Final Results

Baring Emerging Europe Trust PLC 26 June 2000 THE BARING EMERGING EUROPE TRUST PLC Preliminary announcement in respect of the year ended 30 April 2000. STATEMENT OF TOTAL RETURN YEAR ENDED 30 APRIL 2000 Revenue Capital Total US$000 US$000 US$000 Gains on investments --- 143,252 143,252 Gains on foreign exchange --- 12 12 Income 3,613 --- 3,613 Investment management fee (5,024) --- (5,024) Other expenses (2,048) --- (2,048) Net return before interest payable (3,459) 143,264 139,805 and taxation Interest payable (201) --- (201) Return on ordinary activities before (3,660) 143,264 139,604 taxation Taxation (293) --- (293) Return attributable to ordinary (3,953) 143,264 139,311 shareholders Dividend per share --- --- --- Transfers to reserves (3,953) 143,264 139,311 Earnings Capital Total Return per ordinary share: basic (3.19)c (115.73)c (112.54)c Return per ordinary share: fully (2.90)c (105.09)c (102.19)c diluted THE BARING EMERGING EUROPE TRUST PLC STATEMENT OF TOTAL RETURN YEAR ENDED 30 APRIL 1999 Revenue Capital Total US$000 US$000 US$000 Losses on investments --- (41,018) (41,018) Losses on foreign exchange --- (508) (508) Income 5,470 --- 5,470 Investment management fee (3,259) --- (3,259) Other expenses (1,878) --- (1,878) Net return before interest payable and 333 (41,526) (41,193) taxation Interest payable (114) --- (114) Return on ordinary activities before 219 (41,526) (41,307) taxation Taxation (236) --- (236) Return attributable to ordinary (17) (41,526) (41,543) shareholders Dividend per share --- --- --- Transfers to reserves (17) (41,526) (41,543) Earnings Capital Total Return per ordinary share: basic (0.01)c (33.46)c (33.47)c Return per ordinary share: fully (0.01)c (31.40)c (31.41)c diluted THE BARING EMERGING EUROPE TRUST PLC BALANCE SHEET At 30 April 2000 1999 US$000 US$000 Fixed assets Investments 409,140 276,212 Current assets Debtors 22,260 1,471 Cash at bank and in hand 89 1,662 22,349 3,133 Creditors: Amounts falling due within one year (21,037) (7,298) Net current assets 1,312 (4,165) Total assets less current liabilities 410,452 272,047 Capital and reserves Called-up share capital 12,399 12,431 Share premium account 94,293 94,258 Warrant premium account 13,263 13,277 Other reserves Redemption reserve 35 -- Capital reserve-realised 204,178 117,391 Capital reserve-unrealised 94,185 38,638 Revenue reserve (7,901) (3,948) Total shareholders' funds 410,452 272,047 Net asset value per share: basic 331.54c 219.20c fully diluted 293.10c 199.40c THE BARING EMERGING EUROPE TRUST PLC CASHFLOW STATEMENT At 30 April 2000 1999 US$000 US$000 Operating activities Investment income received Interest received Sundry income received Investment management fees paid 3,215 4,684 Other cash payments 105 604 Net cash outflow from operating activities -- 3 (4,806) (4,197) (1,923) (2,226) (3,409) (1,132) Returns on investments and servicing of finance Interest paid (201) (114) Financial Investment Purchases of investments (381,593) (400,377) Sales of investments 364,455 400,450 Net cash (outflow)/inflow from financial (17,138) 73 investment Financing Exercise of warrants 23 27 Buyback of ordinary shares (930) -- Net cash (outflow)/inflow from financing (907) 27 Decrease in cash (21,655) (1,146) NOTES: The abridged figures for 2000 are an extract from the latest Accounts. These Accounts have not yet been delivered to the Registrar of Companies, nor have the Auditors yet reported on them. The Directors' Report and Statement of Accounts will be posted on 12 July 2000. The Annual General Meeting will be held at 155 Bishopsgate, London EC2, on Wednesday 4 October 2000 at 2.30 p.m. CHAIRMAN'S STATEMENT The absolute performance of the Company was positive again during the reporting period, with a rise in the Company's net assets of 51%. This compares with a decline of 13% in 1999 and rises of 44% in 1998 and 81% in 1997. Relative performance has continued to be very strong, with the Company continuing to outperform its benchmark, the BEMI Emerging Europe index, and its peer group of comparable funds. The distinction which the Investment Manager has made between the 'converging' economies of Central Europe (the Czech Republic, Poland, Hungary, Slovenia) and Greece and the more volatile 'emerging' economies of Russia and Turkey continued to be reflected in performance. This year the latter markets have substantially outperformed in contrast to last year. Of the 'emerging' economies Turkey and Russia have strengthened their governments and taken steps to stabilise their economies during the year. This resulted in very strong equity market performance. As I have remarked on previous occasions, such stabilisation is ephemeral unless there is a follow through with structural reforms to allow imbalances within the economies to be corrected. In the case of both Turkey and Russia there is room for cautious optimism on structural reform despite a recent record of missed opportunities. The Central European economies continue on their path towards close integration with Western Europe. Although both internal and EU politics will ensure that the path is not always smooth, the economic and political momentum remains unstoppable. Whilst it would be tempting to extrapolate into the future the Company's growth in Net Asset Value over the last years, I would like to take this opportunity to remind shareholders of the political, economic, market and stock-specific risks inherent in the Company's investments in this particular region. In May 2000 Martin Taylor, who has been the co-manager at Baring Asset Management of the Company's investments, resigned from his position and I would like to record the Board's thanks to Martin for his contribution to the performance of the Company. The Board continues to keep under close review the discount to Net Asset Value at which the Company's shares are trading and monitors developments in the industry and among peers closely. The Company has taken advantage of the share buy-back facility approved by shareholders at last years Annual General Meeting and at the date of this report a total of 1,350,000 shares have been purchased for cancellation, which include purchases as recently as June 2000. Resolution number 4 at the forthcoming AGM is being proposed as a special resolution to renew the buy-back facility. I am pleased to note that the savings scheme continues to expand and I also note that the Company's shares are eligible for investment within an ISA. Your Board is pleased that its confidence in the region has been vindicated and continues to believe strongly in the case for investment in this area Sir William Ryrie 26 June, 2000 For THE BARING EMERGING EUROPE TRUST PLC M J Nokes Company Secretary 155 Bishopsgate, London EC2M 3XY Tel: 020 7628 6000

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