The DRIP Plan

Overview of the Drip Plan

The following is just a short overview of the DRIP program. For complete details, please read the official document for each fund: Royce Focus Trust DRIP Document, Royce Micro-Cap Trust DRIP Document, Royce Value Trust DRIP Document.

Registered Common Stockholders of Royce Closed-End Funds automatically participate in the Funds' Distribution Reinvestment and Cash Purchase Plan (DRIP), which allows participants to reinvest their dividend and capital gains distributions and to make optional cash purchases of shares directly through Computershare, the Funds' Plan Agent, on a monthly basis. The plan also allows stockholders to deposit certificates representing your fund shares with Computershare for safekeeping. The Funds' investment adviser is absorbing all commissions on optional cash purchases through December 31, 2007.

Computershare maintains the accounts for registered stockholders who participate in the plan and sends written confirmation of all transactions in an account. Computershare will also hold shares in each participant's account in non-certificated form in the participant's name; each participant will be able to vote these shares at a stockholder meeting or by proxy. A participant may also send other stock certificates that they hold to Computershare to be held in non-certificated form.

There is no service fee charged to participants for reinvesting distributions. If a participant elects to sell shares from a Plan account, Computershare will deduct a $2.50 fee plus brokerage commissions from the sale transaction. If a nominee is the registered owner of your shares, the nominee will maintain the accounts on your behalf.

Basic Questions About DRIP

1) Why should I reinvest my distributions?

By reinvesting distributions, a stockholder can maintain an undiluted investment in the Fund. The regular reinvestment of distributions has a significant impact on stockholder returns. In contrast, the stockholder who takes distributions in cash is penalized when shares are issued below NAV to other shareholders.

2) How does the reinvestment of distributions from the Royce Closed-End Funds work?

The Funds automatically issue shares in payment of distributions unless you indicate the otherwise. The shares generally are issued at the lower of the market price or net asset value on the valuation date.

3) How does this apply to registered stockholders?

If your shares are registered directly with a Fund, your distributions are automatically reinvested unless you have otherwise instructed the Funds' transfer agent, Computershare, in writing. A registered stockholder also has the option to receive the distribution in the form of a stock certificate or in cash if Computershare is properly notified.

4) What if my shares are held by a brokerage firm or a bank?

If your shares are held by a brokerage firm, bank or other intermediary as the stockholder of record, you should contact your brokerage firm or bank to be certain that it is automatically reinvesting distributions on your behalf. If they are unable to reinvest distributions on your behalf, you should have your shares registered in your name in order to participate.

5) How can I get more information on the Plans?

You can call Investor Services at (800) 221-4268 or you can request a copy of the Plan for your Fund from Computershare.

All correspondence (including notifications) should be directed to: [Name of Fund] Distribution Reinvestment and Cash Purchase Plan, c/o Computershare, P.O. Box 43010, Providence, RI, 02940-3010, telephone (800) 426-5523.