Portfolio Update

BLACKROCK GREATER EUROPE INVESTMENT TRUST plc
All information is at 31 August 2012 and unaudited.

Performance at month end with net income reinvested
                                 One     Three      One    Three   Since launch
                               Month    Months     Year    Years    (20 Sep 04)
Net asset value* (Undiluted)    2.2%      9.8%     3.8%    21.8%         115.2%
Net asset value* (Diluted)      1.9%      9.5%     3.7%    21.5%         114.6%
Share price                     1.3%      8.9%     0.2%    24.0%         102.9%
FTSE World Europe ex UK         3.7%     11.9%     1.4%     4.6%          68.7%

Sources: BlackRock and Datastream

* Net asset value and share price performance includes the subscription share
reinvestment, assuming the subscription share entitlement per share was sold
and the proceeds reinvested on the first day of trading.

At month end
Net asset value (capital only):        181.53p
Net asset value (including income):    186.55p
Net asset value (capital only)**:      181.77p
Net asset value (including income)**:  185.97p
Share price:                           175.00p
Discount to NAV (including income):       6.2%
Discount to NAV (including income)**:     5.9%
Subscription share price:                2.00p
Gearing:                                10.10%
Net yield***:                             2.0%
Total assets (including income):       £245.4m
Ordinary shares in issue****:      119,793,123
Subscription shares in issue:       23,484,013

**   Diluted for subscription shares.
***  Based on final ordinary dividend of 3.50p for the year ended 31 August
2011.
**** Excluding 4,760,637 shares held in treasury.

Benchmark
Sector Analysis  Total Assets (%)  Index (%)  Country Analysis  Total Assets (%)

Consumer Goods               21.5       19.2  Switzerland                   19.7
Industrials                  17.2       14.4  Germany                       18.2
Basic Materials              14.7        8.3  France                        16.2
Oil & Gas                    10.2        7.2  Netherlands                    7.0
Consumer Services            10.0        5.2  Spain                          6.0
Health Care                   9.6       12.5  Sweden                         5.6
Financials                    9.5       20.0  Denmark                        4.8
Telecommunications            4.1        4.8  Finland                        4.1
Technology                    3.2        3.5  Russia                         3.8
Utilities                       -        4.9  Italy                          3.7
Net current assets              -         -   Luxembourg                     2.4
                            -----      -----  Belgium                        2.2
                            100.0      100.0  Ireland                        2.0
                            =====      =====  Portugal                       1.2
                                              Other                          3.1
                                              Net current assets               -
                                                                           -----
                                                                           100.0
                                                                           =====

Ten Largest Equity Investments (in alphabetical order)

Company                            Country of Risk
BASF                               Germany
Electrolux                         Sweden
LVMH                               France
Nestle                             Switzerland
Novo Nordisk                       Denmark
Pernod Ricard                      France
Roche                              Switzerland
SAP                                Germany
Swiss Re                           Switzerland
Zurich Insurance                   Switzerland


Commenting on the markets, Vincent Devlin, representing the Investment Manager
noted:

During the month the Company's undiluted NAV rose by 2.2% and the share price
rose by 1.3%.  For reference, the FTSE World Europe ex UK Index rose by 3.7%
over the same period.

European equity markets rallied in August.  The key catalyst was European
Central Bank (ECB) president Mario Draghi's assertion in August that the ECB
would do 'whatever it takes' to support the euro.  Equity markets rallied in
the belief that policymakers are now more closely aligned to put the structures
and changes in place for a better Europe.  The move was characterized as a
'value' and 'peripheral' equity rally.  In terms of sectors and countries,
financials, utilities, Spain and Italy performed best during the month.  
Throughout the month, actual volume in most asset classes remained seasonably
light ahead of the upcoming ECB meeting and the German ESM court ruling in
early September.

The Company's relatively low performance when compared with the index was
driven by a combination of sector allocation and stock selection.  From a
sector perspective, the Company's lower weighting in financials prevented it
from participating in the rally.  A lower weighting in utilities and a higher
weighting in basic materials also detracted from returns.

At a stock level, holdings in oil & gas and industrials detracted the most.
Positions in seismic services names CGG Veritas and Technip, which had
performed well during July, gave back some of their gains.  Within industrials,
a position in elevator business Kone detracted as the market rotated away from
'defensive growth' companies.  Finally, the Company suffered on a relative
basis from not owning Banco Santander and BNP Paribas - both of which rallied
very strongly during the month despite no material change in fundamentals.

Stock selection in consumer goods proved more successful during August as
positions in German auto supplier Continental, Spanish retailer Inditex and
French luxury goods company LVMH all performed well.  A position in Zurich
Insurance rallied with its sector and a holding in Russian software & computer
services company Mail.Ru performed strongly in the Emerging Europe portion of
the Company.

At the end of the month, the Company had higher weights (when compared with the
FTSE World Europe ex UK Index) in basic materials, industrials, consumer
services, oil & gas, technology and consumer goods and lower weights in
financials, healthcare, utilities and telecoms.  The Company was 10.10% geared
at the end of the month.

Outlook
In our view, the Eurozone's outlook is less uncertain following the June EU
summit coupled with the subsequent ECB announcement signalling a more
accommodative stance.  We are still faced with a heavy political agenda in the
months to come, and the crisis could still escalate if we get some slippage in
terms of political progress in solving the sovereign crisis.

However, we believe that the ECB's statements are a positive step towards
solving some of the funding issues faced by the Eurozone periphery countries.
A formal application for funding help by Spain would reduce contagion risk and
would likely reduce the risk aversion that has been weighing on European
equities for the past 3 years.  As such, and despite the on-going weak economic
environment faced by Europe, we could see sizeable inflows back into European
equities from investors that have been avoiding this asset class given the
political uncertainties.  A reduction in risk aversion would trigger further
upside in European equities and further unlock what we continue to see as an
attractive valuation, notably when compared to US equities.  With a backdrop of
an on-going weak economic environment, active portfolio management focusing on
stock picking and fundamental research remains an important focus for our team.

14 September 2012
 

ENDS

Latest information is available by typing www.brgeplc.co.uk on the internet,
"BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV
terminal).  Neither the contents of the Manager's website nor the contents of
any website accessible from hyperlinks on the Manager's website (or any other
website) is incorporated into, or forms part of, this announcement.