Interim Management Statement

BARING EMERGING EUROPE PLC                           

                         Interim Management Statement                          

            Review of the period from 1 April 2011 to 30 June 2011             

This Interim Management Statement relates to the period from 1 April 2011 to 30
June 2011 and contains information that 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 half year end on 31 March 2011.

Portfolio:

Portfolio allocation decisions in the first half of 2011 were influenced by
further indications of a slowdown in global economic growth and monetary
tightening in the emerging world - particularly Asia and Latin America, and the
anticipation of the end of Quantitative Easing by the US Federal Reserve.

Exposure to the Materials sector was reduced to an underweight position
relative to the benchmark index for the first time in four years, as individual
stocks reached price targets and lower global growth expectations took their
toll on the performance potential of the underlying commodities.

While the reduction in Material stocks decreased the Russia weighting, this was
more than made up by purchases of Russian Banking stocks and Energy companies.
Russian financial intermediaries reported the long-expected acceleration of
credit growth, a trend that should remain in place for the rest of the year,
helping to underpin the outlook for earnings growth in the Financial sector.

The Turkish equity exposure in the portfolio was actively traded. After
reducing the portfolio's Turkish positions in the last quarter of 2010, Baring
Emerging Europe plc started 2011 underweight the Turkish stock market. The
significant underperformance of the Turkish market compared with other
countries in the region was used to build positions in Banking stocks and the
overall exposure was hence moved to overweight against the benchmark index.

In the Energy sector, the exposure to Russian and Kazakh energy production
companies was increased as upcoming reforms in the Russian tax code should
incentivise production growth and improve earnings transparency. The weighting
in the utility sector remains below the benchmark index level as elections in
Russia and other countries negatively impact the potential for tariff
increases.

The Company participated in selected Initial Public Offerings during the
period, and subscribed for shares in Global Ports, a Russian port operator and
infrastructure company, and Rusagro, the largest Russian sugar producer. In
addition, the Company participated in the Russian government's secondary
offering of VTB, the second largest Russian bank.

Discount:

During the period from 1 April 2011 to 30 June 2011 the average share price
discount to net asset value was 9.2 %.

Share Capital:

During the period from 1 April 2011 to 30 June 2011 the Company bought back
875,000 ordinary shares at a cost of £7.75 million. At 30 June 2011 the
Company's issued share capital consisted of 33,571,110 ordinary shares
(excluding the 3,318,207 ordinary shares held in treasury). During the period
from 1 July 2011 to 1 August 2011 a further 296,000 shares have been
repurchased for cancellation.

VAT:

On 24 May 2011 the Company announced that it had recovered £328,176 of VAT on
management fees invoiced since the Company's inception in December 2002 until
31 March 2005, together with interest thereon of £58,129. This recovery had not
previously been recognised as an asset by the Company due to the uncertainty of
the recovery and has resulted in an uplift of 1.15 pence to the net asset
value. The VAT recovered and interest has been credited to the Company's
revenue and capital accounts in accordance with the Board's policy for
allocation of management fees and finance costs. This completes the recovery of
VAT on management and performance fees.

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.

COMPANY STATISTICS

                                                          30 June 2011    1 August 2011

Gross Assets                                            £330.9 million     £321.6 million
Net Asset Value Per Ordinary Share                          985.6p             966.4p
Share Price                                                 887.0p             875.5p
Discount to Net Asset Value                                  10.0%               9.4%


CUMULATIVE PERFORMANCE TO 30 June 2011 (Total Return in percentage terms)

Performance Over                                     3m         1 Year        3 Years

Share Price*                                        -5.3%        +21.9%         -0.9%
Net Asset Value+                                    -5.6%        +21.5%         -0.9%
Benchmark+                                          -3.0%        +30.0%         +3.0%

* Source - AIC
+ Source - Baring Asset Management


PORTFOLIO INFORMATION AT 30 June 2011

                                               % of Total Assets
Ten largest holdings:

Sberbank                                            11.9
Gazprom                                              9.5
Lukoil Holdings                                      6.6
Powszechna Kasa                                      5.3
Rosneft                                              4.6
Mechel                                               4.6
VTB Bank                                             4.4
Turkiye Garanti Bankasi                              4.2
Turkiye IS Bankasi                                   3.4
Turkiye Halk Bankasi                                 3.3


Geographical breakdown:                               %

Russia                                              58.7
Turkey                                              18.0
Poland                                              12.7
Hungary                                              3.0
Kazakhstan                                           3.1
Czech Rep                                            0.3
Other                                                1.9
Cash & Equivalents                                   2.3

                                                   100.0

2 August 2011