Japan Smaller Capitalization Fund, Inc. Announces Terms of Rights Offering

The Board of Directors of Japan Smaller Capitalization Fund, Inc.

has approved the terms of the Fund's transferable rights offering of its shares of common stock. The Board of Directors of the Fund has determined that the Rights Offering is in the best interests of the Fund and its existing stockholders because it represents an opportunity to increase the assets of the Fund available for investment, thereby enabling the Fund to take advantage more fully of existing and future investment opportunities consistent with its investment objective of long-term capital appreciation primarily through investments in smaller capitalization companies in Japan. The Rights Offering is expected to provide stockholders the opportunity to subscribe for additional shares of the Fund's common stock at a discount to market price.