Cancellation of Share Prem Ac

Baring Emerging Europe PLC
20 December 2002


Cancellation of Share Premium Account

Pursuant to a special resolution passed on 8 November 2002, the Company's
application to reduce its share premium account was approved by the High
Court, and registered with the Registrar of Companies, on 18 December 2002.

The amount of the reduction was £86,624,981.63, representing the share premium
arising on the issue of shares by the Company under the scheme of reorganisation 
of The Baring Emerging Europe Trust Plc.

This amount has now been transferred to a special distributable reserve which
will be available for the repurchase by the Company of its shares.

Further to the announcement made on 18 December 2002, the number of shares
issued to Non-Subscribing Warrantholders of Baring Emerging Europe Trust Plc is 
766,574. The reduction in the total number of shares issued has arisen due to 
the calculation of fractional entitlements attributable to each individual 
shareholding. Since fractional entitlements of a share cannot, be issued, the
value of such entitlements has been retained for the benefit of the company and 
its shareholders generally.

There are now 47,879,271 Shares in issue (this figure includes the Shares 
allotted to Non Subscribing Warrantholders of The Baring Emerging Europe Trust 
PLC.).

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