Portfolio Update

Merrill Lynch Greater Europe IT PLC
18 May 2006

MERRILL LYNCH GREATER EUROPE INVESTMENT TRUST plc

All information is at 30 April 2006 and unaudited.

Performance at month end with net income reinvested

                                             One                Three              One                Since launch
                                             Month              Months             Year               (20Sep04)
Net asset value                               0.5%              9.4%               53.3%              67.7%
Share price                                   2.2%              8.0%               55.1%              63.6%
FTSE World Europe ex UK                      -0.1%              7.9%               41.8%              53.0%

Sources: Merrill Lynch Investment Managers and Datastream.


At month end
Net asset value:                        165.73p            Includes net revenue of 0.90p
Share price:                            161.50p
Discount to NAV:                           2.6%
Gearing:                                   9.5%
Net yield:                                 1.0%
Total assets:                           £241.3m
Ordinary shares in issue:               133,705,096



Benchmark
Sector Analysis                         Total Assets         Index Country Analysis                         Total Assets
                                                 (%)           (%)                                                   (%)
Financials                                     33.6           26.5 Germany                                         20.4
Industrials                                    13.2           12.4 France                                          17.1
Oil & Gas                                       9.5            8.2 Switzerland                                     13.1
Basic Materials                                 7.9            5.5 Italy                                            9.5
Telecoms                                        6.5            4.3 Spain                                            5.3
Healthcare                                      6.4            8.6 Sweden                                           5.0
Utilities                                       6.0            3.9 Belgium                                          4.9
Consumer Goods                                  6.0           10.6 Russia                                           4.7
Consumer Services                               4.7            9.6 Ireland                                          3.7
Technology                                      3.8           10.4 Netherlands                                      3.3
Other Investments                               2.1              - Israel                                           2.7
Net current assets                              0.3              - Finland                                          2.2
                                                                   Norway                                           2.1
                                                                   UK                                               1.7
                                                                   Poland                                           1.7
                                                                   Turkey                                           1.4
                                                                   Greece                                           0.8
                                                                   Austria                                          0.1
                                                                   Net current assets                               0.3
                                              -----          -----                                                 -----
                                              100.0          100.0                                                 100.0
                                              -----          -----                                                 -----



Ten Largest Equity Investments
Company                                                      Country of Risk
BBVA                                                           Spain
Credit Suisse                                                  Switzerland
Fortum                                                         Finland
Ing Groep                                                      Netherlands
Nestle                                                         Switzerland
Novartis                                                       Switzerland
RWE                                                            Germany
Siemens                                                        Germany
Total                                                          France
UBS                                                            Switzerland




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

European equity markets were flat in April pausing after recent strong performance and the FTSE World Europe ex UK
Index (net) returned -0.1% in sterling terms.  Having suffered from profit taking in March, Emerging European markets
continued on an upward trend.  The MSCI Emerging Europe Index returned 5.4%.  Investors focused on increasingly upbeat
data on economic growth in Europe, and largely ignored external factors such as higher energy and commodity prices.
European corporate earnings reported in recent months continued to be slightly ahead of forecasts, albeit with some
disappointments mainly in consumer related sectors.

The Company's NAV returned 0.5% during April outperforming the reference index by 0.6%.  The contribution from the
Emerging Europe region was positive, with strong performance seen in Poland, Israel and Turkey.  The use of flexible
gearing was broadly neutral as the market was flat.

During April the Company benefited from a number of holdings within the material and energy sectors which gained as
commodity prices reached record highs.  These included steel producers Thyssenkrupp and SSAB, speciality chemical
company Umicore, seismic services company PGS, and oil companies Delek and Statoil.  Other strong performing stocks
included navigation systems company TomTom and construction group Hoctief.

The main detractors to performance came from the Company's position in low cost airline Ryan Air, falling on market
concerns that increased fuel costs would impact margins, and Ericsson down after integration issues relating to Marconi
led to disappointing results.

During the month the Company added to the material sector through the purchase of holdings in German chemical company
BASF and speciality steel producer SSAB.  This was partly funded by selling shares in Swedish lock manufacturer Assa
Abloy, Greek refiner Motor Oil and Dutch food retailer Ahold.

The Company continues to have a bias towards the financials, mainly through banks but also diversified financials and
insurance.  Other key sector weights include energy and materials.  Exposure to Emerging Europe increased during the
month to finish at 10.5%.  The Company ended the month with a net market exposure of 109.5%.

Business confidence continues to rise in Continental Europe with economic developments generally surprising on the
upside.  European companies are in a healthier financial position than they have been for many years.  The global
economic recovery since 2003 has resulted in very strong cash flow generation, magnified by the dramatic improvement in
profitability due to radical restructuring that we have seen across many European industries.  Now that balance sheet
strength has been regained companies are increasingly looking for suitable acquisition candidates, and the market is
now prepared to reward companies that aim to boost the sustainable growth rate of their businesses through increased
investment spending and merger and acquisition activity.  European equity valuations are still attractive, earnings
growth is robust and earnings revisions remain positive.

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).


18 May 2006






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