Final Results

THE BARING EMERGING EUROPE TRUST PLC Preliminary announcement in respect of the year ended 30 April 2002. STATEMENT OF TOTAL RETURN YEAR ENDED 30 APRIL 2002 Revenue Capital Total US$000 US$000 US$000 Gains on investments 114,470 114,470 Gains on foreign exchange Income 6,101 6,101 Investment management fee (4,657) (4,657) Other expenses (1,473) (1,473) Net return before interest payable and (29) 114,470 114,441 taxation Interest payable (51) (51) Return on ordinary activities before taxation (80) 114,470 114,390 Taxation (948) (948) Return attributable to ordinary shareholders (1,028) 114,470 113,442 Dividend per share Transfers to reserves (1,028) 114,470 113,442 Revenue Capital Total Return per ordinary share: basic (0.85)¢ 94.78¢ 93.93¢ Return per ordinary share: fully diluted (0.77)¢ 86.10¢ 85.33¢ THE BARING EMERGING EUROPE TRUST PLC STATEMENT OF TOTAL RETURN YEAR ENDED 30 APRIL 2001 Revenue Capital Total US$000 US$000 US$000 Losses on investments (100,345) (100,345) Gains on foreign exchange 462 462 Income 3,812 3,812 Investment management fee (4,458) (4,458) Other expenses (1,956) (1,956) Net return before interest payable and (2,602) (99,883) (102,485) taxation Interest payable (226) (226) Return on ordinary activities before taxation (2,828) (99,883) (102,711) Taxation (438) (438) Return attributable to ordinary shareholders (3,266) (99,883) (103,149) Dividend per share Transfers to reserves (3,266) (99,883) (103,149) Earnings Capital Total Return per ordinary share: basic (2.68)¢ (81.99)¢ (84.67)¢ Return per ordinary share: fully diluted (2.44)¢ (74.75)¢ (77.19)¢ Baring Asset Management Limited, 155 Bishopsgate, London EC2M 3XY THE BARING EMERGING EUROPE TRUST PLC BALANCE SHEET At 30 April 2002 2001 US$000 US$000 Fixed assets 394,334 296,037 Investments Current assets Debtors 950 1,888 Cash at bank and in hand 15,358 1,121 16,308 3,009 Creditors: Amounts falling due within one year (4,687) (3,661) Net current assets/(current liabilities) 11,621 (652) Total assets less current liabilities 405,955 295,385 Capital and reserves Called-up share capital 11,735 11,840 Share premium account 94,371 94,357 Warrant premium account 12,669 12,835 Other reserves Redemption reserve 705 599 Capital reserve-realised 202,357 184,128 Capital reserve-unrealised 96,313 2,793 Revenue reserve (12,195) (11,167) Total shareholders' funds 405,955 295,385 Net asset value per share: basic 346.50¢ 249.88¢ fully diluted 305.25¢ 224.71¢ THE BARING EMERGING EUROPE TRUST PLC CASHFLOW STATEMENT Year Ended 30 April 2002 2001 US$000 US$000 Operating activities 3,834 2,915 Investment income received 386 459 Interest received (3,318) (3,590) Investment management fees paid (1,626) (1,827) Other cash payments (724) (2,043) Net cash outflow from operating activities Returns on investments and servicing of finance Interest paid (87) (189) Financial Investment Purchases of investments (207,749) (203,000) Sales of investments 225,669 237,789 Net cash inflow from financial investment 17,920 34,789 Financing Exercise of warrants 10 45 Buyback of warrants (310) (601) Buyback of ordinary shares (2,572) (11,361) Net cash outflow from financing (2,872) (11,917) Increase in cash 14,237 20,640 THE BARING EMERGING EUROPE TRUST PLC NOTES: The abridged figures for 2002 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. Investment income, which includes related taxation, has been accounted for on an ex-dividend basis when the Company's right to the income is established. In the prior year the investment income was included on a pay-date basis. This change in accounting policy does not result in a material difference to the comparative figures. The Directors' Report and Statement of Accounts will be posted on 16 July 2002. The Annual General Meeting will be held at 155 Bishopsgate, London EC2, on Monday 23 September 2002 at 11.30 a.m. CHAIRMAN'S STATEMENT 2002 Annual Report COMPANY PERFORMANCE I am pleased to be able to report that the Company's undiluted net asset value per share increased by 38% during the year ended 30 April 2002. This represented a significant out-performance of the benchmark which increased by 26% in the same period. Since inception in January 1994, the Company's undiluted net asset value per share has grown at a compound annual rate of 17%. It is also encouraging to note that the share price discount has narrowed from 16% at 30 April 2001 to 8% at 30 April 2002. The Board will endeavour to utilise the means at its disposal to constrain the future volatility of the discount. The best performing market in the region was Russia, which increased by 85% during the year as a result of a general re-rating of the market. This re-rating reflects the markets appreciation of the macroeconomic policies followed by President Putin's government, Russia's improving relationship with the West, continuing progress on structural reform and improved corporate governance. In Central Europe, the markets in the Czech Republic and Hungary performed well, in line with global markets, with gains of 24% and 40% respectively. Both countries achieved real GDP growth in 2001, despite a slowdown in the European Union, due to strong domestic consumption. In Poland the market fell by 2% reflecting a domestic cyclical downturn. The only serious disappointment was in Turkey, which fell by 21% reflecting its domestic debt problem and a major currency devaluation. Turkey is now however, receiving significant assistance from the IMF. The major themes in Emerging Europe remain the convergence process in Central Europe, the ongoing re-rating of Russian equities and the uncertainty as to the timing of an economic recovery in Turkey. INVESTMENT MANAGER As I reported in my statement in the interim report for the six months ended 31 October 2001, a new fee arrangement with Baring Asset Management Limited ("BAM") was implemented with effect from 1 May 2001. BAM now receives a basic fee at the rate of 0.8% per annum on the value of net assets (previously 1.25%). In addition, the fee now incorporates an annual performance bonus which is capped at 0.6% of opening net asset value in each period. The administration fee payable to Baring Investment Services Limited, was reduced from 0.25% to 0.125% per annum on the value of net assets with effect from 1 May 2001. THE BOARD On 2 December 2001, Charles Harman, a Managing Director of the corporate finance team of Cazenove & Co. Ltd, was appointed as a director of the Company. ANNUAL GENERAL MEETING This year's Annual General Meeting is being held on Monday 23 September 2002 at 155 Bishopsgate, London EC2 commencing at 11.30 a.m. The formal business will be followed by a presentation from the Investment Manager after which there will be an opportunity for you to raise any specific issues with them or any member of the Board. OUTLOOK We continue to believe that the outlook for the region remains positive, but, as before, shareholders should continue to be aware of the political, economic, market and stock-specific risks inherent in investing in this particular region. Sir William Ryrie 27 June, 2002 THE BARING EMERGING EUROPE TRUST PLC M J Nokes Company Secretary 155 Bishopsgate, London EC2M 3XY Tel: 020 7628 6000

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