Portfolio Update

MERRILL LYNCH GREATER EUROPE INVESTMENT TRUST plc
All information is at 31 December 2007 and unaudited.

Performance at month end with net income reinvested
                             One       Three          One   Since Launch
                           Month      Months         Year      (20Sep04)                     
Net asset value             2.7%        2.3%        14.6%         102.5%           
Share price                 3.6%        1.5%        14.3%          93.5%           
FTSE World Europe ex UK     1.9%        3.0%        15.7%          91.1%           
Sources: BlackRock and Datastream


At month end                                                                                                    
Net asset value (capital only):                      195.26p
Net asset value (including income):                  195.17p*                                                           
Share price:                                         186.25p  
*Includes net revenue of (0.09p)                                                          
Discount to NAV (capital only):                         4.6%                                                            
Discount to NAV (including income):                     4.6%                                                           
Gearing:                                                2.3%                                                          
Net yield:                                              1.3%                                                          
Total assets:                                        £230.0m                                                           
Ordinary shares in issue:                        115,117,791


Sector Analysis        Total Assets      Index      Country Analysis    Total Assets
                                (%)        (%)                                   (%) 
Financials                     25.1       28.6      Germany                     23.9
Basic Materials                12.2        6.8      France                      13.8
Health Care                    11.5        6.5      Switzerland                 10.3
Utilities                      10.2        8.5      Italy                        8.8
Consumer Goods                  9.0       14.1      Netherlands                  7.5
Oil & Gas                       7.7        6.4      Spain                        5.4
Telecommunications              6.4        6.9      Finland                      4.7
Technology                      5.8        4.2      Russia                       4.3
Industrials                     5.4       12.9      Emerging Europe              3.6
Consumer Services               3.7        5.1      Belgium                      2.4
Other Investments               3.7                 Israel                       2.2
Net current liabilities        (0.7)                USA                          2.1
                                                    Greece                       2.1
                                                    Turkey                       1.8
                                                    Austria                      1.5
                                                    Norway                       1.5
                                                    Ireland                      1.5
                                                    UK                           1.2
                                                    Poland                       1.1
                                                    Luxembourg                   1.0
                                                    Net current liabilities     (0.7)                
                              -----      -----                                 -----
                              100.0      100.0                                 100.0
                              =====      =====                                 =====
  

Ten Largest Equity Investments                                                 
Company                                     Country of Risk                       
                                                                               
Banco Santander                             Spain                                
Bayer                                       Germany                              
BlackRock Eurasian Frontiers Hedge Fund     Emerging Europe                      
Electricite de France                       France                               
ENI                                         Italy                                
E.On                                        Germany                              
Intesa Sanpaolo                             Italy                                
Nokia                                       Finland                       
Novartis                                    Switzerland                          
Siemens                                     Germany                              


Commenting on the markets, James Macmillan, representing the Investment Manager
noted:

European equity markets advanced modestly in December, despite increasing
concern about the impact of the US sub-prime and credit crisis on economic
growth in Europe. Emerging Europe continued to underperform the developed
European markets reversing the trend seen for most of the year. The FTSE World
Europe ex UK Index (NDR) returned 1.9% through December and the MSCI Emerging
Europe returned 1.7% in Sterling terms.

The Company's NAV returned 2.7% outperforming the reference index. The
contribution from the Emerging Europe region was positive, with the Company
benefiting from its exposure to Russia and Turkey. The Company's performance
was positively impacted by positive gearing in a rising market.

During the month the Company benefited from its exposure to materials and stock
selection within this sector contributed positively; notably positions in steel
giant Arcelor Mittal, and chemical companies Akzo Nobel and Bayer were the most
positive. In addition, a position in Turkish printing company, Koza
Davetiyeleri along with selected stocks in the telecoms (Hellenic Telecoms) and
banks (Allied Irish and Santander) sectors also had a positive contribution to
performance.

The Company's exposure to the consumer durables sector through Turkish Vestel
Elektronik Sanayi Ve Ticaret, the insurance sector (AXA), utilities sector
(Iberdrola) and pharmaceutical sector (Roche and Novartis) all detracted from
performance through December.

During the month, the Company reduced its holdings in the energy sector through
the sale of Gazprom and Statoilhydro, and the technology sector through the
trimming of the position in Nokia. The proceeds were used to increase holdings
in software and services company Cap Gemini, which we saw as undervalued and
the Materials and Diversified Financials sectors.

The Company continues to have a bias towards financials through banks, along
with pharmaceuticals, materials and utilities. Exposure to Emerging Europe
increased during the month to finish at 13.0%, with the largest country
exposures being Turkey and Russia, along with the BlackRock Eurasian Frontiers
Hedge Fund which provides diversified exposure to the region. During the month,
the Company significantly reduced its net market exposure to 102.3%.

We remain positive on the medium term prospects for European and Emerging
European equities, although the risk of near term volatility is high. The key
risk is that of global recession but if current consensus expectations of
continued growth in Emerging Markets prove robust, then European companies can
continue to deliver profit growth on the back of sales expansion and
productivity benefits. The overall valuation of the European equity market
looks reasonable and there are some stocks in cyclical sectors which look very
cheap, after the recent market weakness. M&A is likely to continue to be
supportive as many sectors consolidate across borders within Europe. We are
likely to be opportunistic buyers into any market weakness.

Latest information is available by typing www.blackrock.co.uk/its on the
internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV
terminal).

22 January 2008