Market Overview

Special Opportunities Fund, Inc. Elects to Retain a Portion of its Long Term Capital Gains

Special Opportunities Fund, Inc. (NYSE: SPE) (the “Fund”) today announced that it has made an election to retain $1 million ($0.1468 per common share) of its realized long term capital gains for the year ending December 31, 2012. As a regulated investment company, these gains will be designated to common shareholders of record on December 31, 2012 and the Fund will pay federal income taxes of 35%, equivalent to $350,000 ($0.0514 per common share). The tax effect is the same as if the retained capital gains had been distributed to the Fund's common shareholders, who then elected to reinvest 65% of the amount received. The 35% capital gains tax paid by the Fund is considered to have been paid on behalf of the common shareholders who will be issued a Form 2439 and will be entitled to take a credit for such taxes paid.

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