European Equity Fund, Inc.

(NYSE: EEA)

Investment Philosophy

The European Equity Fund, Inc. is a non-diversified, closed-end management investment company. The Fund seeks long term capital appreciation through investment primarily (normally at least 80% of its assets) in equity and equity linked securities of companies domiciled in countries utilizing the Euro currency. The Fund may also invest up to 20% of its assets in securities of issuers domiciled in European countries that do not use the Euro currency. Its benchmark is the MSCI-EMU Index, which is an unmanaged capitalization-weighted index.

Risk

The Fund is not diversified and may focus its investments in certain geographic regions, thereby increasing its vulnerability to developments in that region. Investing in foreign securities presents certain unique risks not associated with domestic investments, such as currency fluctuation, political and economic change, and market risks. This may result in greater share price volatility.

Investments in closed-end funds involve risk. Closed-end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering, and once issued, shares of closed-end funds are sold in the open market through a stock exchange. 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 of which are beyond the control of the Fund. Therefore, the Fund cannot predict whether its shares will trade at, below or above net asset value.

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© 1997 - 2008 Managed by the Deutsche Bank Group. Listed on the New York Stock Exchange. Fund shares are not FDIC-insured and are not deposits or other obligations of, or guaranteed by, any bank. Fund shares involve investment risk, including possible loss of principal. Closed end funds, unlike open end funds, are not continuously offered. There is a one time public offering and once issued, shares of closed end funds are sold in the open market through a stock exchange. 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 of which are beyond the control of the fund. Therefore, the fund cannot predict whether its shares will trade at, below or above net asset value. Performance is historical, assumes reinvestment of all dividend and capital gain distributions and does not guarantee future results. Investment return and principal value fluctuate with changing market conditions, so that, when sold, shares may be worth more or less that the original cost. Current performance may be lower or higher than the performance data quoted. The European Equity Fund, Inc. (formerly The Germany Fund, Inc.) seeks long term capital appreciation through investment primarily (normally at least 80% of its assets) in equity and equity linked securities of companies domiciled in countries utilizing the Euro currency. Effective October28, 2005 the Fund began operating under this new investment objective. The Fund’s former investment objective was long-term capital appreciation investing primarily in large capitalization equity securities trading on the German stock exchanges.