Interim Management Statement

BARING EMERGING EUROPE PLC                           

                         Interim Management Statement                          

         Review of the period from 1 October 2008 to 31 December 2008          

This Interim Management Statement for the period from 1 October 2008 to 31
December 2008 contains information which covers that period, unless otherwise
stated.

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 2008.

Portfolio:

During the period under review the Investment Manager reduced the weighting to
Russian equities and moved the country position to underweight. Given the sharp
decrease in commodity prices and the huge problems across the Russian banking
sector, more negative newsflow is expected over the near term. Moreover, the
Investment Manager remains highly alert to corporate governance risks,
especially in Russia. The benign economic environment and (in the case of
Russia) negative real interest rates had led to strong growth in consumption
and investment, mainly financed by debt. In sharp contrast, the current
situation of frozen credit markets and a collapse in growth outlook will put
corporate governance standards to the first real test in many years. The
Russian State providing financing to the private sector in the absence of any
alternative sources of credit will significantly increase the State's
involvement in the real economy. The Company's exposure consists of companies
that are partially state owned or align their interests closely with that of
the Kremlin, to reduce this risk as much as possible.

The Russian rouble devaluation has become a major influence as it benefits the
resource sectors (reducing cost base) while proving negative for domestic
demand orientated sectors (through a destruction of pricing power) and the
financial sector (a currency mismatch on the balance sheet and heightened risk
of defaults). The Investment Manager expects the rouble weakness to continue
and the exchange rate to reach equilibrium in the range of 32 -35 rouble / USD
indicating a downside of 10 -20% from current levels.

Exposure to the Turkish banking sector was added as the Investment Manager
perceives the highly liquid, low- leveraged bank balance sheets as a major
competitive advantage. Furthermore, Turkish banks trade at a discount to the
EMEA banking sector and offer the highest level of transparency within the EMEA
region.

Investment Manager

On 1 December 2008 the Company was advised by Baring Asset Management (Barings)
that Martin Majdaniuk, the Company's portfolio manager, would be leaving
Barings and would be replaced by Mathias Siller.

Mr Siller joined Barings in October 2006 and is an investment manager within
their Emerging European Equities team. He has eleven years of investment
experience specialising in Central Europe and Turkey.

Discount:

The share price discount to net asset value at 31 December 2008 was 8.4% (30
September 2008: 11.4%)

Share Capital:

During the period from 1 October 2008 to 31 December 2008 the Company bought
back 1,025,478 ordinary shares at a cost of £4.2 million. At 31 December 2008
the Company's issued share capital consisted of 38,391,027 ordinary shares
(excluding the 3,318,207 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 13 January 2009. 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 9.00p per share on 4 February 2009 to members on the register at
the close of business on 9 January 2009.

COMPANY STATISTICS

                                                        31 December 2008     29 January 2009

Gross Assets                                              £177.3 million      £154.7 million
Net Asset Value Per Ordinary Share                          461.8p              403.0p     
Share Price                                                 423.0p              370.0p
Discount to Net Asset Value                                  8.4%                8.2%


CUMULATIVE PERFORMANCE TO 31 DECEMBER 2008 (Total Return in percentage terms)

Performance Over                                             3m        1 Year      3 Years

Share Price*                                                (32.9)     (55.7)       (26.0) 
Net asset Value*                                            (33.9)     (56.3)       (24.2)
Benchmark+                                                  (31.5)     (54.1)       (16.9)

* 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 2008

Ten largest holdings:                                                    Geographical breakdown  
                                           % of Total Assets                               %

Gazprom                                         9.4                              Russia 42.9
Lukoil Holdings                                 9.4                              Turkey 21.7
CEZ                                             7.9                              Poland 17.8
Turkiye Garanti Bankasi                         5.7                      Czech Republic 13.0
PKO                                             5.5                           Kazakhstan 0.1
Mobile Telesystems                              5.4                                Other 2.5
Rosneft                                         5.3                 Cash and Equivalents 2.0
Bank Pekao                                      4.5
Sberbank                                        3.5                              Total 100.0
Tupras                                          3.4

2 February 2009