Board of Scudder New Europe Fund, Inc. Approves Open-ending Proposal and Combination With Kemper Europe Fund.

NEW YORK--(BUSINESS WIRE)--April 28, 1999--

The Board of Directors of Scudder New Europe Fund, Inc. ("Scudder New Europe", NYSE:NEF) announced today its formal approval of a proposal to convert the Fund from a closed-end investment company to an open-end investment company (mutual fund). Shareholders will be asked to consider and approve this proposal at the annual shareholder's meeting scheduled for July 20, 1999.

The Board has periodically reviewed the appropriateness of the closed-end structure of Scudder New Europe and the potential investment benefits inherent in that structure. As detailed in the Board's January 27, 1999, announcement, the Board has been advised by Scudder Kemper Investments that significant developments in the European markets in recent years would permit Scudder New Europe to now operate efficiently as an open-end fund. The current portfolio management team of Scudder New Europe Fund would remain in place to manage the open-end vehicle.

Additionally, the Scudder New Europe Board yesterday approved the acquisition ("Acquisition") of the assets of Kemper Europe Fund ("Kemper Europe"). The Board of Trustees of Kemper Europe approved the Acquisition on March 31, 1999, and also scheduled a shareholder meeting for July 20, 1999, to obtain necessary shareholder approvals.

The conversion of Scudder New Europe to an open-end investment company is not contingent on the approval by shareholders of the Acquisition of Kemper Europe. If the open-ending proposal is approved by shareholders of Scudder New Europe, the Fund will commence delisting procedures with the New York Stock Exchange and subsequently begin operating as a mutual fund distributed as part of the Kemper family of funds. These transactions are expected to be concluded on or about September 1, 1999, subject to the satisfaction of certain conditions.

To begin implementing these Board actions, Scudder New Europe filed the following documents with the Securities and Exchange Commission:

-- Preliminary Proxy Statement to be mailed to Scudder New Europe

shareholders for approval of, among other matters, the

open-ending proposal;

-- Registration Statement on Form N-1A (Prospectus and Statement of

Additional Information) for operation as an open-end investment

company; and

-- Registration Statement on Form N-14 (Prospectus / Proxy

Statement) relating to the Acquisition of Kemper Europe Fund.

If open-ending is approved by the shareholders of Scudder New Europe, the Board of Directors has determined that all shares acquired when Scudder New Europe operated in closed-end form would be redeemable at net asset value. Redemptions during the first year after conversion to open-end status will be subject to a 2% redemption fee paid to the Fund. This fee is being implemented to cover administrative, trading and other costs, which would otherwise be borne by the remaining shareholders, after the Fund's conversion to an open-end fund. Additionally, the Fund will redeem in-kind former closed-end fund shareholders above a certain threshold amount. This in-kind redemption is intended to mitigate adverse tax consequences to remaining shareholders.

For investor information, please call Judith Hannaway at [phone] and for media inquiries please call Eleanor Mascheroni at [phone].