Letter to Shareholders

Baring Emerging Europe Trust PLC
2 October 2002


LETTER POSTED TODAY TO THE SHAREHOLDERS AND WARRANTHOLDERS OF THE BARING
EMERGING EUROPE TRUST PLC ON RNS


Directors:
Sir William Ryrie Chairman
Prince Abbas Hilmi
John Cousins
Iain Saunders
Charles Harman

                                                            2nd October, 2002


To the shareholders and warrantholders

I am writing to ensure that you are kept properly informed of the latest 
developments in the Company's position. These have been announced in the News
Service of the London Stock Exchange but you may not have seen them personally
and the newspaper reports have been limited.

The following is the text of an announcement which was made by the Company to
the London Stock Exchange on Thursday 19th September, 2002:

'The circular to shareholders dated 30th August, 2002 referred to resolutions
requisitioned on behalf of Laxey Partners Limited ('Laxey') proposing changes
to the membership of the Board.

For some months, the Board had been investigating ways of allowing shareholders
who wish to do so to realise the value of their shareholdings in the Company at
a price related to net asset value, without disadvantaging those shareholders
who wish to continue with their investment.

Since receiving the requisition submitted on behalf of Laxey, the Company's
advisers have again consulted a wide range of shareholders. Following these
discussions and after further careful consideration of the available options,
the Board has decided to put forward proposals for the reconstruction of the
Company.

Accordingly, the Board proposes to convene an extraordinary general meeting to
consider the voluntary liquidation of the Company in order that there should be
a reconstruction which will entitle shareholders either to realise their 
shareholdings for cash or to rollover their holdings into a closed end 
investment company with the same investment policy and investment management
team. Shareholders who elect for cash will bear the costs payable by the
Company of implementing the reconstruction proposals, and a deduction of 2
per cent of net asset value to a maximum of US$2 million which will be paid to
the rollover company. Warrantholders will receive their entitlements under the
terms of the warrants and any such amounts will be taken into account in
calculating net asset value.

It is expected that a circular will be sent to shareholders by mid-November
2002 containing full details of the proposals.

Laxey has agreed to support these reconstruction proposals and has undertaken
not to put forward the AGM resolutions which were requisitioned on its behalf.
Should it prove necessary, Laxey has also undertaken to vote against those
resolutions.

The Company's Annual General Meeting will take place as planned on 23rd
September, 2002 and shareholders will be invited to vote on the ordinary
business of the meeting, including resolutions for the reappointment of two
current directors, Prince Abbas Hilmi and Mr Charles Harman. Laxey has stated
that it will vote in favour of their re-election.'

At the Annual General Meeting of the Company held on 23rd September 2002, all
the resolutions proposed by the Directors were passed. The resolutions 
requisitioned by Laxey, as referred to in the announcement reproduced above,
were not moved and as a result there has been no change to the composition of
the Board of Directors.

I should like to take this opportunity on behalf of all the Directors to thank
shareholders who have supported us in the course of the consultations undertaken
and in the voting at the Annual General Meeting.

As the announcement says, we expect details of the Board's reconstruction
proposals to be sent to you in November.


Sir William Ryrie
Chairman



If you have sold or transferred all of your shares in The Baring Emerging 
Europe Trust PLC, please forward this letter to the purchaser or to the
stockbroker, bank or other agent through whom the sale or transfer was
effected, for transmission to the purchaser or transferee.


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