Portfolio Update

    MERRILL LYNCH NEW ENERGY TECHNOLOGY plc
All information is at 29 February 2008 and unaudited.

Performance at month end with net income reinvested

                   One     Three       Six       One      Five   Since Launch
                 Month    Months    Months      Year     Years     (23 Oct 00)
Net asset value   3.3%     -7.3%      7.1%     17.8%    256.2%          -32.0%           
Share price      10.8%      5.1%     12.2%     20.4%    358.6%          -33.5%           
Source: BlackRock

At month end                                                                   
Net asset value:                65.11p                                    
Share price:                    66.50p                                   
Premium to NAV:                  -2.1%                                    
Net yield:                        n/a                                      
                                                                               
Total Assets:                  £157.7m                                  
Gearing:                          0.0%                                     
Ordinary shares in issue: 241,750,000                              
 
                                                                              
Benchmark
Sector Analysis               % of Total     Country Analysis            % of Total
                                  Assets                                     Assets
                                                                               
Renewable Energy                    55.9     USA                               33.9
Alternative Fuels                   14.6     Spain                             13.1
Enabling Energy Technology          14.2     Denmark                           11.1
Materials Technology                 5.6     Germany                            7.8
Auto & On-Site Generation            3.3     United Kingdom                     7.7
Energy Storage                       0.6     Canada                             6.2
Net current assets                   5.8     India                              3.0
                                   -----     South Africa                       3.0
                                   100.0     Belgium                            2.5
                                   =====     Norway                             1.9
                                             France                             1.8
                                             China                              1.3
                                             Ireland                            0.9
                                             Current assets                     5.8
                                                                              -----
                                                                              100.0
                                                                              =====

Ten Largest Investments (in alphabetical order)                                
                                                                               
Company                             Country of Risk                       
American Superconductor             USA                                  
Climate Exchange                    United Kingdom                       
Clipper Windpower                   USA                                  
FPL Group                           USA                                  
Gamesa                              Spain                                
Itron                               USA                                
Potash                              Canada                               
Sasol                               South Africa                         
UBS Suzlon Energy                   India                                
Vestas Wind Systems                 Denmark                              


Robin Batchelor and Poppy Allonby, representing the Investment Manager, noted:

Portfolio Performance
The portfolio's NAV gained 3.3% in February, as investor confidence improved
after a turbulent January and the surging oil price focused attention on
alternatives. Notably, the Company's net asset value increased in value in a
period where global equities (represented by the MSCI World Index) declined by
0.7%. Although the market continues to be concerned with the potential for the
global liquidity crunch to reduce economic growth rates, investors continue to
appreciate the compelling growth fundamentals within the new energy sector,
underpinned by a positive legislative outlook (with particular regard to the US
election) and the high prices of oil, gas and coal.

Among the strongest contributors to performance was the portfolio's number one
holding Vestas Wind Systems, which continues to outperform conservative analyst
forecasts. Wind power offers utilities the cheapest and most effective way to
add new "clean" energy to their generation fleet, and industry-leading Vestas
has been achieving higher-than-expected margins by selling turbines on a spot
basis into this strong market.

Demand for wind power generating assets was underlined by a takeover battle
emerging for UK wind and biomass power producer Novera Energy. Investment
vehicles representing 3i Infrastructure Ltd and private equity firm Terra Firma
have been accumulating shares at 90p, around a 50% premium to the previous
share price.

Climate Exchange plc performed well, gaining 39% in February as the European
Climate Exchange announced plans to launch trading in contracts for Kyoto
Protocol certified emissions reductions.

Solar cell manufacturers such as Suntech Power were among the weaker performing
companies this month, on concern about potential margin pressures.

Portfolio Activity
We increased slightly our weighting in silicon-producing solar companies. We
anticipate that the ramp-ups of new Asian polysilicon startups will be slower
than forecast, thus keeping the silicon market tighter for longer.

Outlook
New energy stocks are not immune to the less predictable macro factors causing
heightened volatility and risk aversion in the broader equity markets.
Significant uncertainty and risk continue to overhang the market such as the
potential for further credit crunch-related write downs at the investment banks
and the impact that tighter credit will have on the broader economy. That said,
with energy prices still at record high levels and the momentum from `new
energy' policy and legislation on both sides of the Atlantic continuing
unabated, the long term outlook for the sector remains positive.

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).

31 March 2008



END