Portfolio Update

Merrill Lynch Greater Europe IT PLC
20 July 2006



MERRILL LYNCH GREATER EUROPE INVESTMENT TRUST plc

All information is at 30 June 2006 and unaudited.

Performance at month end with net income reinvested
                                             One                Three              One                Since launch
                                             Month              Months             Year               (20Sep04)
Net asset value                               -0.6%             -5.8%              30.6%              57.1%
Share price                                    3.4%             -5.1%              33.9%              51.9%
FTSE World Europe ex UK                        1.3%             -4.5%              24.0%              46.2%

Sources: Merrill Lynch Investment Managers and Datastream.


At month end
Net asset value:                        155.20p            Includes net revenue of 2.08p
Share price:                            150.00p
Discount to NAV:                           3.4%
Gearing:                                   0.0%
Net yield:                                 1.5%
Total assets:                           £198.9m
Ordinary shares in issue:               130,238,932

(During the month 3,466,164 shares were purchased and held in treasury)



Benchmark
Sector Analysis                         Total Assets         Index Country Analysis                         Total Assets
                                                 (%)           (%)                                                   (%)
Financials                                     29.8           33.7 Germany                                         20.3
Industrials                                    13.4           10.8 France                                          17.5
Basic Materials                                 9.5            5.2 Italy                                            9.7
Telecoms                                        9.1            6.3 Switzerland                                      8.9
Oil and Gas                                     8.5            6.3 Sweden                                           6.4
Utilities                                       6.9            7.0 Netherlands                                      6.3
Healthcare                                      6.5            8.2 Ireland                                          5.8
Consumer Goods                                  6.4           12.5 Russia                                           5.2
Consumer Services                               5.9            5.3 Spain                                            4.9
Technology                                      3.8            4.7 Belgium                                          4.8
Other Investments                               2.5              - Israel                                           3.5
Net current liabilities                        (2.3)             - Finland                                          2.3
                                                                   Norway                                           2.1
                                                                   UK                                               1.7
                                                                   Poland                                           1.7
                                                                   Turkey                                           0.9
                                                                   Greece                                           0.3
                                                                   Net current liabilities                         (2.3)
                                              -----          -----                                                 -----
                                              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:

World equity markets had a nervous start to the month, as May's indiscriminate selling continued into the first two
weeks of June before markets rebounded to finish the month in positive territory.  The FTSE World Europe ex UK (net)
returned 1.3% and the MSCI Emerging Europe index returned 1.6% in sterling terms. Investors shook off concerns about
external factors such as volatile commodity prices, inflation, exchange rates and further interest rate increases in
the US and instead focused on the increasingly upbeat data on economic growth in Europe.  European corporate earnings
reported in recent months continued to be slightly ahead of forecasts, pointing to double digit profit growth in 2006.

The Company's NAV returned -0.6% during June, underperforming the reference index by 1.9%. The contribution from the
Emerging Europe region was negative, with Russia Poland and Israel underperforming.  The use of flexible gearing was
also negative as the Company was positively geared in a falling market.

During May the Company benefited from a number of holdings across a range of sectors. The best performing stock was
Anglo-Swedish pharmaceutical company AstraZeneca which rose after management gave a positive outlook on the development
pipeline and the strength of existing products.  The Company's position in French construction and concessions company
Vinci was also beneficial after the company received a bid from French water utility, Veolia.  Other stocks to have a
positive contribution to performance were Turkish mobile phone operator Turkcell, and in the financial sector Greek
bank Emporiki and Swiss investment bank UBS.  The stocks which detracted from performance were navigation systems
company Tom Tom falling back on market concerns that supply issues would impact the product mix, speciality chemical
company Umicore, and car manufacturer Renault.

During the month the Company reduced its weighting in the financial sector by selling selected names in insurance and
banks, and added to the telecoms sector.  In addition, the Company significantly reduced its positive gearing to
neutralise market exposure, and took profits in selected Russian and Turkish names.

The Company continues to have a bias towards the financials, mainly through banks, energy, telecoms and materials.
Exposure to Emerging Europe decreased during the month to finish at 11.3%.  The Company was not geared at the month
end.

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 and growth rates in periphery 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).


20 July 2006






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