Absolute Focus: Three Hallmarks of Our Value Approach

Important Performance and Expense Information

All performance information in this piece reflects past performance, is presented on a total return basis, reflects the reinvestment of stributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. For Funds other than Royce Select Fund I, shares redeemed within 180 days of purchase may be subject to a 1% redemption fee payable to the Fund. Shares of Royce Select Fund I may be subject to a 2% redemption fee payable to the Fund if redeemed within 365 days of purchase. Redemption fees are not reflected in the performance shown above; if they were, performance would be lower. Current performance may be higher or lower than performance quoted. Current month-end performance information may be obtained at www.roycefunds.com. All performance and expense information reflects results of the Fund's oldest share Class (Investment Class or Service Class, as the case may be). Gross operating expenses reflect each Fund's gross total annual operating expenses, including management fees, any 12b-1 distribution and service fees, other expenses, and any applicable acquired fund fees and expenses. Net operating expenses reflect contractual fee waivers and/or reimbursements. All expense information is reported as of the Fund's most current prospectus. Royce & Associates has contractually agreed to waive fees and/or reimburse operating expenses through April 30, 2012 to the extent necessary to limit total net annual operating expenses, other than acquired fund fees and expenses, to no more than 1.49% for the Service Class of Royce Low-Priced Stock Fund. Annual operating expenses for Royce Select Fund I reflect the Fund's total annual operating expenses as of the most current prospectus and include the Fund's management fee based on 12.5% of the Fund's 2010 pre-fee, high-watermark total return (+19.0%). The Fund's total annual Fund operating expense ratio of 2.38% consisted of management fees and acquired fund fees and expenses. Royce has contractually agreed to absorb all other operating expenses for Royce Select Fund I, other than acquired fund fees and expenses, dividend expenses relating to any short selling activity of the Fund and interest expense on borrowing, where applicable. Acquired fund fees and expenses reflect the estimated amount of the fees and expenses incurred indirectly by any applicable Fund through its investments in mutual funds, hedge funds, private equity funds and other investment companies.

Shares of a Fund's Service, Consultant, R and K Classes bear an annual distribution expense that is not borne by the Fund's Investment Class. The Royce Funds invest primarily in securities of micro-cap, small-cap and/or mid-cap companies, which may involve considerably more risk than investments in securities of larger-cap companies (see "Primary Risks for Fund Investors" in the respective prospectus). Royce Pennsylvannia Mutual, Total Return, Premier, Value, and Value Plus Funds may invest up to 25% of their respective net assets in foreign securities, while Royce Heritage, Micro-Cap and Low-Priced Funds may invest up to 35% of their respective net assets in foreign secutiies, which may involve political, economic, currency and other risks not encountered in U.S. investments. (Please see "Investing in Foreign Securities" in the prospectus.) This material is not authorized for distribution unless preceded or accompanied by a current prospectus. Please read the prospectus carefully before investing or sending money. Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group. The Russell 2000 is an unmanaged, capitalization-weighted index of domestic small-cap stocks that measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 index. Royce Fund Services, Inc. is The Royce Fund's distributor and a member of FINRA and SIPC.