysis                         Total Assets
                                                 (%)           (%)                                                   (%)
Financials                                     33.9           26.4 Germany                                         18.2
Industrials                                    13.7           12.3 France                                          17.9
Oil & Gas                                       8.8            8.1 Switzerland                                      9.5
Basic Materials                                 8.2            5.4 Italy                                            8.5
Telecoms                                        6.4            4.4 Russia                                           6.0
Healthcare                                      6.3            8.8 Netherlands                                      6.0
Utilities                                       6.1            4.0 Ireland                                          5.8
Consumer Goods                                  6.1           10.6 Spain                                            5.2
Consumer Services                               5.9            9.8 Sweden                                           5.0
Technology                                      3.5           10.2 Belgium                                          4.8
Other Investments                               2.2              - Turkey                                           3.2
Net current liabilities                        (1.1)             - Israel                                           2.9
                                                                   Finland                                          2.2
                                                                   Norway                                           2.0
                                                                   UK                                               1.7
                                                                   Poland                                           1.4
                                                                   Greece                                           0.7
                                                                   Austria                                          0.1
                                                                   Net current liabilities                         (1.1)
                                              -----          -----                                                 -----
                                              100.0          100.0                                                 100.0
                                              -----          -----                                                 -----



Ten Largest Equity Investments
Company                                                      Country of Risk
BBVA                                                           Spain
Credit Suisse                                                  Switzerland
Fortum                                                         Finland
Ing Groep                                                      Netherlands
Nestle                                                         Switzerland
Novartis                                                       Switzerland
RWE                                                            Germany
Siemens                                                        Germany
Societe Generale                                               France
Total                                                          France




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

After a strong start to the month equity markets declined during May, as fears over inflation and global interest rate
rises dominated markets.  The FTSE World Europe ex UK (net) returned -5.6% and the MSCI Emerging Europe index returned
   -15.7%.  Markets were characterised by a sharp increase in volatility and risk aversion which resulted in a move
away from shares with cyclical drivers, a sell off in emerging markets and a sharp reversal in the returns of stocks
that had experienced strong appreciation year to date.

The Company's NAV returned -5.8% during May, underperforming the reference index by 0.2%.  The contribution from the
Emerging Europe region was negative, with relatively strong performance from Russia offset by declines in Poland and
Turkey.

During May the Company benefited from a number of holdings in the material and energy sectors, where a strong start to
the month offset subsequent losses.  These included steel companies Thyssenkrupp and Novolipetsk, and seismic services
company PGS.  Other stocks to have a positive contribution to performance were logistics group Deutsche Post and bank
Unicredito.  The stocks which detracted from performance were mainly found in the more cyclical names which included
industrial conglomerate Siemens, construction group Hochtief, speciality chemical company Umicore and Turkish
construction Group Enka Insaat.

During the month the Company increased its weighting to Emerging Europe predominately by adding to Turkey and Russia.
Other transactions were mainly in the financial sector where the Company adopted a more defensive stance by reducing
exposure to stocks with leverage to financial markets.

The Company continues to have a bias towards the financials, mainly through banks but also diversified financials.
Other key sector weights include energy, telecoms and materials.  Exposure to Emerging Europe increased during the
month to finish at 13.5%.  The Company ended the month with a net market exposure of 111%.

Business confidence continues to rise in Continental Europe with economic developments generally surprising on the
upside.  European companies are in a healthier financial position than they have been for many years.  The global
economic recovery since 2003 has resulted in very strong cash flow generation, magnified by the dramatic improvement in
profitability due to radical restructuring that we have seen across many European industries.  Now that balance sheet
strength has been regained companies are increasingly looking for suitable acquisition candidates, and the market is
now prepared to reward companies that aim to boost the sustainable growth rate of their businesses through increased
investment spending and merger and acquisition activity.  European equity valuations are still attractive, earnings
growth is robust and earnings revisions remain positive.

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).


21 June 2006






                      This information is provided by RNS
            The company news service from the London Stock Exchange