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14 June 2011

Sam Vecht, Portfolio Manager of the Eastern European Trust, highlights the pace of progress across the region and why investors should take another look: ?We believe Eastern Europe continues to be an attractive region for investment and that investors should not be put off by overstated political concerns. Many countries are experiencing low deficits, falling debt burden and higher growth, in contrast with the developed countries which are subjected to the exact opposite of this. ?The perception of Eastern European countries is often dated and many investors are unaware of significant economic and market reforms happening across the region. ?It was a positive move for Russia when President Medvedev announced that he wanted politicians removed from the board of all state companies, signalling a shift to improved transparency in the way Russia does business. We see the state implementing a large privatisation plan to modernise the economy and Russia is also making progress to finally join the WTO, all of which indicates the country is looking to engage with global business and investment. ?Last year there was speculation that Hungary was the next ?Greece? and that it would need to be bailed out. However this has not happened - the Hungarian government implemented plans to slash the budget deficit and announced the Szell Kalman plan in the spring, a programme to secure fiscal savings and boost investor confidence. Hungary is now expected to post a budget surplus and a current account surplus in 2011, as many countries remain mired in twin deficits. ?Looking to sectors, Eastern Europe?s industrial competitiveness is high and rising. The region is attractive due to low labour costs, a highly educated work base and low corporate tax rates. Countries such as Turkey and Poland are set to benefit in particular from China?s rising wage inflation, and we will soon see more products being manufactured here.? Since BlackRock took over the fund on 30 April 2009, The Eastern European Trust?s net asset value has increased by 138%* and its share price has increased by 143%*, compared to MSCI Emerging Europe 10/40 index at 113%. * Source BlackRock Indices. The Eastern European Trust and benchmark as at 31 May 2011. Performance figures are provisional and calculated on a mid market basis with net income reinvested on ex-dividend date in USD terms, unless stated otherwise. ENDS Contact: Henrietta Guthrie Lansons Communications 020 7294 3612 Henriettag@lansons.com Rachel Cashmore Lansons Communications 020 7294 3663 Rachelc@lansons.com Haw-Yan Man Lansons Communications 020 7566 9727 Haw-YanM@lansons.com Issued by BlackRock Investment Management (UK) Limited, authorized and regulated by the Financial Services Authority. 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