The Central Europe and Russia Fund, Inc. Announces Terms of Rights Offering.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- The Central Europe Central Europe is the region lying between the variously and vaguely defined areas of Eastern and Western Europe. In addition, Northern, Southern and Southeastern Europe may variously delimit or overlap into Central Europe. and Russia Fund, Inc. (NYSE NYSE See: New York Stock Exchange : CEE cee n. The letter c. ) announced today that its Board of Directors has approved the terms of a transferable rights offering of additional common stock of the Fund (the "Offer"). The Offer will be made only by means of a prospectus. The Fund will issue to stockholders of record as of December 22, 2005 (the "Record Date"), one transferable right for each share of common stock held. In order to be a Record Date stockholder, investors must purchase shares of the Fund by December 19, 2005. The rights will entitle holders to subscribe for additional shares of the Fund's common stock at a discounted price. Holders will be able to purchase one share of common stock for every three rights held. Record Date stockholders who receive fewer than three rights will be entitled to purchase one share. The Fund will announce at a future date when it expects trading of rights to commence. The rights are transferable and are expected to be admitted for trading on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. ("NYSE") under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors "CEE.RT".
Important Dates:
Ex-Rights Date December 19, 2005
Record Date December 22, 2005
Expiration Date January 20, 2006
The subscription price will not be determined until the expiration of the Offer, January 20, 2006 (the "Expiration Date Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. "), unless extended. The subscription price (the "Subscription Price") will be calculated as 90% of the lower of (1) the average of the closing price of a share of the Fund's common stock on the NYSE for the five trading days ending with the Expiration Date or (2) the net asset value per share as of the close of trading on the Expiration Date. Record Date stockholders who exercise all rights issued to them will be entitled to subscribe for additional shares at the Subscription Price pursuant to an over-subscription privilege. If sufficient shares are not available to honor all over-subscription requests, available shares will be allocated pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. among those who over-subscribe, based on the number of rights issued to them by the Fund on the Record Date. UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System Investment Bank has been selected by the Fund to act as Dealer Manager for the Offer. Stockholders who have questions regarding the offer should contact the Information Agent for the Offer, Georgeson Shareholder Communications Inc., at (800) 221-4215. The Central Europe and Russia Fund, Inc. is a non-diversified, closed-end investment company closed-end investment company: see mutual fund. seeking long term capital appreciation through investment primarily in equity and equity-linked securities of issuers domiciled in Central Europe and Russia. Its shares are listed on the NYSE under the symbol "CEE". Because the Fund is non-diversified it can take larger positions in fewer companies, increasing its overall risk profile. Investments in securities of foreign issuers present greater risks including currency fluctuations and changes in political/economic conditions. Foreign securities markets generally exhibit greater price volatility and are less liquid than the US markets. Shares of closed-end funds frequently trade at a discount to net asset value. The price of the Fund's shares is determined by a number of factors, several are beyond the control of the Fund. Therefore, the Fund cannot predict the trading price Trading price The price at which a security is currently selling. of its shares in relation to net asset value. Before investing in the Fund, investors should carefully consider the investment objective, risks, and charges and expenses of the Fund. This information can be found in the Fund's prospectus on file with the Securities and Exchange Commission. An investor should carefully read the Fund's prospectus before investing. This announcement is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted. The offer will be made only by means of a prospectus and only after the registration statement on file with the Securities and Exchange Commission has been declared effective. The final terms of the offer may be different from those discussed above. NOT FDIC/NCUA INSURED MAY LOSS VALUE NO BANK GUARANTEE NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY |
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