Interim Management Statement

BARING EMERGING EUROPE PLC                           

                         Interim Management Statement                          

         Review of the period from 1 October 2007 to 31 December 2007          

The Board of Baring Emerging Europe PLC ("the Company") is pleased to announce
its first Interim Management Statement for the period from 1 October 2007 to 31
December 2007.

INVESTMENT OBJECTIVE

The investment objective of the Company is to achieve long-term capital growth,
principally through investment in Emerging European securities.

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

The directors confirm the following material events and transactions which have
occurred since the Company's year end on 30 September 2007.

Portfolio:

The regional allocation has changed slightly during the quarter. The weighting
in both Russia and Turkey has been increased which was funded from Poland,
Hungary and Kazakhstan.

At the sector level exposure to real estate and banking has been reduced during
the quarter as fundamentals deteriorated. The proceeds generated have been
re-invested in selective commodity areas such as iron ore, steel and gold and
also energy through increases in the investments in Russian oil and gas
companies.

The best performing stocks during the quarter were in companies with strong
pricing power, such as Russian mobiles (MTS, Vimpelcom), Uralkali (potash
producer), Mechel (steel) and Enka (construction). The poorest performers were
metal stocks and banks: Kazakhmys (copper), Uranium One, KGHM (copper), PBG
(Polish construction), OTP and Sabanci Holdings.

Discount:

The share price discount to net asset value at 31 December 2007 was 9.7% (30
September 2007: 9.3%).

Share Capital:

During the period from 1 October 2007 to 31 December 2007 the Company bought
back 805,539 ordinary shares at a cost of £7.2 million. At 31 December 2007 the
Company's issued share capital consisted of 40,672,168 ordinary shares
(excluding the 3,687,738 ordinary shares held in treasury).

The directors are not aware of any other significant events or transactions up
to the date of this report which would have a material impact on the financial
position of the Company.

ANNUAL GENERAL MEETING

The Annual General Meeting of the Company was held on 15 January 2008. All the
resolutions set out in the Notice of Meeting were duly passed.

ANNUAL DIVIDEND

At the Annual General Meeting shareholders approved the payment of an annual
dividend of 0.50p per share on 6 February 2008 to members on the register at
the close of business on 11 January 2008.

GENERAL MEETING

A General Meeting of the Company was held on 15 January 2008 to consider two
resolutions in connection with the amendment of the Articles of Association of
the Company, both of which were duly passed.

COMPANY STATISTICS AT 31 DECEMBER 2007

Gross Assets                         £430.5 million
Net Asset Value Per Ordinary Share  1,058.5p
Share Price                           955.5p
Discount to Net Asset Value             9.7%

CUMULATIVE PERFORMANCE TO 31 DECEMBER 2007 (Total Return in percentage terms)

Performance Over                 3m       1 Year     3 Years

Share Price*                    14.4        36.3       196.6
Net asset Value*                15.1        35.1       190.9
Benchmark+                      12.3        32.5       195.9

* Source - AIC

+ Source - Barings. MSCI EM Europe 10/40. Prior to 1/04/07 customised FTSE
Emerging Europe (Turkey 30% Russia 100%). Prior to 31/03/06 customised FTSE
Emerging Europe Index (Turkey 15% Russia 50%).

PORTFOLIO INFORMATION AT 31 DECEMBER 2007

Ten largest holdings:                                                      Geographical breakdown

                                   % of Total Assets                                                 %
 
Gazprom                                   10.1                              Russia                 59.9
Sberbank                                   9.0                              Turkey                 14.9
Lukoil Holdings                            6.8                              Poland                  8.3
Mobile Telesystems                         5.6                              Czech Republic          5.2
JSC MMC Norilsk                            4.3                              Hungary                 4.1
Vimpelcom                                  4.3                              Kazakhstan              2.1
CEZ                                        4.1                              Other                   4.4
RAO Unified Energy                         3.1                              Cash and Equivalents    1.1
Evraz Group                                2.9                              Total                 100.0
Turkiye Garanti Bankasi                    2.5


21 January 2008