Interim Management Statement

BARING EMERGING EUROPE PLC                           

                         Interim Management Statement                          

         Review of the period from 1 October 2010 to 31 December 2010          

This Interim Management Statement for the period from 1 October 2010 to 31
December 2010 contains information which covers that period, unless otherwise
stated.

INVESTMENT OBJECTIVE

The investment objective of the Company is to achieve long-term capital growth,
principally through investment in Emerging European securities.

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

The directors confirm the following material events and transactions which have
occurred since the Company's year end on 30 September 2010.

Portfolio:

Portfolio activity picked up markedly during the last quarter of 2010.Baring
Emerging Europe PLC continued to sell into a buoyant Turkish market thereby
moving to an underweight position relative to the benchmark for the first time
in two years. Within Turkey the Company switched into the industrial sector,
food producers and retailers and out of banks.

The overweight in the material sector was increased by increasing positions in
Ferrexpo, a Ukrainian iron ore producer, Raspadskaya, a Russian coal miner and
Norilsk Nickel, the world leading nickel producer - thereby increasing the
portfolio's exposure to an expected acceleration in global economic growth.

The weighting in the utility sector was reduced further as the earnings growth
outlook seems to be very limited in the medium to long tem. The energy sector
remains an underweight.

Baring Emerging Europe PLC participated in selected IPOs and subscribed for
shares in O'KEY a Russian hypermarket chain and the listing of the Warsaw Stock
Exchange in Poland. Both positions were increased by buying on the secondary
market following the IPO. PepsiCo's takeover of Russian dairy producer
Wimm-Bill-Dann at a large premium to the market highlighted the potential that
multinational corporations continue to ascribe to Emerging Europe's growth
prospects. After rising by more than 40% on the day of the announcement,
Wimm-Bill-Dann's position in the portfolio was reduced to raise cash for
investments in other stocks. After having sold out of the leading Polish
insurance company PZU in the third quarter on valuation grounds, Baring
Emerging Europe PLC took advantage of a secondary issue at significantly lower
prices and added the stock to the portfolio again.

Discount:

The share price discount to net asset value at 31 December 2010 was 6.6% (30
September 2010: 10.4%)

Share Capital:

During the period from 1 October 2010 to 31 December 2010 the Company bought
back 21,000 ordinary shares at a cost of £0.2 million. At 31 December 2010 the
Company's issued share capital consisted of 34,446,110 ordinary shares
(excluding the 3,318,207 ordinary shares held in treasury).

The directors are not aware of any other significant events or transactions up
to the date of this report which would have a material impact on the financial
position of the Company.

ANNUAL GENERAL MEETING HELD ON 18 JANUARY 2011

Resolutions

All the resolutions set out in the Notice of Meeting were duly passed. The
resolutions approved included resolutions to authorise the Company to issue
shares for cash, including shares held in treasury and to make market purchases
of the Company's own shares.

Board Change

Mr John Cousins retired from the Board following the Annual General Meeting.

Annual Dividend

Shareholders approved the payment of an annual dividend of 2.9p per share at
the close of business on 7 January 2011 to be paid to members on the register,
on 2 February 2011. 

COMPANY STATISTICS

                                    31 December 2010    9 February 2011

Gross Assets                          £341.4 million     £344.6 million

Net Asset Value Per Ordinary Share           990.97p          1,000.05p

Share Price                                  926.00p            922.00p

Discount to Net Asset Value                     6.6%               7.9%

CUMULATIVE PERFORMANCE TO 31 DECEMBER 2010 (Total Return in percentage terms)

Performance Over                             3m       1 Year    3 Years

Share Price*                              +13.2        +23.3       +0.4

Net asset Value*                           +8.6        +18.0       -3.5

Benchmark+                                 +8.2        +21.7       -5.2

  * Source - AIC

  + Source - Barings. MSCI EM Europe 10/40.

PORTFOLIO INFORMATION AT 31 DECEMBER 2010

                             Ten largest holdings:          Geographical breakdown

                                % of Total Assets                           %

Sberbank                              11.5

Gazprom                                8.6                  Russia        62.4

Norilsk Nickel                         8.2                  Turkey        16.8

Lukoil Holdings                        6.7                  Poland        12.0

PKO                                    5.0                  Hungary        4.0

Mobile Telesystems                     4.4                  Czech Republic 1.9

Turkiye Garanti Bankasi                4.0                  Kazakhstan     2.0

OTP Bank                               3.9                  Other          0.9

Turkiye Halk Bankasi                   3.7

Rosneft                                3.4                  Total        100.0




10 February 2011