Interim Management Statement

BARING EMERGING EUROPE PLC                           

                         Interim Management Statement                          

         Review of the period from 1 October 2011 to 31 December 2011          

This Interim Management Statement for the period from 1 October 2011 to 31
December 2011 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 2011.

Portfolio:

The fourth quarter saw a significant shift in the portfolio away from Turkey
and into Russia. This was mainly achieved by a sharp reduction of the weighting
in Turkish banks, and - with the sale of the entire holding in Isbank - the
total number of Turkish banks was reduced from three to two. This change at the
beginning of October could not have come at a better time, as, shortly
afterwards the Turkish Central Bank changed policy, starting to raise
short-term interest rates significantly, thereby reducing the earnings
potential for the Turkish banking sector.

The Energy sector was the main recipient of the funds released from Turkish
assets as we continue to see the benign combination of increasing free
cash-flow generation, receding cost inflation and production growth for well
positioned companies in the sector. Holdings in the Hungarian oil and gas
company MOL, and the Russian oil majors Surgutneftegas and Rosneft, were
increased as a consequence.

The operating performance of Russian consumer stock X5 disappointed over the
course of the quarter, and the management's inability to integrate past
acquisitions successfully puts the company's long-term margin outlook at
significant risk. The stock was sold and its Russian competitor Magnit added to
the portfolio. Magnit's operating performance has held up far better than X5's
but the stock has come under significant pressure as investors extrapolated
X5's situation to the entire sector.

Discount:

The share price discount to net asset value at 30 December 2011 was 7.1% (30
September 2011: 9.1%)

Share Capital:

During the period from 1 October 2011 to 31 December 2011 the Company bought
back 547,000 ordinary shares at a cost of £3.63 million. At 30 December 2011
the Company's issued share capital consisted of 32,428,110 ordinary shares
(excluding the 3,318,207 ordinary shares held in treasury).

Tender Offer / Adjustment to Discount Control Mechanism

On 12 December 2011, following consultation with its major shareholders, the
Company announced a proposed tender offer for up to 20 percent of the Company's
issued share capital (excluding any Shares held in treasury by the Company).
The Tender Offer is available to Shareholders (other than certain Overseas
Persons) on the Register on the Record Date, which is 5.00pm on Tuesday, 14
February 2012. A circular which sets out the background to and details of the
Tender Offer and convenes a general meeting of the Company to be held at 11:45
a.m. on Thursday, 16 February 2012 following the Company's Annual General
Meeting was posted to shareholders on 18 January 2012.

The Board also proposes to adopt a policy of seeking to limit the price at
which the Company's shares trade to a level significantly lower than a 10%
discount to NAV by making purchases of its shares in the market from time to
time. This will be in place of the current policy of seeking to limit the price
to a level lower than a 12% discount.

This will be in addition to the existing policy that if the average closing
mid-market price at which the Company's shares trade in the market in the
period of ninety days prior to the publication of the Company's results each
year represents a discount to NAV which exceeds the target discount, the
Company will, subject to the conditions outlined below, make a tender offer
available to all shareholders to repurchase up to 15% of the outstanding issued
share capital of the Company at a price equivalent to 95% of NAV or greater
(after taking account of any expenses including the costs of selling
investments in order to fund the repurchase). Any shares repurchased will, at
the discretion of the Company, either be held in treasury and may be issued at
a later date at or above net asset value, or may otherwise be cancelled.

In order to implement this adjusted policy, the Board intends to seek
shareholder authority at the Company's annual general meeting each year to
repurchase up to 15% of its issued share capital. The timing of any tender
offer to repurchase shares under the policy will be at the discretion of the
Company. The making of any offer will be conditional upon the Company having
the required shareholder authority or such shareholder authority being
obtained, the Company having sufficient distributable reserves to effect the
repurchase and, having regard to its continuing financial requirements,
sufficient cash reserves to settle the relevant transactions with shareholders,
and the Company's continuing compliance with the Listing Rules and all other
applicable laws and regulations. The Company may require a minimum level of
participation in any tender offer to be met, failing which the tender offer may
be declared void

Results for the Year Ended 30 September 2011

On 20 December 2011 the Company announced its final results for the year ended
30 September 2011. The annual report and accounts for the year ended 30
September 2011 was mailed to shareholders on 18 January 2012.

Dividend

In previous years the Company has paid an annual dividend following shareholder
approval at the annual general meeting. As the annual general meeting is being
held slightly later than usual in 2012 the Board decided to pay the dividend
for the year ended 30 September 2011 as an interim dividend to maintain a
similar dividend timetable as in previous years. The Board therefore declared
an interim dividend of 10.0p per ordinary share for the year ended 30 September
2011 out of income available for distribution of 10.99p per share which was
paid on 1 February 2012 to shareholders on the register 6 January 2012. The
shares were marked ex-dividend on 4 January 2012.

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 December 2011       7 February 2012

Gross Assets                           221.9 million         £261.9 million
Net Asset Value Per Ordinary Share     684.41p                807.49p
Share Price                            636.00p                752.00p
Discount to Net Asset Value             7.1%                   6.9%

CUMULATIVE PERFORMANCE TO 31 DECEMBER 2011 (Total Return in percentage terms)

Performance Over                      3 months        1 Year     3 Years
Share Price*                            -0.3%         -31.1%      +56.2%
Net asset Value*                        -2.4%         -30.7%      +50.1%
Benchmark+                              -0.3%         -23.9%      +56.7%

* Source - AIC

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

PORTFOLIO INFORMATION AT 30 DECEMBER 2011

Ten largest holdings:                              Geographical breakdown

                           % of Total Assets                           %

Sberbank                           11.1
Gazprom                            9.1                       Russia 63.1
Lukoil Holdings                    9.0                       Turkey 16.0
Rosneft                            8.9                       Poland 13.1
Garanti Bank                       4.3                    Kazakhstan 2.6
Novatek                            4.0                Czech Republic 1.7
VTB Bank                           3.7                       Ukraine 1.3
PKO                                3.3                       Hungary 1.1
Eurocash                           3.0                         Other 1.1
Halk Bank                          2.9                       Total 100.0

8 February 2012