Portfolio Update

Merrill Lynch Greater Europe IT PLC
22 January 2007

MERRILL LYNCH GREATER EUROPE INVESTMENT TRUST plc

All information is at 31 December 2006 and unaudited.

Performance at month end with net income reinvested

                                             One                Three              One                Since launch
                                             Month              Months             Year               (20Sep04)
Net asset value                              4.2%               7.4%               20.3%              76.7%
Share price                                  3.1%               7.3%               20.4%              69.2%
FTSE World Europe ex UK                      4.1%               7.0%               20.1%              65.2%

Sources: BlackRock Merrill Lynch Investment Managers and Datastream.

At month end
Net asset value:                        172.45p            Includes net revenue of 0.15p
Share price:                            165.00p
Discount to NAV:                           4.3%
Gearing:                                  13.9%
Net yield:                                 1.2%
Total assets:                           £244.7m
Ordinary shares in issue*:              124,729,045

* There was a tender offer in the month.  5,509,887 shares were repurchased and are being held in treasury.



Benchmark
Sector Analysis                         Total Assets         Index   Country Analysis                       Total Assets
                                                 (%)           (%)                                                   (%)
Financials                                     41.6           34.1   Germany                                       18.7
Oil & Gas                                       8.8            6.3   France                                        17.7
Utilities                                       8.5            7.3   Switzerland                                   13.2
Basic Materials                                 8.4            5.1   Italy                                         11.3
Consumer Goods                                  8.0           12.4   Russia                                         7.2
Industrials                                     7.4           11.5   Netherlands                                    5.5
Healthcare                                      5.8            7.3   Spain                                          5.2
Telecommunications                              5.4            6.4   Ireland                                        4.2
Technology                                      3.1            4.4   Finland                                        2.7
Other Investments                               1.9              -   Greece                                         2.3
Consumer Services                               1.7            5.2   Belgium                                        2.1
Net current liabilities                        (0.6)             -   Sweden                                         2.0
                                                                     Denmark                                        1.7
                                                                     UK                                             1.4
                                                                     Norway                                         1.3
                                                                     Iceland                                        1.3
                                                                     Turkey                                         1.3
                                                                     Poland                                         1.0
                                                                     Israel                                         0.4
                                                                     Austria                                        0.1
                                                                     Net current liabilities                       (0.6)
                                              -----          -----                                                -----
                                              100.0          100.0                                                100.0
                                              -----          -----                                                -----


Ten Largest Equity Investments
Company                                                Country of Risk
AXA                                                    France
Credit Suisse                                          Switzerland
ENI                                                    Italy
E.On                                                   Germany
Nestle                                                 Switzerland
Novartis                                               Switzerland
Telefonica                                             Spain
Total                                                  France
UBS                                                    Switzerland
Unicredito                                             Italy


Commenting on the markets, James Macmillan, representing the Investment Manager noted:


European equity markets continued to rally in December, reaching fresh six year highs by the year end.  Markets were
driven by encouraging news on economic growth in Europe, generally upbeat company results, and continued mergers and
acquisitions activity.  The FTSE World Europe ex UK (NDR) returned an impressive 4.1% in sterling terms. Performance in
Emerging Europe was strong, with the MSCI Emerging Europe index (net) returning 4.0% in GBP terms.



The Company's NAV returned 4.2% during December outperforming the reference index by 0.1%.  The contribution from the
Emerging Europe region was marginally negative, mainly due to Russia and Poland. The use of flexible gearing was
beneficial with the Company benefiting from being positively geared in a rising market.



During the month the Company benefited from strong stock selection across a range of sectors.  Within the banking
sector the Company's holdings in Intesa SanPaolo, Anglo Irish Bank and Turkiye Is Bankasi all had a positive
contribution to performance. Elsewhere other strong performing stocks were construction group Grafton, specialty
chemical company Umicore, utility EDF, and healthcare company Fresenuis.



The stocks to detract from performance were found in the energy sector which pulled back after further declines in the
oil prices.   The worst performing stocks were those with leverage to the oil prices and included refiners PKN and
Neste Oil, along with power utilities RWE and Fortum.



During the month the Company increased its exposure to the materials and insurance sector through the purchase of
holdings in chemical company Symrise and re-insurer Munich Re.   These transactions were funded by reducing the
Company's exposure to utilities, energy and real estate.



The Company continues to have a bias towards the financials, through banks and diversified financials, along with
energy, utilities and materials.  Exposure to Emerging Europe decreased during the month to finish at 9.9%. The Company
ended the month with a net market exposure of 113.9%.



We remain positive on the prospects for European equities.  The latest evidence appears to suggest that the global
economy remains in robust health with a slight tempering of growth rather than the emergence of a recession or a
serious slowdown.  European companies have generally reported strong Q3 results, and profits have proved resilient to a
modest slowdown in the US, due to robust export demand from Asia and corporate restructuring.  European equity
valuations are attractive, earnings growth is strong and earnings revisions remain positive.




Latest Latest information is available by typing www.blackrock.co.uk/its on the internet, 'BLRKINDEX' on Reuters,
'BLRK' on Bloomberg or '8800' on Topic 3 (ICV terminal).




22 January 2007






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