SR Europe Investment Trust plc Interim Management Statement

for the three months ended 30 September 2009 (unaudited)

This interim management statement has been produced to provide information to shareholders in accordance with the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules. It should not be relied upon by any other party or parties for any other purposes. The views, information and data in this publication should not be deemed a financial promotion or recommendation.

Investment Objective

SR Europe Investment Trust plc invests in an actively managed portfolio of quoted companies and debt instruments in the United Kingdom and continental Europe, including developing Europe and Russia, with the objective of generating capital growth without neglecting income.

Summary

30 September 2009 30 June 2009 Net assets (including current period GBP71.7 million GBP55.2 million revenue) Net asset value per share 241.50 pence 185.84 pence Percentage of funds invested 115.4% 109.7%

Investment Manager's Review

The Company's net asset value ("NAV") rose by a strong 30% during the three month period ended 30 September 2009. For comparative purposes only, the MSCI Europe (including UK) index rose by 26.4% in sterling terms over the same period. The following factors contributed to the performance of the Company over this period.

The net equity invested position during the period (excluding corporate bond positioning) increased from 85% to 102% in reflection of the improved outlook and sentiment in the European equity space. We maintained an exposure in corporate bonds throughout, although this declined from 25% to 13% by the period end. These bond positions have performed very well since their instigation around 12 months ago, however we are unlikely to increase positioning here unless market circumstances change significantly.

The bulk (but not all) of the balance sheet expansion has been in modestly valued, steady businesses such as telecoms, pharmaceuticals and large cap oil companies. These stocks only partially participated in the market rally from the March lows, which had a strong beta-driven element to it. The main themes in the portfolio at the period end are in Healthcare (Fresenius, Roche and Novo Nordisk), Telecoms (Telefonica and Vodafone) and Oil Services and Exploration (Rocksource and TGS).

Equities have been in an attractive sweet-spot: an extended period of accommodative monetary policy providing ample global liquidity, valuations which are moving from exceptionally low levels towards more long-term averages, a shift from an extended period of earnings downgrades and opacity to greater visibility and, given weak year on year comparables, the potential for positive earnings growth. Coupled with all of this is clear evidence of supportive inflows from many investors who have previously been more cautiously positioned.

Our central scenario is that markets continue their rally into the year end, but recognise that it is much harder to see a sustained new bull market in the medium term given the weak economic outlook, with only a sustained earnings expansion possibly producing such an outcome. The Company will continue to utilise a flexible balance sheet and a clear bottom up stock selection process, seeking to add value at both levels.

Top 10 Holdings

as at 30 September 2009

Company % of Net Country Sector Assets Wirecard 4.8 Germany Information Technology Fresenius 4.8 Germany Healthcare Roche Holdings 4.5 Switzerland Healthcare Heidelberg Cement 4.5 Germany Construction Petroleum Geo Services 3.9 Norway Bond 2.7% Man Group 11% 3.7 United Kingdom Bond Telefonica 3.6 Spain Telecommunication Vodafone 3.4 United Kingdom Telecommunication Rocksource 2.9 Norway Energy Carphone Warehouse 2.9 United Kingdom Telecommunication Asset Allocation as at 30 September 2009 As at 30 September As at 30 June 2009 2009 Country % of Net Assets % of Net Assets Belgium 2.9 0.8 Denmark 2.6 4.0 France 8.9 10.2 Germany 20.8 17.5 Italy 1.6 - Luxembourg 1.1 - Netherlands 10.2 10.7 Norway 14.9 16.2 Russia 0.9 0.8 Spain 3.6 6.4 Sweden 5.1 5.4 Switzerland 11.9 6.5 UK 30.9 31.2 As at 30 September 2009 As at 30 June 2009 Value (GBP) % Value (GBP) % Equities 73,207,304 102.1 46,939,038 85.1 Fixed income 9,586,000 13.3 13,591,902 24.6 Cash (11,077,895) (15.4) (5,466,853) (9.9) Hedging - - 122,460 0.2 Net Assets 71,715,409 100.0 55,186,547 100.0

Note: The Directors are not aware of any significant events or transactions which have occurred between the date of the financial information and the date of publication, which would have a material impact on the financial position of the Company. For latest performance and portfolio information, please refer to the Company's website: www.sreit.co.uk.

Contact Details:

Capita Sinclair Henderson Limited

+ 44 1392 412122 www.sreit.co.uk 28 October 2009