Distributions & Capital Gains

2007 Supplemental Tax Information

The Royce Funds 2007 Supplemental Tax Information contains important details regarding the following:

• % Blended Qualified Dividend Income: Percentage of Ordinary Income and/or Short-Term Capital Gains derived from domestic corporations or qualified foreign corporations.
• % U.S. Govt. Income: Percentage of Ordinary Income derived from U.S. Government Obligations.
• % Income Eligible for DRD: Percentage of Ordinary Income eligible for the Corporate Dividend Received Deduction (DRD).

2008 Year-End Distributions — Open-End Funds*

Final year-end distributions will be payable on December 9, 2008 to shareholders of record as of December 8, 2008.  Distributions will be paid to all Fund shareholders who own shares on the record date, regardless of how long they have held the shares.

*Final year-end distributions dates have yet to be determined for Royce Select Fund I, Royce Select Fund II, Royce Global Select Fund, Royce SMid-Cap Select Fund and Royce Capital Funds.

2008 Open-End Funds Quarterly Distributions

Royce Total Return Fund and Royce Dividend Value Fund are our only open-end funds that pay quarterly distributions. All other open-end funds pay distributions once a year, usually in December.

Third quarter distributions will be payable on September 9, 2008 to shareholders of record as of September 8, 2008. Fourth quarter distributions will be payable on December 9, 2008 to shareholders of record as of December 8, 2008.

2008 Closed-End Funds Quarterly Distributions

Our closed-end funds pay quarterly distributions. Third quarter distributions will be payable on September 23, 2008 to shareholders of record as of September 8, 2008 (ex-dividend on September 4, 2008). Fourth quarter distributions will be payable on December 23, 2008 to shareholders of record as of December 8, 2008 (ex-dividend on December 4, 2008).