Central European Equity Fund Views Recent Corporate Events as Favorable.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 24, 2003

Two major Russian oil companies announced on April 20th their intention to merge, creating one of the world's largest oil companies.

Yukos Oil has agreed to pay $ 3 billion in cash for a 20% stake in Sibneft, with the intention to acquire the remaining 80% with company stock by year-end. The combined company will be capable of producing 2.2 million barrels of oil a day, which is close to Canada's or Kuwait's daily oil production.

Hanspeter Ackermann, Chief Investment Officer of the Central European Equity Fund said, "This confirms our view that Russian oil assets are attractive. This deal follows the $ 6.75 billion investment by BP in a joint venture with Alfa Group and Access-Renova in February and this month's announcement that the Russian government finally gave the green light to plans for the construction of a oil pipeline to Murmansk and a new port that would carry oil bound for the United States.

"Russia is already the word's second-largest oil exporter, after Saudi Arabia. However the country is facing significant bottlenecks to ship the crude oil that has accumulated in storage. The planned pipeline would carry 2.4 million barrels a day to a new shipping terminal in Murmansk. This would be the first such harbor in Russia able to accommodate large tankers and therefore make transatlantic oil shipments economically feasible."

Another significant development for Central Europe was the referendum in Hungary held on April 12, in which 84% of those voting were in favor of accession to the European Union. These results in favor of the referendum were much larger than expected, reflecting strong support among Hungarian citizens to initiate policies that would further stimulate their economic development. The Hungarian vote is the third in a series of ballots meant to seal the enlargement of the European Union next year.

The Central European Equity Fund is a non-diversified, closed-end investment company seeking capital appreciation primarily through investment of at least 80% of its net assets in Central European equities (including Eastern Europe); it may also invest up to 20% in Russia. Its shares are listed on the New York Stock Exchange under the symbol "CEE". It is managed by Deutsche Bank Securities Inc. As of March 31st, the Fund had invested 40% of its assets in Poland, 28% in Hungary and 13% in the Czech Republic. It also had 18% invested in Russia, including 4.8% in the above-mentioned Yukos. For further information, please visit: www.ceefund.com.

The opinions and forecasts expressed are made as of April 24, 2004 and may not actually come to pass. This information is subject to change at any time, based on market and other conditions and should not be construed as a recommendation of any specific security. Investments in the securities of issuers located in emerging markets countries involve greater volatility as well as a higher degree of risk than investments in securities on major international markets.