Portfolio Update

BLACKROCK GREATER EUROPE INVESTMENT TRUST plc

All information is at 31 May 2008 and unaudited.

Performance at month end with net income reinvested

                                      One       Three         One         Since
                                    Month      Months        Year        Launch
                                                                    (20 Sep 04)
Net asset value                      3.5%        6.4%       -4.0%         90.1%
Share price                          1.9%        2.5%       -4.6%         78.4%
FTSE World Europe ex UK              1.5%        7.8%       -0.1%         87.4%

Sources: BlackRock and Datastream

At month end                                                          
Net asset value (capital only):           179.57p
Net asset value (including income):       183.27p includes net revenue of 3.70p
Share price:                              171.75p
Discount to NAV (capital only):              4.4%
Discount to NAV (including income):          6.3%
Gearing:                                     0.9%
Net yield:                                   1.4%
Total assets:                             £212.9m*
Ordinary shares in issue:             115,117,791**
                                                                      
* includes current year revenue                                      
** excluding 4,726,178 shares held in treasury                        

Benchmark                                                                      
Sector Analysis       Total Assets   Index (%) Country Analysis    Total Assets
                               (%)                                          (%)
                                                                               
Financials                   20.3         27.3 Germany                    19.5 
Oil & Gas                    12.3          7.4 Switzerland                15.7 
Basic Materials              12.0          8.0 France                     14.9 
Health Care                  11.0          6.6 Netherlands                11.0 
Utilities                    10.3          8.8 Russia                      6.0 
Industrials                   9.3         13.3 Norway                      5.4 
Consumer Goods                7.5         13.7 Italy                       5.0 
Telecommunications            7.1          6.2 Emerging Europe             3.8 
Consumer Services             4.5          4.8 Belgium                     2.5 
Technology                    3.4          3.9 Spain                       2.4 
Other Investments             3.9              Denmark                     2.3 
Net current liabilities      (1.6)             Finland                     2.1 
                                               Poland                      2.0 
                                               Cyprus                      2.0 
                                               Greece                      2.0 
                                               Ireland                     2.0 
                                               USA                         1.4 
                                               Turkey                      1.1 
                                               Israel                      0.4 
                                               Hungary                     0.1 
                                               Net current liabilities    (1.6)
                            -----        -----                           ----- 
                            100.0        100.0                           100.0 
                            =====        =====                           ===== 

Ten Largest Equity Investments                                                 
                                                                               
Company                                     Country of Risk                    
Akzo Nobel                                  Netherlands                        
Allianz                                     Germany                            
ArcelorMittal                               Netherlands                        
Bayer                                       Germany                            
BlackRock Eurasian Frontiers Hedge Fund     Emerging Europe                    
Nestle                                      Switzerland                        
Novartis                                    Switzerland                        
Roche                                       Switzerland                        
Statoilhydro                                Norway                             
Suez                                        France                             

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

May was another turbulent month for European equity markets with two 'up' weeks
followed by two 'down' weeks. The FTSE World Europe ex UK Index (NDR) returned
1.5% in Sterling terms. The oil price continued to dominate headlines, rising
from US$112 to a record US$134 before retreating to US$127 at the end of the
month. Consensus for earnings growth continued to deteriorate as anticipated
with estimates now standing at 4.2% for 2008 and 11.9% for 2009, putting the 
P/E on 12x 2008. There was a continued divergence in performance for the MSCI
country constituents with France and Germany outperforming, while Spain and
Ireland continued to lag.

Continental European Equities markets in May were led by strong
performance in Energy and Utilities, both benefiting from the increase in oil
prices; the Material sector also performed well. Financials was the worst
performing sector. Emerging Europe outperformed the developed European markets
with the MSCI Emerging Europe posting a gain of 12.3% through April in Sterling
terms as risk tolerance improved.

The Company's NAV returned 3.5% outperforming the reference index. The
contribution from the Emerging Europe region was positive, with the benefit to
the Company from its exposure in Russia and Israel offsetting the falls in
Turkey and Poland and the negative return made by the BlackRock Eurasian
Frontiers Hedge Fund. The Company's positive gearing had a negligible
contribution to performance this month.

During the month, the Company benefited from its exposure to the Software &
Services, Utilities and Energy sectors and lack of exposure to the
underperforming Banks and Autos sectors. The return from Software & Services is
attributable to two names, Ness Technologies, which posted a gain of 25.1%
during the month following solid Q1 earnings and a significant contract win,
and Capgemini, which rose 11.9% following a good analyst day which boosted
investor confidence in strong '08 earnings. Within Utilities, Finnish
hydropower generator, Fortum, and French Utility company, Suez, were notable
positive contributors as they benefited from rising power prices. Russian Oil
companies Transneft and Surgutneftegaz both rose significantly, also benefiting
from rising oil prices. Selection within the Banks allowed a positive return
from this sector, mostly attributable to gains made by Santander and Bank of
Cyprus. Autos continued to underperform as weakening demand and higher input
costs squeezed profitability and growth. The Company's only exposure to this
sector is to BMW, which has implemented a cost cutting program and, due to the
high end nature of its cars, is less impacted by rising raw material prices.
Weak performance during the month came from Consumer Staples and Diversified
Financials. Food & Beverage names Nestle, Unilever and Parmalat all contributed
negatively to returns as the inability to pass on rising inflation costs was
showing signs of squeezing margins and Household & Personal Products maker,
Beiersdorf, also fell on similar concerns. Within Diversified Financials,
Fortis and Credit Suisse were notable laggards as woes within the capital
markets continued and fears of further writedowns and capital raising
overshadowed the shares.

During the month, the Company reduced its holdings in the Banks, Autos and
Diversified Financials sectors. The proceeds were used to increase holdings in
the Capital Goods sector, buying a position in Vestas Wind Systems and topping
up the positions in GEA Group and Alstom, and the Food, Beverage & Tobacco
sector, through the purchase of Nestle.

The Company continues to have a bias towards Healthcare, Oil & Gas and
Telecoms. The bias towards Basic Materials and Utilities has now increased to a
significant level. Exposure to Emerging Europe was increased slightly during
the month to finish at 13.4%, with the largest country exposure being Russia,
along with the BlackRock Eurasian Frontiers Hedge Fund which provides
diversified exposure to the region. During the month the Company reduced its
net market exposure to 101.0%.

Prospects for European growth in 2008/09 have deteriorated over the past six
months in line with other economies. However, within Europe, some economies
remain resilient including Germany which showed a rebound in the IFO in May.
The UK, Spain and Italy appear to be affected most by the economic headwinds.
Surveys remained mixed in May with inflation continuing to hamper the European
Central Bank's ability to cut interest rates.

Nonetheless, we remain optimistic for European equities relative to other
markets. From a valuation perspective Europe remains relatively cheap and
dividends yields high relative to history and bonds.

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).

24 June 2008