Japan Smaller Capitalization Fund, Inc. Announces the Results of Its Rights Offering

NEW YORK, NY--(Marketwire - Jul 25, 2011) - Japan Smaller Capitalization Fund, Inc. (NYSE: JOF) (the "Fund") announced today the results of its rights offering (the "Offer"). The Offer commenced on June 23, 2011 and expired on July 22, 2011 (the "Expiration Date"). The Offer entitled the rights holders to subscribe for an aggregate of up to 7,091,723 shares of common stock of the Fund. The subscription price was $7.60 per share and was determined based upon a formula equal to 90% of the average of the last reported sales price of the Fund's common stock on the New York Stock Exchange on the Expiration Date and for the four preceding trading days. The Offer was over-subscribed. Shares will be issued promptly after completion of shareholder payments and the pro-rata allocation of shares in respect of the over-subscription privilege.

Nomura Asset Management U.S.A. Inc., the Fund's Manager, and Nomura Asset Management Co. Ltd., the Fund's Investment Adviser, intend to invest the net proceeds from the Offer to pursue attractive investment opportunities in smaller capitalization companies in Japan in accordance with the Fund's investment objective and policies, as more fully described in the Fund's prospectus. It is anticipated that the investment of the proceeds may take approximately 30 days after completion of the Offer. The Manager and the Investment Adviser are affiliated with Nomura Securities Co., Ltd., the largest securities company in Japan.

The Fund is a non-diversified closed-end, management investment company. The Fund's investment objective is to provide stockholders with long-term capital appreciation primarily through investments in smaller capitalization companies in Japan. Because the Fund is non-diversified, it can take larger positions in fewer companies, increasing its overall risk. Investments in securities of foreign issuers present greater risks including currency fluctuations and changes in political and economic conditions.

Investors should consider the Fund's investment objective, risks, charges and expenses carefully before investing. This information, including other information concerning the Fund, can be found on file with the Securities and Exchange Commission.

This communication is not an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale is not permitted.