The Japan Equity Fund, Inc. Announces Approval of Aberdeen as Investment Manager and Election of New Chairman of the Board of Directors

PHILADELPHIA, Oct. 10, 2013 /PRNewswire/ -- The Japan Equity Fund, Inc. (NYSE: JEQ) (the "Fund"), and Aberdeen Asset Management Asia Limited jointly announced today that the Fund's Board of Directors has voted unanimously to approve and to recommend that stockholders of the Fund approve an Investment Management Agreement (the "Proposed Agreement") between the Fund and Aberdeen Asset Management Asia Limited.

The Proposed Agreement, if approved by stockholders, will replace the Fund's existing Investment Management Agreement pursuant to which the Fund's current investment manager, Daiwa SB Investments (USA) Ltd. ("Daiwa SB"), manages the investment of the Fund's assets.

Under the Proposed Agreement, the total management fees paid by the Fund would be a monthly fee at an annual rate of (1) 0.60% of the Fund's average weekly net assets for the first U.S. $20 million, (2) 0.40% of the Fund's average weekly net assets for the next U.S. $30 million and (3) 0.20% of the Fund's average weekly net assets in excess of U.S. $50 million. These fees are the same as the fees paid to Daiwa SB under the existing investment management agreement.

The Fund's investment objective is to seek long-term capital appreciation. The Fund seeks to achieve its investment objective by investing primarily in listed equity securities of Japanese companies.

Closed-end funds are traded on the secondary market through one of the stock exchanges. The Fund's investment return and principal value will fluctuate so that an investor's shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the fund's portfolio. There is no assurance that a fund will achieve its investment objective. Past performance does not guarantee future results.

About Aberdeen Asset Management Asia Limited
Aberdeen Asset Management Asia Limited is a subsidiary of Aberdeen Asset Management PLC ("Aberdeen PLC"), an independent asset manager founded in 1983 and listed on the London Stock Exchange. Today, Aberdeen PLC has more than 2,000 staff including over 500 investment professionals in 32 offices in 24 countries. Aberdeen PLC is a pure stand-alone asset management company and manages more than $321 billion in assets as of August 31, 2013. Reflecting the firm's breadth and global capabilities, Aberdeen Asset Management PLC is the largest manager of emerging market closed-end funds offered around the world by both value and number.^[1]

Election of a Chairman of the Fund's Board of Directors
The Fund also announced today that the Board of Directors of the Fund has elected Martin J. Gruber to serve as Chairman of the Board of Directors of the Fund.  Mr. Gruber has been a Director of the Fund since 1992.  The Fund's previous Chairman, Mr. Yoshio Urata, had resigned as Chairman of the Board of Directors as of April 1, 2013.

^[1] Fund Consultants LLC, February 2013. Based on analysis of emerging market closed-end funds offered in multiple jurisdictions as of December 31, 2012; data provided by Morningstar Inc. Closed-end funds are defined as investment companies that are 1) listed on a recognized exchange; 2) possess fixed share capital; and 3) were formed via subscriptions from the public via an open offer or placement. Criteria for inclusion in the emerging markets category is based on the World Bank's definition of emerging countries as measured by lower and middle income per capita. Criteria for fund inclusion is 1) at least 75% of gross assets invested in emerging markets; and 2) funds with under 25% exposure to Asian developed markets.

www.japanequityfund.com

SOURCE The Japan Equity Fund, Inc.