Taiwan Greater China Fund Announces Commencement of Semi-Annual Repurchase Offer.

NEW YORK -- The Taiwan Greater China Fund (NYSE:TFC), a diversified closed-end registered investment company listed on the New York Stock Exchange (the "Fund"), announced today that its fourth semi-annual repurchase offer will be conducted from May 24, 2007 to June 15, 2007.

The Fund is offering to repurchase up to 5% of its shares in this semi-annual repurchase offer. The repurchase price for the shares will be the Fund's net asset value per share as determined at the close of regular trading on the Taiwan Stock Exchange on June 29, 2007 or, if the Taiwan Stock Exchange is not open on June 29, 2007, at the opening of the New York Stock Exchange on June 29, 2007. Each share repurchased pursuant to the repurchase offer will be subject to a repurchase fee equal to 2% of the net asset value per share, which will be deducted from the repurchase price to offset expenses related to the repurchase offer. If the number of shares submitted for repurchase exceeds the number of shares that the Fund is offering to repurchase, the Fund will repurchase submitted shares on a pro rata basis. There can be no assurance that the Fund will be able to repurchase all of the shares submitted for repurchase by a shareholder.

The repurchase offer expires at 5:00 p.m., New York City time, on June 15, 2007. The Fund's net asset value per share may fluctuate between the deadline for participating in the repurchase offer (June 15, 2007) and the pricing date of the repurchase offer (June 29, 2007). Repurchase proceeds will be paid on or before July 6, 2007.

The Fund normally calculates its net asset value per share on each day on which either the Taiwan Stock Exchange or the New York Stock Exchange is open for trading. Fund shareholders can obtain the daily net asset value per share and the daily New York Stock Exchange closing price by calling the Fund's toll free number at [phone] or from the Fund's web site at www.taiwangreaterchinafund.com.

The Fund's Board of Trustees urges shareholders to read and evaluate the repurchase offer materials carefully before deciding whether to participate in the repurchase offer. Materials regarding the repurchase offer will be sent to shareholders of record as of May 14, 2007. These materials also will be available free of charge by calling The Altman Group at [phone] and on the U.S. Securities and Exchange Commission's web site at www.sec.gov. The Board is not making any recommendation to any shareholder as to whether such shareholder should participate in the repurchase offer. None of the Fund's Trustees or officers will participate in the repurchase offer.

This announcement is not an offer to purchase nor a solicitation of an offer to sell Fund shares. The repurchase offer is not being made to (nor will repurchase requests be accepted from or on behalf of) shareholders residing in any jurisdiction in which the making of the repurchase offer or its acceptance would not be in compliance with the laws of such jurisdiction.

The Taiwan Greater China Fund is listed and publicly traded in the United States. The Fund is organized for investment in securities of Taiwan issuers by non-Taiwan investors and follows an investment strategy of primarily investing in Taiwan listed companies that derive or expect to derive a significant portion of their revenues from operations in or exports to mainland China.

This press release may contain certain forward-looking statements regarding future circumstances. These forward-looking statements are based upon the Fund's current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements including, in particular, the risks and uncertainties described in the Fund's filings with the U. S. Securities and Exchange Commission. Actual results, events, and performance may differ. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Fund undertakes no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by the Fund or any other person that the events or circumstances described in such statement are material.