Special Opportunities Fund to Commence Rights Offering

Special Opportunities Fund, Inc.

(the “Fund”) announced today that it will issue to its common stockholders one transferable right for every 10 shares of common stock held on June 15, 2012, entitling the holders of such rights to purchase shares of a newly designated class of convertible preferred stock. The rights will expire on July 9, 2012, and will entitle the holder to purchase one share of a convertible preferred stock at a price of $50 per share for each right held. The rights will be traded through the NASDAQ Capital Market and the Fund anticipates that the convertible preferred stock will be listed on the New York Stock Exchange. All holders of rights who fully subscribe in the offering will have the option to oversubscribe for additional shares of convertible preferred stock, which may be available if fewer than all rights are exercised.