Portfolio Update

MERRILL LYNCH GREATER EUROPE INVESTMENT TRUST plc

All information is at 31 May 2007 and unaudited.
Performance at month end with net income reinvested

                                              One      Three       One         Since launch
                                            Month     Months      Year            (20Sep04)
                                                                                           
Net asset value                              3.8%      11.3%     25.3%                98.0%
Share price                                  1.4%       8.6%     27.3%                86.9%
FTSE World Europe ex UK                      3.2%      13.1%     30.0%                87.6%
Sources: BlackRock and Datastream.

At month end                                                                               
                                                                                           
Net asset value:                          193.28p    Includes net revenue of 2.57p         
Share price:                              182.25p                                          
Discount to NAV:                             5.7%                                          
Gearing:                                     6.0%                                          
Net yield:                                   1.1%                                          
Total assets:                             £252.2m                                          
Ordinary shares in issue:             124,729,045                                          

Benchmark                                                                                               
Sector Analysis                   Total Assets   Index   Country Analysis                  Total Assets 
                                           (%)     (%)                                              (%) 
Financials                                31.6    33.1   Germany                                   21.9 
Basic Materials                           11.4     5.6   France                                    14.0 
Healthcare                                10.6     6.7   Switzerland                               10.9 
Telecommunications                         9.2     6.0   Italy                                      9.5 
Industrials                                8.3    12.5   Spain                                      7.4 
Oil & Gas                                  7.6     7.7   Russia                                     5.3 
Utilities                                  6.9     5.9   Netherlands                                4.6 
Consumer Services                          5.9    13.0   Finland                                    4.2 
Consumer Goods                             5.4     5.3   Turkey                                     4.1 
Other Investments                          3.0     4.2   Greece                                     3.7 
Technology                                 1.7       -   Austria                                    2.0 
Net current liabilities                   (1.6)      -   Poland                                     2.0 
                                                         Ireland                                    1.9 
                                                         Israel                                     1.9 
                                                         Norway                                     1.9 
                                                         Sweden                                     1.7 
                                                         Denmark                                    1.2 
                                                         Luxembourg                                 1.2 
                                                         Hungary                                    1.0 
                                                         Cyprus                                     1.0 
                                                         UK                                         0.2 
                                                         Net current liabilities                   (1.6)
                                         -----   -----                                            ----- 
                                         100.0   100.0                                            100.0 
                                         -----   -----                                            ----- 

Ten Largest Equity Investments                                            
Company                                            Country of Risk        
Bayer                                              Germany                
BlackRock Eurasian Frontiers Fund                  Emerging Europe        
Intesa Sanpaolo                                    Italy                  
Nokia                                              Finland                
Novartis                                           Switzerland            
OTE (Hellenic Telecommunications)                  Greece                 
Roche Holdings                                     Switzerland            
Siemens                                            Germany                
Societe Generale                                   France                 
Telefonica                                         Spain                  
 

Commenting on the markets, James Macmillan, representing the Investment Manager                    
noted:                                                                                             
                                                                                                   
European equity markets continued their upward trend in May and the FTSE World                     
Europe ex UK (net) returned 3.2% in GBP terms.  Investors were encouraged by                       
the upbeat news flow on economic growth in Europe, particularly in Germany,                        
positive company results and a continued stream of mergers & acquisition                           
transactions.  Performance in Emerging Europe was mixed with continued                             
underperformance from Russia focused mainly in the energy sector.  The MSCI                        
Emerging Europe Index returned -1.3%.                                                              
                                                                                                   
The Company's NAV returned 3.8% during May outperforming the reference index by                    
0.6%.  The contribution from the Emerging Europe region was beneficial with                        
strong performance in Turkey more than compensating for underperformance in                        
Russia.  The Company benefited from being geared in a rising market.                               
                                                                                                   
The Company's exposure to material and automobile sectors proved to be                             
beneficial with strong performance from holdings in car manufacturers BMW and                      
Renault, steel companies Arcelor Mittal and Vallourec, and paper/stationery                        
provider Ipek Matbaacilik.  The Company also benefited from strong stock                           
selection in energy and telecoms.  The stocks which detracted from performance                     
were found mainly in the banking sector which fell due to concerns over rising                     
interest rates and slowing loan growth, along with selected holdings in health                     
care and pharmaceuticals.                                                                          
                                                                                                   
During the month the Company increased its exposure to the telecoms sector                         
through the purchase of Greek telecommunications company OTE.  This was                            
partially funded by reducing exposure to materials and insurance through the                       
sale of buildings company CRH and specialities chemical producer Umnicore.                         
                                                                                                   
The Company continues to have a bias towards financials, through banks, along                      
with pharmaceuticals, materials and energy.  Exposure to Emerging Europe                           
decreased during the month to finish at 14.3%, with key country exposures being                    
Turkey, Russia and the BlackRock Eurasian Frontiers Hedge Fund.  During the                        
month the Company increased its net market exposure to 106%.                                       
                                                                                                   
We remain positive on the prospects for European and Emerging European                             
equities.  Despite recent market volatility the latest evidence appears to                         
suggest that the global economy remains in reasonable health with a slight                         
tempering of growth rather than the emergence of a recession or a serious                          
slowdown.  Companies have generally reported good Q1 results, with decent                          
earnings growth and record profits and this has been driven by a pick up in                        
domestic consumer demand as well as robust global export demand.  We believe a                     
combination of strong earnings growth and attractive valuations should allow                       
the market to make progress against what may be a more challenging                                 
international backdrop.                                                                            
                                                                                                   
Latest 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).                                                                                         
                                                                                                   
20 June 2007