Portfolio Update

Merrill Lynch Greater Europe IT PLC
20 October 2006

MERRILL LYNCH GREATER EUROPE INVESTMENT TRUST plc

All information is at 30 September 2006 and unaudited.

Performance at month end with net income reinvested
                                             One                Three              One                Since launch
                                             Month              Months             Year               (20Sep04)
Net asset value                              2.9%               4.7%               21.2%              64.5%
Share price                                  3.1%               3.8%               19.7%              57.8%
FTSE World Europe ex UK                      3.5%               5.6%               19.3%              54.4%

Sources: BlackRock Merrill Lynch Investment Managers and Datastream.


At month end
Net asset value:                        162.49p            Includes net revenue of 2.57p
Share price:                            155.75p
Discount to NAV:                           4.1%
Gearing:                                   2.6%
Net yield:                                 1.0%
Total assets:                           £213.7m
Ordinary shares in issue:               130,238,932



Benchmark
Sector Analysis                         Total Assets         Index Country Analysis                         Total Assets
                                                 (%)           (%)                                                   (%)
Financials                                     36.4           34.5 Germany                                         21.5
Industrials                                    12.8           10.9 France                                          18.1
Basic Materials                                 8.8            4.9 Switzerland                                     13.4
Oil & Gas                                       8.7            6.2 Italy                                            9.0
Utilities                                       8.3            7.2 Russia                                           8.3
Consumer Goods                                  7.0           12.6 Netherlands                                      6.4
Telecommunications                              6.5            6.1 Spain                                            4.9
Healthcare                                      5.0            7.9 Belgium                                          4.5
Technology                                      4.0            4.3 Ireland                                          4.3
Consumer Services                               2.8            5.4 Sweden                                           3.7
Other Investments                               2.3              - Finland                                          2.2
Net current liabilities                        (2.6)             - Norway                                           1.7
                                                                   UK                                               1.6
                                                                   Poland                                           1.6
                                                                   Turkey                                           0.9
                                                                   Israel                                           0.4
                                                                   Austria                                          0.1
                                                                   Net current liabilities                         (2.6)
                                              -----          -----                                                 -----
                                              100.0          100.0                                                 100.0
                                              -----          -----                                                 -----


Ten Largest Equity Investments
Company                                                      Country of Risk
AXA                                                            France
BBVA                                                           Spain
ENI                                                            Italy
Nestle                                                         Switzerland
Novartis                                                       Switzerland
RWE                                                            Germany
Siemens AG                                                     Germany
Total                                                          France
UBS                                                            Switzerland
Unicredito Italiano                                            Italy




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



Developed European equity markets continued to rebound in September, retracing the highs reached in early May. The FTSE
World Europe ex UK Index (net) returned an impressive 3.5%. Markets were driven by a sharply falling oil price, leading
to a significant drop in inflation and long term bond yields, and an expectation that the US Federal Reserve Bank's
monetary tightening cycle was coming to an end. Performance in Emerging Europe was mixed with the MSCI Emerging Europe
Index falling 3.7%, mainly due to Russia which suffered from a sharp drop in oil and commodity prices.



The Company's NAV returned 2.9% during September underperforming the reference index by 0.6%.  The contribution from
the Emerging Europe region was marginally negative, with Poland and Turkey having an unfavourable impact. The use of
flexible gearing was beneficial with the Company gaining by being positively geared in a rising market.



During the month the Company benefited from its holdings in French banks Credit Agricole and Natexis Banque Popular
along with Belgian and Russian telecoms companies Telenet and Sistema.  Other strong performing stocks were German
construction company Hochtief and Swiss investment bank UBS.



The stocks which detracted from performance were mainly found in the energy sector, which was negatively impacted by
the fall in oil prices. The worst performing stocks were those with leverage to the oil price through refining and
upstream exposure such as PKN and Statoil. Stock selection within the utility sector was also negative; the Company's
holding in German utility E.On fell on market concerns that the company would be forced to raise their existing offer
for Endesa after the Spanish utility received a higher bid.  Other stocks to have a negative effect were KKR Private
Equity and Telecom Italia.



During the month the Company established a new position in the Merrill Lynch Eurasian Frontiers Hedge Fund which will
provide diversified exposure to less accessible developing markets. Other transactions included the purchase of Real
Estate Investment Trust Prologis and the sale of French hypermarket Carrefour after strong performance.



The Company continues to have a bias towards the financials, through banks and diversified financials, along with
materials, energy and utilities.  Exposure to Emerging Europe marginally increased during the month to finish at 11.2%.
The Company ended the month with a net market exposure of 102.6%.



We remain positive on the prospects for European equities.  The latest evidence appears to suggest that the Global
economy remains in robust health with a slight tempering of growth rather than the emergence of a recession or a
serious slowdown.  European companies have reported strong Q2 results, and profits have proved resilient to a modest
slowdown in the US, due to robust export demand from Asia and corporate restructuring.  European equity valuations are
attractive, earnings growth is strong and earnings revisions remain positive.

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




20 October 2006






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