Interim Management Statement

BARING EMERGING EUROPE PLC                           

                         Interim Management Statement                          

         Review of the period from 1 October 2009 to 31 December 2009          

This Interim Management Statement for the period from 1 October 2009 to 31
December 2009 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 2009.

Portfolio:
There was a low level of portfolio activity during the quarter. The main
country weighting changes were to Russia which was increased from 54.8% at 30
September 2009 to 61.1% at 31 December 2009 and the Czech Republic which was
reduced from 8.1% to 5.1% in the same period.

In Russia the Company added to its holdings in Sberbank, Gazprom and Norilsk
Nickel and participated in the public offering of the railway logistics company
Globaltrans. In the Czech Republic the holding in Komercni Banka was sold.

The other significant portfolio changes were the purchase of a new holding,
Coca Cola Icecek in Turkey and the partial disposal of retailer Oriflame.

Discount:
The share price discount to net asset value at 31 December 2009 was 10.5% (30
September 2009: 8.3%)

Share Capital:
During the period from 1 October 2009 to 31 December 2009 the Company bought
back 340,657 ordinary shares at a cost of £2.4 million. At 31 December 2009 the
Company's issued share capital consisted of 36,293,052 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 HELD ON 19 JANUARY 2010

Resolutions
All the resolutions set out in the Notice of Meeting were duly passed. The
resolutions approved included resolutions to authorise the Company to issue
shares for cash, including shares held in treasury, to make market purchases of
the Company's own shares and to adopt New Articles of Association.

Board Change
Mr Iain Saunders retired from the Board following the Annual General Meeting.
Mr Steven Bates has been appointed as Chairman in place of Mr Saunders.

Annual Dividend
Shareholders approved the payment of an annual dividend of 8.50p per share on 4
February 2010 to members on the register at the close of business on 8 January
2010.

COMPANY STATISTICS

                                              31 December 2009    27 January 2010

Gross Assets                                   £307.9 million     £299.1 million
Net Asset Value Per Ordinary Share               843.68p            830.28p
Share Price                                      759.50p            747.00p
Discount to Net Asset Value                       10.5%              10.0%

CUMULATIVE PERFORMANCE TO 31 DECEMBER 2009 (Total Return in percentage terms)

Performance Over                                3m      1 Year      3 Years
Share Price*                                   +8.3      +83.9       +11.1
Net asset Value*                              +10.6      +86.1        +9.7
Benchmark+                                     +8.9      +69.2        +1.0

* 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 2009

Ten largest holdings:                                 Geographical breakdown
                               % of Total Assets                           %

Sberbank                            11.1
Gazprom                             10.5               Russia           61.1
Rosneft                              8.4               Turkey           16.7
Lukoil Holdings                      7.9               Poland            9.6
Turkiye Garanti Bankasi              6.1               Czech Republic    5.1
CEZ                                  5.0               Hungary           5.0
PKO                                  4.8               Kazakhstan        1.8
Mobile Telesystems                   4.8               Other             0.7
Norilsk Nickel                       4.5
Turkiye Halk Bankasi                 4.0               Total           100.0

28 January 2010