-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 QypCvBJOtX3j1EgxAp2/i4vk0bKQTLoF+Ws/XHltqUIBKs3WEYtxR8Xn199FHlNJ
 UDsbpajWKWVCkKXdFaOWzw==

<SEC-DOCUMENT>0000949377-08-000127.txt : 20080821
<SEC-HEADER>0000949377-08-000127.hdr.sgml : 20080821
<ACCEPTANCE-DATETIME>20080821110517
ACCESSION NUMBER:		0000949377-08-000127
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20080925
FILED AS OF DATE:		20080821
DATE AS OF CHANGE:		20080821
EFFECTIVENESS DATE:		20080821

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ROYCE FOCUS TRUST INC
		CENTRAL INDEX KEY:			0000825202
		IRS NUMBER:				592876580
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-05379
		FILM NUMBER:		081031479

	BUSINESS ADDRESS:	
		STREET 1:		1414 AVENUE OF THE AMERICAS
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019
		BUSINESS PHONE:		2125084578

	MAIL ADDRESS:	
		STREET 1:		C/O ROYCE & ASSOCIATES, LLC
		STREET 2:		1414 AVENUE OF THE AMERICAS
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ROYCE GLOBAL TRUST INC
		DATE OF NAME CHANGE:	19961203

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ALL SEASONS GLOBAL FUND INC
		DATE OF NAME CHANGE:	19950803

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AMERICAS ALL SEASON FUND INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>rft_proxy.htm
<DESCRIPTION>ROYCE FOCUS TRUST PROXY
<TEXT>
<html>
<head>
<title></title>
</head>
<body>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:624px">
<P style="line-height:14pt; margin:0px; text-indent:196.533px; font-size:12pt" align=justify>SCHEDULE 14A INFORMATION</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=justify>Proxy
Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934</P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=justify>(Amendment
No. &nbsp;&nbsp;&nbsp;)</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=justify>Filed by
the Registrant [ &nbsp;]</P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=justify>Filed by a
Party other than the Registrant [ &nbsp;]</P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=justify>Check the
appropriate box:</P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=justify>[ &nbsp;]
Preliminary Proxy Statement</P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=justify>[ &nbsp;]
Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
</P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=justify>[X]
Definitive Proxy Statement</P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=justify>[ &nbsp;]
Definitive Additional Materials</P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=justify>[ &nbsp;]
Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-12</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:14pt; margin:0px; text-indent:206.067px; font-size:12pt" align=justify><U>&nbsp;ROYCE FOCUS TRUST, INC. </U></P>
<P style="line-height:14pt; margin:0px; text-indent:158.333px; font-size:12pt" align=justify>(Name of Registrant as Specified In Its Charter)</P>


<P style="margin:0px" align=justify><BR></P>


<P style="line-height:14pt; margin:0px; text-indent:82.467px; font-size:12pt" align=justify>(Name of Person(s) Filing Proxy Statement if other than the Registrant)</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=justify>Payment of
Filing Fee (Check the appropriate box):</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:48px; text-indent:-48px; font-size:12pt" align=justify>[X]</P>
<P style="line-height:14pt; margin:0px; padding-left:48px; font-size:12pt" align=justify>No fee required.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:48px; text-indent:-48px; font-size:12pt" align=justify>[ &nbsp;]</P>
<P style="line-height:14pt; margin:0px; padding-left:48px; font-size:12pt" align=justify>Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.</P>
<P style="line-height:14pt; margin:0px; padding-left:48px; font-size:12pt" align=justify>1) Title of each class of securities to which transaction applies:</P>


<P style="margin:0px" align=justify><BR></P>


<P style="line-height:14pt; margin:0px; padding-left:48px; font-size:12pt" align=justify>2) Aggregate number of securities to which transaction applies:</P>


<P style="margin:0px" align=justify><BR></P>


<P style="line-height:14pt; margin:0px; padding-left:48px; font-size:12pt" align=justify>3) Per unit price or other underlying value of transaction computed </P>
<P style="line-height:14pt; margin:0px; padding-left:48px; font-size:12pt" align=justify>pursuant to Exchange Act Rule 0-11 (Set forth the amount on which </P>
<P style="line-height:14pt; margin:0px; padding-left:48px; font-size:12pt" align=justify>the filing fee is calculated and state how it was determined):</P>


<P style="margin:0px" align=justify><BR></P>


<P style="line-height:14pt; margin:0px; padding-left:48px; font-size:12pt" align=justify>4) Proposed maximum aggregate value of transaction:</P>


<P style="margin:0px" align=justify><BR></P>


<P style="line-height:14pt; margin:0px; padding-left:48px; font-size:12pt" align=justify>5) Total fee paid:</P>


<P style="margin:0px" align=justify><BR></P>


<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:48px; text-indent:-48px; font-size:12pt" align=justify>[ &nbsp;]</P>
<P style="line-height:14pt; margin:0px; padding-left:48px; font-size:12pt" align=justify>Fee paid previously with preliminary materials.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:48px; text-indent:-48px; font-size:12pt" align=justify>[ &nbsp;]</P>
<P style="line-height:14pt; margin:0px; padding-left:48px; font-size:12pt" align=justify>Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. &nbsp;Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.</P>
<P style="line-height:14pt; margin:0px; padding-left:48px; font-size:12pt" align=justify>1) Amount Previously Paid:</P>


<P style="margin:0px" align=justify><BR></P>


<P style="line-height:14pt; margin:0px; padding-left:48px; font-size:12pt" align=justify>2) Form, Schedule or Registration Statement No.:</P>


<P style="margin:0px" align=justify><BR></P>


<P style="line-height:14pt; margin:0px; padding-left:48px; font-size:12pt" align=justify>3) Filing Party:</P>


<P style="margin:0px" align=justify><BR></P>


<P style="line-height:14pt; margin:0px; padding-left:48px; font-size:12pt" align=justify>4) Date filed:</P>
<P style="margin:0px" align=justify><BR>
<BR></P>
</DIV>

<p align="center"><font face="Times New Roman" size="2"><b>ROYCE FOCUS TRUST, INC.</b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>1414 Avenue of the Americas
<br>New York, New York 10019</b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>__________________</b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>NOTICE OF ANNUAL MEETING
 OF STOCKHOLDERS</b></font></p>
<p align="center" style="margin-top:-10px;"><font face="Times New Roman" size="2"><b>__________________</b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>TO BE HELD ON SEPTEMBER
 25, 2008</b></font></p>
<p><font face="Times New Roman" size="2">To the Stockholders of:</font></p>
<p><font face="Times New Roman" size="2">ROYCE FOCUS TRUST, INC.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">NOTICE IS
 HEREBY GIVEN that the Annual Meeting of Stockholders (the &#147;Meeting&#148;) of
 ROYCE FOCUS TRUST, INC. (the &#147;Fund&#148;) will be held at the offices of the
 Fund, 1414 Avenue of the Americas, New York, New York 10019 on Thursday, September
 25, 2008, at 1:30 p.m. (Eastern time), for the following purposes:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">1.</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" colspan="3"><div align="justify"><font face="Times New Roman" size="2">To elect four Directors to the Fund&#146;s Board:</font></div></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="3%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="1%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="3%" valign="top" align="left"><font face="Times New Roman" size="2">(i)</font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top"><div align="justify"><font face="Times New Roman" size="2">two Directors
 to be elected by the holders of the Fund&#146;s Common Stock and its 6.00% Cumulative
 Preferred Stock (the &#147;Preferred Stock&#148;), voting together as a single class,
 and</font></div></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(ii)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top"><div align="justify"><font face="Times New Roman" size="2">two Directors
 to be elected only by the holders of the Fund&#146;s Preferred Stock voting as a
 separate class; and</font></div></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">2.</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" colspan="3"><div align="justify"><font face="Times New Roman" size="2">To transact such other business as may properly come before the Meeting or any adjournment
 thereof.</font></div></td>
</tr>
</table>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The Board
 of Directors of the Fund has set the close of business on August 6, 2008 as the
 record date for determining those stockholders entitled to vote at the Meeting or
 any adjournment thereof, and only holders of record at the close of business on
 that day will be entitled to vote.</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="center"><font face="Times New Roman" size="2"><b>IMPORTANT</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2"><b>To save the
 Fund the expense of additional proxy solicitation, please mark your instructions
 on the enclosed Proxy, date and sign it and return it in the enclosed envelope (which
 requires no postage if mailed in the United States), even if you expect to be present
 at the Meeting. If you have been provided with the opportunity on your proxy card
 or voting instruction form to provide voting instructions via telephone or the Internet,
 please take advantage of these prompt and efficient voting options.</b> The accompanying
 Proxy is solicited on behalf of the Board of Directors, is revocable and will not
 affect your right to vote in person in the event that you attend the Meeting.</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="10%" valign="bottom"><font face="Times New Roman" size="2">&#160;</font></td>
<td width="50%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">By order of
 the Board of Directors,</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">John E. Denneen</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i>Secretary
</i></font></td>
</tr>
</table>
<p><font face="Times New Roman" size="2">August 25, 2008</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="center"><font face="Times New Roman" size="2"><b>PROXY STATEMENT</b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>ROYCE FOCUS TRUST, INC.
<br>1414 Avenue of the Americas<br>New York, New York 10019</b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>ANNUAL MEETING OF STOCKHOLDERS
<br>September 25, 2008</b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>INTRODUCTION</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The enclosed
 Proxy is solicited on behalf of the Board of Directors for use at the Annual Meeting
 of Stockholders (the &#147;Meeting&#148;) of Royce Focus Trust, Inc. (the &#147;Fund&#148;), to be held at the offices of the Fund, 1414 Avenue of the Americas, New
 York, New York 10019, on Thursday, September 25, 2008, at 1:30 p.m. (Eastern time)
 and at any adjournments thereof. The approximate mailing date of this Proxy Statement
 is August 25, 2008.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">All properly
 executed Proxies received prior to the Meeting will be voted at the Meeting in accordance
 with the instructions marked thereon or otherwise as provided therein. Unless instructions
 to the contrary are marked, Proxies will be voted &#147;FOR&#148; the election of
 the Director nominees of the Fund.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">You may revoke
 your Proxy at any time before it is exercised by sending written instructions to
 the Secretary of the Fund at the Fund&#146;s address indicated above or by filing
 a new Proxy with a later date, and any stockholder attending the Meeting may vote
 in person, whether or not he or she has previously filed a Proxy.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The cost of
 soliciting proxies will be borne by the Fund, which will reimburse brokerage firms,
 custodians, nominees and fiduciaries for their expenses in forwarding proxy material
 to the beneficial owners of the Fund&#146;s shares. Some officers and employees
 of the Fund and/or Royce &#038; Associates, LLC (&#147;R&#038;A&#148;), the Fund&#146;s investment adviser, may solicit proxies personally and by telephone, if deemed
 desirable. Shareholders vote at the Meeting by casting ballots (in person or by
 proxy) which are tabulated by one or two persons, appointed by the Board of Directors
 before the Meeting, who serve as Inspectors and Judges of Voting at the Meeting
 and who have executed an Inspectors and Judges Oath.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The Board
 of Directors of the Fund has set the close of business on August 6, 2008 as the
 record date (the &#147;Record Date&#148;) for determining those stockholders entitled
 to vote at the Meeting or any adjournment thereof, and only holders of record at
 the close of business on that day will be entitled to vote. Stockholders on the
 Record Date will be entitled to one vote for each outstanding share of Common Stock
 and 6.00% Cumulative Preferred Stock (the &#147;Preferred Stock&#148; and, together
 with the Common Stock, &#147;Stock&#148; or</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2">&#147;shares&#148;) held (proportional voting
 rights for fractional shares held), with no shares having cumulative voting rights.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">As of the
 Record Date, there were 18,937,795 shares of Common Stock and 1,000,000 shares of
 Preferred Stock of the Fund outstanding. The following persons were known to the
 Fund to be beneficial owners or owners of record of 5% or more of its outstanding
 shares of Common Stock or Preferred Stock as of the Record Date:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Class/Series</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Amount
 and</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Percent
 of</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b><u>Name and
 Address of Owner</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>of Stock</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Nature
 of Ownership</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Class/Series</u></b></font></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Charles M. Royce</font></td>
<td width="15%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="12%" valign="bottom" align="center"><font face="Times New Roman" size="2">Common</font></td>
<td width="15%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="15%" valign="bottom" align="left"><font face="Times New Roman" size="2">1,649,020 shares&#151;</font></td>
<td width="15%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="bottom" align="center"><font face="Times New Roman" size="2">8.71%</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">c/o Royce &#038; Associates, LLC</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Beneficial<a href="#e86851p2_onestar">*</a> (sole</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">1414 Avenue
 of the Americas</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">voting and
 investment</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">New York,
 NY 10019</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">power)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">W. Whitney
 George</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Common</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">2,230,639
 shares&#151;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">11.78%</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">c/o Royce &#038; Associates, LLC</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Beneficial<a href="#e86851p2_twostar">**</a> (sole</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">1414 Avenue
 of the Americas</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">voting and
 investment</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">New York,
 NY 10019</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">power)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Cede &#038; Co.<a href="#e86851p2_threestar">***</a></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Common</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">18,142,514
 shares&#151;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">95.80%</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Depository
 Trust Company</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Record<a href="#e86851p2_threestar">***</a></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">P.O. Box #20</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">6.00% Preferred</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">1,000,000
 shares&#151;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">100%</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Bowling Green
 Station</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Record<a href="#e86851p2_threestar">***</a></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">New York,
 NY 10028</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
</table>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" colspan="3"><hr size="1" color="#000000" noshade width="10%" align="left"></td>
</tr>
<tr>
<td width="3%" valign="top" align="left"><font face="Times New Roman" size="2"><a name="e86851p2_onestar"></a>*</font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Includes
 278,867 shares held by Royce Family Fund, Inc., a charitable foundation established
 by Mr. Royce and members of his family.</font></div></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2"><a name="e86851p2_twostar"></a>**</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Includes
 836,074 shares held by W. Whitney George Family Foundation, a charitable foundation
 established by Mr. George and members of his family.</font></div></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2"><a name="e86851p2_threestar"></a>***</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Shares
 held by brokerage firms, banks and other financial intermediaries on behalf of beneficial
 owners are registered in the name of Cede &#038; Co.</font></div></td>
</tr>
</table>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The Board
 of Directors knows of no business other than that stated in Proposal 1 of the Notice
 of Meeting that will be presented for consideration at the Meeting. If any other
 matter is properly presented at the Meeting or any adjournment thereof, it is the
 intention of the persons named on the enclosed proxy card to vote in accordance
 with their best judgment.</font></p>
<p align="center"><font face="Times New Roman" size="2"><b>SUMMARY OF VOTING RIGHTS
 ON PROXY PROPOSALS</b></font></p>
<table border="1" bordercolor="#000000" cellpadding="4" cellspacing="0" width="100%">
<tr>
<td width="32%" valign="bottom" align="left"><p style="margin-left:10px; margin-right:10px;"><font face="Times New Roman" size="2"><b>Proposal</b></font></p></td>
<td width="34%" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Common
 Stockholders</b></font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Preferred
 Stockholders</b></font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; margin-right:10px;"><font face="Times New Roman" size="2"><b>Election of Directors</b></font></p></td>
<td valign="bottom" align="left"><p style="margin-left:10px; margin-right:10px;"><font face="Times New Roman" size="2">Common
 and Preferred Stockholders, voting together as a single class, elect two Directors</font></p></td>
<td valign="bottom" align="left"><p style="margin-left:10px; margin-right:10px;"><font face="Times New Roman" size="2">Preferred
 Stockholders, voting as a separate class, elect two additional Directors</font></p></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">2</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="center"><font face="Times New Roman" size="2"><b>PROPOSAL 1: ELECTION OF
 DIRECTORS</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">At the Meeting,
 four members of the Board of Directors of the Fund will be elected. The holders
 of both Common Stock and Preferred Stock, voting together as a single class, are
 entitled to elect seven directors. These seven directors are divided into three
 classes, each class having a term of three years. Each year the term of office of
 one class will expire. Donald R. Dwight and William L. Koke have each been nominated
 by the Board of Directors for a three-year term to expire at the Fund&#146;s 2011
 Annual Meeting of Stockholders or until their successors are duly elected and qualified.
 It should be noted that Donald R. Dwight and William L. Koke are scheduled to retire
 in accordance with the Board&#146;s retirement policy on December 31, 2008 and December
 31, 2009, respectively. The classes of Directors are indicated below:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2"><u><b>CLASS III DIRECTOR NOMINEES TO SERVE UNTIL 2011 ANNUAL MEETING OF STOCKHOLDERS</b></u></font></p></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Donald R.
 Dwight</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">William L.
 Koke</font></td>
</tr>
<tr>
<td><div style="margin-top:-2px;"><font face="Times New Roman" size="1">&#160;</font></div></td>
</tr>
<tr>
<td><div style="margin-top:-2px;"><font face="Times New Roman" size="1">&#160;</font></div></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2"><u><b>CLASS II DIRECTORS SERVING UNTIL 2010 ANNUAL MEETING OF STOCKHOLDERS</b></u></font></p></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Mark R. Fetting</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Richard M.
 Galkin</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Arthur S.
 Mehlman</font></td>
</tr>
<tr>
<td><div style="margin-top:-2px;"><font face="Times New Roman" size="1">&#160;</font></div></td>
</tr>
<tr>
<td><div style="margin-top:-2px;"><font face="Times New Roman" size="1">&#160;</font></div></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2"><u><b>CLASS I DIRECTORS SERVING UNTIL 2009 ANNUAL MEETING OF STOCKHOLDERS</b></u></font></p></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Charles M.
 Royce</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">G. Peter O&#146;Brien</font></td>
</tr>
</table>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The holders
 of Preferred Stock, voting as a separate class, are entitled to elect two directors
 to serve until the next Annual Meeting of Stockholders and until their successors
 are duly elected and qualified or until their earlier resignation or removal. The
 Board of Directors has nominated the following two persons to continue as Directors
 of the Fund, to be elected by holders of the Preferred Stock: Stephen L. Isaacs
 and David L. Meister.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">Each of these
 persons has agreed to serve if elected, and the Fund&#146;s management has no reason
 to believe that any of them will be unavailable for service as a Director. However,
 if any of them become unwilling or unable to serve, the persons named in the accompanying
 Proxy will vote for the election of such other persons, if any, as the Board of
 Directors may nominate.</font></p>
<p align="center"><font face="Times New Roman" size="2">3</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">Certain biographical
 and other information concerning the existing Directors and the nominees who are &#147;interested persons&#148; as
 defined in the Investment Company Act of 1940,
 as amended (the &#147;Investment Company Act&#148;), of the Fund, including their
 designated classes, is set forth below.</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Number
 of</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Portfolios</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Other</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>Name, Address<a href="#e86851p5_onestar">*</a> and</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Positions</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Length</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Current</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>in Fund</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Public</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>Principal
 Occupations</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>With</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>of Time</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Term</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Elected</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Complex</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Company</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b><u>During
 Past Five Years<a href="#e86851p5_twostar">**</a></u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Age</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>the Fund</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Served</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Expires</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>By</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Overseen</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Directorships</u></b></font></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Charles
 M. Royce<a href="#e86851p5_threestar">***</a><br>President, Chief Investment Officer and Member of Board of Managers
 of Royce &#038; Associates, LLC (&#147;R&#038;A&#148;), investment adviser to the
 Fund, Royce Micro-Cap Trust (&#147;RMT&#148;), Royce Value Trust, Inc. (&#147;RVT&#148;), The Royce Fund (&#147;TRF&#148;) and Royce Capital Fund (&#147;RCF&#148;)
 (the Fund, RMT, RFT, TRF and RCF collectively, &#147;The Royce Funds&#148;).</font></p></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="3%" valign="top" align="center"><font face="Times New Roman" size="2">68</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">Class I<br> Director<br> and<br> President<a href="#e86851p5_dagger">&#134;</a></font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="7%" valign="top" align="center"><font face="Times New Roman" size="2">1986</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="7%" valign="top" align="center"><font face="Times New Roman" size="2">2009</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="7%" valign="top" align="center"><font face="Times New Roman" size="2">Common<br> and<br> Preferred</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="9%" valign="top" align="center"><font face="Times New Roman" size="2">28</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="9%" valign="top" align="center"><font face="Times New Roman" size="2">Director of<br> Technology<br> Investment<br> Capital<br> Corp.</font></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">4</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Number
 of</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Portfolios</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Other</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>Name, Address<a href="#e86851p5_onestar">*</a> and</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Positions</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Length</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Current</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>in Fund</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Public</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>Principal
 Occupations</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>With</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>of Time</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Term</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Elected</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Complex</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Company</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b><u>During
 Past Five Years<a href="#e86851p5_twostar">**</a></u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Age</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>the Fund</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Served</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Expires</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>By</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Overseen</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Directorships</u></b></font></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Mark
 R. Fetting<a href="#e86851p5_threestar">***</a><br>President and Chief Executive Officer of Legg Mason, Inc.; Member
 of Board of Managers of R&#038;A. Mr. Fetting&#146;s prior business experience includes
 having served as Senior Executive Vice President of Legg Mason, Inc.; Division President
 and Senior Officer of Prudential Financial Group, Inc. and related companies; Partner,
 Greenwich Associates; and Vice President, T. Rowe Price Group, Inc.</font></p></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="3%" valign="top" align="center"><font face="Times New Roman" size="2">53</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">Class II<br> Director</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="7%" valign="top" align="center"><font face="Times New Roman" size="2">2001</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="7%" valign="top" align="center"><font face="Times New Roman" size="2">2010</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="7%" valign="top" align="center"><font face="Times New Roman" size="2">Common<br> and<br> Preferred</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="9%" valign="top" align="center"><font face="Times New Roman" size="2">42 (Director/<br>Trustee of all Royce Funds consisting of 28 portfolios; Director/ Trustee of the Legg Mason Family of Funds consisting of 14 portfolios)</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="9%" valign="top" align="center"><font face="Times New Roman" size="2">None</font></td>
</tr>
</table>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" colspan="3"><hr size="1" color="#000000" noshade width="10%" align="left"></td>
</tr>
<tr>
<td width="3%" valign="top" align="left"><font face="Times New Roman" size="2"><a name="e86851p5_onestar"></a>*</font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Mr. Royce&#146;s address is c/o Royce &#038; Associates, LLC, 1414 Avenue of the Americas,
 New York, New York 10019. Mr. Fetting&#146;s address is c/o Legg Mason, Inc., 100
 Light Street, Baltimore, Maryland 21202.</font></div></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2"><a name="e86851p5_twostar"></a>**</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Each of
 the Directors or nominees is also a director/trustee of certain other investment
 companies for which R&#038;A acts as an investment adviser.</font></div></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2"><a name="e86851p5_threestar"></a>***</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">&#147;Interested
 person,&#148; as defined in the Investment Company Act, of the Fund.</font></div></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2"><a name="e86851p5_dagger"></a>&#134;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Elected by
 and serves at the pleasure of the Board of Directors.</font></div></td>
</tr>
</table>
<p><font face="Times New Roman" size="2"><b>Interested Persons</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">Messrs. Royce
 and Fetting are &#147;interested persons&#148; of the Fund within the meaning of
 Section 2(a)(19) of the Investment Company Act due to the positions they hold with
 R&#038;A and its affiliate Legg Mason, respectively, and their stock ownership in
 Legg Mason. There are no family relationships between any of the Fund&#146;s Directors
 and officers.</font></p>
<p align="center"><font face="Times New Roman" size="2">5</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">Certain biographical
 and other information concerning the existing Directors and nominees who are not &#147;interested persons,&#148; as
 defined in the Investment Company Act, of the
 Fund, including their designated classes, is set forth below.</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Number
 of</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Portfolios</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Other</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>Name, Address<a href="#e86851p8_onestar">*</a> and</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Positions</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Length</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Current</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>in Fund</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Public</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>Principal
 Occupations</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>With</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>of Time</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Term</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Elected</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Complex</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Company</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b><u>During
 Past Five Years<a href="#e86851p8_twostar">**</a></u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Age</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>the Fund</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Served</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Expires</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>By</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Overseen</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Directorships</u></b></font></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Donald
 R. Dwight<br>President of Dwight Partners, Inc., corporate communications consultants;
 and Chairman (from 1982 until March 1998) and Chairman Emeritus (since March 1998)
 of Newspapers of New England, Inc. Mr. Dwight&#146;s prior experience includes having
 served as Lieutenant Governor of the Commonwealth of Massachusetts, as President
 and Publisher of Minneapolis Star and Tribune Company, and as Trustee of the registered
 investment companies constituting the Eaton Vance Funds.</font></p></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="3%" valign="top" align="center"><font face="Times New Roman" size="2">77</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">Class III<br> Director</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="7%" valign="top" align="center"><font face="Times New Roman" size="2">1998</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="7%" valign="top" align="center"><font face="Times New Roman" size="2">2008</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="7%" valign="top" align="center"><font face="Times New Roman" size="2">Common<br> and<br> Preferred</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="9%" valign="top" align="center"><font face="Times New Roman" size="2">28</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="9%" valign="top" align="center"><font face="Times New Roman" size="2">None</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Richard
 M. Galkin<br>Private investor. Mr. Galkin&#146;s prior business experience includes
 having served as President of Richard M. Galkin Associates, Inc., telecommunications
 consultants, President of Manhattan Cable Television (a subsidiary of Time Inc.),
 President of Haverhills Inc. (another Time Inc. subsidiary), President of Rhode
 Island Cable Television and Senior Vice President of Satellite Television Corp.
 (a subsidiary of Comsat).</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">70</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Class II
<br> Director</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">1986</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">2010</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Common<br>and<br>Preferred</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">28</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">None</font></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">6</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Number
 of</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Portfolios</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Other</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>Name, Address<a href="#e86851p8_onestar">*</a> and</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Positions</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Length</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Current</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>in Fund</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Public</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>Principal
 Occupations</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>With</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>of Time</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Term</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Elected</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Complex</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Company</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b><u>During
 Past Five Years<a href="#e86851p8_twostar">**</a></u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Age</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>the Fund</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Served</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Expires</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>By</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Overseen</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Directorships</u></b></font></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Stephen
 L. Isaacs<br>President of The Center for Health and Social Policy (since September
 1996); Attorney and President of Health Policy Associates, Inc., consultants. Mr. Isaacs&#146;s prior business experience includes having served as Director of Columbia
 University Development Law and Policy Program and Professor at Columbia University
 (until August 1996).</font></p></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="3%" valign="top" align="center"><font face="Times New Roman" size="2">69</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">Director</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="7%" valign="top" align="center"><font face="Times New Roman" size="2">1986</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="7%" valign="top" align="center"><font face="Times New Roman" size="2">2008</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="7%" valign="top" align="center"><font face="Times New Roman" size="2">Preferred<br> only</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="9%" valign="top" align="center"><font face="Times New Roman" size="2">28</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="9%" valign="top" align="center"><font face="Times New Roman" size="2">None</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">William
 L. Koke<br>Private investor. Mr. Koke&#146;s prior business experience includes
 having served as President of Shoreline Financial consultants, Director of Financial
 Relations of SONAT, Inc., Treasurer of Ward Foods, Inc. and President of CFC, Inc.</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">74</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Class III
<br> Director</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">2001</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">2008</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Common<br>
 and<br> Preferred</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">28</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">None</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Arthur
 S. Mehlman<br>Director of The League for People with Disabilities, Inc.; Director
 of University of Maryland Foundation (non-profits). Formerly: Director of University
 of Maryland College Park Foundation (non-profit)(from 1998 to 2005); Partner, KPMG
 LLP (international accounting firm) (from 1972 to 2002); Director of Maryland Business
 Roundtable for Education (from July 1984 to June 2002).</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">66</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Class II
<br> Director</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">2004</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">2010</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Common<br>
 and<br> Preferred</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">42 (Director/
 Trustee of all Royce Funds consisting of 28 portfolios; Director/ Trustee of the
 Legg Mason Family of Funds consisting of 14 portfolios)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Director
 of<br> Municipal<br> Mortgage &#038;<br> Equity, LLC</font></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">7</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Number
 of</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Portfolios</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Other</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>Name, Address<a href="#e86851p8_onestar">*</a> and</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Positions</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Length</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Current</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>in Fund</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Public</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>Principal
 Occupations</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>With</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>of Time</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Term</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Elected</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Complex</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Company</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b><u>During
 Past Five Years<a href="#e86851p8_twostar">**</a></u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Age</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>the Fund</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Served</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Expires</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>By</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Overseen</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Directorships</u></b></font></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">David
 L. Meister<br>Consultant. Chairman and Chief Executive Officer of The Tennis Channel
 (from June 2000 to March 2005). Mr. Meister&#146;s prior business experience includes
 having served as Chief Executive Officer of Seniorlife.com, a consultant to the
 communications industry, President of Financial News Network, Senior Vice President
 of HBO, President of Time-Life Films and Head of Broadcasting for Major League Baseball.</font></p></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="3%" valign="top" align="center"><font face="Times New Roman" size="2">68</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="top" align="center"><font face="Times New Roman" size="2">Director</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="7%" valign="top" align="center"><font face="Times New Roman" size="2">1986</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="7%" valign="top" align="center"><font face="Times New Roman" size="2">2008</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="7%" valign="top" align="center"><font face="Times New Roman" size="2">Preferred<br> only</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="9%" valign="top" align="center"><font face="Times New Roman" size="2">28</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="9%" valign="top" align="center"><font face="Times New Roman" size="2">None</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">G.
 Peter O&#146;Brien<br>Trustee Emeritus of Colgate University (since 2005); Board
 Member of Hill House, Inc. (since 1999). Formerly: Trustee of Colgate University
 (from 1996 to 2005); President of Hill House, Inc. (from 2001 to 2005); and Managing
 Director/Equity Capital Markets Group of Merrill Lynch &#038; Co. (from 1971 to
 1999).</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">62</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Class I<br>
 Director</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">2001</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">2009</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Common<br>
 and<br> Preferred</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">42 (Director/
 Trustee of all Royce Funds consisting of 28 portfolios; Director/ Trustee of the
 Legg Mason Family of Funds consisting of 14 portfolios)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Director
 of<br> Technology<br> Investment<br> Capital<br> Corp.</font></td>
</tr>
</table>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" colspan="3"><hr size="1" color="#000000" noshade width="10%" align="left"></td>
</tr>
<tr>
<td width="3%" valign="top" align="left"><font face="Times New Roman" size="2"><a name="e86851p8_onestar"></a>*</font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Messrs.
 Dwight, Galkin, Isaacs, Koke, Mehlman, Meister and O&#146;Brien&#146;s address is
 c/o Royce &#038; Associates, LLC, 1414 Avenue of the Americas, New York, New York
 10019.</font></div></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2"><a name="e86851p8_twostar"></a>**</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Each of
 the Directors or nominees is a director/trustee of certain other investment companies
 for which R&#038;A acts as an investment adviser. Messrs. Dwight, Galkin, Isaacs,
 Koke, Mehlman, Meister and O&#146;Brien are each a member of the Fund&#146;s Audit
 Committee and its Nominating Committee.</font></div></td>
</tr>
</table>
<p><font face="Times New Roman" size="2"><b>Audit Committee Report</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The Board
 of Directors has a standing Audit Committee (the &#147;Audit Committee&#148;), which
 consists of the Directors who are not &#147;interested persons&#148; of the Fund
 within the meaning of Section 2(a)(19) of the Investment Company Act and who are &#147;independent&#148; as
 defined in the listing standards of</font></p>
<p align="center"><font face="Times New Roman" size="2">8</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2">the New York Stock Exchange (the &#147;Independent
 Directors&#148;). The current members of the Audit Committee are Donald R. Dwight, Richard
 M. Galkin, Stephen L. Isaacs, William L. Koke, Arthur S. Mehlman, David L. Meister
 and G. Peter O&#146;Brien. Mr. Galkin serves as Chairman of the Audit Committee and Mr. Mehlman has
 been designated as the Audit Committee Financial Expert, as defined
 under Securities and Exchange Commission (&#147;SEC&#148;) regulations.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The principal
 purposes of the Audit Committee are to (i) assist Board oversight of the (a) integrity
 of the Fund&#146;s financial statements; (b) independent accountants&#146; qualifications and
 independence; and (c) performance of the Fund&#146;s independent accountants and (ii)
 prepare, or oversee the preparation of any audit committee report required by rules
 of the SEC to be included in the Fund&#146;s proxy statement for its annual meeting of
 stockholders. The Board of Directors has adopted an Audit Committee Charter for
 the Fund attached hereto as Exhibit A.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The Audit
 Committee also has (i) received written disclosures and the letter required by Independence
 Standards Board Standard No. 1 from Tait, Weller &#038; Baker (&#147;TW&#038;B&#148;), independent
 auditors for the Fund, and (ii) discussed certain matters required to be discussed
 under the requirements of The Public Company Accounting Oversight Board with TW&#038;B. The Audit Committee has considered whether the provision of non-audit services
 by the Fund&#146;s independent auditors is compatible with maintaining their independence.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">At its meeting
 held on February 13, 2008, the Audit Committee reviewed and discussed the audit
 of the Fund&#146;s financial statements as of December 31, 2007 and for the fiscal year
 then ended with Fund management and TW&#038;B. Had any material concerns arisen
 during the course of the audit and the preparation of the audited financial statements
 mailed to stockholders and included in the Fund&#146;s 2007 Annual Report to Stockholders,
 the Audit Committee would have been notified by Fund management or TW&#038;B. The
 Audit Committee received no such notifications. At the same meeting, the Audit Committee
 recommended to the Board of Directors that the Fund&#146;s audited financial statements
 be included in the Fund&#146;s 2007 Annual Report to Stockholders.</font></p>
<p><font face="Times New Roman" size="2"><b>Nominating Committee</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The Board
 of Directors has a Nominating Committee composed of the seven Independent Directors,
 namely Messrs. Dwight, Galkin, Isaacs, Koke, Mehlman, Meister and O&#146;Brien. Messrs.
 Galkin and O&#146;Brien serve as Co-Chairmen of the Nominating Committee. The Board of
 Directors has adopted a Nominating Committee Charter which was previously filed
 as an Exhibit to the proxy statement filed with the SEC on behalf of the Fund on
 August 23, 2007.</font></p>
<p align="center"><font face="Times New Roman" size="2">9</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The Nominating
 Committee is responsible for identifying and recommending to the Board of Directors
 individuals believed to be qualified to become Board members in the event that a
 position is vacated or created. The Nominating Committee will consider Director
 candidates recommended by stockholders. In considering potential nominees, the Nominating
 Committee will take into consideration (i) the contribution which the person can
 make to the Board, with consideration given to the person&#146;s business and professional
 experience, education and such other factors as the Committee may consider relevant;
 (ii) the character and integrity of the person; (iii) whether or not the person
 is an &#147;interested person&#148; as defined in the Investment Company Act and
 whether the person is otherwise qualified under applicable laws and regulations
 to serve as a Director or Independent Director of the Fund; (iv) whether or not
 the person has any relationships that might impair his independence, such as any
 business, financial or family relationships with Fund management, the investment
 adviser of the Fund, Fund service providers or their affiliates; (v) whether or
 not the person is financially literate pursuant to the New York Stock Exchange&#146;s
 audit committee membership standards; (vi) whether or not the person serves on boards
 of, or is otherwise affiliated with, competing financial service organizations or
 their related investment company complexes; (vii) whether or not the person is willing
 to serve as, and willing and able to commit the time necessary for the performance
 of the duties of, a Director of the Fund; and (viii) whether or not the selection
 and nomination of the person would be consistent with the requirements of the Fund&#146;s retirement policies.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">To have a
 candidate considered by the Nominating Committee, a stockholder must submit the
 recommendation in writing and must include biographical information and set forth
 the qualifications of the proposed nominee. The stockholder recommendation and information
 described above must be sent to the Fund&#146;s Secretary, John E. Denneen, c/o
 Royce Focus Trust, Inc., 1414 Avenue of the Americas, New York, New York 10019.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">Although the
 Board of Directors does not have a standing compensation committee, the Independent
 Directors review their compensation annually.</font></p>
<p><font face="Times New Roman" size="2"><b>Committee and Board of Directors Meetings</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">During the
 year ended December 31, 2007, the Board of Directors held six meetings, the Audit
 Committee held two meetings and the Nominating Committee did not hold any meetings.
 Each Director then in office attended 75% or more of the aggregate of the total
 number of meetings of the Board of Directors and the total number of meetings of
 the Audit Committee held during that year.</font></p>
<p align="center"><font face="Times New Roman" size="2">10</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p><font face="Times New Roman" size="2"><b>Compensation of Directors and Affiliated
 Persons</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">Each Independent
 Director receives a base fee of $2,600 per year plus $250 for each meeting of the
 Board of Directors attended. No Director received remuneration for services as a
 Director for the year ended December 31, 2007 in addition to or in lieu of this
 standard arrangement.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">Set forth
 below is the aggregate compensation paid by the Fund and the total compensation
 paid by The Royce Funds to each Independent Director of the Fund for the year ended
 December 31, 2007.</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Pension
 or</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Total</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Retirement</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Total</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Compensation</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Benefits</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Estimated</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Compensation</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>From
 the Fund</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Accrued</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Annual</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>From
 The</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>and Fund</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Aggregate</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>as Part</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Benefits</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Royce
 Funds</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Complex</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Compensation</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>of Fund</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>upon</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Paid
 to</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Paid
 to</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b><u>Name</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>From
 the Fund</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Expenses</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Retirement</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Directors</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td colspan="3" valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Directors<sup><a href="#e86851p11_1">1</a></sup></u></b></font></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Donald R. Dwight,</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td  valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Director <sup><a href="#e86851p11_2">2</a></sup></font></p></td>
<td  width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td  width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td  width="3%" valign="bottom" align="right"><font face="Times New Roman" size="2">$3,850</font></td>
<td  width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td  width="4%"><font face="Times New Roman" size="1">&#160;</font></td>
<td  width="10%" valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td  width="4%"><font face="Times New Roman" size="1">&#160;</font></td>
<td  width="10%" valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td  width="4%"><font face="Times New Roman" size="1">&#160;</font></td>
<td  width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td  width="4%" valign="bottom" align="right"><font face="Times New Roman" size="2">$105,000</font></td>
<td  width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td  width="4%"><font face="Times New Roman" size="1">&#160;</font></td>
<td  width="4%"><font face="Times New Roman" size="1">&#160;</font></td>
<td  width="4%" valign="bottom" align="right"><font face="Times New Roman" size="2">$105,000</font></td>
<td  width="4%"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Richard M.
 Galkin,</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Director</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">3,850</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">105,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">105,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Stephen L.
 Isaacs,</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Director</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">3,850</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">105,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">105,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">William L.
 Koke,</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Director <sup><a href="#e86851p11_3">3</a></sup></font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">3,850</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">105,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">105,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Arthur S.
 Mehlman</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Director</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">3,850</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">105,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">231,250</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">David L. Meister,</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Director</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">3,850</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">105,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">105,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">G. Peter O&#146;Brien,</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Director</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">3,600</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">98,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">213,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
</table>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" colspan="3"><hr size="1" color="#000000" noshade width="10%" align="left"></td>
</tr>
<tr>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2"><sup><a name="e86851p11_1"></a>1</sup></font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Represents
 aggregate compensation paid to each Director during the calendar year ended December
 31, 2007 from the Fund Complex. The Fund Complex includes the 28 portfolios of The
 Royce Funds and the 14 portfolios of the Legg Mason Family of Funds.</font></div></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2"><sup><a name="e86851p11_2"></a>2</sup></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Includes $770
 from the Fund ($21,000 from the Fund and other Royce Funds) deferred during 2007
 at the election of Mr. Dwight under The Royce Funds&#146; Deferred Compensation
 Plan for trustees/directors.</font></div></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2"><sup><a name="e86851p11_3"></a>3</sup></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Includes $1,100
 from the Fund ($30,000 from the Fund and other Royce Funds) deferred during 2007
 at the election of Mr. Koke under The Royce Funds&#146; Deferred Compensation Plan
 for trustees/directors.</font></div></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">11</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p><font face="Times New Roman" size="2"><b>Officers of the Fund</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">Officers of
 the Fund are elected each year by the Fund&#146;s Board of Directors. The following
 sets forth information concerning the Fund&#146;s officers:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>Name, Address<a href="#e86851p12_onestar">*</a> and Principal</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Officer
 of</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b><u>Occupations
 During Past Five Years</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Age</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Office<a href="#e86851p12_twostar">**</a></u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Fund
 Since</u></b></font></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>

<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">Charles M. Royce</font></td>
<td width="10%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="3%" valign="top" align="center"><font face="Times New Roman" size="2">68</font></td>
<td width="10%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="10%" valign="top" align="center"><font face="Times New Roman" size="2">President</font></td>
<td width="10%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="10%" valign="top" align="center"><font face="Times New Roman" size="2">1986</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:0px;"><font face="Times New Roman" size="2">President,
 Chief Investment Officer and Member of Board of Managers of R&#038;A.</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">John D. Diederich</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">57</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Vice</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">1997</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:0px;"><font face="Times New Roman" size="2">Chief
 Operating Officer, Managing Director and Member of the Board of Managers of R&#038;A;
 Chief Financial Officer of R&#038;A; Director of Administration of The Royce Funds;
 and President of Royce Fund Services, Inc. (&#147;RFS&#148;), having been employed
 by R&#038;A since April 1993.</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">President
<br> and<br> Treasurer</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">Jack E. Fockler,
 Jr.</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">49</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Vice</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">1995</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:0px;"><font face="Times New Roman" size="2">Managing
 Director and Vice President of R&#038;A; Vice President of RFS, having been employed
 by R&#038;A since October 1989.</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">President</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">W. Whitney
 George</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">50</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Vice</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">1995</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:0px;"><font face="Times New Roman" size="2">Managing
 Director and Vice President of R&#038;A, having been employed by R&#038;A since
 October 1991.</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">President</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">Daniel A.
 O&#146;Byrne</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">46</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Vice</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">1994</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:0px;"><font face="Times New Roman" size="2">Principal
 and Vice President of R&#038;A, having been employed by R&#038;A since October 1986.</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">President</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">John E. Denneen</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">41</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Secretary
 and</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">1996 to
 2001</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:0px;"><font face="Times New Roman" size="2">General
 Counsel, Principal, Chief Legal and Compliance Officer and Secretary of R&#038;A;
 Secretary and Chief Legal Officer of The Royce Funds.</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Chief Legal
<br> Officer</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">and<br>
 since 2002</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">Lisa Curcio</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">48</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Chief</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">2004</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:0px;"><font face="Times New Roman" size="2">Chief
 Compliance Officer of The Royce Funds (since October 2004); Compliance Officer of
 R&#038;A (since June 2004); Vice President, The Bank of New York (from February
 2001 to June 2004).</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Compliance
<br> Officer</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
</table>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" colspan="3"><hr size="1" color="#000000" noshade width="10%" align="left"></td>
</tr>
<tr>
<td width="2%" valign="bottom" align="right"><font face="Times New Roman" size="2"><a name="e86851p12_onestar"></a>*</font></td>
<td width="2%" valign="bottom" align="center"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">The address
 of each officer is c/o Royce &#038; Associates, LLC, 1414 Avenue of the Americas,
 New York, New York 10019.</font></div></td>
</tr>
<tr>
<td valign="bottom" align="right"><font face="Times New Roman" size="2"><a name="e86851p12_twostar"></a>**</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Elected
 by and serves at the pleasure of the Board of Directors.</font></div></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">12</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p><font face="Times New Roman" size="2"><b>Stockholder Communications</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">Stockholders
 may send written communications to the Fund&#146;s Board of Directors or to an individual
 Director by mailing such correspondence to the Secretary of the Fund (addressed
 to 1414 Avenue of the Americas, New York, New York 10019). Such communications must
 be signed by the stockholder and identify the class and number of shares held by
 the stockholder. Properly submitted stockholder communications will, as appropriate,
 be forwarded to the entire Board or to the individual Director. Any stockholder
 proposal submitted pursuant to Rule 14a-8 under the Securities Exchange Act of 1934,
 as amended (the &#147;Exchange Act&#148;), must continue to meet all the requirements
 of Rule 14a-8. See &#147;Additional Information &#150; Stockholder Proposals&#148;
 herein.</font></p>
<p><font face="Times New Roman" size="2"><b>Director Attendance at Stockholder Meetings</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The Fund has
 no formal policy regarding Director attendance at stockholder meetings. None of
 the Fund&#146;s Independent Directors attended the 2007 Annual Meeting of Stockholders.</font></p>
<p><font face="Times New Roman" size="2"><b>Compliance with Section 16(a) of the
 Exchange Act</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">Section 16(a)
 of the Exchange Act requires the officers and Directors of the Fund and persons
 who own more than ten percent of a registered class of the Fund&#146;s equity securities,
 to file reports of ownership and changes in ownership on Forms 3, 4 and 5 with the
 SEC and the New York Stock Exchange. Officers, Directors and greater than ten percent
 stockholders are required by SEC regulations to furnish the Fund with copies of
 all Forms 3, 4 and 5 they file.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">Based solely
 on the Fund&#146;s review of the copies of such forms and amendments thereto, furnished
 to it during or with respect to its most recent fiscal year, and written representations
 from certain reporting persons that they were not required to file Form 5 with respect
 to the most recent fiscal year, the Fund believes that all of its officers, Directors,
 greater than ten percent beneficial owners and other persons subject to Section
 16 of the Exchange Act due to the requirements of Section 30(h) of the Investment
 Company Act (i.e., any investment adviser or affiliated person of the Fund&#146;s
 investment adviser), have complied with all filing requirements applicable to them
 with respect to transactions in the Fund&#146;s shares during the Fund&#146;s most
 recent fiscal year.</font></p>
<p align="center"><font face="Times New Roman" size="2">13</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p><font face="Times New Roman" size="2"><b>Stock Ownership</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">Information
 relating to each Director&#146;s ownership as of August 6, 2008 in the Fund and
 in all registered Royce Funds overseen or to be overseen by each Director is set
 forth below:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Aggregate
 Dollar Range of</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Aggregate
 Dollar</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Securities
 in all Royce Funds</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Range
 of Equity</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>overseen
 by each Director</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b><u>Name</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>in the
 Fund</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>in the
 Royce Family of Funds</u></b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i>Interested Director</i>:</font></td>
<td width="5%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="30%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="5%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="30%"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Charles
 M. Royce</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over $100,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over $100,000</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Mark
 R. Fetting</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$10,001 &#150; $50,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over $100,000</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i>Non-Interested
 Directors</i>:</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Donald
 R. Dwight</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$1 &#150; $10,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over $100,000</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Richard
 M. Galkin</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$10,001 &#150; $50,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over $100,000</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Stephen
 L. Isaacs</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$10,001 &#150; $50,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over $100,000</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">William
 L. Koke</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$1 &#150; $10,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over $100,000</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Arthur
 S. Mehlman</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$10,001 &#150; $50,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over $100,000</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">David
 L. Meister</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over $100,000</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">G.
 Peter O&#146;Brien</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$10,001 &#150; $50,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over $100,000</font></td>
</tr>
</table>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">Information
 regarding ownership of the Fund&#146;s shares by the Fund&#146;s Directors and officers
 as of the Record Date is set forth below:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Amount of Record/Beneficial</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Ownership
 of</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b><u>Name and
 Address<a href="#e86851p14_onestar">*</a> of Owner</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Shares
 of Common Stock</u></b></font></td>
</tr>
<tr>
<td width="5%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i>Interested Directors</i>:</font></td>
<td width="5%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="45%"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Charles
 M. Royce</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">1,649,020</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Mark
 R. Fetting</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">3,191</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i>Non-Interested
 Directors</i>:</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Donald
 R. Dwight</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">962</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Richard
 M. Galkin</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">2,426</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Stephen
 L. Isaacs</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">1,448</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">William
 L. Koke</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">1,033</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Arthur
 S. Mehlman</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">3,829</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">David
 L. Meister</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">G.
 Peter O&#146;Brien</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">5,127</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i>Interested
 Officers</i>:</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">John
 D. Diederich</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">27,680</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Jack
 E. Fockler, Jr.</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">W.
 Whitney George</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">2,230,639</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Daniel
 A. O&#146;Byrne</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">5,444</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">John
 E. Denneen</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">15,901</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Lisa
 Curcio</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
</tr>
</table>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" colspan="3"><hr size="1" color="#000000" noshade width="10%" align="left"></td>
</tr>
<tr>
<td width="1%" valign="bottom" align="left"><font face="Times New Roman" size="2"><a name="e86851p14_onestar"></a>*</font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">The address
 of each Director and officer is c/o Royce &#038; Associates, LLC, 1414 Avenue of
 the Americas, New York, New York 10019.</font></div></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">14</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">Mr. Royce
 has sole voting power and sole investment power as to the shares beneficially owned
 by him. As of the Record Date, all Directors and officers of the Fund as a group
 (15 persons) beneficially owned 3,946,700 shares of the Fund&#146;s Common Stock,
 constituting approximately 21% of the outstanding shares, and no shares of its Preferred
 Stock.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">As of August
 6, 2008, no Independent Director or any of his immediate family members directly
 or indirectly owned any securities issued by Legg Mason or any of its affiliates
 (other than registered investment companies).</font></p>
<p><font face="Times New Roman" size="2"><b>Vote Required</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">A quorum consists
 of stockholders representing a majority of the outstanding shares of the Fund&#146;s
 Common Stock and/or Preferred Stock, as the case may be, entitled to vote, who are
 present in person or by proxy, and a plurality of all of the votes cast at a meeting
 at which a quorum is present is sufficient to elect a Director.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2"><b>The Board
 of Directors recommends that all stockholders vote FOR all Director nominees.</b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>FEES PAID TO INDEPENDENT
 AUDITORS</b></font></p>
<p><font face="Times New Roman" size="2"><b>Audit Fees</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The aggregate
 fees paid to TW&#038;B in connection with the annual audit of the Fund&#146;s financial
 statements and for services normally provided by TW&#038;B in connection with the
 statutory and regulatory filings of the Fund for the fiscal years ended December
 31, 2006 and December 31, 2007 were $23,600 and $24,600, respectively, including
 out of pocket expenses.</font></p>
<p><font face="Times New Roman" size="2"><b>Audit Related Fees</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The aggregate
 fees paid to TW&#038;B in connection with assurance and related services related
 to the annual audit of the Fund and for review of the Fund&#146;s financial statements,
 other than the Audit Fees described above, for the fiscal years ended December 31,
 2006 and December 31, 2007 were $1,500 and $1,500, respectively. The audit-related
 services rendered by TW&#038;B to the Fund consisted of the preparation of reports
 to a rating agency for the Preferred Stock.</font></p>
<p><font face="Times New Roman" size="2"><b>Tax Fees</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The aggregate
 fees paid for tax-related services, including preparation of tax returns, tax compliance
 and tax advice, rendered by TW&#038;B to the Fund for the fiscal years ended December
 31, 2006 and December 31, 2007 were $5,000 and $6,000, respectively.</font></p>
<p align="center"><font face="Times New Roman" size="2">15</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p><font face="Times New Roman" size="2"><b>All Other Fees</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">There were
 no other fees billed for non-audit services rendered by TW&#038;B to the Fund for
 the fiscal years ended December 31, 2006 and December 31, 2007. The aggregate non-audit
 fees billed by TW&#038;B for services rendered to R&#038;A and any entity controlling,
 controlled by, or under common control with R&#038;A that provides ongoing services
 to the Fund for the fiscal years ended December 31, 2006 and December 31, 2007 were
 $6,500 and $7,500, respectively. The Audit Committee has determined that the provision
 of non-audit services is compatible with maintaining the independence of TW&#038;B.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The Audit
 Committee has determined that the preparation of the rating agency reports is compatible
 with maintaining TW&#038;B&#146;s independence. TW&#038;B did not provide any other
 professional services to the Fund or R&#038;A for the year ended December 31, 2007.
 No representatives of TW&#038;B will be present at the Meeting.</font></p>
<p><font face="Times New Roman" size="2"><b>Audit Committee&#146;s Pre-Approval Policies
 and Procedures</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The Audit
 Committee of the Fund has adopted policies and procedures with regard to the pre-approval
 of audit and non-audit services. On an annual basis, at the Fund&#146;s December
 Audit Committee meeting, TW&#038;B will submit a schedule of proposed audit, audit-related,
 tax and other non-audit services to be rendered to the Fund and/or R&#038;A and
 its affiliates for the following year that require pre-approval by the Audit Committee.
 Such schedule will include the maximum fees that can be paid for such services without
 further Audit Committee approval. Any subsequent revision to pre-approved services
 or fees will be considered at the next regularly scheduled Audit Committee meeting.
 Services not presented for pre-approval at the December Audit Committee meeting
 will be submitted to the Chief Financial Officer of the Fund for a determination
 that the proposed services fit within the independence guidelines and then considered
 for pre-approval at the next regularly scheduled Audit Committee meeting. A proposal
 to commence an engagement involving audit, audit-related or tax services prior to
 the next regularly scheduled Audit Committee meeting shall be made in writing by
 the Chief Financial Officer to all Audit Committee members and include a summary
 of the engagement, estimated maximum cost, the category of services and the rationale
 for engaging the Fund&#146;s independent auditor. Such proposed engagement can be
 pre-approved by any Audit Committee member who is an Independent Director. Pre-approval
 by the Chairman of the Audit Committee is required for a proposed engagement involving
 non-audit services other than audit-related or tax.</font></p>
<p align="center"><font face="Times New Roman" size="2"><b>ADDITIONAL INFORMATION</b></font></p>
<p><font face="Times New Roman" size="2"><b>Adjournment of Meeting; Other Matters</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">In the event
 that sufficient votes in favor of Proposal 1 in the Notice of Annual Meeting of
 Stockholders are not received by the time scheduled for the Meeting, the persons
 named as proxies may propose one or more</font></p>
<p align="center"><font face="Times New Roman" size="2">16</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2">adjournments of the Meeting to permit further
 solicitation of proxies for such Proposal. Any such adjournment will require the
 affirmative vote of a majority of the shares present in person or by proxy at the
 session of the Meeting to be adjourned. The persons named as proxies will vote in
 favor of such adjournment those proxies which they are entitled to vote in favor
 of the Proposal. They will vote against any such adjournment those proxies required
 to be voted against the Proposal.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">While the
 Meeting has been called to transact any business that may properly come before it,
 the Directors know of no business other than the matter stated in the Notice of
 Annual Meeting of Stockholders. However, if any additional matter properly comes
 before the Meeting and on all matters incidental to the conduct of the Meeting,
 it is the intention of the persons named in the enclosed Proxy to vote the Proxy
 in accordance with their judgment on such matters.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The Fund expects
 that broker-dealer firms holding shares of the Fund in &#147;street name&#148; for
 the benefit of their customers and clients will request the instructions of such
 customers and clients on how to vote their shares on the Proposal before the Meeting.
 The Fund understands that, under the rules of the New York Stock Exchange, such
 broker-dealers may, without instructions from such customers and clients, grant
 authority to the proxies designated by the Fund to vote on the election of Directors
 if no instructions have been received prior to the date specified in the broker-dealer
 firm&#146;s request for voting instructions. Certain broker-dealer firms may exercise
 discretion over shares held in their name for which no instructions are received
 by voting such shares in the same proportion as they have voted shares for which
 they have received instructions.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The shares
 as to which the Proxies so designated are granted authority by broker-dealer firms
 to vote on the matters to be considered at the Meeting, the shares as to which broker-dealer
 firms have declined to vote (&#147;broker non-votes&#148;) and the shares as to
 which Proxies are returned by record stockholders but which are marked &#147;abstain&#148; on any matter will be included in the Fund&#146;s tabulation of the total
 number of votes present for purposes of determining whether the necessary quorum
 of stockholders exists. However, abstentions and broker non-votes will not be counted
 as votes cast. Therefore, abstentions and broker non-votes will not have an effect
 on the election of Directors.</font></p>
<p><font face="Times New Roman" size="2"><b>Address of Investment Adviser</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">R&#038;A&#146;s
 principal office is located at 1414 Avenue of the Americas, New York, New York 10019.</font></p>
<p><font face="Times New Roman" size="2"><b>Annual Report Delivery</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2"><b>The Fund&#146;s Annual Report to Stockholders for the year ended December 31, 2007 was previously
 mailed to its stockholders and the</b></font></p>
<p align="center"><font face="Times New Roman" size="2">17</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2"><b>Semiannual Report to Stockholders for
 the six months ended June 30, 2008 will be mailed to stockholders in late August
 2008. Copies of the Annual Report are available, and copies of the Semiannual Report
 will be available in late August, upon request, without charge, by writing to the
 Fund at 1414 Avenue of the Americas, New York, New York 10019 or calling toll free
 at 1-800-221-4268. All publicly released material information is always disclosed
 by the Fund on its website at <U>www.roycefunds.com.</U></b></font></p>
<p><font face="Times New Roman" size="2"><b>Stockholder Proposals</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">Proposals
 of stockholders intended to be presented at the Fund&#146;s 2009 Annual Meeting
 of Stockholders must be received by the Fund by April 27, 2009 for inclusion in
 the Fund&#146;s Proxy Statement and form of Proxy for that meeting. The Fund&#146;s
 By-laws generally require advance notice be given to the Fund in the event a stockholder
 desires to nominate a person for election to the Board of Directors or to transact
 any other business from the floor at an annual meeting of stockholders. Notice of
 any such nomination or other business intended to be presented at the Fund&#146;s
 2009 Annual Meeting of Stockholders must be in writing and received at the Fund&#146;s principal executive office between April 27, 2009 and May 27, 2009. Written
 proposals should be sent to the Secretary of the Fund, 1414 Avenue of the Americas,
 New York, New York 10019.</font></p>
<p><font face="Times New Roman" size="2"><b>Proxy Delivery</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">If you and
 another shareholder share the same address, the Fund may only send one proxy statement
 unless you or the other shareholder(s) request otherwise. Call or write the Fund
 if you wish to receive a separate copy of the proxy statement and the Fund will
 promptly mail a copy to you. You may also call or write to the Fund if you wish
 to receive a separate proxy in the future, or if you receive multiple copies now,
 and wish to receive a single copy in the future. For such requests, please call
 1-800-221-4268, or write the Fund at 1414 Avenue of the Americas, New York, New
 York 10019.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2"><b>PLEASE
 FILL IN, DATE AND SIGN THE ENCLOSED PROXY AND RETURN IT IN THE ACCOMPANYING POSTAGE-PAID
 ENVELOPE.</b></font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="10%" valign="bottom"><font face="Times New Roman" size="2">&#160;</font></td>
<td width="50%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">By order of
 the Board of Directors,</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">John E. Denneen</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i>Secretary
</i></font></td>
</tr>
</table>
<p><font face="Times New Roman" size="2">Dated: August 25, 2008</font></p>
<p align="center"><font face="Times New Roman" size="2">18</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="right"><font face="Times New Roman" size="2"><b>EXHIBIT A</b></font></p>
<p align="center"><font face="Times New Roman" size="2">Charter of the Audit Committee
<br>of the Board of Directors/Trustees<br>For The Royce Funds Listed In Appendix
 A Hereto</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="6%" valign="top" align="left"><font face="Times New Roman" size="2"><b>I.</b></font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2"><u><b>Composition of the Audit Committee</b></u></font></td>
</tr>
</table>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The Audit
 Committee shall be composed of at least three Directors/Trustees, each of whom:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="3%" valign="bottom"><font face="Times New Roman" size="2">&#160;</font></td>
<td width="3%" valign="top" align="left"><font face="Times New Roman" size="2">(a)</font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">shall not
 be an &#147;interested person&#148; of the Fund, as defined in Section 2(a)(19) of the Investment
 Company Act of 1940, as amended (the &#147;1940 Act&#148;);</font></div></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(b)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">shall not
 accept directly or indirectly any consulting, advisory, or other compensatory fee
 from the Fund (other than fees for serving on the Board of Directors/Trustees or
 any committee thereof); and</font></div></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(c)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">shall be
 financially literate at the time of his or her appointment to the Audit Committee,
 as such qualification is interpreted by the Board of Directors/Trustees in its business
 judgment, or shall become financially literate within a reasonable period of time
 after his or her appointment to the Audit Committee.</font></div></td>
</tr>
</table>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">In the event
 Fund shares are or become listed on a national securities exchange or are or become
 quoted on a national market quotation system, the additional qualification requirements
 set forth below also shall apply:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="3%" valign="bottom"><font face="Times New Roman" size="2">&#160;</font></td>
<td width="3%" valign="top" align="left"><font face="Times New Roman" size="2">(d)</font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">each Director/Trustee
 who is a member of the Audit Committee shall satisfy the applicable independence
 requirements for any such national securities exchange or national market quotation
 system; and</font></div></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(e)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">at least
 one Director/Trustee who is a member of the Audit Committee shall have accounting
 or related financial management expertise as the Board of Directors/Trustees interprets
 such qualification in its business judgment.</font></div></td>
</tr>
</table>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The Board
 of Directors/Trustees shall determine annually: (i) whether at least one of the
 members of the Audit Committee is an &#147;audit committee financial expert,&#148; as defined
 in rules of the Securities and Exchange Commission and (ii) whether simultaneous
 service on more than three public company audit committees by a member of the Audit
 Committee would not impair the ability of such member to serve on the Audit Committee.</font></p>
<p align="center"><font face="Times New Roman" size="2">A-1</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="6%" valign="top" align="left"><font face="Times New Roman" size="2"><b>II.</b></font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2"><u><b>Purposes of the Audit Committee</b></u></font></td>
</tr>
</table>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The Audit Committee shall be responsible
 for:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">(1)</font></td>
<td valign="bottom" colspan="2" align="left"><font face="Times New Roman" size="2">assisting Board oversight of the</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td width="3%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="4%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="4%" valign="top" align="left"><font face="Times New Roman" size="2">(a)</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">integrity of the Fund&#146;s financial statements;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(b)</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">independent
 accountants&#146; qualifications and independence; and</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(c)</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">performance
 of the Fund&#146;s independent accountants; and</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(2)</font></td>
<td valign="bottom" colspan="2"><div align="justify"><font face="Times New Roman" size="2">preparation, or overseeing the preparation of, any audit committee report required
 by rules of the Securities and Exchange Commission to be included in the Fund&#146;s
 proxy statement for its annual meeting of stockholders.</font></div></td>
</tr>
</table>
<br>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="6%" valign="top" align="left"><font face="Times New Roman" size="2"><b>III.</b></font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2"><u><b>Responsibilities and Duties of the Audit Committee</b></u></font></td>
</tr>
</table>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The Fund&#146;s
 independent accountants shall report directly to the Audit Committee.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">As may be
 necessary or appropriate to carry out its purposes, or to comply with applicable
 law or the requirements of any securities exchange or market quotation system on
 which Fund shares are or may become listed or quoted, the Audit Committee shall
 have the following responsibilities and duties:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="3%" valign="bottom"><font face="Times New Roman" size="2">&#160;</font></td>
<td width="3%" valign="top" align="left"><font face="Times New Roman" size="2">(a)</font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">the appointment,
 compensation, retention and oversight of the work of the Fund&#146;s independent accountants,
 including the resolution of disagreements between management and the independent
 accountants regarding financial reporting;</font></div></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(b)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">to (i)
 select an accounting firm to (1) serve as the Fund&#146;s independent accountants, (2)
 audit the Fund&#146;s financial statements on an annual basis, and (3) provide an opinion
 on an annual basis with respect to the Fund&#146;s financial statements, and (ii) recommend
 that the members of the Board of Directors/Trustees who are not &#147;interested persons&#148;
 of the Fund, as defined in Section 2(a)(19) of the 1940 Act, ratify such selection;</font></div></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(c)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">to pre-approve
 (i) all audit and permissible non-audit services to be provided to the Fund by the
 Fund&#146;s independent accountants and (ii) all permissible non-audit services to be
 provided by the Fund&#146;s independent accountants to the Fund&#146;s Investment Adviser
 or any entity controlling, controlled by, or under common control with the Investment
 Adviser (&#147;Adviser Affiliate&#148;) that provides ongoing</font></div></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">A-2</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">services
 to the Fund, if the engagement by the Adviser Affiliate relates directly to the
 operations and financial reporting of the Fund;</font></div></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td width="3%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="3%" valign="top" align="left"><font face="Times New Roman" size="2">(d)</font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">if determined
 to be advisable, to develop policies and procedures for pre-approval of the engagement
 of the Fund&#146;s independent accountants to provide any of the audit or non-audit services
 described in Section III(c) above;</font></div></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(e)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">to consider
 whether each non-audit service provided by the Fund&#146;s independent accountants to
 the Fund and to the Fund&#146;s Investment Adviser or any Adviser Affiliate that provides
 ongoing services to the Fund is compatible with maintaining the independence of
 such independent accountants;</font></div></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(f)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">to ensure
 that the Fund&#146;s independent accountants submit on a periodic basis to the Audit
 Committee a formal written statement delineating all relationships between such
 independent accountants and the Fund, consistent with Independence Standards Board
 Standard No. 1, and to actively engage in a dialogue with, and receive and consider
 specific representations from, the Fund&#146;s independent accountants with respect to
 any disclosed relationships or services that may affect the objectivity and independence
 of such independent accountants;</font></div></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(g)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">to review
 the arrangements for annual and special audits and the scope of such audits with
 the Fund&#146;s independent accountants;</font></div></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(h)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">to meet
 to review and discuss the Fund&#146;s audited financial statements and, to the extent
 required by applicable law or regulations, the Fund&#146;s semi-annual financial statements
 with Fund management and the Fund&#146;s independent accountants, including the Fund&#146;s disclosure of management&#146;s discussion of Fund performance;</font></div></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(i)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">to review
 with the Fund&#146;s independent accountants any audit problems or difficulties the accountants
 may have encountered during or relating to the conduct of the audit, including any
 matters required to be discussed pursuant to rules of The Public Company Accounting
 Oversight Board and other relevant regulatory and professional organizations, or
 any subsequent Statement, and management&#146;s response;</font></div></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(j)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">to establish
 and administer policies and procedures relating to the hiring by the Fund, its Investment
 Adviser, or any administrator that is an Adviser Affiliate of employees or former
 employees of the Fund&#146;s independent accountants;</font></div></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(k)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">to consider
 information and comments from the Fund&#146;s independent accountants with respect to
 the Fund&#146;s accounting and financial</font></div></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">A-3</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">reporting
 policies, procedures and internal control over financial reporting (including the
 Fund&#146;s critical accounting policies and practices) and management s responses to
 any such comments;</font></div></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td width="3%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="3%" valign="top" align="left"><font face="Times New Roman" size="2">(l)</font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">to request,
 receive and/or review from the Fund&#146;s independent accountants such other materials
 as may be deemed necessary or advisable in the discretion of the Committee in the
 exercise of its duties under this Charter; such materials may (but are not required
 to) include, without limitation, any other material written communications relating
 to the Fund&#146;s financial statements, or internal or disclosure controls, between
 the independent accountants and the Fund, the Investment Adviser, the Fund&#146;s sub-adviser(s),
 if any, or other Fund service providers, such as any management letter or schedule
 of unadjusted differences;</font></div></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(m)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">at least
 annually, to obtain and review a report by the Fund&#146;s independent accountants describing:
 (i) such independent accountants&#146; internal quality-control procedures; (ii) any material
 issues raised by the most recent internal quality-control review, or peer review,
 of such independent accountants, or by any inquiry or investigation by governmental
 or professional authorities, within the preceding five years, respecting one or
 more independent audits carried out by such firm, and any steps taken to deal with
 any such issues; and (iii) all relationships between the Fund&#146;s independent accountants
 and the Fund, the Investment Adviser and Adviser Affiliates (to assess the independence
 of the Fund&#146;s independent accountants);</font></div></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(n)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">to establish
 procedures for: (i) the receipt, retention, and treatment of complaints received
 by the Fund regarding accounting, internal accounting controls, or auditing matters;
 and (ii) the confidential, anonymous submission of concerns by employees of the
 Fund&#146;s Investment Adviser, manager, administrator, principal underwriter, or any
 other provider of accounting related services for the Fund regarding questionable
 accounting or auditing matters;</font></div></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(o)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">to address
 reports received from attorneys in accordance with procedures adopted by the Fund&#146;s
 Investment Adviser relating to the possible violation of federal or state law
 or fiduciary duty;</font></div></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(p)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">to discuss
 with Fund management and the Fund&#146;s independent accountants policies with respect
 to risk assessment and risk management; and</font></div></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(q)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">to perform
 such other functions and to have such other powers consistent with this Charter,
 the Fund&#146;s Articles of Incorporation or Declaration of Trust, as amended and supplemented,
 the Fund&#146;s</font></div></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">A-4</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="3%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="3%" valign="top" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">By-laws, as amended, and applicable law, as the Audit Committee or the Board deems necessary or appropriate.</font></div></td>
</tr>
</table>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The Audit
 Committee may delegate any portion of its authority, including the authority to
 grant preapprovals of audit related services and permitted non-audit services, to
 a subcommittee of one or more members of the Audit Committee pursuant to preapproval
 policies and procedures established by the Audit Committee; provided, however, that
 the Audit Committee may not delegate preapproval of the audit required by the Securities
 Exchange Act of 1934. Any decision of such subcommittee of the Audit Committee to
 grant preapprovals shall be presented to the full Audit Committee at its next regularly
 scheduled meeting.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The function
 of the Audit Committee is oversight; it is the responsibility of Fund management
 to maintain appropriate systems for accounting and internal control over financial
 reporting, and the responsibility of the Fund&#146;s independent accountants to
 plan and carry out a proper audit. Specifically, Fund management is responsible
 for: (1) the preparation, presentation and integrity of the Fund&#146;s financial
 statements; (2) the maintenance of appropriate accounting and financial reporting
 principles and policies; and (3) the maintenance of internal control over financial
 reporting and other procedures designed to assure compliance with accounting standards
 and related laws and regulations. The Fund&#146;s independent accountants are responsible
 for planning and carrying out an audit consistent with applicable legal and professional
 standards and the terms of their engagement letter. Nothing in this Charter shall
 be construed to reduce the responsibilities or liabilities of the Fund&#146;s service
 providers, including the Fund&#146;s independent accountants.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">Although the
 Audit Committee is expected to review appropriately the matters that come before
 it, such review of a Fund&#146;s financial statements by the Audit Committee is
 not an audit, nor does the Committee&#146;s review substitute for the responsibilities
 of the Fund&#146;s management for preparing, or the Fund&#146;s independent accountants
 for auditing, the financial statements. Members of the Audit Committee are not employees
 of the Fund and, in serving on the Audit Committee, are not, and do not hold themselves
 out to be, acting as accountants or auditors. As such, it is not the duty or responsibility
 of the Audit Committee or its members to conduct &#147;field work&#148; or other
 types of auditing or accounting reviews or procedures.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">In discharging
 their duties, the members of the Audit Committee are entitled to rely on information,
 opinions, reports, or statements, including financial statements and other financial
 data, if prepared or presented by: (1) one or more officers of the Fund whom the
 Board reasonably believes to be reliable and competent in the matters presented;
 (2) legal counsel, public accountants, or other persons as to matters the Board
 reasonably believes are</font></p>
<p align="center"><font face="Times New Roman" size="2">A-5</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2">within the person&#146;s professional or expert
 competence; or (3) a committee of the Board.</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="6%" valign="top" align="left"><font face="Times New Roman" size="2"><b>IV.</b></font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2"><u><b>Meetings</b></u></font></td>
</tr>
</table>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The Audit
 Committee shall meet on a regular basis but no less frequently than annually. The
 Audit Committee periodically shall meet separately with the Fund&#146;s independent accountants,
 Fund management and representatives of Fund management responsible for the financial
 and accounting operations of the Fund. The Audit Committee may hold special meetings
 at such times as the Audit Committee believes necessary or appropriate. Members
 of the Audit Committee may participate in a meeting of the Audit Committee by means
 of conference call or similar communications equipment by means of which all persons
 participating in such meeting can hear each other.</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="6%" valign="top" align="left"><font face="Times New Roman" size="2"><b>V.</b></font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2"><u><b>Assistance from Fund Management;
 Authority to Engage Advisers; Funding</b></u></font></td>
</tr>
</table>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The appropriate
 officers of the Fund shall provide or arrange to provide such information, data
 and services as the Audit Committee may request. The Audit Committee shall have
 the power and authority to take all action it believes necessary or appropriate
 to discharge its responsibilities, including the power and authority to retain independent
 counsel and other advisers. The Fund shall provide for appropriate funding, as determined
 by the Audit Committee as a committee of the Board, for payment of: (i) compensation
 to the Fund&#146;s independent accountants or any other accounting firm engaged for the
 purpose of preparing or issuing an audit report or performing other audit, review,
 or attest services for the Fund, (ii) compensation to any advisers employed by the
 Audit Committee under this Section V, and (iii) ordinary administrative expenses
 of the Audit Committee that are necessary or appropriate in carrying out its responsibilities.</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="6%" valign="top" align="left"><font face="Times New Roman" size="2"><b>VI.</b></font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2"><u><b>Reporting</b></u></font></td>
</tr>
</table>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The Chairman
 of the Audit Committee shall report to the Board on the results of its deliberations
 and make such recommendations as deemed necessary or appropriate.</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="6%" valign="top" align="left"><font face="Times New Roman" size="2"><b>VII.</b></font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2"><u><b>Amendments</b></u></font></td>
</tr>
</table>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">This Charter
 may be amended or modified from time to time by vote of the Board.</font></p>
<p><font face="Times New Roman" size="2"><b>Dated: April 11, 2000</b></font></p>
<p><font face="Times New Roman" size="2"><b>Revised: December 7, 2005</b></font></p>
<p><font face="Times New Roman" size="2"><b>Revised: February 13, 2008</b></font></p>
<p align="center"><font face="Times New Roman" size="2">A-6</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="center"><font face="Times New Roman" size="2"><b>APPENDIX A</b></font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">Royce Capital Fund</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">Royce Focus Trust, Inc.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">Royce Micro-Cap Trust, Inc.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">Royce Value Trust, Inc.</font></p>
<p align="justify" style="text-indent:25px;"><font face="Times New Roman" size="2">The Royce Fund</font></p>
<p align="center"><font face="Times New Roman" size="2">A-7</font></p>
<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->
<br><br><br>
<br><br><br>
<br><br><br>
<br><br><br>
<br><br><br>
<br><br><br>
<br><br><br>
<p align="right"><font face="Times New Roman" size="2">P/S SKU# 002CS62037</font></p>

<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->


<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:624px"><P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center>ROYCE FOCUS
TRUST, INC.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">PROXY</P>
<P style="line-height:14pt; margin:0px; text-indent:552px; font-size:12pt">PROXY
</P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center>Common
Stock</P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center>1414 Avenue
of the Americas</P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center>New York,
NY 10019</P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center><B>This
Proxy is solicited on behalf of the Board of Directors.</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt">The undersigned hereby
appoints Charles M. Royce and John E. Denneen, or either of them acting in
absence of the other, as Proxies, each with the power to appoint his substitute,
and hereby authorizes them to represent and to vote, as designated on the
reverse, all shares of Common Stock of the Fund held of record by the
undersigned on August&nbsp;6, 2008 at the Annual Meeting of Stockholders of
Royce Focus Trust, Inc. to be held on September&nbsp;25, 2008, and at any
adjournment thereof.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt"><B>This Proxy, when
properly executed, will be voted in the manner directed by the undersigned
stockholder. &nbsp;If no direction is made, this Proxy will be voted FOR
Proposal 1.</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt"><B>PLEASE VOTE, DATE AND
SIGN ON REVERSE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. &nbsp;</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt">Please sign exactly as
your name(s) appear(s) on other side. &nbsp;When shares are held by joint
tenants, both should sign. &nbsp;When signing as attorney, executor,
administrator, trustee or guardian, please give full title as such. &nbsp;If a
corporation, please sign in full corporate name by president or other authorized
officer. &nbsp;If a partnership, please sign in partnership name by authorized
person.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">HAS YOUR ADDRESS CHANGED?</P>
<P style="line-height:14pt; margin:0px; text-indent:336px; font-size:12pt">DO
YOU HAVE ANY COMMENTS? ______________________________
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;________________________________</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">______________________________</P>
<P style="line-height:14pt; margin:0px; text-indent:336px; font-size:12pt">
________________________________</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">______________________________</P>
<P style="line-height:14pt; margin:0px; text-indent:336px; font-size:12pt">
________________________________</P>
<P style="margin:0px"><BR>
<BR></P>


<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->


<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt">X PLEASE MARK VOTES</P>
<P style="line-height:14pt; margin:0px; font-size:12pt">AS IN THIS EXAMPLE</P>
<P style="line-height:14pt; margin:0px; font-size:12pt">
_____________________________________________</P>
<P style="line-height:14pt; margin:0px; font-size:12pt">ROYCE FOCUS TRUST, INC.
</P>
<P style="line-height:14pt; margin:0px; font-size:12pt">
_____________________________________________</P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; text-indent:384px; font-size:12pt">With-</P>
<P style="line-height:14pt; margin:0px; text-indent:480px; font-size:12pt">For
All </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; text-indent:288px; font-size:12pt">For</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; text-indent:384px; font-size:12pt">hold</P>
<P style="line-height:14pt; margin:0px; text-indent:480px; font-size:12pt">
Except</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; text-indent:288px; font-size:12pt">/ &nbsp;&nbsp;&nbsp;/</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; text-indent:384px; font-size:12pt">/ &nbsp;&nbsp;&nbsp;/</P>
<P style="line-height:14pt; margin:0px; text-indent:480px; font-size:12pt">/
&nbsp;&nbsp;&nbsp;/ </P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt">1. &nbsp;ELECTION OF
DIRECTORS </P>
<P style="line-height:14pt; margin:0px; padding-left:288px; font-size:12pt">
Donald R. Dwight and William L. Koke </P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin:0px; padding-left:288px; font-size:12pt"><B>
Instruction: &nbsp;If you do not wish your shares voted &#147;FOR&#148; a
particular nominee, mark the &quot;For All Except&quot; box and strike a line
through the nominee's name. &nbsp;Your shares will be voted for the remaining
nominees. &nbsp;</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt">2. &nbsp;THE PROXIES ARE
AUTHORIZED TO VOTE </P>
<P style="line-height:14pt; margin:0px; font-size:12pt">UPON SUCH OTHER BUSINESS
AS MAY PROPERLY </P>
<P style="line-height:14pt; margin:0px; font-size:12pt">COME BEFORE THE MEETING.
&nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">Please be sure to sign and date this Proxy. &nbsp;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; text-indent:288px; font-size:12pt">Date: &nbsp;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; text-indent:384px; font-size:12pt">Mark box at the right </P>
<P style="line-height:14pt; margin:0px; text-indent:576px; font-size:12pt">[
&nbsp;&nbsp;]</P>
<P style="line-height:14pt; margin:0px; text-indent:384px; font-size:12pt">if an
address change </P>
<P style="line-height:14pt; margin:0px; text-indent:384px; font-size:12pt">or
comment has been </P>
<P style="line-height:14pt; margin:0px; text-indent:384px; font-size:12pt">noted
on the reverse </P>
<P style="line-height:14pt; margin:0px; text-indent:384px; font-size:12pt">side
of this card. &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">Stockholder sign here </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; text-indent:192px; font-size:12pt">Co-owner sign here </P>
<P style="line-height:14pt; margin:0px; text-indent:384px; font-size:12pt">
RECORD DATE SHARES:</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">_________________</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; text-indent:192px; font-size:12pt">_________________</P>
<P style="line-height:14pt; margin:0px; text-indent:384px; font-size:12pt">
_________________</P>
<P style="line-height:14pt; margin:0px; text-indent:384px; font-size:12pt">
CONTROL NUMBER:</P>
<P style="line-height:14pt; margin:0px; text-indent:384px; font-size:12pt">
_________________</P>
<P style="margin:0px" align=center><BR>
<BR></P>


<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->


<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center>ROYCE FOCUS
TRUST, INC.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">PROXY</P>
<P style="line-height:14pt; margin:0px; text-indent:552px; font-size:12pt">PROXY
</P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center>6.00%
Cumulative Preferred Stock</P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center>1414 Avenue
of the Americas</P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center>New York,
NY 10019</P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center><B>This
Proxy is solicited on behalf of the Board of Directors.</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt">The undersigned hereby
appoints Charles M. Royce and John E. Denneen, or either of them acting in
absence of the other, as Proxies, each with the power to appoint his substitute,
and hereby authorizes them to represent and to vote, as designated on the
reverse, all shares of the 6.00% Cumulative Preferred Stock of the Fund held of
record by the undersigned on August 6, 2008 at the Annual Meeting of
Stockholders of Royce Focus Trust, Inc. to be held on September 25, 2008, and at
any adjournment thereof.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt"><B>This Proxy, when
properly executed, will be voted in the manner directed by the undersigned
stockholder. &nbsp;If no direction is made, this Proxy will be voted FOR
Proposal 1.</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt"><B>PLEASE VOTE, DATE AND
SIGN ON REVERSE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. &nbsp;</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt">Please sign exactly as
your name(s) appear(s) on other side. &nbsp;When shares are held by joint
tenants, both should sign. &nbsp;When signing as attorney, executor,
administrator, trustee or guardian, please give full title as such. &nbsp;If a
corporation, please sign in full corporate name by president or other authorized
officer. &nbsp;If a partnership, please sign in partnership name by authorized
person.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">HAS YOUR ADDRESS CHANGED?</P>
<P style="line-height:14pt; margin:0px; text-indent:336px; font-size:12pt">DO
YOU HAVE ANY COMMENTS? ______________________________
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;________________________________</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">______________________________</P>
<P style="line-height:14pt; margin:0px; text-indent:336px; font-size:12pt">
________________________________</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">______________________________</P>
<P style="line-height:14pt; margin:0px; text-indent:336px; font-size:12pt">
________________________________</P>
<P style="margin:0px"><BR>
<BR></P>


<div><hr size="3" color="gray" noshade></div>
<br clear="all" style="page-break-before:always;">
<!--page-->


<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt">X PLEASE MARK VOTES</P>
<P style="line-height:14pt; margin:0px; font-size:12pt">AS IN THIS EXAMPLE</P>
<P style="line-height:14pt; margin:0px; font-size:12pt">
_____________________________________________</P>
<P style="line-height:14pt; margin:0px; font-size:12pt">ROYCE FOCUS TRUST, INC.
</P>
<P style="line-height:14pt; margin:0px; font-size:12pt">
_____________________________________________</P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; text-indent:384px; font-size:12pt">With-</P>
<P style="line-height:14pt; margin:0px; text-indent:480px; font-size:12pt">For
All </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; text-indent:288px; font-size:12pt">For</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; text-indent:384px; font-size:12pt">hold</P>
<P style="line-height:14pt; margin:0px; text-indent:480px; font-size:12pt">
Except</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; text-indent:288px; font-size:12pt">/ &nbsp;&nbsp;&nbsp;/</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; text-indent:384px; font-size:12pt">/ &nbsp;&nbsp;&nbsp;/</P>
<P style="line-height:14pt; margin:0px; text-indent:480px; font-size:12pt">/
&nbsp;&nbsp;&nbsp;/ </P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt">1. &nbsp;ELECTION OF
DIRECTORS </P>
<P style="line-height:14pt; margin:0px; padding-left:288px; font-size:12pt">
Donald R. Dwight, William L. Koke, Stephen L. Isaacs and David L. Meister </P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin:0px; text-indent:288px; font-size:12pt"><B>
Instruction: &nbsp;If you do not wish your shares</B></P>
<P style="line-height:14pt; margin:0px; padding-left:288px; font-size:12pt"><B>
voted &quot;FOR&quot; a particular nominee, mark the &quot;For All Except&quot;
box and strike a line through the nominee's name. &nbsp;Your shares will be
voted for the remaining nominees.</B> &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt">2. &nbsp;THE PROXIES ARE
AUTHORIZED TO VOTE </P>
<P style="line-height:14pt; margin:0px; font-size:12pt">UPON SUCH OTHER BUSINESS
AS MAY PROPERLY </P>
<P style="line-height:14pt; margin:0px; font-size:12pt">COME BEFORE THE MEETING.
&nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">Please be sure to sign and date this Proxy. &nbsp;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; text-indent:288px; font-size:12pt">Date: &nbsp;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; text-indent:384px; font-size:12pt">Mark box at the right </P>
<P style="line-height:14pt; margin:0px; text-indent:576px; font-size:12pt">[
&nbsp;&nbsp;]</P>
<P style="line-height:14pt; margin:0px; text-indent:384px; font-size:12pt">if an
address change </P>
<P style="line-height:14pt; margin:0px; text-indent:384px; font-size:12pt">or
comment has been </P>
<P style="line-height:14pt; margin:0px; text-indent:384px; font-size:12pt">noted
on the reverse </P>
<P style="line-height:14pt; margin:0px; text-indent:384px; font-size:12pt">side
of this card. &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">Stockholder sign here </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; text-indent:192px; font-size:12pt">Co-owner sign here </P>
<P style="line-height:14pt; margin:0px; text-indent:384px; font-size:12pt">
RECORD DATE SHARES:</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">_________________</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; text-indent:192px; font-size:12pt">_________________</P>
<P style="line-height:14pt; margin:0px; text-indent:384px; font-size:12pt">
_________________</P>
<P style="line-height:14pt; margin:0px; text-indent:384px; font-size:12pt">
CONTROL NUMBER:</P>
<P style="line-height:14pt; margin:0px; text-indent:384px; font-size:12pt">
_________________</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
</DIV>

</body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
