Recommended proposals for the continuation of t...

Jupiter European Opportunities Trust PLC

    Recommended proposals for the continuation of the life of the Company

The Board of European Opportunities Trust PLC (the `Company') intends to publish
a  circular to Shareholders within the next few days which will contain  details
of  recommended proposals for the continuation of the life of the Company beyond
its planned winding up date on Friday, 29 February 2008 and for the introduction
of  a  rolling continuation vote to be put to Shareholders at the annual general
meeting  in  2008  and at every third Annual General Meeting (`AGM')  thereafter
(the `Proposal').

The  Board  anticipate  that an Extraordinary General  Meeting  (`EGM')  of  the
Company  is  expected to be convened to take place before the  end  of  November
2006.   At  the EGM a special resolution will be proposed to amend the Company's
Articles of Association in order to implement the Proposal.

Background

The Company was launched in November 2000. At launch, shares in the Company were
offered  as a tax efficient rollover option for shareholders in Jupiter  European
Investment Trust PLC (`JEIT'), an investment trust which was founded in 1990 and
which was managed from the end of January 1999 by Alex Darwall (who has been the
portfolio manager of the Company since launch).

A Shareholder who acquired ordinary income shares in JEIT when Alex Darwall took
on the management of its investment portfolio at the end of January 1999 and who
subsequently  rolled their investment over into Ordinary Shares in  the  Company
(`Shares') at launch would have enjoyed an estimated 306.5 per cent.  return  on
the net asset value of their investment as at 24 October 2006. A Shareholder who
acquired  Shares  in the public offer on the Company's launch in  November  2000
would  have  enjoyed an 85.4 per cent. return on the Net Asset  Value  of  their
investment as at the same date. (Source: Jupiter Asset Management Limited).

As  the  Company  approaches its planned winding up date in February  2008,  the
Board  has  been  considering  the alternatives available  to  Shareholders.  At
present,  the  Company's Articles of Association provide for  the  Directors  to
convene an EGM at which a resolution shall be proposed requiring the Company  to
be  wound  up  voluntarily  on  29  February 2008,  unless  the  Directors  have
previously  been  released from this obligation by a special resolution  of  the
Company.

The  Board  is  aware  that  a  large number of Shareholders,  both  retail  and
institutional, wishes to continue their investment beyond February 2008 with the
Company's  portfolio  manager, Alex Darwall, and  with  the  Company's  existing
investment objectives and policies unchanged.

One  way  in  which  this  could  be  done would  be  by  way  of  a  scheme  of
reconstruction into a new investment trust. However, the costs of  such  schemes
are  relatively  high. The Board believes that, given the track  record  of  the
incumbent  portfolio  manager and the fact that no change  is  proposed  to  the
investment  objectives or capital structure, it is appropriate  at  the  current
time  to  ask Shareholders to remove the February 2008 winding up provisions  in
the  Articles  of Association and to replace them with a commitment  to  hold  a
continuation vote on a rolling three yearly basis.

Under the Proposal, the Company's Shareholders will be asked at the AGM in 2008,
and  again  at  the  AGM falling every three years thereafter,  to  approve  the
continuation of the Company by way of an ordinary resolution. In the event  that
such  a continuation resolution is not passed by Shareholders, the Company  will
proceed  to put proposals to Shareholders within 90 days of the relevant meeting
whereby  a  full cash exit at close to the liquidation net asset  value  of  the
Shares  will  be made available to all Shareholders. In these circumstances  the
cash option would be made on an unlimited basis and preferential terms would not
be  offered  to  those  Shareholders who elect to roll over  into  a  continuing
investment vehicle.

We believe that the Proposal is important since it will give both the Investment
Manager  and  the  Board greater flexibility to manage the  Company's  investment
portfolio  and  borrowings without the prospect of a forced sale  of  assets  to
raise  cash  prior to a reconstruction and/or a fixed winding up date.  With  the
prospect  of  a longer life there will be a longer period in which  Shareholders
should  be  able  to benefit from the portfolio manager's investment  performance
and,  it  is  to be hoped, build capital gains. We believe that this  will  also
serve  to make the Company a more attractive investment opportunity for  smaller
Shareholders, independent financial advisers and private client stockbrokers.

Treasury Shares and Discount Management Policy

In  response to concerns raised by institutional Shareholders at the prospect of
the  reissue of Shares from treasury by the Company at a discount to  their  net
asset  value, on 3 October 2006 the Company announced that it was no longer  its
policy  to allow the reissue of treasury shares at a discount to their estimated
net asset value.

The  Directors have always believed that it is not in Shareholders' interest for
the  Company's  Shares  to trade at a significant discount  to  their  prevailing
estimated net asset value.  Moreover, the Board believes that the most effective
and the only proven means of ensuring that the Company's Shares do not trade  at
a  material discount to their net asset value is for the Company consistently to
outperform both its peers and its benchmark. Under Alex Darwall's management  of
the  Company's  investment  portfolio  the  Board  believes  that  it  has  been
successful  in these objectives. The average discount at which the  Shares  have
traded  has  been 6 per cent. over the past three years and, as  at  24  October
2006, the latest practicable date prior to the publication of this circular, the
discount stood at 3.1 per cent. to the estimated Net Asset Value per share as at
24  October  2006, which compares favourably with the weighted average  discount
for  the  eleven  investment trusts in the Association of  Investment  Company's
`European' Peer Group of 4.7 per cent. (Source: Fundamental Data Limited)

Management and Past Performance

The  Company was first admitted to the London Stock Exchange on 20 November  2000
with  net assets of £78.5 million. As at 24 October 2006, the latest practicable
date  prior  to the publication of this circular, the Company's net  assets  had
grown  by a total of 90.5 per cent. since launch to an estimated £149.6  million
(unaudited) (Source: Jupiter Asset Management Limited).

Market Outlook and Portfolio Review

The  Board  continues to believe that this is an exceptionally good time  to  be
investing  in  European equities. Underpinning its enthusiasm is its  view  that
there are further significant productivity gains to come through. This is crucial
because improving productivity is the key to keeping inflation and interest rates
low  and driving growth. Better communications (notably digital technology) form
part  of this productivity story and help to promote the spread of business  and
wealth creation across the world.

European companies are, in many cases, well placed to benefit from these  trends.
There is a vast range of businesses in which European listed companies are world
class.  The  opportunities  for such companies are, for  the  reasons  described
above,  excellent. The Investment Manager's investment style, which  focuses  on
identifying  these  world beating companies, is proven and is,  in  the  Board's
view, appropriate for current market trends.

Liquidity Management

The Board believes that its policies on discount and liquidity management, which
have  evolved over the past five years, are at least as effective as the original
winding up provision for the purposes of ensuring that Shareholders who wish  to
buy  or  sell the Company's Shares can do so relatively easily and at  close  to
their underlying net asset value.

In  particular,  the  Board believes that it is important  for  the  Company  to
participate  in managing the liquidity (in other words, the flows in  supply  and
demand)  of  the  Company's  Shares  on the  London  Stock  Exchange.  Increased
volatility in the supply and demand for Shares can lead to unwanted results such
as  an  increase  in the short term discount at which the Company's  Shares  may
trade  (due  to  excessive  supply over demand) or,  equally  unattractive,  the
appearance  of a short term premium to net asset value (due to excessive  demand
over supply) which is not then sustained into the long term.

In  order  to  manage  the  liquidity in the Company's Shares,  the  Board  will
continue to operate its existing share buy back, treasury share and new issuance
policies.  The Company's new corporate brokers, Cenkos Securities Limited,  will
work  with  the Company and Jupiter Asset Management in attempting to place  the
Shares  of  any  sellers  with  other long term holders  in  preference  to  the
repurchase  of Shares by the Company for cancellation or treasury.  However,  if
Shares are offered in the market which cannot be placed with other investors  at
an  appropriate discount then the Company will repurchase them for  cancellation
or for treasury.

Any repurchases made pursuant to the Company's liquidity management policy would
be  funded through a combination of available cash reserves and the use of short
term  borrowings  under  the  Company's overdraft and/or  its  revolving  credit
facility.

The  level  of  discount  at which the Company will repurchase  Shares  will  be
regularly  reviewed  by the Board. In determining the threshold,  the  Board  is
committed to seeking maximum value for all Shareholders, regardless of the  size
of  their investment, and to act always in the best interests of Shareholders as
a  whole. Factors which will be taken into consideration will include the  views
expressed by our Shareholders, general market conditions and the advice  of  the
Company's brokers and of the Investment Manager.

For  the avoidance of doubt, purchases will always be at the absolute discretion
of the Board. Any purchases will be made only through the market at prices below
the  prevailing estimated net asset value per Share where the Directors  believe
such purchases will enhance Shareholder value.

Under  the  Listing Rules, the maximum price that may currently be paid  by  the
Company on the repurchase of any Shares is 105 per cent. of the average  of  the
middle  market  quotations for the Shares for the five business days  immediately
preceding the date of repurchase or, if higher, that stipulated by Article  5(1)
of the Buy-back and Stabilisation Regulation (EC No 2273/2003).

Enquiries:

Richard Pavry
Director
Jupiter Asset Management Limited
[e-mail]
Tel: [phone]

Chris Lunn
Sales, Cenkos Securities plc
[e-mail]
020 7397 1912

Will Rogers
Corporate Finance, Cenkos Securities plc
[e-mail]
020 7397 1920

Jenny Thompson
Company Secretary
[e-mail]
020 7314 5565

Cenkos  Securities  plc, which is authorised and  regulated  in  the  United
Kingdom by the Financial Services Authority  for designated investment business,
is  acting  exclusively for Jupiter European Opportunities Trust PLC and  no-one
else  in  connection with this announcement and will not be responsible  to  any
other  person  for  providing  the protections afforded  to  clients  of  Cenkos
Securities  plc or for providing advice in relation to this announcement  or
to any other matter  referred to in this announcement.