Portfolio Update

Merrill Lynch Greater Europe IT PLC
20 February 2006




MERRILL LYNCH GREATER EUROPE INVESTMENT TRUST plc

All information is at 31 January 2006 and unaudited.

Performance at month end with net income reinvested

                                             One                Three              One                Since launch
                                             Month              Months             Year               (20Sep04)
Net asset value                              4.4%               17.6%              37.7%              53.3%
Share price                                  7.7%               20.1%              43.2%              51.4%
FTSE World Europe ex UK                      3.1%               13.1%              29.0%              41.8%

Sources: Merrill Lynch Investment Managers and Datastream.


At month end
Net asset value:                        151.51p            Includes net revenue return of 0.10p
Share price:                            149.50p
Discount to NAV:                           1.3%
Gearing:                                  10.0%
Net yield:                                 1.1%
Total assets:                           £222.0m
Ordinary shares in issue:               132,955,096


Benchmark
Sector Analysis                        Total Assets (%)      Index (%) Country Analysis                 Total Assets (%)
Financials                                        36.5            33.5 Germany                                     21.4
Industrials                                       11.1            10.5 France                                      17.2
Oil & Gas                                         10.9             6.7 Switzerland                                 12.2
Utilities                                          8.0             6.7 Italy                                        9.8
Telecoms                                           7.2             6.5 Netherlands                                  5.1
Healthcare                                         6.5             8.4 Scandinavia                                  5.0
Consumer Services                                  6.1             5.4 Russia                                       4.9
Basic Materials                                    5.7             5.0 Sweden                                       4.8
Consumer Goods                                     4.4            12.4 Spain                                        4.4
Technology                                         4.1             4.9 Belgium                                      4.1
Other Investments                                  2.0               - Israel                                       4.1
Net Current Liabilities                           (2.5)              - Ireland                                      4.0
                                                                       Poland                                       1.8
                                                                       Greece                                       1.6
                                                                       Turkey                                       0.9
                                                                       Austria                                      0.1
                                                                       Other Countries                              1.1
                                                                       Net Current Liabilities                     (2.5)
                                                 -----           -----                                             -----
                                                 100.0           100.0                                             100.0
                                                 -----           -----                                             -----


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




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



European equity markets continued their upward trend in January, reaching fresh
four year highs.  The FTSE World Europe ex UK and MSCI Emerging Europe returned
3.1% and 10.7% in sterling terms, respectively. Investors focused on generally
upbeat data on economic growth in Europe and largely ignored external factors
such as rising energy prices and another 0.25% increase in the US Federal Funds
target rate to 4.5%.  Indications that the European Central Bank is likely to
increase its official interest rates by 0.25% in March were generally shrugged
off as a non-event.  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 4.4% during January outperforming the reference index
by 1.3%.  The contribution from the emerging Europe region continued to have a
positive effect with strong stock selection in Poland and Russia.  The use of
flexible gearing was also beneficial and the Company benefited from being
positively geared in a rising market.



During January the Company benefited from strong stock selection across a range
of sectors which included energy, diversified financials, telecoms, utilities
and healthcare.  Individual stocks to have a positive contribution were exchange
provider Deutsche Boerse, utility Fortum, oilfield services company Geophysique,
medical company Fresenuis and logistics provider Deutsche Post.



The stocks which detracted from performance were low cost airline Ryan Air (-7%)
falling on lower passenger volume data, and pharmaceutical company AstraZeneca
(-4%) due to market concerns that the loss of US patent protection for it's top
selling heart drug, Toprol, would negatively impact earnings.



During the month the Company increased its exposure to the telecoms and
automobile sector through the purchase of Telefonica and Renault.  This was
funded by selling German steelmaker Salzgitter and Hungarian pharmaceutical
Egis, both which after strong performance reached our target prices.



The Company continues to have a bias towards the financials, mainly through
banks but also diversified financials and insurance. Other key sector weights
include utilities and energy.  Exposure to Emerging Europe decreased slightly
during the month to finish at 11.7%.  The Company ended the month with a net
market exposure of 110%.



Recent surveys suggest that business confidence is rising strongly in
Continental Europe signalling that economic growth is accelerating in 2006.
Companies are benefiting from strong overseas demand particularly in the United
States and Asia.  However, concerns still remain that the continued high oil
price and a slowdown in global economic growth levels may impact profit margins.
  Despite some bright spots in the periphery countries such as Greece, Ireland,
Norway, Spain and Sweden, domestic demand across much of Continental Europe
remains weak as households suffer from high unemployment and weak purchasing
power.  The consensus view is that economic growth across much of Europe will
not exceed its potential rate for the foreseeable future.  Nevertheless most
observers expect the European Central Bank to raise interest rates further in
the coming months to counter the threat of higher inflation.   Meanwhile the
operating performance of European listed companies remains highly satisfactory
as a result of strenuous cost control and restructuring efforts.  We expect 2006
to be another year of strong positive returns from European equity markets.





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20 February 2006




                      This information is provided by RNS
            The company news service from the London Stock Exchange