Portfolio Update

Merrill Lynch Greater Europe IT PLC
24 August 2006


MERRILL LYNCH GREATER EUROPE INVESTMENT TRUST plc

All information is at 31 July 2006 and unaudited.

Performance at month end with net income reinvested

                                             One                Three              One                Since launch
                                             Month              Months             Year               (20Sep04)

Net asset value                               0.8%              -5.6%              21.8%              58.3%
Share price                                  -1.0%              -8.0%              21.8%              50.4%
FTSE World Europe ex UK                       0.3%              -4.1%              16.4%              46.6%

Sources: Merrill Lynch Investment Managers and Datastream.


At month end
Net asset value:                        156.44p            Includes net revenue of 2.63p
Share price:                            148.50p
Discount to NAV:                           5.1%
Gearing:                                   1.3%
Net yield:                                 1.1%
Total assets:                           £202.9m
Ordinary shares in issue:               130,238,932


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

Financials                                     28.7           33.8 Germany                                         20.0
Industrials                                    12.6           10.5 France                                          18.1
Basic Materials                                 9.5            5.4 Switzerland                                      9.7
Telecoms                                        9.1            6.1 Italy                                            9.4
Oil and Gas                                     8.4            6.4 Sweden                                           6.8
Utilities                                       7.7            7.1 Netherlands                                      6.4
Healthcare                                      7.0            8.3 Ireland                                          5.7
Consumer Services                               6.7            5.3 Spain                                            4.9
Consumer Goods                                  6.2           12.8 Russia                                           4.7
Technology                                      3.6            4.3 Belgium                                          4.5
Other Investments                               2.4              - Finland                                          2.4
Net current liabilities                        (1.9)             - Israel                                           2.0
                                                                   Norway                                           1.9
                                                                   Poland                                           1.9
                                                                   Turkey                                           1.8
                                                                   UK                                               1.7
                                                                   Net current liabilities                         (1.9)
                                              -----          -----                                                 -----
                                              100.0          100.0                                                 100.0
                                              -----          -----                                                 -----



Ten Largest Equity Investments
Company                                                      Country of Risk
AXA                                                            France
BBVA                                                           Spain
Fortum                                                         Finland
Ing Groep                                                      Netherlands
Nestle                                                         Switzerland
Novartis                                                       Switzerland
RWE                                                            Germany
Siemens                                                        Germany
Total                                                          France
Unicredito Italiano                                            Italy


Commenting on the markets, James Macmillan, representing the Investment Manager
noted:

During July equity markets behaved in a similar pattern to that of June, with a
weak start to the month giving way to recovery.  The FTSE World Europe ex UK
(net) returned 0.3% and the MSCI Emerging Europe index returned 4.5% in sterling
terms.  The Federal Reserve Chairman hinted that rate rises were having the
desired effect on the US economy and that the current interest rate cycle may be
close to its peak.  This caused a rally in world markets in the second half of
the month.  The second quarter results season has generally been positive with
many companies demonstrating strong earnings growth.

The Company's NAV returned 0.8% during July outperforming the reference index by
0.5%.  The contribution from the Emerging Europe region was positive, with
strong stock selection in Russia, Poland and Turkey benefiting performance.
Flexible gearing had no performance impact, having been significantly reduced in
June to neutralise market exposure.

During July the Company benefited from a number of holdings across a range of
sectors.  The best performing stocks were those with leverage to the oil price,
which rose sharply during the month.  These included refiner PKN, and power
utilities Fortum and RWE.  The Company's position in low cost airline Ryan Air
was also beneficial after the company announced strong results which were ahead
of market expectations.  The stocks which detracted from performance were car
manufacturer Peugeot, industrial conglomerate Siemens, and Telecom Italia, all
falling on disappointing results.

During the month the Company took profits in Israeli bank Hapoalim and
established a new position in Turkish media company Hurriyet, due to its
attractive valuation.

The Company continues to have a bias towards the financials, mainly through
banks, capital goods, telecoms and materials.  Exposure to Emerging Europe
marginally decreased during the month to finish at 10.4%.  The Company ended the
month with a net market exposure of 101%.

Recent surveys continue to suggest that both business and consumer confidence is
rising strongly in Continental Europe signalling that economic growth is
accelerating significantly in 2006.  Unlike in previous years, growth is not
simply driven by strong export demand: after many years of weakness there are
signs that domestic demand is now picking up in countries such as Germany and
Italy; growth rates in peripheral countries such as Denmark, Greece, Ireland,
Norway, Spain and Sweden and emerging Europe remain buoyant.  Meanwhile the
operating performance of European listed companies remains highly satisfactory
as a result of strenuous cost control and restructuring efforts.  This provides
a very favourable backdrop for corporate profits in Europe and we remain
positive in the medium term.  However, the prospect of further interest rate
rises, combined with geopolitical uncertainty could lead to further market
volatility over the next few months.



Latest information is available by typing www.mlim.co.uk/its on the internet,
'MLIMINDEX' on Reuters, 'MLIM' on Bloomberg or '8800' on Topic 3 (ICV terminal).


24 August 2006






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