THE EASTERN EUROPEAN TRUST PLC: Portfolio Update

THE EASTERN EUROPEAN TRUST PLC 
All information is at 28 February 2013 and unaudited. 
Performance at month end with net income reinvested 
                           One   Three    One  Three    *Since 
                         Month  Months   Year  Years  30.04.09
Sterling:
Share price**                -0.5%   12.4%  -0.9%  14.8%     84.9%
Net asset value (undiluted)   1.2%   13.6%   5.9%  16.0%     92.0%
Net asset value (diluted)     1.0%   11.2%   3.1%  12.8%     86.8%
MSCI EM Europe 10/40(TR)     -0.2%   11.4%   7.1%  19.4%     85.8% 
US Dollars:
Net asset value (undiluted)  -3.1%    7.6%   0.7%  15.6%     96.7%
Net asset value (diluted)    -3.3%    5.3%  -2.1%  12.5%     91.3%
MSCI EM Europe 10/40(TR)     -4.5%    5.5%   1.8%  19.1%     90.4% 
Sources: BlackRock and Standard & Poor's Micropal 
* BlackRock took over the investment management of the Company with effect from
1 May 2009. 
At month end
Net asset value - capital only:           316.33p
Net asset value*** - cum income:          321.75p
Net asset value - cum income (diluted for
subscription shares):                     313.04p
Share price:                              275.50p
2012 Subscription share price:             13.50p
Total assets^:                            £130.7m
Discount (share price to cum income NAV):   14.4%
Gross market exposure^^^:                  108.6%
Net yield:                                    n/a
Ordinary shares in issue^^:            39,263,427
2012 Subscription shares:               8,533,028 
***Includes year to date net revenue equal to 5.42p per share.
^Total assets include current year revenue.
^^Excluding 5,800,000 shares held in treasury.
^^^ Long positions plus short positions as a percentage of net asset value. 
Benchmark
Sector Analysis     Net Assets(%)*    Country Analysis    Net Assets(%)* 
Financials                  32.7      Russia              62.9
Energy                      31.9      Turkey              19.8
Telecommunications          12.6      Poland               7.2
Materials                    7.5      Hungary              6.7
Consumer Staples             6.3      Czech Republic       4.7
Industrials                  4.2      Kazakhstan           2.4
Health Care                  4.0      Turkmenistan         1.5
Information Technology       3.6      Austria              1.4
Other                        3.0      Ukraine              1.0
Utilities                    1.4
Consumer Discretionary       0.4 
                     ----------                     --------
Total                      107.6      Total              107.6  
                     ----------                     --------
Short Positions             -1.0      Short Positions     -1.0 
                     ==========                     ======== 
*reflects gross market exposure from contracts for difference (CFDs) 
Ten Largest Equity Investments(in %orderof Total Market value) 
                                                 Total Market
Company                         Country of Risk         Value % 
Sberbank                        Russia                   9.8
Gazprom                         Russia                   8.4
Turkiye Garanti Bankasi         Turkey                   5.0
Mobile Telesystems              Russia                   5.0
Turkcell Iletism Hizmet         Turkey                   4.0
Surgutneftegaz                  Russia                   3.8
Mail Ru                         Russia                   3.4
Powszechna Kasa Osz czednosci   Poland                   2.9
Lukoil                          Russia                   2.8
Komercni                        Czech Republic           2.7 
Commenting on the markets, Sam Vecht, representing the investment
Manager noted; 
Market performance 
In February, the MSCI Emerging Europe 10/40 Index returned -0.2% (GBP terms),
erasing gains from January. Policy risks in China; sequestration in the US; and
a political stalemate in Italy weighed on global equity markets. 
The strongest market in February was Turkey, although a return of 2% was not
sufficient to regain the losses of January. Investors overlooked uninspiring
macroeconomic data, focussing on stock specific issues. 
Russia underperformed over the month. With increased political uncertainty in
Europe negatively impacting global sentiment and in the absence of specific
positive catalysts, increased equity issuance weighed on the market. 
Hungary was the weakest market as macroeconomic data for the fourth quarter of
2012 disappointed investors. The appointment of a new governor of the central
bank raised concerns about the institutions independence from the government
and also weighed on sentiment. 
Portfolio performance 
The Eastern European Trust returned 1.2% (undiluted GBP terms) in February,
outperforming the benchmark by 1.0%. 
Stock selection was the main driver of relative outperformance over the month. 
Turkish telecom company, Turkcell was the largest individual contributor to 
performance
after announcing a strong trading update for the fourth quarter of 2012. 
Russian internet company, Mail.ru, which was also strong, announced a special
dividend implying a 12% yield. The stock outperformed although the announcement
of a $580m placing on the last day of the month dampened the share price. 
The Trust also benefitted in relative terms from an underweight position in 
Polish telecom, 
TPSA. The stock has long been considered a `defensive dividend' play but lost 
that
tag in spectacular fashion when the company announced weak results and cut the
dividend. As a result, the stock fell by over 40%. 
The largest detractor from performance was Hungarian pharmaceutical, Gedeon
Richter, which suffered from the negative sentiment surrounding political
appointments in Hungary. 
Activity 
In February, we added to the position in Russian energy company,
Surgutneftegas. We hold preference shares which trade at an attractive
valuation for what is the most free cash generative company in the sector. 
We sold the position in Russian energy company, Rosneft on concerns about
additional capital expenditure in non-core markets. 
Market Outlook 
Russian and Eastern European markets have significant long-term structural
advantages. They benefit from flexible and dynamic economies with undervalued
currencies and educated and skilled workforces, allowing the countries of the
region to remain competitive in a globalized market. That said, the region has
not been immune from sentiment stemming from the problems which have beset the
Eurozone. Action from the ECB has reduced systemic financial risk and that has
been positive for all risk assets. 
In Russia, the announcement that state-owned companies will return a target 25%
of profits to shareholders through dividends is positive. Private companies
have also followed suit, bringing dividend yields in Russia up to global
emerging market averages of c.4% for the first time. In addition, recently
announced buybacks from companies across Russia & CIS have totalled $10bn,
demonstrating that companies see value in their own capital. 
Elsewhere, macroeconomic conditions in Turkey have improved and Hungary has
accessed international bond markets for the first time in 20 months to underpin
the country's fiscal position. However, the key driver of markets over recent
months is the fact that Emerging European stocks were exceptionally cheap,
universally disliked and widely misunderstood. As such, minor changes in
sentiment were able to have a meaningful impact on prices. 
Although we still see upside for the region, we remain mindful of the risks
which could potentially emanate from three places; US, Europe or China. 
The fortunes of global markets are still tied to varying degrees to the fate of
the US recovery which, although bumpy, is underway as reflected in a housing
market which is slowly returning to health. A fragile recovery, by definition,
could be blown off course and that is a risk for all markets, not just those of
Emerging Europe. 
A slowdown in China will affect the demand for commodities, the prices of which
impact sentiment surrounding Russia, although this will be positive for Turkey
and central Europe, commodity importers. 
While recent measures to stabilise the Eurozone have been positive, any
deterioration in the crisis will have implications for emerging Europe despite
their clear contrast to the economies of peripheral Europe. It is important to
remember that the economies of emerging European markets typically have lower
government budget deficits and lower debt burdens. 
Despite the attendant risks, valuations are still attractive and many of these
risks remain reflected (and more) in the price. The long-term outlook for
Emerging Europe is bright. 
13 March 2013 
ENDS 
Latest information is available by typing www.estplc.co.uk on the internet,
"BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV
terminal). Neither the contents of the Manager's website nor the contents of
any website accessible from hyperlinks on the Manager's website (or any other
website) is incorporated into, or forms part of, this announcement. 
-0- Mar/15/2013 15:59 GMT