Interim Management Statement

BARING EMERGING EUROPE PLC                           

                         Interim Management Statement                          

            Review of the period from 1 April 2012 to 30 June 2012             

This Interim Management Statement for the period from 1 April 2012 to 30 June
2012 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 1 April 2012.

Share Capital:

During the period from 1 April 2012 to 30 June 2012 the Company bought back
316,000 ordinary shares at a cost of £2.1 million. At 30 June 2012 the
Company's issued share capital consisted of 25,556,543 ordinary shares
(excluding the 3,318,207 ordinary shares held in treasury). During the period
from 1 July 2012 to 25 July 2012 a further 255,000 shares have been repurchased
for cancellation.

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 other than as described in the investment manager's
review, which follows.

Discount:

The share price discount to net asset value at 30 June 2012 was 10.0% (31 March
2012: 7.2%)

Portfolio:

Against a backdrop of a sluggish global economy, growth disappointments in
China and steepening recession in the Eurozone, the portfolio has further been
focused on the three highly liquid markets in the Emerging European context,
namely Poland, Turkey and Russia.

In terms of portfolio activity, the Turkish equity exposure in the portfolio
was moved to underweight relative to the benchmark index following significant
outperformance by the Turkish equity market, which rose by more than 27.3% in
GBP terms in the first 6 months of the year. A combination of positive company
data, signs of a moderate economic slowdown and falling energy prices (Turkey
is a large energy importer) all contributed positively. Still, Turkish equities
have become more expensive over the period which prompted us to rotate
portfolio exposure to areas, in our opinion, with superior growth/valuation
characteristics.

The exposure to Polish stocks was increased over the course of the second
quarter of 2012. Within the Polish financial sector, the focus has been shifted
to the domestic market leader in insurance, PZU, where a superb capital
position and dividend yield are accompanied by attractive valuation and growth
characteristics. The exposure to Polish banks, in contrast, has been reduced as
relative share price valuations became unattractive, in our view, and we
identified signs of a worsening credit cycle. Consumer goods wholesaler
Eurocash reached our stock price target on the back of superb operational
performance and was hence sold, while the position in Europe's largest copper
miner, KGHM, was significantly increased. As an example of the increasing
importance of yield in these markets, shareholders in this company voted in
June for a record dividend payout of 70% of income, which translates into a
yield of 20% at current price levels.

The Company's position in Russian energy companies has been significantly
increased over the course of the second quarter as valuation levels became
significantly more attractive and increased dividend payout ratios support the
investment case.

COMPANY STATISTICS

30 June 2012 24 July 2012

Gross Assets £187.5million £181.4million

Net Asset Value Per Ordinary Share 733.58p 717.11p

Share Price 660.00p 644.00p

Discount to Net Asset Value 10.0% 10.2%

CUMULATIVE PERFORMANCE TO 30 JUNE 2012 (Total Return in percentage terms)

Performance Over 3m 1 Year 3 Years

Share Price* -10.6 -24.6 +31.0

Net asset Value* -7.7 -24.6 +34.5

Benchmark+ -8.1 -22.1 +46.4

* Source - AIC using Morningstar

+ Source - Barings. MSCI EM Europe 10/40.

PORTFOLIO INFORMATION AT 30 June 2012

Ten largest holdings: Geographical breakdown

% of Total Assets %

Sberbank 10.5% Russia 61.6

Lukoil Holdings 10.0% Turkey 14.0

Gazprom 9.5% Poland 14.2

Novatek 5.9% Hungary 5.3

KGHM Polska 4.7% Czech Republic 0.7

Turkyie Halk Bankasi 4.6% Kazakhstan 0.6

Powszechny Zaklad Ubezpieczen 4.6% Other 0.9

VTB Bank 4.1% Cash 2.7

Rosneft 3.4% Total 100.0

Powszechna Kasa Oszczednosci 2.8%

26 July 2012