Interim Management Statement

BARING EMERGING EUROPE PLC                           

                         Interim Management Statement                          

            Review of the period from 1 April 2010 to 30 June 2010             

This Interim Management Statement relates to the period from 1 April 2010 to 30
June 2010 and contains information that 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 half year end on 31 March 2010.

Portfolio:

Portfolio:

With a gross turnover of USD 62 m portfolio activity remained at a low level
during the quarter.

The company participated in selected initial public offerings in Russia (for
example Protek, Health Care production/distribution) and Poland (PZU,
Insurance), all of which outperformed the market in post-IPO trading. Further,
LSR's capital raising exercise to fund its real estate development pipeline in
Russia was used to build a position in this stock.

Substantial price outperformance of the Turkish market lead to a reduction in
Turkish assets, mainly in the conglomerate KOC Holding and its subsidiaries
Tupras (refining) and Yapi Kredi (Banking). The position in Turkish
construction company ENKA was reduced as its order backlog in the Balkans seems
subject to severe political risks.

Generally the cyclical components within the portfolio were reduced in favour
of investments in structural growth. The company's holdings in the Russian oil
and gas company Lukoil were reduced and positions were added in Wimm-Bill-Dann
(Russian dairy producer), OTP (Hungarian bank), Vakifbank (Turkish bank) and
EDC (Russian oil field service sector).

Discount:

During the period from 1 April 2010 to 30 June 2010 the average share price
discount to net asset value was 9.8 %.

Share Capital:

During the period from 1 April 2010 to 30 June 2010 the Company bought back
346,625 ordinary shares at a cost of £3.0 million. At 30 June 2010 the
Company's issued share capital consisted of 34,502,110 ordinary shares
(excluding the 3,318,207 ordinary shares held in treasury). During the period
from 1 July 2010 to 19 July 2010 a further 20,000 shares have been repurchased
for cancellation.

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.

COMPANY STATISTICS

                                    30 June 2010       19 July 2010

Gross Assets                         £280.7 million    £292.8 million

Net Asset Value Per Ordinary Share   813.6p            849.1p

Share Price                          730.0p            764.5p

Discount to Net Asset Value           10.3%             10.0%

CUMULATIVE PERFORMANCE TO 30 June 2010 (Total Return in percentage terms)

Performance Over                   3m     1 Year   3 Years

Share Price*                     -15.2%  +42.5%    -5.1%

Net Asset Value*                 -14.6%  +46.8%    -3.4%

Benchmark+                      -15.31%  +31.30%  -11.70%

* Source - Fundamental Data Limited

+ Source - Baring Asset Management



PORTFOLIO INFORMATION AT 30 June 2010

                          % of Total Assets

Ten largest holdings:

Sberbank                       10.8

Gazprom                         9.3

Rosneft                         7.1

Turkiye Garanti Bankasi         5.6

Norilsk Nickel                  5.5

Mobile Telesystems              5.1

Powszechna Kasa                 4.6

Lukoil Holdings                 4.6

Turkiye Halk Bankasi            4.4

Vimpel Comms                    4.2

Geographical breakdown:          %

Russia                         61.1

Turkey                         15.7

Czech Rep                       4.0

Poland                          9.1

Hungary                         3.9

Kazakhstan                      1.8

Other                           0.7

Cash & Equivalents              3.7

                              100.0

20 July 2010