REG-BlackRock Grtr Eur: Portfolio Update

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BLACKROCK GREATER EUROPE INVESTMENT TRUST plc
All information is at 30 June 2008 and unaudited.

Performance at month end with net income reinvested

One Three One Since
Month Months Year Launch
(20 Sep 04)
Net asset value -7.4% -0.9% -10.5% 76.0%
Share price -9.2% -5.0% -10.5% 62.0%
FTSE World Europe ex UK -10.5% -5.2% -8.9% 67.7%
Sources: BlackRock and Datastream

At month end
Net asset value (capital only): 165.86p
Net asset value (including income): 169.64p*
*Includes net revenue of 3.78p
Share price: 156.00p
Discount to NAV (capital only): 5.9%
Discount to NAV (including income): 8.0%
Gearing: 0.0%
Net yield: 1.5%
Total assets: �190.7m*
Ordinary shares in issue: 112,388,958**

* includes current year revenue.
** excluding 2,728,833 shares held in treasury.

Benchmark
Sector Analysis Total Assets Index (%) Country Analysis Total Assets
(%) (%)

Financials 18.3 26.0 Germany 21.0
Health Care 13.4 7.5 Switzerland 18.6
Industrials 12.7 12.9 France 16.0
Oil & Gas 12.3 7.8 Netherlands 7.7
Utilities 11.4 9.0 Norway 5.7
Basic Materials 10.7 8.5 Russia 5.4
Telecommunications 7.3 6.4 Italy 5.1
Consumer Goods 5.5 13.5 Emerging Europe 4.3
Consumer Services 4.5 4.7 Spain 2.5
Technology 2.0 3.7 Finland 2.5
Other Investments 4.3 Denmark 2.4
Net current liabilities (2.4) Ireland 2.3
----- ----- Greece 2.0
100.0 100.0 Poland 1.9
===== ===== Cyprus 1.9
Hungary 1.1
USA 1.0
Turkey 0.7
Israel 0.3
Net current liabilities (2.4)
-----
100.0
=====

Ten Largest Equity Investments

Company Country of Risk
Allianz Germany
ArcelorMittal Netherlands
Bayer Germany
BlackRock Eurasian Frontiers Hedge Fund Emerging Europe
E.On Germany
Nestle Switzerland
Novartis Switzerland
Roche Switzerland
StatoilHydro Norway
Suez France

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

It was a particularly difficult month in European equity markets with the FTSE
World Europe ex UK Index (NDR) falling by -10.5% (Sterling terms) in June. A
drip feed of negative economic data, inflation concerns and bank capital
raising weighed heavily on Financials (Banks - 15%, Diversified Financials -18%
and Insurance -11%) and consumer related sectors (Autos -14%, Household Goods
-12%, Retailers -15%). Pharmaceuticals was the only sector to end the month in
positive territory +0.5% as investors sought a defensive place to hide. Energy
-5% and Materials -6% continued to outperform the broader market and Health
Care -6% also benefited from its defensive characteristics.

Emerging Europe outperformed the developed European markets with the MSCI
Emerging Europe posting a drop of -8.2% through June in Sterling terms. The
high weighting of commodities in the indices in this region provided some
support and partially offset the rising inflationary pressures that are
hampering economic growth.

The Company's NAV returned -7.4% outperforming the reference index. The
contribution from the Emerging Europe region was positive, with the benefit to
the Company from its exposure in Hungary and the significant positive return
made by the BlackRock Eurasian Frontiers Hedge Fund offsetting the falls in all
other Emerging Markets.

During the month, the Company benefited from its exposure to the Health Care
and Utilities sectors and lack of exposure to the underperforming Banks,
Diversified Financials and Consumer sectors. All stocks held in the Health Care
sector contributed positively to performance, with Icon and Novartis rising the
furthest. Within Utilities, performance was driven by strong gains made by
Finnish Hydropower Generator, Fortum, as it benefited from rising power prices.
Selection within Banks and Diversified Financials gave a positive return
from this sector, mostly attributable to a gain made by OTP Bank and low
exposure to the more challenged players, notably the Irish names and the
Investment Banks. As the economic outlook weakened and inflation continued to
drive up input costs, Consumer sectors underperformed significantly, so the
lack of exposure, particularly in the Autos sector, was beneficial to the
Company's performance. Other significant outperformers during the month were
Energy stocks, Saipem and StatoilHydro, and Steel producer, ArcelorMittal,
which followed the upward progression of the oil and steel prices respectively.
Despite this, at the sector level, weak performance came from within Materials
and Energy, largely due to not owning shares in Oil major, Total, and positions
in chemical producer Akzo Nobel, (which fell on raw material margin concerns)
and Integra Group (which suffered, despite good results, from the continued
rotation out of mid cap stocks).

During the month, the Company reduced its holdings in the Materials, Consumer
Staples, Software & Services and Diversified Financials sectors. The proceeds
were used to add to all positions in the Health Care sector, increase exposure
to Capital Goods by buying shares in ABB and Bouygues and topping up on
preferred names (E.On and Fortum) in the Utilities sector.

The Company has a bias towards Health Care, Utilities and Oil & Gas. The
weighting towards Industrials has now increased and the exposure to Materials
has been revised downwards again. The Company continues to avoid the Financials
and Consumer related sectors. Exposure to Emerging Europe was decreased
slightly during the month to finish at 14.5%, with the largest country
exposure being Russia, along with the BlackRock Eurasian Frontiers Hedge
Fund which provides diversified exposure to the region. During the month
the Company reduced its net market exposure to 100.0%.

Consensus earnings growth expectations continue to decline for 2008, now at
3.9% (6.9% March 08) putting the market on a P/E 10.9x. Given this difficult
backdrop we continue to focus on companies with a combination of strong balance
sheets including low leverage, strong cash generating business models and an
ability to pass on price increases or cut costs. European equity valuations
continue to look cheap on a relative and historic basis.

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).

23 July 2008

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