The Royce Funds
eWord
JULY 2008
What’s New
> Second Quarter Distribution Notices
> Royce Financial Services Fund is Expanding its Global Reach
> Quarterly Distributions for Royce Total Return Fund and Royce Dividend Value Fund
Commentaries
> 07/01/08: Chuck's interview
Chuck discusses the second quarter rebound, what might lie ahead for smaller companies over the next few years and why the truly significant changes to the economy and financial markets may have begun early in the current decade.
> 06/15/08: Heavy Metal: Chip Skinner on Royce Value Plus Fund
Chip Skinner discusses how Royce Value Plus Fund's recent successes with steel and industrial companies have helped keep the Fund solid amidst market volatility.
The Gannon Report
> Conversation Pieces
Our countless conversations with company management teams do more than give us specific insight into a business or industry — they often provide us with interesting perspectives on the economy and the world around us.
   
Making Headlines
> Morningstar Compliments Royce Special Equity Fund (RYSEX)
> TheStockAdvisors.com on Royce Pennsylvania Mutual Fund (PENNX)
> Barron's Highlights Royce Value Plus Fund (RYVPX)
> Fortune/CNNMoney Applauds Chuck Royce and PENNX
> TheStreet.com Upgrades Royce Value Fund (RYVFX)
> Fool.com Likes Royce Select Fund I (RYSFX) for Retirement
> Fool.com Highlights Royce Low-Priced Stock Fund (RYLPX)
> MoneyLetter.com Expands its Coverage of The Royce Funds
> June Fund Performance



> Simplify Your Life — Go Paperless
eDelivery means less paper will hit your mailbox. If you are a direct Royce shareholder visit roycefunds.com/edelivery and follow two easy steps to sign-up now.

If you own shares of The Royce Funds through a third party, please ask your financial advisor how to sign up for eDelivery. Fidelity clients can go to fidelity.com, log in, and choose Your Profile, Preferences, Communication Options to choose Electronic Delivery. Schwab clients can go to schwab.com/edelivery and login to choose eDelivery.

> Commitment. Discipline. Consistency.
Check out our new firm brochure for an overview of Royce & Associates featuring our history and background, investment approach, process and investment team.
> Advisor’s Corner
Did you receive the Second Quarter Advisor Flash e-mail? If not, please log into our Financial Advisor site and choose Advisor Toolbox, Manage Preferences to make sure you are signed up for our advisor communications.

Please Read the Prospectus
Please read the Fund's prospectus carefully and consider a Fund’s investment goals, risks, fees and expenses before investing or sending money. You may obtain a current prospectus for any series of The Royce Funds that contains this and other information.

© 2008 Royce & Associates, LLC, 1414 Avenue of the Americas, New York, NY 10019. All rights reserved. Distributor of The Royce Fund and Royce Capital Fund: Royce Fund Services, Inc. View our Policies & Procedures, including, among others, our Sarbanes-Oxley Code of Ethics, Privacy Policy and Proxy Voting Guidelines and Procedures.