Should the Fund's Board approve the rights offering, commencement of the offer will be announced via press release and the definitive terms of the offer, including the subscription price, will be included in the prospectus. While final terms of such an offer will depend on market conditions at the time of commencement, the Fund is contemplating issuing transferable rights to purchase one share for every three shares currently outstanding.

The Central Europe and Russia Fund, Inc. is a non-diversified, closed-end investment company seeking long term capital appreciation through investment primarily in equity and equity-linked securities of issuers domiciled in Central Europe and Russia. Its shares are listed on the NYSE under the symbol "CEE". Because the Fund is non-diversified it can take larger positions in fewer companies, increasing its overall risk profile. Investments in securities of foreign issuers present greater risks including currency fluctuations and changes in political/economic conditions. Foreign securities markets generally exhibit greater price volatility and are less liquid than the US markets.