Investment strategy for Global Small Cap Fund Inc.

NEW YORK--(BUSINESS WIRE)--June 9, 1995--Global Small Cap Fund Inc. (AMEX:GSG) is a closed-end management investment company seeking long-term capital appreciation through investments in U.S. and foreign equity securities of small-capitalization companies, with $42.3 million in assets. On March 23, 1995, management responsibility for the Fund was transferred to GE Investment Management Inc., a subsidiary of General Electric Company, by Mitchell Hutchins Asset Management Inc., a wholly owned subsidiary of PaineWebber Inc. Additionally, GEI is responsible for the management of:

- PaineWebber Atlas Global Growth Fund, with $324 million in

assets;

- PaineWebber Europe Growth Fund, with $100 million in assets;

- Mitchell Hutchins/Kidder, Peabody Global Equity Fund, with

$206 million in assets;

- The equity portion of PaineWebber Global Growth and Income

Fund, which represents $52 million in assets; and

- Series Trust - Global Growth Portfolio, with $35 million in

assets.

This newly developed sub-advisory relationship allows Mitchell Hutchins to tap GEI's extensive international investing talent and resources. Margo Alexander, President and Chief Executive Officer of MHAM, said, "Given their outstanding track record and top-quality investment professionals, GE investments should help us achieve our foremost priority of assuring the best possible returns for our clients."

Ralph Layman, head of GEI's International Equity Management Team, has been appointed as the portfolio manager for the PaineWebber Global Equity Funds. His Team is made up of 19 investment professionals, who, combined, have over 240 years of investment experience - an average of 13 years per Team member. They are responsible for the management of the firm's global and international equity portfolios at GEI, which represent over $5 billion in assets. Since Layman joined GE Investments four years ago, International Equity assets under management have grown by $3 billion.

In addition to managing the funds mentioned above, Layman and his Team are responsible for managing the publicly available mutual funds, GE Global Equity Fund and GE International Equity Fund, and the Elfun Global Fund, an investment fund offered exclusively to certain General Electric employees and retirees. Layman and his Team are also responsible for all international equity investments of the $27 billion GE Pension Trust and corporate and public institutional clients of GE Investments. He is a member of GE Investments Asset Allocation Committee and is a Trustee of the GE Pension Trust.

Layman joined GE Investments in 1991 from Northern Capital Management where he served as Executive Vice President and Director for two years, and managed an international equity mutual fund. From 1985 to 1989, Layman was a Vice President and Portfolio Manager at Templeton Investment Counsel Inc. His responsibilities included the management of over $500 million of global equity separate accounts for foundations, pension plans and large individual investors. He was instrumental in formulating Templeton's feasibility study and in listing the first emerging market fund in the United States - Templeton Emerging Markets Fund (NYSE:EMF), of which he was vice president.

An addition to Layman's experienced Global Equity Investment Management Team is Judy Studer, Senior Vice President of GE Investments, who has over 11 years of experience at GE. The Team will benefit from additional leadership from Studer in the management of Global Small Cap Fund Inc.

GE Investments International Equity Team's investment style centers around a bottom-up stock picking style. Basically, the search starts with an individual stock rather than a particular industry or stock market. Similar to domestic stock portfolio managers, who use a price-earnings to growth approach, the Team screens for investment ideas by looking at a company's price to cash earnings - earnings per share plus depreciation per share - relative to the company's long-term growth rate.

The Team ends up with stocks they believe to be cheap, based on their three- to five-year growth rate. Moreover, the additional top-down risk overlay the team applies to emerging markets, such as Thailand, Malaysia and Mexico, provides investors with a prudent approach of investing in the emerging market arena. Layman and his team are firm believers in diversification and long-term investing. They attempt to steer clear of markets that they believe are overvalued or present too many risks and avoid market timing - as evidenced by their average portfolio turnover rate of 33%, meaning that they hold most stocks for about three years.

GE Investments, an affiliate of General Electric Company, is one of the largest independent managers in the U.S., providing professional multi-asset investment management to approximately 70 corporate and public institutional clients. GE Investments manages approximately $9 billion in mutual funds, including the Elfun Funds, the GE Funds and the mutual funds in GE's 401(k) savings plan. GE Investments manages more than $47 billion of diversified assets in U.S. and international equities, fixed income, real estate and alternative investments.

Mitchell Hutchins Asset Management Inc., a wholly owned subsidiary of PaineWebber Inc., provides investment advisory and portfolio management services to individuals, pension and endowment funds, trusts and institutions. As of April 30, 1995, Mitchell Hutchins was investment adviser or subadviser to 42 registered investment companies with 77 separate portfolios and aggregate assets of nearly $27 billion. PaineWebber Inc. is one of the nation's leading full-service securities firms, serving the investment and capital needs of a worldwide client base.

CONTACT: Mitchell Hutchins Asset Management Inc.

Linda Buckley, 201/902-5450