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<SEC-DOCUMENT>0000899681-03-000180.txt : 20030415
<SEC-HEADER>0000899681-03-000180.hdr.sgml : 20030415
<ACCEPTANCE-DATETIME>20030415144840
ACCESSION NUMBER:		0000899681-03-000180
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20030522
FILED AS OF DATE:		20030415
EFFECTIVENESS DATE:		20030415

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SWISS HELVETIA FUND INC
		CENTRAL INDEX KEY:			0000813623
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-05128
		FILM NUMBER:		03650342

	BUSINESS ADDRESS:	
		STREET 1:		630 FIFTH AVE
		STREET 2:		STE 915
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10111-0001
		BUSINESS PHONE:		2128677660

	MAIL ADDRESS:	
		STREET 1:		630 FIFTH AVE
		STREET 2:		STE 915
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10111-0001

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	HELVETIA FUND INC
		DATE OF NAME CHANGE:	19900820
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>swiss-def14a_040803.htm
<TEXT>
<HTML>
<HEAD>
<TITLE> DEF 14A </TITLE>
</HEAD>
<BODY>

<P ALIGN=CENTER><FONT SIZE=3><B>SCHEDULE 14A<BR>
(RULE 14A-101)<BR>
INFORMATION REQUIRED IN PROXY STATEMENT<BR>
SCHEDULE 14A INFORMATION<BR>
PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE SECURITIES<BR>
EXCHANGE ACT OF 1934 (AMENDMENT NO.&nbsp;&nbsp;&nbsp;&nbsp;)</B> </FONT></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=50% ALIGN=LEFT>Filed by the Registrant [X]
Filed by a Party other than the Registrant [   ]</TD>
<TD WIDTH=50%></TD>
</TR>
</TABLE>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=50% ALIGN=LEFT>Check the appropriate box:</TD>
<TD WIDTH=50%></TD>
</TR>
</TABLE>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5% ALIGN=LEFT>[&nbsp;&nbsp;&nbsp;]<BR>
[&nbsp;&nbsp;&nbsp;]<BR>
[X]<BR>
[&nbsp;&nbsp;&nbsp;]<BR>
[&nbsp;&nbsp;&nbsp;]
</TD>
<TD WIDTH=95%>Preliminary Proxy Statement<BR>
Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))<BR>
Definitive Proxy Statement<BR>
Definitive Additional Materials<BR>
Soliciting Material Pursuant to Rule 14a-12
</TD>
</TR>
</TABLE>



<P ALIGN=CENTER><FONT SIZE=3>THE SWISS HELVETIA FUND, INC.</FONT></P>

<HR SIZE=1 NOSHADE>
<P ALIGN=CENTER><FONT SIZE=3>(Name of Registrant as Specified in Charter)</FONT></P>

<HR SIZE=1 NOSHADE>
<P ALIGN=CENTER><FONT SIZE=3>(Name of Person(s) Filing Proxy Statement, if Other Than the Registrant)</FONT></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=50% ALIGN=LEFT>Payment of Filing Fee (Check the appropriate box):</TD>
<TD WIDTH=50%></TD>
</TR>
</TABLE>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5% ALIGN=LEFT>[X]</TD>
<TD WIDTH=95%>No fee required.</TD>
</TR>
</TABLE>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5% ALIGN=LEFT>[&nbsp;&nbsp;&nbsp;]</TD>
<TD WIDTH=95%>Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.</TD>
</TR>
</TABLE>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5% ALIGN=LEFT>&nbsp;&nbsp;&nbsp;(1)</TD>
<TD WIDTH=95%>Title of each class of securities to which transaction
applies:_________________________</TD>
</TR>
</TABLE>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5% ALIGN=LEFT>&nbsp;&nbsp;&nbsp;(2)</TD>
<TD WIDTH=95%>Aggregate number of securities to which transaction
applies:________________________</TD>
</TR>
</TABLE>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5% ALIGN=LEFT>&nbsp;&nbsp;&nbsp;(3)</TD>
<TD WIDTH=95%>Per unit price or other underlying value of transaction computed pursuant to
Exchange Act Rule 0-11 (set forth the amount on which the filing fee is
calculated and state how it was determined):
_________________________________________________________________________________________</TD>
</TR>
</TABLE>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5% ALIGN=LEFT>&nbsp;&nbsp;&nbsp;(4)</TD>
<TD WIDTH=95%>Proposed maximum aggregate value of transaction:_______________________________</TD>
</TR>
</TABLE>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5% ALIGN=LEFT>&nbsp;&nbsp;&nbsp;(5)</TD>
<TD WIDTH=95%>Total fee paid:___________________________________________________________</TD>
</TR>
</TABLE>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5% ALIGN=LEFT>[&nbsp;&nbsp;&nbsp;]</TD>
<TD WIDTH=95%>Fee previously paid with preliminary materials.</TD>
</TR>
</TABLE>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5% ALIGN=LEFT>[&nbsp;&nbsp;&nbsp;]</TD>
<TD WIDTH=95%>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. Identify the previous filing by registration statement number,
or the form or schedule and the date of its filing.</TD>
</TR>
</TABLE>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5% ALIGN=LEFT>&nbsp;&nbsp;&nbsp;(1)<BR>
&nbsp;&nbsp;&nbsp;(2)<BR>
&nbsp;&nbsp;&nbsp;(3)<BR>
&nbsp;&nbsp;&nbsp;(4)</TD>
<TD WIDTH=95%>Amount previously paid:____________________________<BR>
Form, schedule or registration statement no.:____________<BR>
Filing party:______________________________________<BR>
Date filed:_______________________________________</TD>
</TR>
</TABLE>




<P ALIGN=CENTER><FONT SIZE=5><B>THE SWISS HELVETIA FUND, INC.</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><B>1270 Avenue of the Americas<BR>
Suite 400<BR>
New York, New York 10020<BR></B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><B>NOTICE OF ANNUAL MEETING OF STOCKHOLDERS<BR>
MAY 22, 2003</B></FONT></P>

<HR SIZE=1 NOSHADE WIDTH=50% ALIGN=CENTER>

<P><FONT SIZE=3>To our Stockholders:</FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Notice is hereby given that the Annual Meeting of Stockholders (the
&quot;Meeting&quot;) of The Swiss Helvetia Fund, Inc. (the &quot;Fund&quot;)
will be held at 11:30 a.m. on Thursday, May&#160;22, 2003 at The Drake
Swissotel, 440 Park Avenue, Manhattan East and West Suites, New York, New York
10022, for the following purposes: </FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To elect three
Class III Directors to serve for a three-year term.</FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To consider and
act upon any other business as may properly come before the Meeting or any
adjournment thereof.</FONT></P>


<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board of Directors has
fixed the close of business on April 8, 2003 as the record date for the
determination of stockholders entitled to notice of and to vote at the Meeting
or any adjournments or postponements thereof. </FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; You
are cordially invited to attend the Meeting. Whether or not you intend to attend
the Meeting, you are requested to complete, date and sign the enclosed form of
Proxy and return it promptly in the enclosed envelope. The enclosed Proxy is
being solicited by the Board of Directors of the Fund. </FONT></P>

<P ALIGN=RIGHT><FONT SIZE=3>By Order of the Board of Directors<BR>
<BR>
Edward J. Veilleux<BR>
<I>Secretary</I></FONT></P>

<P><FONT SIZE=3>Dated: April 15, 2003 </FONT></P>

<P><FONT SIZE=3><B>WHETHER OR NOT YOU EXPECT TO ATTEND THE MEETING, PLEASE SIGN
THE ENCLOSED PROXY AND PROMPTLY RETURN IT IN THE ENCLOSED ENVELOPE. IN ORDER TO
AVOID THE ADDITIONAL EXPENSE TO THE FUND OF FURTHER SOLICITATION, WE ASK FOR
YOUR COOPERATION IN MAILING IN YOUR PROXY PROMPTLY.</B> </FONT></P>



<P ALIGN=CENTER><FONT SIZE=3><B>THE SWISS HELVETIA FUND, INC.<BR>
1270 Avenue of the Americas<BR>
Suite 400<BR>
New York, New York 10020<BR>
Annual Meeting of Stockholders<BR>
May 22, 2003<BR>
PROXY STATEMENT</B></FONT></P>

<P ALIGN=LEFT><FONT SIZE=3><B>INTRODUCTION</B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This Proxy Statement is furnished by the Board of Directors of The Swiss
Helvetia Fund, Inc. (the &quot;Fund&quot;) in connection with the solicitation
of proxies for use at the Annual Meeting of Stockholders (the
&quot;Meeting&quot;) to be held at 11:30&#160;a.m. on Thursday, May 22, 2003 at
The Drake Swissotel, 440 Park Avenue, Manhattan East and West Suites, New York,
New York 10022. The purpose of the Meeting and the matters to be acted upon are
set forth in the accompanying Notice of Annual Meeting of Stockholders. It is
expected that the Notice of Annual Meeting of Stockholders, Proxy Statement and
form of Proxy will first be mailed to Stockholders on or about April 15, 2003.
</FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the accompanying form of
Proxy is executed properly and returned, the shares represented by it will be
voted at the Meeting in accordance with the instructions on the Proxy. However,
if no instructions are specified, the shares will be voted FOR the Election of
Directors. A Proxy may be revoked at any time prior to the time it is voted by
written notice to the Secretary of the Fund revoking it, by submitting a
properly executed proxy bearing a later date, or by attending the Meeting and
voting in person. Attending the Meeting will not automatically revoke a
previously executed proxy. Shares represented by a Proxy marked to withhold
authority to vote, and shares represented by a Proxy that indicates that the
broker or nominee stockholder thereof does not have discretionary authority to
vote them, will be counted to determine the existence of a quorum at the
Meeting, but will not constitute a vote in favor of a proposal. Such Proxies
will not affect the plurality vote required for the election of directors. To
the extent any stockholder owns shares of the Fund in violation of applicable
law, including the Investment Company Act of 1940, as amended (the &quot;1940
Act&quot;), the Fund may determine that the vote attributable to such shares
shall not be counted, or that such shares will not be counted for quorum
purposes, or both. Under Section 12(d)(1) of the 1940 Act, the acquisition of
more than 3% of the Fund's common stock by another fund (whether SEC-registered,
private or offshore) is unlawful. The Fund will invalidate votes cast on behalf
of any such fund or by any other stockholder whose holdings are unlawful, that
are otherwise properly cast, only after it has obtained a decision through
appropriate proceedings in a court or other forum of competent jurisdiction that
such votes are not valid. The Fund may suspend the final counting of votes
pending such a decision. </FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board of Directors has
fixed the close of business on April 8, 2003 as the record date for the
determination of stockholders entitled to notice of, and to vote at, the Meeting
and at any adjournment thereof. On that date, the Fund had 24,270,418 shares of
Common Stock outstanding and entitled to vote. Each share will be entitled to
one vote at the Meeting. </FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Management of the Fund knows of no business other than that mentioned in the
Notice of Annual Meeting of Stockholders which will be presented for
consideration at the Meeting. If any other matter is properly presented, it is
the intention of the persons named in the enclosed Proxy to vote in accordance
with their best judgment. </FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Fund will furnish, without charge, a copy of its Annual Report for its year
ended December 31, 2002 and its most recent Quarterly and Semi-Annual Reports
succeeding the Annual Report, if any, to any stockholder on request. Requests
for these Reports should be made in writing to The Swiss Helvetia Fund, Inc.,
1270 Avenue of the Americas, Suite 400, New York, New York 10020, Attention:
Rudolf Millisits, or by telephoning the Fund's toll free telephone number:
1-888-794-7700. </FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Fund's Investment Advisor<B> </B>is Hottinger Capital Corp. (&quot;HCC&quot;),
which is owned by the Hottinger Group (&quot;Hottinger&quot;). The executive
offices of the Fund and HCC are located at 1270 Avenue of the Americas, Suite
400, New York, New York 10020. The Fund's administrator is Forum Administrative
Services LLC, and its executive offices are located at Two Portland Square,
Portland, Maine 04101. </FONT></P>

<P ALIGN=LEFT><FONT SIZE=3><B>PROPOSAL 1: TO ELECT THREE CLASS III DIRECTORS</B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Fund's Certificate of Incorporation provides for three classes of Directors with
overlapping three-year terms. The number of Directors is currently ten and is
divided into three classes of at least three Directors each. Paul Hottinguer,
Claude Mosseri-Marlio and Stephen K. West, Esq. were elected as Class III
Directors in 2000 to serve until this Meeting. The Class III nominees, Paul
Hottinguer, Claude Mosseri-Marlio and Stephen K. West, Esq., are the only
nominees to be considered for election at the Meeting and, if elected, each will
serve a three-year term of office until the Annual Meeting of Stockholders in
2006, or until his respective successor shall be elected and shall qualify. The
Class III nominees were first nominated by the Governance/Nominating Committee
consisting of the six Non-Interested Directors (as defined below), two of whom
are Class III nominees. Thereafter, the Board of Directors of the Fund,
including all of the Directors of the Fund who are not &quot;interested
persons&quot; (as defined in the 1940 Act) of the Fund or HCC (each such
Director a &quot;Non-Interested Director&quot;), unanimously proposed the Class
III nominees for election at this Meeting. </FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Unless authority is withheld, it is the intention of the persons named in the
accompanying form of Proxy to vote each Proxy FOR the election of the three
Class III nominees of the Fund listed above. Each Class III nominee has
indicated he will serve, if elected, but if any such nominee should be unable to
serve, proxies will be voted for an alternate nominee, if any, designated by the
Board of Directors. The Board of Directors has no reason to believe that any of
the above nominees will be unable to serve as a Director. Each of the Class III
nominees is currently a member of the Board of Directors. </FONT></P>

<P><FONT SIZE=3><B>Required Vote and the Board's Recommendation</B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In accordance with Delaware law and the Fund's Certificate of Incorporation and
By-Laws, Directors are elected by a plurality of the votes cast at the Meeting
by the stockholders entitled to vote. </FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Abstentions, withholding of authority and broker non-votes will not be included
in determining the number of votes cast in a Director's favor. A broker non-vote
occurs when a broker holding shares for a beneficial owner does not vote on a
particular matter because the broker does not have discretionary voting power
with respect to that matter and has not received instructions from the
beneficial owner. </FONT></P>

<P><FONT SIZE=3><B>THE BOARD OF DIRECTORS OF THE FUND UNANIMOUSLY RECOMMENDS A
VOTE &quot;FOR&quot; THE ELECTION OF THE THREE NOMINEES AS CLASS III
DIRECTORS.</B> </FONT></P>

<P ALIGN=LEFT><FONT SIZE=3><B>Certain Information Concerning Directors and
Executive Officers</B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
following tables set forth certain information about each person nominated by
the Board for election, each person currently serving or continuing as a
Director and each person who currently serves as an Executive Officer of the
Fund, including his or her beneficial ownership of Common Stock of the Fund. All
of the information is as of December 31, 2002. The information with respect to
the Directors is separately stated for Directors who have been determined to be
Non-Interested Directors and Directors who are deemed to be &quot;interested
persons&quot; under the 1940 Act. </FONT></P>


<P ALIGN=CENTER><FONT SIZE=3><B>Class III Non-Interested Directors<BR>
(Nominees for Terms Expiring in 2006*)</B></FONT></P>
<HR SIZE=1>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1><B>Name, Address &amp; Age</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Position(s)<BR>
with<BR>
Fund</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Term of<BR>
Office and<BR>
Length of<BR>
Time<BR>
Served</B></FONT></TD>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>
<B>Principal<BR>
Occupation(s)<BR>
During Past Five Years</B>
</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Other Directorships<BR>
Held<BR>
by Director or <BR>
Nominee for<BR>
Director</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Shares and<BR>
Dollar Range<BR>
of Common<BR>
Stock<BR>
Beneficially<BR>
Owned at<BR>
Dec. 31,<BR>
2002<SUP>1</SUP></B>
</FONT></TD>
</TR>
</TABLE>
<HR SIZE=1>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>
Mr. Claude Mosseri-Marlio<BR>
6 bis rue du Cloitre<BR>
Notre-Dame<BR>
75004 Paris<BR>
France<BR>
Age 72</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
Director since<BR>
1993;<BR>
Member of<BR>
the<BR>
Governance/<BR>
Nominating<BR>
Committee</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
Director<BR>
since 1993.<BR>
Term of<BR>
office will<BR>
expire<BR>
in 2003.</FONT></TD>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>
E.B.R.D. - European Bank for
Reconstruction and Development; Senior Advisor:
TAM Program (Turn Around
Management) since 1999;
Financial Consultant,
portfolio management since
since 1982; Professor, Schiller
University, Paris, since 1989;
Professor, American Business
School, Paris, since 1995;
Guest Lecturer, Kelley School
of Business, Indiana
University, since 1998; Guest
Lecturer, Fox School of
Business, Temple University,
since 2002; Visiting
Professor, Tyumen State
Institute of Management,
Tyumen, Russia, since 2002.
</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>None </FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
6,992<BR>
$50,001-<BR>
$100,000</FONT>
</TD>
</TR>
</TABLE>
<HR SIZE=1>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>
Stephen K. West, Esq.<BR>
Sullivan &amp; Cromwell<BR>
125 Broad Street<BR>
New York, New York<BR>
10004<BR>
Age 74</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Director since<BR>
1995;<BR>
Member of<BR>
the Audit<BR>
Committee<BR>
since 1996, of<BR>
the Litigation<BR>
Committee<BR>
since 2001,<BR>
and of the<BR>
Governance/<BR>
Nominating<BR>
Committee since 2002.</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Director<BR>
since 1995.<BR>
Term of<BR>
office will<BR>
expire in<BR>
2003.</FONT></TD>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>Of Counsel: Sullivan &amp; Cromwell<BR>
since 1997;<BR>
Partner: Sullivan &amp; Cromwell<BR>
(1964 through 1996).</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Director: Pioneer Funds (registered investment
company) (52 portfolios); AMVESCAP PLC (Investment Manager); First ING Insurance
Company of New York (1983 to 2001); Winthrop Focus Funds (1988 to 1997); ING
America Holdings, Inc. (insurance and broker dealer holding company) (1988 to
1998); Dresdner RCM Global Strategic Income Fund, Inc. (registered investment
company) (1997 to 2002).</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
19,217<BR>
over $100,000</FONT></TD>
</TR>
</TABLE>
<HR SIZE=1>

<P><FONT SIZE=3>*In addition, Paul Hottinguer, an interested Director, is a
Nominee for Term Expiring in 2006. See page 5.</FONT></P>


<P ALIGN=CENTER><FONT SIZE=3><B>Class I Non-Interested Directors<BR>
(Term Will Expire in 2004)</B></FONT></P>
<HR SIZE=1>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1><B>Name, Address &amp; Age</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Position(s)<BR>
with<BR>
Fund</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Term of<BR>
Office and<BR>
Length of<BR>
Time<BR>
Served</B></FONT></TD>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>
<B>Principal<BR>
Occupation(s)<BR>
During Past Five Years</B>
</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Other Directorships<BR>
Held<BR>
by Director or <BR>
Nominee for<BR>
Director</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Shares and<BR>
Dollar Range<BR>
of Common<BR>
Stock<BR>
Beneficially<BR>
Owned at<BR>
Dec. 31,<BR>
2002<SUP>1</SUP></B>
</FONT></TD>
</TR>
</TABLE>
<HR SIZE=1>



<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>Mr. Claude W. Frey<BR>
Clos 108<BR>
2012 Auvernier<BR>
Switzerland<BR>
Age 59<BR>
</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Director
since 1995;<BR>
Member of the<BR>
Governance/<BR>
Nominating<BR>
Committee<BR>
since 2002.</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Director<BR>
since 1995.<BR>
Term of<BR>
office<BR>
will<BR>
expire in<BR>
2004.</FONT></TD>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>President of the Swiss
Parliament (1994-1995); Swiss
Police Academy (Neuchatel)
since 1996; Member of the
Swiss Parliament since 1979;
Parliamentary Assembly of the
Council of Europe (Strasbourg)
since 1996 and Executive Board
of the "North-South Centre"
(Lisbon) since 1999; President
of the National Committee for
Foreign Affairs since 2001;
Vice President of the National
Committee for Foreign Affairs
(1999-2001); Chairman of the
Board: Federation of Swiss
Food Industries (Berne)
(1991-2001); Association of
Swiss Chocolate Manufacturers
(Berne) (1991-2000); Swiss
Association of Biscuits and
Sugar Confectioners Industries
(Berne) (1991-2000); Vice
Chairman of the Board:
Federation of Swiss Employers'
Association (Zurich)
(1997-2001); Chairman of the
Board: Berun Frais SA (Maria)
since 2002.</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Member of the Board:
Infra 2000 (Marin);
SCCM SA
(Crans-Montana);
President of the
Steering Committee of
InterNutrition
(Zurich) since 2000;
Director: Federation
of Swiss Employers'
Association (Zurich)
(1995-1996).</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>1,814<BR>
$10,001-<BR>
$50,000</FONT></TD>
</TR>
</TABLE>
<HR SIZE=1>


<P ALIGN=CENTER><FONT SIZE=3><B>Class I Non-Interested Directors<BR>
(Term Will Expire in 2004)</B></FONT></P>
<HR SIZE=1>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1><B>Name, Address &amp; Age</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Position(s)<BR>
with<BR>
Fund</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Term of<BR>
Office and<BR>
Length of<BR>
Time<BR>
Served</B></FONT></TD>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>
<B>Principal<BR>
Occupation(s)<BR>
During Past Five Years</B>
</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Other Directorships<BR>
Held<BR>
by Director or <BR>
Nominee for<BR>
Director</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Shares and<BR>
Dollar Range<BR>
of Common<BR>
Stock<BR>
Beneficially<BR>
Owned at<BR>
Dec. 31,<BR>
2002<SUP>1</SUP></B>
</FONT></TD>
</TR>
</TABLE>
<HR SIZE=1>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>Mr. Eric R. Gabus<BR>
St. Dominique<BR>
1815 Clarens<BR>
Switzerland<BR>
Age 75</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Director since<BR>
1987; Vice<BR>
Chairman<BR>
(Non-Officer)<BR>
since 1994;<BR>
Chairman of<BR>
the Governance/<BR>
Nominating<BR>
Committee<BR>
since 2002;<BR>
and Member<BR>
of the<BR>
Litigation<BR>
Committee<BR>
since 2001.</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Director<BR>
since 1987.<BR>
Term of<BR>
office will<BR>
expire in<BR>
2004.</FONT></TD>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>Chairman of the Board: Societe
Neuchateloise de Presse since
1999, L'Express Communication
(Neuchatel) from 1983 to 2002;
Vice Chairman of the Board:
Fondation Denis de Rougemont
pour l'Europe, Geneva since
1980; Deputy Chairman of the
Board: Credit Suisse First
Boston (1982 to 1986); General
Manager: Nestle S.A., Vevey
(1969 to 1982); Manager:
Banque Paribas (1955 to 1969).</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Board Member: Pro
C.I.C.R
(International Red
Cross) Neuchatel
since 1986.</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>1,000<BR>
$10,001-$50,000
</FONT></TD>
</TR>
</TABLE>
<HR SIZE=1>


<P ALIGN=CENTER><FONT SIZE=3><B>Class II Non-Interested Director<BR>
(Term will Expire in 2005)</B></FONT></P>
<HR SIZE=1>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1><B>Name, Address &amp; Age</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Position(s)<BR>
with<BR>
Fund</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Term of<BR>
Office and<BR>
Length of<BR>
Time<BR>
Served</B></FONT></TD>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>
<B>Principal<BR>
Occupation(s)<BR>
During Past Five Years</B>
</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Other Directorships<BR>
Held<BR>
by Director or <BR>
Nominee for<BR>
Director</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Shares and<BR>
Dollar Range<BR>
of Common<BR>
Stock<BR>
Beneficially<BR>
Owned at<BR>
Dec. 31,<BR>
2002<SUP>1</SUP></B>
</FONT></TD>
</TR>
</TABLE>
<HR SIZE=1>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>Didier<BR>
Pineau-Valencienne<BR>
c/o Schneider<BR>
Electric,<BR>
S.A.<BR>
64 Rue de Miromesnil<BR>
75008 Paris<BR>
France<BR>
Age 71</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Director since<BR>
1999; Member<BR>
of the Audit<BR>
Committee<BR>
since 1999, of<BR>
the Litigation<BR>
Committee<BR>
since 2001,<BR>
and of the<BR>
Governance/<BR>
Nominating <BR>
Committee<BR>
since 2002.</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Director<BR>
since<BR>
1999.<BR>
Term of<BR>
office<BR>
will<BR>
expire<BR>
in 2005.</FONT></TD>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>Honorary Chairman: Schneider
Electric SA (industrial
conglomerate) since 1999;
Chairman of the Board and CEO:
Schneider SA (industrial
conglomerate) (1981 until
February 1999); Chairman: AFEP
(1999 to 2001); Vice Chairman,
Credit Suisse First Boston
(Europe) Limited (investment
banking) (February 1, 1999 to
November 2002); Chairman of
the Board and CEO: Ceca SA
(specialty chemicals) (1968 to
1974); Managing Director,
Petrochemicals Division:
Rhone-Poulenc SA (chemicals)
(1974 to 1980); General
Manager: Banque Parisienne
pour L'Industrie (French Bank)
(1958 to 1968); Senior
Adviser: CSFB (until November
2002); Partner, PEP Private
Equity Partners (France).</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Director: AON
(France); Fleury
Michon (France); AFEP
(France);  AXA
Financial (insurance);
Aventis, SA (formerly,
Rhone-Poulenc SA)
(chemicals); Wendel
Investissements
(formerly, Compagnie
Generale d'Industrie
et de Participations
(CGIP); Bankers Trust
New York Corp. (1992
to 1995); Sema Group
PLC (Great Britain)
(computers) (March
1990 to June 2001);
Banque Paribas (May
1990 to 1998), AXA-SA
(insurance) (April
1990 to January 1997);
Member of Supervisory
Board of AXA-UAP
(France) (insurance)
(1998 to March 2001);
Member of Advisory
Board: Booz Allen &amp;
Hamilton (USA) (1997
to December 30, 2002);
Whirlpool Corp. (1992
to 1996);  Member:
LaGardere (France)
(holding company);
Trustee: IASC since
2000.</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>2,185<BR>
$10,001-$50,000</FONT></TD>
</TR>
</TABLE>
<HR SIZE=1>


<P ALIGN=CENTER><FONT SIZE=3><B>Class II Non-Interested Director<BR>
(Term will Expire in 2005)</B></FONT></P>
<HR SIZE=1>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1><B>Name, Address &amp; Age</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Position(s)<BR>
with<BR>
Fund</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Term of<BR>
Office and<BR>
Length of<BR>
Time<BR>
Served</B></FONT></TD>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>
<B>Principal<BR>
Occupation(s)<BR>
During Past Five Years</B>
</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Other Directorships<BR>
Held<BR>
by Director or <BR>
Nominee for<BR>
Director</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Shares and<BR>
Dollar Range<BR>
of Common<BR>
Stock<BR>
Beneficially<BR>
Owned at<BR>
Dec. 31,<BR>
2002<SUP>1</SUP></B>
</FONT></TD>
</TR>
</TABLE>
<HR SIZE=1>



<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>Samuel B. Witt, III, Esq.<BR>
Stateside<BR>
Associates, Inc.<BR>
2300 Clarendon Blvd.<BR>
Suite 407<BR>
Arlington, Virginia<BR>
22201-3367<BR>
Age 67</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Director since<BR>
1987;<BR>
Chairman of<BR>
the Audit<BR>
Committee<BR>
since 1993 and<BR>
of the<BR>
Litigation<BR>
Committee<BR>
since 2001;<BR>
and Member<BR>
of the<BR>
Governance/<BR>
Nominating<BR>
Committee<BR>
since 2002.</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Director<BR>
since 1987.<BR>
Term of<BR>
office will<BR>
expire in<BR>
2005.</FONT></TD>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>Senior Vice President and
General Counsel:  Stateside
Associates, Inc. since August
1993; Samuel B. Witt, III,
Attorney-at-Law, since August
1993; Partner: Womble Carlyle
Sandridge &amp; Rice from June
1989 to August 1993; Assistant
Secretary: Fortune
Technologies, Inc. from 1990
to December 1993; Vice
President and Special Counsel:
R.J.R. Nabisco, Inc. (June
1988 to June 1989); Vice
President and Associate
General Counsel: R.J.R.
Nabisco, Inc. (February 1988
to June 1988);  Associate
General Counsel: R.J.R.
Nabisco, Inc. (November 1986
to June 1988); Vice-President,
General Counsel and Secretary:
R.J. Reynolds Tobacco Company
(August 1981 to November 1986).</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Member and President
of the Virginia
Military Institute
Board of Visitors;
Director: Stateside
Associates, Inc.;
Global Energy
Management Company,
Inc.; Decision Point
Marketing, Inc. (1990
to 1996); U.S. Games
(October 1994 to
September 1996);
Grossman's Inc.
(December 1996 to
April 1997); Trustee:
The Williamsburg
Investment Trust
(registered investment
company).</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>2,806<BR>
$10,001-$50,000</FONT></TD>
</TR>
</TABLE>
<HR SIZE=1>


<P ALIGN=CENTER><FONT SIZE=3><B>Class III Interested Director<BR>
(Nominee for Term Expiring in 2006*)</B></FONT></P>
<HR SIZE=1>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1><B>Name, Address &amp; Age</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Position(s)<BR>
with<BR>
Fund</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Term of<BR>
Office and<BR>
Length of<BR>
Time<BR>
Served</B></FONT></TD>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>
<B>Principal<BR>
Occupation(s)<BR>
During Past Five Years</B>
</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Other Directorships<BR>
Held<BR>
by Director or <BR>
Nominee for<BR>
Director</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Shares and<BR>
Dollar Range<BR>
of Common<BR>
Stock<BR>
Beneficially<BR>
Owned at<BR>
Dec. 31,<BR>
2002<SUP>1</SUP></B>
</FONT></TD>
</TR>
</TABLE>
<HR SIZE=1>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>Mr. Paul Hottinguer<BR>
Hottinger et Cie<BR>
Dreikonigstrasse 55<BR>
8027 Zurich<BR>
Switzerland<BR>
Age 60</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Director<SUP>2</SUP><BR>
since 1987;<BR>
Chairman of<BR>
the Board of<BR>
Directors<BR>
since 1989;<BR>
Chief<BR>
Executive<BR>
Officer from<BR>
1989 to<BR>
December 5, 2002.</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Director<BR>
since<BR>
1987.<BR>
Term of<BR>
office will
expire in<BR>
2003</FONT></TD>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>General Partner: Hottinger et
Cie (Zurich); President:
Gaspee (real estate) since
1992; Financiere Hottinguer
(holding company) (1990 to
2002); Financiere Provence
Participations (venture capital
firm) since 1990; Axa
International Obligation
(finance) since 1996;
Hottinguer Gestion (Luxembourg)
(investment advisor) (1991 to
1998); Hottinger International
Fund - "U.S. Growth Fund"
(publicly held Luxembourg
mutual fund) until 1997;
Managing Director: Intercom
(holding company) since 1984;
Administrator: Investissement
Provence SA (holding company)
since 1996; Finaxa (finance)
since 1982; Alpha
Assurances-Vie (insurance)
(1992 to 1998); Permanent
Representative: Credit Suisse
Hottinguer to Provence
International (publicly held
French mutual fund), Credit
Suisse Hottinguer to CS Oblig
Euro Souverain (mutual fund);
Financiere Hottinguer to CS
Institutions Monetaire (mutual
fund) (1990 to 2002);
Financiere Hottinguer to CS
Court Terme (mutual fund) (1990
to 2002); Censor - Provence
Europe (mutual fund); Credit
Suisse Hottinguer to PPC;
Credit Suisse Hottinguer to
Croissance Britannia
(investment fund); Credit
Suisse Hottinguer to Harwanne
Allemagne; Vice Chairman of the
Board, Director and Member of
Investment Committee: HCC.</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Director: Drouot
Securite; Member:
Conseil de Surveillance
Credit Suisse
Hottinguer; Societe
pour le Financement de
Bureaux et d'Usines
Sofibus (real estate).</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>268,443 <SUP>3</SUP><BR>
over<BR>
$100,000</FONT></TD>
</TR>
</TABLE>
<HR SIZE=1>

<P><FONT SIZE=3>*In addition, Messrs. Mosseri-Marlio and West, Non-Interested
Directors, are Nominees for Terms Expiring in 2006. See page 3.</FONT></P>
<BR>
<BR>
<BR>

<P ALIGN=CENTER><FONT SIZE=3><B>Class I Interested Director<BR>
(Term will Expire in 2004)</B></FONT></P>
<HR SIZE=1>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1><B>Name, Address &amp; Age</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Position(s)<BR>
with<BR>
Fund</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Term of<BR>
Office and<BR>
Length of<BR>
Time<BR>
Served</B></FONT></TD>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>
<B>Principal<BR>
Occupation(s)<BR>
During Past Five Years</B>
</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Other Directorships<BR>
Held<BR>
by Director or <BR>
Nominee for<BR>
Director</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Shares and<BR>
Dollar Range<BR>
of Common<BR>
Stock<BR>
Beneficially<BR>
Owned at<BR>
Dec. 31,<BR>
2002<SUP>1</SUP></B>
</FONT></TD>
</TR>
</TABLE>
<HR SIZE=1>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>Mr. Alexandre de
Takacsy<BR>
Financiere Hottinguer<BR>
43, rue Taitbout<BR>
75009 Paris<BR>
France<BR>
Age 73</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Director<SUP>2</SUP><BR>
from 1987 to<BR>
February 8, 1994<BR>
and since<BR>
September 17, 1998.</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Director<BR>
since 1987.<BR>
Term of office<BR>
expires in 2004.</FONT></TD>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>Senior Advisor to the
Hottinger Group and President
of Hottinger U.S., Inc. since
April, 1986; Vice Chairman of
the Board, President and
Secretary, HCC; Retired Senior
Executive; Royal Bank of
Canada.</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>None </FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>700<BR>
$1-$10,000
</FONT></TD>
</TR>
</TABLE>
<HR SIZE=1>


<P ALIGN=CENTER><FONT SIZE=3><B>Class II Interested Directors<BR>
(Term will Expire in 2005)</B></FONT></P>
<HR SIZE=1>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1><B>Name, Address &amp; Age</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Position(s)<BR>
with<BR>
Fund</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Term of<BR>
Office and<BR>
Length of<BR>
Time<BR>
Served</B></FONT></TD>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>
<B>Principal<BR>
Occupation(s)<BR>
During Past Five Years</B>
</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Other Directorships<BR>
Held<BR>
by Director or <BR>
Nominee for<BR>
Director</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Shares and<BR>
Dollar Range<BR>
of Common<BR>
Stock<BR>
Beneficially<BR>
Owned at<BR>
Dec. 31,<BR>
2002<SUP>1</SUP></B>
</FONT></TD>
</TR>
</TABLE>
<HR SIZE=1>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>Paul R. Brenner, Esq.<SUP>2</SUP><BR>
25 Moore Rd.<BR>
Bronxville, NY<BR>
10708<BR>
Age 60</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Director<BR>
since<BR>
December 5, 2002;
Secretary<BR>
from 1987<BR>
to December 5, 2002.</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Director<BR>
since<BR>
December 2002.<BR>
Term of<BR>
office<BR>
will expire in<BR>
2005.</FONT></TD>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>Of Counsel: Salans since
July 1996; Paul R. Brenner,
Attorney-at-Law since June
1993; Counsel to the Fund
(May 1994 to December 5,
2002); Partner: Kelley Drye
&amp; Warren (1977 to 1993).</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>None</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>8,285<BR>
$50,001-<BR>
$100,000</FONT></TD>
</TR>
</TABLE>
<HR SIZE=1>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>The Baron Hottinger<BR>
Hottinger et Cie<BR>
Dreikonigstrasse 55<BR>
8027 Zurich<BR>
Switzerland<BR>
Age 68</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Director2<BR>
since 1987;<BR>
Chairman of<BR>
the Board of<BR>
Directors<BR>
and Chief<BR>
Executive<BR>
Officer<BR>
from 1987<BR>
to 1989.</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Director<BR>
since 1987.<BR>
Term of<BR>
office will<BR>
expire in<BR>
2005.
</FONT></TD>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>General Partner: Hottinger
et Cie (Zurich); President:
Conseil de Surveillance
Credit Suisse/Hottinguer
(Paris), Chairman and Chief
Executive Officer: Sofibus
(Paris) (real estate); Vice
President and Director:
Financiere Hottinguer
(holding company);
Administrator: Hottinguer
International Asset
Management (Luxembourg),
Hottinger US Inc. (USA),
Hottinguer Gestion
(Luxembourg) (investment
advisor) until December
1998; Auditor: Didot
Bottin, Financiere Provence
de Participations (FPP)
(venture capital); Managing
Director: Intercom (holding
company), Sofides (real
estate); Vice President:
Gaspee (real estate);
Chairman of the Board and
Director: HCC.</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Member: Conseil de
Surveillance AXA;
Administrator:
Investissement
Provence S.A.
(holding company),
AXA, AXA
Assurances IARD,
AXA Courtage IARD,
AXA Courtage VIE,
AXA Assurances
Vie, AXA France
Assurances, Alpha
Assurances Vie,
Finaxa, Hottinger
International Fund
- - "U.S. Growth
Fund"
(publicly-held
Luxembourg mutual
fund), ECU Invest
(publicly-held
Luxembourg mutual
fund); Member of
the Board: Conseil
de Surveillance of
EMBA N.V. (holding
company);
Permanent
Representative:
AXA to AXA
Millesime;
Director:
Donaldson, Lufkin
&amp; Jenrette, Inc.
(NY) until 2000.</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>268,443<SUP> 3</SUP><BR>
over<BR>
$100,000</FONT></TD>
</TR>
</TABLE>
<HR SIZE=1>

<P ALIGN=CENTER><FONT SIZE=3><B>Executive Officers</B></FONT></P>
<HR SIZE=1>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1><B>Name, Address &amp; Age</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Position(s)<BR>
with<BR>
Fund</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Term of<BR>
Office and<BR>
Length of<BR>
Time<BR>
Served</B></FONT></TD>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>
<B>Principal<BR>
Occupation(s)<BR>
During Past Five Years</B>
</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Other Directorships<BR>
Held</B></FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>
<B>Shares and<BR>
Dollar Range<BR>
of Common<BR>
Stock<BR>
Beneficially<BR>
Owned at<BR>
Dec. 31,<BR>
2002<SUP>1</SUP></B>
</FONT></TD>
</TR>
</TABLE>
<HR SIZE=1>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>Mr. Rodolphe E.
Hottinger<SUP>2</SUP><BR>
Hottinger et Cie<BR>
3 Place des Bergues<BR>
C.P. 395<BR>
CH-1201 Geneva<BR>
Switzerland<BR>
Age 46
</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>President<BR>
since 1997;<BR>
Chief<BR>
Executive<BR>
Officer since<BR>
December 5, 2002;<BR>
Chief Operating<BR>
Officer from<BR>
1997 to<BR>
December 5,<BR>
2002; Acting<BR>
President<BR>
from 1996<BR>
to 1997;<BR>
and<BR>
Executive<BR>
Vice<BR>
President<BR>
and Chief<BR>
Operating<BR>
Officer<BR>
from 1994<BR>
to 1996.</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Year to<BR>
year since<BR>
1994.
</FONT></TD>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>Managing Partner: Hottinger<BR>
et Cie (Zurich) since<BR>
1987; Banque Hottinger<BR>
et Cie (Paris) (1987<BR>
to 1990); President:<BR>
Hottinger Capital, S.A.<BR>
(Geneva) (investment company)<BR>
since 2000; Hottinger &amp; Co. Ltd,<BR>
UK (investment advisor)<BR>
since 2001; Emba, NV<BR>
(investment company) since 1990;<BR>
Hottinger Brothers &amp; Cie, Inc.<BR>
(broker/dealer) (1982 to 1987);<BR>
Vice Chairman of the Board,<BR>
Director, Chief Executive<BR>
Officer and Member of<BR>
Investment Committee: HCC<BR>
since 1994.</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Director:  Sofibus SA
(real estate investment
company), AXA
Switzerland
(Insurance), AXA Re
America Insurance Co.
(USA); AXA Re P&amp;C
Insurance Co. (USA);
AXA Corporate Solutions
Reinsurance Company
(USA); AXA Global Risks
US Insurance Company
(USA); Director:
Hottinger Bank &amp; Trust
Ltd. (Bahamas).</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>284,757<SUP>3</SUP><BR>
Over<BR>
$100,000</FONT></TD>
</TR>
</TABLE>
<HR SIZE=1>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>Mr. Rudolf  Millisits<SUP>2</SUP><BR>
Hottinger Capital Corp.<BR>
1270 Avenue of the<BR>
Americas<BR>
Suite 400<BR>
New York, New York 10020<BR>
Age 45</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Vice<BR>
President<BR>
since 1995<BR>
and Senior<BR>
Vice<BR>
President<BR>
since 2000;<BR>
Treasurer<BR>
and Chief<BR>
Financial<BR>
Officer<BR>
since<BR>
December 5,<BR>
2002.</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Year to<BR>
year since<BR>
1995.
</FONT></TD>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>Director: HCC since December
2000; Chief Operating Officer:
HCC since December 1998;
Executive Vice President,
Portfolio Manager, Member of
Investment Committee and Chief
Compliance Officer: HCC since
September 1994; Assistant
Secretary: HCC since August
1995; Executive Vice President:
Hottinger U.S., Inc. since
September 1994 and Assistant
Secretary since August 1995;
Vice President and Portfolio
Manager: Hottinger et Cie
(Zurich) (1993 to 1994);
Assistant Vice President and
Investment Advisor: Credit
Suisse Geneva.</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>None</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>7,035<BR>
$50,001 -<BR>
$100,000</FONT></TD>
</TR>
</TABLE>
<HR SIZE=1>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>Mr. Philippe R. Comby<SUP>2</SUP><BR>
Hottinger Capital Corp.<BR>
1270 Avenue of the<BR>
Americas<BR>
Suite 400<BR>
New York, New York 10020<BR>
Age 36</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Vice<BR>
President<BR>
since 2000.</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Year to<BR>
year since 2000.
</FONT></TD>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>Senior Vice President: HCC
since 2002; First Vice
President: HCC from 1998 to
2002; Vice President: HCC from
1996 to 1998 and Hottinger U.S.
Inc. since 1996; Treasurer: HCC
since 1997; Portfolio Manager
and Member of Investment
Committee: Banque Hottinger et
Cie (Geneva) (1994 to 1996);
Portfolio Manager and Credit
Analyst: Swiss Bank Corp. (1991
to 1994).</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>None</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>2,500<BR>
$10,001-<BR>
$50,000</FONT></TD>
</TR>
</TABLE>
<HR SIZE=1>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>Mr. Edward J. Veilleux<SUP>2</SUP><BR>
5 Brook Farm Court<BR>
Hunt Valley, Maryland<BR>
21030<BR>
Age 59</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Vice<BR>
President<BR>
since 1987;<BR>
Secretary<BR>
since<BR>
December 5,<BR>
2002;<BR>
Treasurer<BR>
from 1987<BR>
to<BR>
December 5,<BR>
2002.</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Year to<BR>
year since<BR>
1987.</FONT></TD>
<TD WIDTH=20% ALIGN=LEFT><FONT SIZE=1>President EJV Financial
Services LLC  (Investment
Company Consulting) since May
2002; Director: Deutsche Asset
Management (1999 to 2002);
Principal: BT Alex Brown
Incorporated (1989 to 1999);
Executive Vice President,
Investment Company Capital
Corp. (1987 to 2002).
</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>Trustee; Devcap Shared
Return Fund since 2000.
</FONT></TD>
<TD WIDTH=15% ALIGN=LEFT><FONT SIZE=1>1,000<BR>
$10,001-$50,000</FONT></TD>
</TR>
</TABLE>
<HR SIZE=1>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><SUP>1</SUP></TD>
<TD WIDTH=95%>All Directors and Executive Officers as a group (14 persons) owned 338,293
shares which constitutes approximately 1.4% of the outstanding Common Stock of
the Fund. Share numbers in this proxy statement have been rounded to the nearest
whole share.</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><SUP>2</SUP></TD>
<TD WIDTH=95%>Indicates &quot;Interested Person,&quot; as defined in the 1940
Act. Paul Hottinguer and The Baron Hottinger are brothers and Rodolphe E.
Hottinger is the son of The Baron. Paul Hottinguer, The Baron Hottinger and
Rodolphe E. Hottinger are &quot;Interested Persons&quot; because of their
affiliation with Hottinger et Cie (Zurich) and Hottinger U.S., Inc., controlling
persons of HCC, the Fund's Investment Advisor; Rodolphe E. Hottinger is also an
&quot;Interested Person&quot; because he is President of the Fund; Alexandre de
Takacsy is an &quot;Interested Person&quot; because of his affiliation with HCC;
Paul R. Brenner is an &quot;Interested Person&quot; because he served as Counsel
to the Fund, Counsel to HCC and Of Counsel to Salans, which served as General
Counsel for the Fund during the last two years; Rudolf Millisits is an
&quot;Interested Person&quot; because he is Senior Vice President and Treasurer
of the Fund and because of his affiliation with HCC; Philippe R. Comby is an
&quot;Interested Person&quot; because he is Vice President of the Fund and
because of his affiliation with HCC; and Edward J. Veilleux is an
&quot;Interested Person&quot; because he is Vice President and Secretary of the
Fund.</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><SUP>3</SUP></TD>
<TD WIDTH=95%>Hottinger et Cie (Zurich), a partnership, owns 152,260 shares of
the Fund, HCC, the Fund's Investment Advisor, owns 107,964 shares of the Fund,
and Hottinger Treuhand AG owns 8,219 shares of the Fund. Paul Hottinguer and The
Baron Hottinger are brothers, and Rodolphe E. Hottinger is the son of The Baron.
Paul Hottinguer, The Baron Hottinger and Rodolphe E. Hottinger are controlling
partners of Hottinger et Cie (Zurich) and controlling shareholders and directors
of HCC and Hottinger Treuhand AG and therefore share voting and investment power
over the 268,443 shares of the Fund owned by Hottinger et Cie (Zurich), HCC and
Hottinger Treuhand AG. In addition, Mr. Rodolphe E. Hottinger and his children
directly own 16,316 shares.</TD>
</TR>
</TABLE>
<BR>


<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Fund's officers are elected annually by the Board of Directors at its Annual
Meeting following the Annual Meeting of Stockholders. In addition to the
Executive Officers, the Fund's other officers are Leslie K. Klenk, Assistant
Vice President, Frederick Skillen, Assistant Treasurer, and Dawn Taylor,
Assistant Secretary, each of whom is an employee of Forum Financial Group, LLC.</FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board of Directors provides oversight with respect to the Fund's governance,
operations, performance and stockholder relations. In that capacity the Board,
directly and through permanent and ad hoc committees, provides oversight of the
Fund's Investment Advisor, HCC, the Fund's independent public auditor, Deloitte
&amp; Touche LLP, the Fund's Administrator and Accountant, Forum Administrative
Services LLC and Forum Accounting Services LLC, respectively, Fund Management
and legal counsel. </FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The current Members of the Audit Committee are Messrs. Pineau-Valencienne, West
and Witt. The Audit Committee makes all decisions with respect to the
engagement, compensation and oversight of the independent public auditor and
reviews with the independent public auditor the plan and results of the audit
engagement and such other matters as is required by the Audit Committee Charter
as described below under &quot;Report of Audit Committee.&quot; The Board of
Directors, in its business judgment, has determined that all Members of the
Committee are &quot;independent,&quot; as required by the applicable listing
standards of the New York Stock Exchange and applicable law. The Audit Committee
also oversees the administration of the Fund. The Audit Committee held eight
meetings during the year ended December 31, 2002. The Board of Directors also
has a Litigation Committee whose current members are Messrs. Gabus,
Pineau-Valencienne, West and Witt. The principal function of the Litigation
Committee is to monitor litigation arising from two complaints hereinafter
discussed under &quot;Other Matters &#150; Settlement of Litigation.&quot;<B>
</B>The Litigation Committee held seven meetings during the year ended December
31, 2002. The Board of Directors has a Governance/Nominating Committee whose
current members are Messrs. Frey, Gabus, Mosseri-Marlio, Pineau-Valencienne,
West and Witt, each of whom is a Non-Interested Director. The principal function
of the Governance/Nominating Committee is to coordinate and oversee all aspects
of the governance of and have principal responsibilities with respect to
strategic issues related to the Fund. The Committee also has the function of
recommending to the Board nominees for election of Directors. The
Governance/Nominating Committee held two meetings during the year ended December
31, 2002. The Governance/Nominating Committee will consider nominees recommended
by a stockholder if such recommendation is in writing and received by the Fund
by the deadline specified below under &quot;Stockholder Proposals&quot; and
otherwise complies with the requirements for such proposals contained in the
Fund's By-laws. Any such recommendations should be submitted to: Secretary, The
Swiss Helvetia Fund, Inc., 1270 Avenue of the Americas, Suite 400, New York, New
York 10020. The Board of Directors does not have a Compensation Committee.</FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the year ended December 31, 2002, the Board of Directors met four times,
all of which were regularly scheduled meetings. Each incumbent Director attended
at least 75% of the aggregate of (i) the total number of Meetings of the Board
of Directors and (ii) the total number of Meetings held by all Committees of the
Board on which he served. </FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr. Pineau-Valencienne, a non-interested director, is Vice Chairman of Credit
Suisse First Boston (Europe) Limited, an indirect subsidiary of Credit Suisse
Group ("CSG"). Since November 2000, the Fund's U.S. custodian has been Swiss
American Securities Inc. and its Swiss sub-custodian has been Credit Suisse
First Boston, both of which are subsidiaries of CSG and which received aggregate
fees of $155,737 from the Fund in 2002. Hottinger &amp; Cie (Zurich), the parent of
the Fund's Investment Advisor, and certain of its affiliated companies effect
brokerage transactions for managed accounts through CSG entities. The Fund has,
from time to time prior to 2002, also effected brokerage transactions in Swiss
equities through a CSG unit in Switzerland, which received brokerage
compensation from the Fund of $0 in 2002, $1,194 in 2001 and $86,860 in 2000.</FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each Non-Interested Director of the Fund or its Investment Advisor, HCC, was
paid a 2002 annual fee of approximately $15,000 plus $750 for each meeting of
the Board of Directors attended and $750 for each committee meeting attended, if
held separately. The Chairman of the Audit Committee received an annual fee of
approximately $16,500 (in lieu of the approximate $15,000 annual fee paid to
other Non-Interested Directors), plus the same $750 meeting fee paid to the
other Non-Interested Directors. The annual fee of Non-Interested Directors
(including the annual fee paid to the Chairman of the Audit Committee) is
adjusted annually, as of each October 1, in proportion to the increase in the
Consumer Price Index &quot;All Items Price Index &#150; National,&quot; for the
preceding twelve month period. Each Director who is a Non-Interested Director
and who is a member of the Audit, Litigation or Governance/Nominating Committees
is compensated for incremental work over and above attending a meeting based
upon the value added to the Fund. Finally, the Fund reimburses Non-Interested
Directors for certain out-of-pocket expenses, such as travel expenses in
connection with board meetings. During the year ended December 31, 2002, all
incumbent Non-Interested Directors as a group received from the Fund aggregate
remuneration amounting to $212,870 and individual remuneration (exclusive of
reimbursed expenses), as follows: </FONT></P>

<PRE>
<FONT SIZE=1>
<B>                                                        Pension or
                                                        Retirement                        Total
                                                         Benefits      Estimated       Compensation
                                          Aggregate     Accrued As       Annual        From Fund and
              Name of Person             Compensation  Part of Fund  Benefits Upon      Fund Complex
              and Position                From Fund      Expenses      Retirement    Paid to Directors</B>
- --------------------------------------------------------------------------------------------------------
Claude W. Frey, Director                   $20,698          $0             $0             $20,698
- --------------------------------------------------------------------------------------------------------
Eric R. Gabus, Director,                   $48,174          $0             $0             $48,174
Chairman of the Governance/Nominating
Committee
- --------------------------------------------------------------------------------------------------------
Claude Mosseri-Marlio, Director            $20,698          $0             $0             $20,698
- --------------------------------------------------------------------------------------------------------
Didier Pineau-Valencienne, Director        $39,154          $0             $0             $39,154
- --------------------------------------------------------------------------------------------------------
Stephen K. West, Esq., Director            $41,674          $0             $0             $41,674
- --------------------------------------------------------------------------------------------------------
Samuel B. Witt, III, Esq., Director,       $42,469          $0             $0             $42,469
Chairman of the Audit and Litigation
Committees
- --------------------------------------------------------------------------------------------------------
           TOTAL REMUNERATION:             $212,870         $0             $0            $212,870
                                           ========         ==             ==            ========
- --------------------------------------------------------------------------------------------------------
</FONT>
</PRE>

<P><FONT SIZE=3>Messrs. Sullivan &amp; Cromwell who have served as counsel to the
Non-Interested Directors since 1987 received $158,222 for legal services
rendered and disbursements incurred during 2002. Mr. West serves as Of Counsel
to such Firm. No Executive Officer of the Fund received aggregate compensation
from the Fund for the most recently completed fiscal year in excess of $60,000.
Accordingly, no other persons have been included in the compensation table set
forth above.</FONT></P>


<P ALIGN=CENTER><FONT SIZE=3><B>ADDITIONAL INFORMATION RELATING TO THE FUND</B></FONT></P>

<P ALIGN=LEFT><FONT SIZE=3><B>Section 16(a) Beneficial Ownership Reporting
Compliance</B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the securities laws of the United States, the Fund's Directors, its
Executive (and certain other) Officers, its Investment Advisor and affiliated
persons of its Investment Advisor and any persons beneficially owning more than
ten percent of the Fund's Common Stock are required to report their ownership of
the Fund's Common Stock and any changes in that ownership to the Fund, the
Securities and Exchange Commission and The New York Stock Exchange. Specific due
dates for these reports have been established, and the Fund is required to
report in this proxy statement any failure to file by these dates during 2002.
Based solely upon a review of Forms 3 and 4 and amendments thereto furnished to
the Fund during its most recent fiscal year, Forms 5 and amendments thereto
furnished to the Fund with respect to its most recent fiscal year and written
representations received from such persons, all of these requirements appear to
have been satisfied by such persons during the year ended December 31, 2002,
except that Mr. Didier Pineau-Valencienne, a Director of the Fund, purchased in
one transaction approximately 185 shares of Common Stock of the Fund that was
not reported on a timely basis in a Form 4 filing. Mr. Pineau-Valencienne's
purchase subsequently was reported on the appropriate form. </FONT></P>

<P ALIGN=LEFT><FONT SIZE=3><B>Security Ownership of Certain Beneficial Owners</B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of December 31, 2002, no stockholder, to the knowledge of Management, other
than the Wachovia Corporation, One Wachovia Center, Charlotte, North Carolina
28288-0137, and Lazard Fr&#232;res &amp; Co. LLC, 30 Rockefeller Plaza, New
York, New York 10020, beneficially owned more than five percent of the Fund's
outstanding shares of Common Stock. Wachovia Corporation, on behalf of its
advisory clients, filed on February 13, 2003, a beneficial ownership report on
Schedule 13G with the Securities and Exchange Commission stating that as of
December 31, 2002 it beneficially owned 1,539,686 shares of Common Stock, and
Lazard Fr&#232;res &amp; Co. LLC, on behalf of its advisory clients, filed on
February 21, 2003, a beneficial ownership report on Schedule 13G with the
Securities and Exchange Commission stating that as of December 31, 2002, it
beneficially owned 1,314,600 shares of Common Stock. Based on such filings,
these holdings represented approximately 6.48 percent and 5.50 percent of the
Fund's outstanding shares, respectively, as of December 31, 2002. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><B>SELECTION OF INDEPENDENT PUBLIC AUDITOR</B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At a meeting held on March 19, 2003, the Audit Committee of the Fund
recommended, and the Board of Directors selected, Deloitte &amp; Touche LLP (the
&quot;Firm&quot; or &quot;D&amp;T&quot;) to act as the independent public
auditor for the Fund for the year ending December 31, 2003. Based principally on
representations from the Firm, the Fund knows of no direct financial or material
indirect financial interest of such Firm in the Fund. That Firm, or a
predecessor firm, has served as the independent public auditor for the Fund
since 1987. </FONT></P>

<P ALIGN=LEFT><FONT SIZE=3><B>Audit Fees</B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The aggregate fees billed by D&amp;T to the Fund for professional services
rendered for the Audit of the Fund's annual financial statements for the fiscal
year ended December 31, 2002 were $35,000. </FONT></P>

<P ALIGN=LEFT><FONT SIZE=3><B>Financial Information Systems Design and
Implementation Fees</B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
D&amp;T did not render any information technology services to the Fund during the
fiscal year ended December 31, 2002.</FONT></P>

<P ALIGN=LEFT><FONT SIZE=3><B>All Other Fees</B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The aggregate fees billed by D&amp;T to the Fund for tax services rendered to
the Fund, other than the services described above under &quot;Audit Fees&quot;
for the fiscal year ended December 31, 2002, were $17,600. D&amp;T rendered no
other services for the Fund, and rendered no services for the Investment Advisor
or any affiliate of the Investment Advisor during the year ended December 31,
2002 or during any prior period. </FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee has considered whether and determined that the provision of
non-audit services to the Fund is compatible with maintaining D&amp;T's
independence. </FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
No representative of D&amp;T is expected to be present at the Meeting.</FONT></P>


<P ALIGN=CENTER><FONT SIZE=3><B>REPORT OF AUDIT COMMITTEE</B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee has exclusive oversight of the Fund's financial reporting
process. The Committee operates pursuant to a Charter which was last approved by
the Board on March 20, 2002, a copy of which is attached to this Proxy Statement
as Appendix &quot;A.&quot; As set forth in the Charter, Management of the Fund
is responsible for the preparation, presentation and integrity of the Fund's
financial statements, the Fund's accounting and financial and reporting
principles and internal controls and procedures designed to assure compliance
with accounting standards and applicable laws and regulations. The independent
public auditor, D&amp;T, is responsible for auditing the Fund's financial
statements and expressing an opinion as to their conformity with generally
accepted accounting principles. </FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the performance of its oversight function, the Committee has considered and
discussed the December 31, 2002 audited financial statements with Management and
with D&amp;T. The Committee has also discussed with D&amp;T the matters required
to be discussed by the Statement on Auditing Standards No. 61, <I>Communication
With Audit Committees</I>, as currently in effect. Finally, the Committee has
reviewed the written disclosures and the letter from D&amp;T required by
Independence Standards Board Standard No. 1, <I>Independence Discussions with
Audit Committees</I>, as currently in effect, has considered whether the
provision of other non-audit services by D&amp;T to the Fund is compatible with
maintaining the auditor's independence, and has discussed with D&amp;T the
auditor's independence. </FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Stockholders are reminded, however, that the Members of the Audit Committee are
not professionally engaged in the practice of auditing or accounting. Members of
the Committee rely without independent verification on the information provided
to them and on the representations made by Management and D&amp;T. Accordingly,
the Audit Committee's oversight does not provide an independent basis to
determine that Management has maintained appropriate accounting and financial
reporting principles or appropriate internal control and procedures designed to
assure compliance with accounting standards and applicable laws and regulations.
Furthermore, the Audit Committee's considerations and discussions referred to
above do not assure that the audit of the Fund's financial statements has been
carried out in accordance with generally accepted auditing standards, that the
financial statements are presented in accordance with generally accepted
accounting principles or that the Fund's auditors are, in fact,
&quot;independent&quot;. </FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based upon the reports and discussions described in this report, and subject to
the limitations on the role and responsibilities of the Committee referred to
above and in the Charter, the Committee determined that the audited financial
statements be included in the Fund's Annual Report to Stockholders for the year
ended December 31, 2002, as filed with the Securities and Exchange Commission.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=3>Submitted by the Audit Committee of the Fund's
Board of Directors</FONT></P>

<P><FONT SIZE=3>Didier Pineau-Valencienne<BR>
Stephen K. West, Esq.<BR>
Samuel B. Witt, III, Esq.<BR>
<BR>
Dated: April 15, 2003</FONT></P>



<P ALIGN=CENTER><FONT SIZE=3><B>OTHER MATTERS</B></FONT></P>

<P ALIGN=LEFT><FONT SIZE=3><B>General</B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Fund's Investment Advisor is HCC, 1270 Avenue of the Americas, Suite 400,
New York, New York 10020, and the Fund's Administrator is Forum Administrative
Services LLC, Two Portland Square, Portland, Maine 04101. The Fund currently
does not have a principal underwriter. </FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
No business other than as set forth herein is expected to come before the
Meeting, but should any other matter requiring a vote of stockholders properly
arise, including any question as to an adjournment of the Meeting, the persons
named in the enclosed Proxy will vote thereon according to their best judgment
in the interest of the Fund. </FONT></P>

<P ALIGN=LEFT><FONT SIZE=3><B>Settlement of Litigation</B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In April and May 2001, two complaints were filed in purported class actions on
behalf of stockholders of the Fund, in the Court of Chancery of the State of
Delaware, against the Fund, each of its Directors and HCC (collectively, the
&quot;defendants&quot;). As discussed below, the parties agreed on settlement
terms for one of the claims and the remaining ones have been dismissed.</FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The complaints in these cases entitled <I>Kimberly Kahn v. Paul Hottinguer et
al.</I> and <I>Charles Miller v. Paul Hottinguer et al. </I>alleged that the
defendants: (A) breached fiduciary duties to stockholders and violated Section
109(a) of the Delaware General Corporation Law by adopting amendments to the
Fund's By-Laws requiring a vote of 75% of the Fund's outstanding shares to
alter, amend or repeal the By-Laws or to adopt other bylaws; (B) breached
fiduciary duties to stockholders by adopting amendments to the Fund's By-Laws
requiring nominees for election as directors to satisfy certain qualifications;
and (C) breached fiduciary and contractual duties through the manner in which
the Fund effected a capital gains distribution in December 2000. The complaints
sought as relief among other things: (i) a declaration that the defendants have
breached their fiduciary duties to stockholders and that the amendments to the
By-Laws are null and void; (ii) an injunction in connection with any meeting of
stockholders preventing the defendants from enforcing the By-Law amendments; and
(iii) certain unspecified damages. </FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
After the Fund announced in May 2001 that it would put the By-Law amendments
challenged in the litigation to a vote of stockholders at the 2002 annual
meeting, plaintiffs voluntarily dismissed all claims relating to the By-Laws as
moot. The parties subsequently reached agreement on the terms of a settlement of
the claims regarding the capital gains distribution. The agreement involves a
prospective change in the Fund's dividend policy through 2012 limiting the
issuance of dividends or capital gains distributions in the form of stock with
an option to take cash unless any resulting net asset value dilution is offset
through stock repurchases in accordance with a formula in the settlement. A
hearing to approve the settlement has been scheduled for June 3, 2003 before the
Chancery Court for the State of Delaware. The details of the settlement are set
out in the &quot;Notice of Pendency of Class Action, Proposed Settlement of
Class Action and Settlement Hearing&quot; enclosed herewith. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><B>STOCKHOLDER PROPOSALS</B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Stockholder proposals intended to be presented at the Fund's Annual Meeting of
Stockholders in 2004 must be received by the Fund on or before December 17, 2003
in order to be included in the Fund's proxy statement and form of proxy relating
to that Meeting. In addition, the Fund's By-Laws provide that if a stockholder
of record entitled to vote desires to bring proposals (including director
nominations) before the 2004 Annual Meeting, written notice of such proposals as
prescribed in the By-Laws must be received by the Fund's Secretary, The Swiss
Helvetia Fund, Inc., 1270 Avenue of the Americas, Suite 400, New York, New York
10020, between January 22, 2004 and February 21, 2004. For additional
requirements, stockholders may refer to the By-Laws, a current copy of which may
be obtained without charge upon request from the Fund's Secretary. If the Fund
does not receive timely notice pursuant to the By-Laws, the proposal will be
excluded from consideration at the meeting. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><B>EXPENSES OF PROXY SOLICITATION</B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Fund will bear the cost of soliciting proxies on behalf of the Board of
Directors. The Fund has engaged Georgeson Shareholder Communications Inc. to
serve as proxy solicitor at an anticipated cost of between $7,000 and $10,000,
plus disbursements. In addition to the use of mails, proxy solicitations may be
made by telephone, fax and personal interview by the Fund's Officers and
Directors and the Fund's Investment Advisor. Brokerage houses, banks and other
fiduciaries may be requested to forward proxy solicitation material to their
customers to obtain authorization for the execution of proxies, and they will be
reimbursed by the Fund for out-of-pocket expenses incurred in this connection.
If you have any questions concerning this proxy solicitation, please contact
Georgeson Shareholder Communications, Inc., Telephone Number: 1-866-867-1147.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><B>VOTING RESULTS</B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Fund will advise the stockholders of the voting results of the matters voted
upon at the Annual Meeting in the 2003 Semi-Annual Report to Stockholders.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><B>ANNUAL REPORT</B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>The Fund will furnish, without charge, a copy of the 2002 Annual Report and
the most recent Quarterly and Semi-Annual Report succeeding the Annual Report,
if any, to any Stockholder upon request addressed to Rudolf Millisits, Senior
Vice President, The Swiss Helvetia Fund, Inc., 1270 Avenue of the Americas,
Suite 400, New York, New York 10020 (toll free telephone number:
1-888-794-7700).</B> </FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><B>IMPORTANT</B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WE
URGE STOCKHOLDERS TO DATE, SIGN AND RETURN THE ENCLOSED PROXY CARD TO THE FUND
OR VOTE BY TELEPHONE.</B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE &quot;FOR&quot; THE
REELECTION OF THE BOARD'S THREE NOMINEES AS CLASS III DIRECTORS.</B> </FONT></P>

<P><FONT SIZE=3>If you have any questions concerning this proxy solicitation,
please contact Georgeson Shareholder Communications, Inc., Telephone Number:
1-866-867-1147.</FONT></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=50% ALIGN=LEFT>
<BR>
<BR>
Dated: April 15, 2003 </TD>
<TD WIDTH=50%>Edward J. Veilleux<BR>
Secretary</TD>
</TR>
</TABLE>
<BR>


<P ALIGN=CENTER><FONT SIZE=3><B>APPENDIX &quot;A&quot;</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><B>AUDIT COMMITTEE CHARTER<BR>
THE SWISS HELVETIA FUND, INC.<BR>
(SUBJECT TO REVISION)</B></FONT></P>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>I.</TD>
<TD WIDTH=95%><U>Composition of the Audit Committee</U>: The Audit Committee of
The Swiss Helvetia Fund, Inc. ("Fund") shall be comprised of three directors,
each of whom shall have no relationship to the Fund or any of its investment
advisors, administrators, or custodians that may interfere with the exercise of
his or her independence from Management and the Fund and, as to his or her
relationship to the Fund, shall otherwise satisfy the applicable membership
requirements under the rules of the New York Stock Exchange, Inc., as such
requirements are interpreted by the Board of Directors in its business
judgment.</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>II.</TD>
<TD WIDTH=95%><U>Purposes of the Audit Committee</U>: The purposes of the Audit
Committee are to assist the Board of Directors:</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%></TD>
<TD WIDTH=5%>1.</TD>
<TD WIDTH=90%>in its oversight of the Fund's accounting and financial reporting
principles and policies and internal audit controls and procedures;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%></TD>
<TD WIDTH=5%>2.</TD>
<TD WIDTH=90%>in its oversight of the Fund's financial statements and the
independent audit thereof;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%></TD>
<TD WIDTH=5%>3.</TD>
<TD WIDTH=90%>in selecting, evaluating and, where deemed appropriate, replacing
the outside auditors or nominating the outside auditors to be proposed for
stockholder approval in any proxy statement; and</TD>
</TR>
</TABLE>
<BR>



<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%></TD>
<TD WIDTH=5%>4.</TD>
<TD WIDTH=90%>in evaluating the independence of the outside auditors.</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%></TD>
<TD WIDTH=95%>The function of the Audit Committee is oversight. Management of
the Fund is responsible for the preparation, presentation and integrity of the
Fund's financial statements. Management is also responsible for maintaining
appropriate accounting and financial reporting principles and policies and
internal controls and procedures designed to assure compliance with accounting
standards and applicable laws and regulations. The outside auditors are
responsible for planning and carrying out a proper audit of the Fund's annual
financial statements. In fulfilling their responsibilities hereunder, it is
recognized that members of the Audit Committee are not full-time employees of
the Fund and are not, and do not represent themselves to be, accountants or
auditors by profession or experts in the fields of accounting or auditing
including in respect of auditor independence. As such, it is not the duty or
responsibility of the Audit Committee or its members to conduct &quot;field
work&quot; or other types of auditing or accounting reviews or procedures or to
set auditor independence standards, and each member of the Audit Committee shall
be entitled to rely on (i)&#160; the integrity of those persons and
organizations within and outside the Fund from which it receives information;
(ii)&#160;the accuracy of the financial and other information provided to the
Audit Committee by such persons or organizations absent actual knowledge to the
contrary (which shall be promptly reported to the Board of Directors); and (iii)
representations made by Management as to any information technology, internal
audit and other non-audit services provided by the auditors to the Fund.<BR>
<BR>
The outside auditors for the Fund are ultimately accountable to the Board of
Directors (as assisted by the Audit Committee). The Board of Directors, with the
assistance of the Audit Committee, has the ultimate authority and responsibility
to select, evaluate and, where appropriate, replace the outside auditors or to
nominate the outside auditors to be proposed for stockholder approval in the
proxy statement.<BR>
<BR>
The outside auditors shall submit to the Fund annually a formal written
statement delineating all relationships between the outside auditors and the
Fund (&quot;Statement as to Independence&quot;), addressing each non-audit
service provided to the Fund and at least the matters set forth in Independence
Standards Board No. 1.<BR>
<BR>
The outside auditors shall submit to the Fund annually a formal written
statement of the fees billed for each of the following categories of services
rendered by the outside auditors: (i) the audit of the Fund's annual financial
statements for the most recent fiscal year; (ii) information technology
consulting services provided to the Fund for the most recent fiscal year, in the
aggregate and by each service (and separately identifying fees for such services
relating to financial information systems design and implementation); (iii) all
other services rendered by the outside auditors to the Fund for the most recent
fiscal year, in the aggregate and by each service; and (iv) any services
rendered by the outside auditors to any of the Fund's investment advisors,
administrators, or custodians for the most recent fiscal year, in the aggregate
and by each service.</TD>
</TR>
</TABLE>
<BR>



<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>III.</TD>
<TD WIDTH=95%><U>Meetings of the Audit Committee</U>: The Audit Committee shall
meet four times annually, or more frequently if circumstances dictate, to
discuss with Management the annual audited financial statements and periodic
performance results. In addition, the Audit Committee shall meet separately at
least annually with Management and the outside auditors to discuss any matters
that the Audit Committee, Management or the outside auditors believe should be
discussed privately. The Audit Committee may request any officer of the Fund or
the Fund's outside counsel or outside auditors to attend a meeting of the Audit
Committee or to meet with any members of, or consultants to, the Audit
Committee. 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 the meeting can hear each
other.</TD>
</TR>
</TABLE>
<BR>



<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>IV.</TD>
<TD WIDTH=95%><U>Duties and Powers of the Audit Committee</U>: To carry out its
purposes, the Audit Committee shall have the following duties and powers:</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%></TD>
<TD WIDTH=5%>1.</TD>
<TD WIDTH=80%>with respect to the outside auditor,</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%></TD>
<TD WIDTH=5%>(i)  </TD>
<TD WIDTH=75%>to provide advice to the Board of Directors in selecting,
evaluating or replacing outside auditors;</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%></TD>
<TD WIDTH=5%>(ii)</TD>
<TD WIDTH=75%>to review the fees charged by the outside auditors for audit and non-audit
services;</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%></TD>
<TD WIDTH=5%>(iii)</TD>
<TD WIDTH=75%>to ensure that the outside auditors prepare and deliver annually a
Statement as to Independence (it being understood that the outside auditors are
responsible for the accuracy and completeness of this Statement), to discuss
with the outside auditors any relationships or services disclosed in this
Statement that may impact the objectivity and independence of the Fund's outside
auditors and to recommend that the Board of Directors take appropriate action in
response to this Statement to satisfy itself of the outside auditors'
independence; and</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%></TD>
<TD WIDTH=5%>(iv)</TD>
<TD WIDTH=75%>to consider whether the outside auditors' provision of (a)
information technology consulting services relating to financial information
systems design and implementation, (b) other non-audit services to the Fund, and
(c) any services to the Fund's investment advisors, administrators or custodians
is compatible with maintaining the independence of the outside auditors;
and</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%></TD>
<TD WIDTH=5%>(v)</TD>
<TD WIDTH=75%>to instruct the outside auditors that the outside auditors are
ultimately accountable to the Board of Directors and Audit Committee;</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%></TD>
<TD WIDTH=5%>2. </TD>
<TD WIDTH=80%>with respect to financial reporting principles and policies and
related controls and procedures,</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%></TD>
<TD WIDTH=5%>(i)</TD>
<TD WIDTH=75%>to advise Management and the outside auditors that they are
expected to provide to the Audit Committee a timely analysis of significant
financial reporting issues and practices;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%></TD>
<TD WIDTH=5%>(ii)</TD>
<TD WIDTH=75%>to consider any reports or communications (and Management's
responses thereto) submitted to the Audit Committee by the outside auditors
required by or referred to in SAS 61 (as codified by AU Section 380), as may be
modified or supplemented, including reports and communications related to:</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%>&nbsp;</TD>
<TD WIDTH=5%>&#149;</TD>
<TD WIDTH=70%>deficiencies noted in the audit in the design or operation of
internal controls;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%>&nbsp;</TD>
<TD WIDTH=5%>&#149;</TD>
<TD WIDTH=70%>consideration of fraud in a financial statement audit;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%>&nbsp;</TD>
<TD WIDTH=5%>&#149;</TD>
<TD WIDTH=70%>detection of illegal acts;</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%>&nbsp;</TD>
<TD WIDTH=5%>&#149;</TD>
<TD WIDTH=70%>the outside auditor's responsibility under generally accepted
auditing standards;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%>&nbsp;</TD>
<TD WIDTH=5%>&#149;</TD>
<TD WIDTH=70%>significant accounting policies;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%>&nbsp;</TD>
<TD WIDTH=5%>&#149;</TD>
<TD WIDTH=70%>Management judgments and accounting estimates;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%>&nbsp;</TD>
<TD WIDTH=5%>&#149;</TD>
<TD WIDTH=70%>adjustments arising from the audit;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%>&nbsp;</TD>
<TD WIDTH=5%>&#149;</TD>
<TD WIDTH=70%>the responsibility of the outside auditor for other information in
documents containing audited financial statements;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%>&nbsp;</TD>
<TD WIDTH=5%>&#149;</TD>
<TD WIDTH=70%>disagreements with Management;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%>&nbsp;</TD>
<TD WIDTH=5%>&#149;</TD>
<TD WIDTH=70%>consultation by Management with other accountants;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%>&nbsp;</TD>
<TD WIDTH=5%>&#149;</TD>
<TD WIDTH=70%>major issues discussed with Management prior to retention of the
outside auditor;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%>&nbsp;</TD>
<TD WIDTH=5%>&#149;</TD>
<TD WIDTH=70%>difficulties encountered with Management in performing the audit;
and</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%>&nbsp;</TD>
<TD WIDTH=5%>&#149;</TD>
<TD WIDTH=70%>the outside auditor's judgments about the quality of the Fund's
accounting principles;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%></TD>
<TD WIDTH=5%>(iii) </TD>
<TD WIDTH=80%>to meet with Management and/or the outside auditors:</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%>&nbsp;</TD>
<TD WIDTH=5%>&#149;</TD>
<TD WIDTH=70%>to discuss the scope of the annual audit;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%>&nbsp;</TD>
<TD WIDTH=5%>&#149;</TD>
<TD WIDTH=70%>to discuss the audited financial statements;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%>&nbsp;</TD>
<TD WIDTH=5%>&#149;</TD>
<TD WIDTH=70%>to discuss any significant matters arising from any audit or report or
communication referred to in item 2(ii) above, whether raised by Management or
the outside auditors, relating to the Fund's financial statements;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%>&nbsp;</TD>
<TD WIDTH=5%>&#149;</TD>
<TD WIDTH=70%>to review the form of opinion the outside auditors propose to render to the
Board of Directors and stockholders;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%>&nbsp;</TD>
<TD WIDTH=5%>&#149;</TD>
<TD WIDTH=70%>to discuss allocations of expenses between the Fund and other entities;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%>&nbsp;</TD>
<TD WIDTH=5%>&#149;</TD>
<TD WIDTH=70%>to discuss the Fund's compliance with Subchapter M of the Internal
Revenue Code of 1986, as amended;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%></TD>
<TD WIDTH=5%>&#149;</TD>
<TD WIDTH=70%>to discuss with Management and the outside auditors their
respective procedures to assess the representativeness of securities prices
provided by external pricing services;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%></TD>
<TD WIDTH=5%>&#149;</TD>
<TD WIDTH=70%>to discuss with outside auditors their conclusions as to the
reasonableness of procedures employed to determine the fair value of securities
for which readily available market quotations are not available, Management's
adherence to such procedures and the adequacy of supporting documentation;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%></TD>
<TD WIDTH=5%>&#149;</TD>
<TD WIDTH=70%>to discuss significant changes to the Fund's auditing and
accounting principles, policies, controls, procedures and practices proposed or
contemplated by the outside auditors or Management; </TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=25%></TD>
<TD WIDTH=5%>&#149;</TD>
<TD WIDTH=70%>to inquire about significant risks and exposures, if any, and the
steps taken to monitor and minimize such risks;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%></TD>
<TD WIDTH=5%>(iv)</TD>
<TD WIDTH=75%>to obtain from the outside auditors assurance that the audit was
conducted consistent with Section 10A of the Securities Exchange Act of 1934, as
amended, which sets forth certain procedures to be followed in any audit of
financial statements required under the Securities Exchange Act of 1934;
and</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%></TD>
<TD WIDTH=5%>(v)</TD>
<TD WIDTH=75%>to discuss with the Fund's legal advisors any significant legal
matters that may have a material effect on the financial statements, the Fund's
compliance policies, including material notices to or inquiries from
governmental agencies; and</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%></TD>
<TD WIDTH=5%>3.</TD>
<TD WIDTH=80%>with respect to reporting, recommendations, and other matters,</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%></TD>
<TD WIDTH=5%>(i)</TD>
<TD WIDTH=75%>to provide advice to the Board of Directors in selecting the
principal accounting officer of the Fund;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%></TD>
<TD WIDTH=5%>(ii)</TD>
<TD WIDTH=75%>to prepare any report or other disclosures, including any
recommendation of the Audit Committee, required by the rules of the Securities
and Exchange Commission to be included in the Fund's annual proxy
statement;</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%></TD>
<TD WIDTH=5%>(iii)</TD>
<TD WIDTH=75%>to review this Charter at least annually and recommend any changes
to the full Board of Directors; and</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%></TD>
<TD WIDTH=5%>(iv)</TD>
<TD WIDTH=75%>to report its activities to the full Board of Directors on a regular basis and
to make such recommendations with respect to the above and other matters as the
Audit Committee may deem necessary or appropriate.</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>V.</TD>
<TD WIDTH=95%><U>Resources and Authority of the Audit Committee</U>: The Audit
Committee shall have the resources and authority appropriate to discharge its
responsibilities, including the authority to engage outside auditors for special
audits, reviews and other procedures and to retain special counsel and other
experts or consultants.</TD>
</TR>
</TABLE>
<BR>


<P ALIGN=CENTER><FONT SIZE=3><B>IN THE COURT OF CHANCERY OF THE STATE OF
DELAWARE<BR>
<BR>
IN AND FOR NEW CASTLE COUNTY</B></FONT></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=50% ALIGN=LEFT>
IN RE THE SWISS HELVETIA FUND, INC.<BR>
SHAREHOLDERS LITIGATION</TD>
<TD WIDTH=5% ALIGN=LEFT>)<BR>
)
</TD>
<TD WIDTH=45% ALIGN=LEFT>
Consolidated<BR>
Civil Action No. 18788
</TD>
</TR>
</TABLE>


<P ALIGN=CENTER><FONT SIZE=3><B>NOTICE OF PENDENCY OF CLASS ACTION, PROPOSED<BR>
<U>SETTLEMENT OF CLASS ACTION AND SETTLEMENT HEARING</U></B></FONT></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>TO:</TD>
<TD WIDTH=95%>ALL RECORD HOLDERS AND BENEFICIAL OWNERS OF THE COMMON STOCK OF
THE SWISS HELVETIA FUND, INC. BEGINNING ON MAY 19, 2000 THROUGH AND INCLUDING
MARCH 27, 2003, INCLUDING ANY AND ALL OF THEIR RESPECTIVE SUCCESSORS IN
INTEREST, REPRESENTATIVES, TRUSTEES, EXECUTORS, ADMINISTRATORS, HEIRS, ASSIGNS
OR TRANSFEREES, IMMEDIATE AND REMOTE, AND EXCLUDING DEFENDANTS (THE
&quot;CLASS&quot;).<BR>
<BR>
PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY. YOUR RIGHTS WILL BE
AFFECTED BY THE LEGAL PROCEEDINGS IN THIS LITIGATION. IF YOU WERE NOT THE
BENEFICIAL HOLDER OF COMMON STOCK OF SWISS HELVETIA, BUT HELD SWISS HELVETIA
COMMON STOCK FOR A BENEFICIAL HOLDER, PLEASE TRANSMIT THIS DOCUMENT TO SUCH
BENEFICIAL HOLDER.
</TD>
</TR>
</TABLE>
<BR>


<P ALIGN=CENTER><FONT SIZE=3><B><U>SETTLEMENT HEARING</U></B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1. The purpose of this Notice is to inform you that a hearing will be held
before the Delaware Court of Chancery, in the New Castle County Courthouse, 500
North King Street, Wilmington, Delaware 19801 on June 3, 2003, at 11:30 a.m.
(the "Settlement Hearing"), to (i) determine whether a proposed settlement (the
"Settlement") of the above captioned action (the "Action"), is fair, reasonable
and adequate and in the best interests of the Class; (ii) determine whether a
class should be finally certified in the Action; (iii) determine whether the
Class has been adequately represented by plaintiffs and their attorneys; (iv)
determine whether final judgment should be entered dismissing the Action as to
all defendants with prejudice as against the plaintiffs and all members of the
Class (the "Order and Final Judgment"); (v) hear and determine any objections to
the Settlement; and (vi) if the Court approves the Settlement to determine
whether it should award attorneys' fees and expenses to plaintiffs' attorneys.</FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2. The Court has reserved the right to adjourn the Settlement Hearing, by oral
announcement at such hearing or any adjournment thereof, and without further
notice of any kind. The Court also has reserved the right to approve the
Settlement at or after the Settlement Hearing with any modifications to which
the parties to the Action agree and without further notice to the
Class.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><B><U>THE FACTUAL BACKGROUND</U></B></FONT></P>

<P><FONT SIZE=3>THE DESCRIPTION OF THE ACTION AND THE SETTLEMENT WHICH FOLLOW
HAVE BEEN PREPARED BY COUNSEL FOR THE PARTIES. THE COURT HAS MADE NO FINDINGS
WITH RESPECT TO SUCH MATTERS, AND THIS NOTICE IS NOT AN EXPRESSION BY THE COURT
OF FINDINGS OF FACT. </FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A. In May and October 2000, the directors of the Swiss Helvetia Fund, Inc. (the
"Fund") adopted certain amendments to its bylaws, which (i) specified minimum
director qualifications, (ii) eliminated the stockholders' ability to call
special stockholder meetings, (iii) limited to record holders of the Fund's
stock the ability to submit proposals under an advance notice bylaw, (iv)
required that record holders who submit such proposals indicate whether they
will solicit proxies, and (v) increased the percentage of shares required to
amend the Bylaws of the Fund from a majority to 75% (the "Bylaw
Amendments").</FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
B. In December 2000, the Fund announced that stockholders in the Fund would
receive capital gains distributions for calendar year 2000 either in newly
issued shares in the Fund or, if they affirmatively opted, in cash (the "New
Shares Option").</FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
C. On April 2 and May 8, 2001, plaintiffs, purported stockholders in the Fund,
filed putative class actions in the Court (as consolidated, the "Action")
alleging, among other things, (i) that the individual defendants breached their
fiduciary duties in voting to approve the Bylaw Amendments and in connection
with the Fund's distribution of capital gains pursuant to the New Shares Option,
(ii) that the Fund breached a contractual obligation contained in its
prospectuses that, in the event the Fund's net asset value ("NAV") exceeded the
market value of its shares, it would distribute capital gains to stockholders
only in cash or shares in the Fund repurchased on the open market, and that the
Fund's failure to distribute capital gains in this manner diluted stockholder
interests and increased the discount to NAV at which the Fund's shares traded
and (iii) that the amendment increasing the percentage of shares required to
amend the bylaws from a majority to 75% violated 8 Del. C.&sect;109(a) and
constituted a further breach of the individual defendants' fiduciary
duties.</FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
D. On May 15, 2001, the Fund announced that it would put the Bylaw Amendments to
a vote of stockholders at the 2002 annual meeting of the Fund, with such bylaws
to be maintained in effect only if a majority of shares voted "yes" or "no" on
the bylaws at the meeting, and excluding abstentions and broker non-votes, voted
for their retention. Subsequently, the Board rescinded the bylaw amendment which
had eliminated the stockholders' ability to call a special meeting of
stockholders. At the 2002 annual meeting of the Fund, the requisite majority
vote was obtained with respect to the continuation of the other four Bylaw
Amendments.</FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
E. The portions of the complaint relating to (i) alleged breaches of fiduciary
duty arising out of the defendants' implementation of the Bylaw Amendments and
(ii) the alleged violation of 8 Del. C.ss.109(a) were then dismissed as moot by
stipulation of the parties (without waiver of the right of plaintiffs' counsel
to seek an award of attorneys' fees in connection therewith), as a consequence
of the Fund's announcement as described above.</FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
F. Plaintiffs' counsel and counsel for defendants subsequently engaged in
arm's-length negotiations concerning a possible settlement of the remaining
claims in the Action.</FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
G. In light of the events, negotiations and agreements described above, analysis
of applicable law, and after consulting with an industry expert, counsel for
plaintiffs in the Action have concluded that the terms and conditions of the
settlement described below are fair, reasonable, adequate, and in the best
interests of the plaintiffs and the Class.</FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
H. Plaintiffs enter into this Stipulation after taking into account (i) the
substantial benefits to the members of the Class (as defined below), (ii) the
risk of continued litigation, (iii) the desirability of permitting the
Settlement to be consummated as provided by the terms of this Stipulation, and
(iv) the conclusion of counsel for plaintiffs that the terms and conditions of
the Settlement are fair, reasonable, adequate and in the best interests of the
Class. Plaintiffs and plaintiffs' counsel have agreed to the terms of the
Settlement because, in their view, the Settlement substantially achieves
plaintiffs' principal objectives in the Action.</FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
I. Defendants in the Action have denied and continue to deny vigorously any
wrongdoing or any liability with respect to all claims alleged in the Action.
While denying any fault or wrongdoing, and relying on the provision of the
Stipulation that it shall in no event be construed as or deemed to be evidence
of an admission or concession on the part of defendants or any Released Person
(as defined below) of any fault or liability whatsoever, and without conceding
any infirmity in their defenses against the claims alleged in the Action,
defendants consider it desirable that the Action be settled and dismissed,
subject to the terms and conditions of the Stipulation, because the Settlement
will (i) be beneficial to the Class members; (ii) halt the substantial expense,
inconvenience and distraction of continued litigation of plaintiffs' claims;
(iii) finally put to rest those claims; and (iv) dispel any uncertainty that may
exist as a result of the Action.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><B><U>THE SETTLEMENT TERMS</U></B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1. The Fund's dividend policy shall be modified as follows:</FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. If on December 31, 2002 or on December 31 of
any subsequent year through December 31, 2012, cumulative net NAV anti-dilution,
as defined in subsection (b) below, is no longer positive, the Fund will use its
reasonable efforts, such as through open market stock repurchases, to restore
cumulative net NAV anti-dilution to a positive balance within 12 months, and in
any event will not issue dividends or capital gains distributions in stock with
an option to take cash if the stock would be issued at a price below net asset
value per share until either cumulative net NAV anti-dilution has been restored
to a positive balance or such issuance has been approved by the vote of a
majority of the Fund's outstanding voting securities (as defined in the
Investment Company Act of 1940).</FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Cumulative net NAV anti-dilution
equals:</FONT></P>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%></TD>
<TD WIDTH=90%>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the total dollar amount by which
the Fund's purchase price of its stock is below its net asset value at the time
of purchase, less</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%></TD>
<TD WIDTH=90%>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the total dollar amount by
which the Fund's issuance price of stock in dividends and capital gains
distributions in stock with an option to take cash is below its net asset value
at the time of issuance, all calculated on a cumulative basis from January 1,
2002 to the date of calculation.</TD>
</TR>
</TABLE>
<BR>


<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2. If the Court approves the Settlement, the Court will enter an Order and Final
Judgment which, among other things, will provide that any and all claims,
demands, rights, actions or causes of action, liabilities, damages, losses,
obligations, judgments, suits, matters and issues of any kind or nature
whatsoever, whether known or unknown, contingent or absolute, suspected or
unsuspected, disclosed or undisclosed, hidden or concealed, matured or
unmatured, that have been or could have been asserted in the Action or in any
court, tribunal or proceeding (including, but not limited to, any claims arising
under federal or state law relating to alleged fraud, breach of any duty,
negligence, violations of the federal securities laws, or otherwise) by or on
behalf of any member of the Class, whether individual, class, derivative,
representative, legal, equitable or any other type or in any other capacity
(collectively, the "Releasing Parties") against the Fund, the individual
defendants, Hottinger Capital Corp., and any of their families, parent entities,
affiliates, subsidiaries, predecessors, successors or assigns, and each and all
of their respective past or present officers, directors, associates,
stockholders, members, controlling persons, representatives, employees,
attorneys, counselors, financial or investment advisors, consultants,
accountants, investment bankers, commercial bankers, engineers, advisors or
agents, heirs, executors, trustees, general or limited partners or partnerships,
personal representatives, estates or administrators of any of the foregoing
(collectively, the "Released Persons"), relating to the allegations, facts,
events, transactions, acts, occurrences, statements, representations,
misrepresentations, omissions or any other matter, thing or cause whatsoever, or
any series thereof, embraced, involved, set forth in or otherwise related to the
complaints filed in the Action, and any public filings or statements (including
but not limited to public statements) by any of the Released Persons in
connection with the foregoing (collectively, the "Released Claims") shall be
fully, finally, and forever compromised, settled, discharged, dismissed with
prejudice, released and barred pursuant to the terms and conditions set forth
herein; provided, however, that the claims to be released shall not include the
right of any members of the proposed Class (as defined herein) or any of the
defendants to enforce the terms of the Settlement.</FONT></P>

<P><FONT SIZE=3><B>The release will extend to claims that the Releasing Parties
do not know or suspect to exist at the time of the release, which if known,
might have affected any Releasing Parties' decision regarding the release
contained in the Settlement. The Releasing Parties shall be deemed to
relinquish, to the full extent permitted by law, the provision, rights and
benefits of &#167; 1542 of the California Civil Code which provides:</B></FONT></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=16%></TD>
<TD WIDTH=85%><B>A general release does not extend to claims which the creditor
does not know or suspect to exist in his favor at the time of executing the
release, which if known by him must have materially affected his settlement with
the debtor.</B></TD>
</TR>
</TABLE>
<BR>


<P><FONT SIZE=3>It is the intention of the parties to extinguish all Released
Claims and consistent with such intention the Releasing Parties waive their
rights, to the extent permitted by law, under the provisions of Section 1542 of
the California Civil Code or any other similar state law, federal law or
principle of common law, which may have the effect of limiting the release set
forth above. </FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
3. THE COURT HAS NOT FINALLY DETERMINED THE MERITS OF THE CLAIMS MADE BY
PLAINTIFFS AGAINST, OR THE DEFENSES OF, THE DEFENDANTS. THIS NOTICE DOES NOT
IMPLY THAT THERE HAS BEEN OR WOULD BE ANY FINDING OF VIOLATION OF THE LAW OR
THAT RELIEF IN ANY FORM OR RECOVERY IN ANY AMOUNT COULD BE HAD IF THE ACTIONS
WERE NOT SETTLED.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><B><U>DISMISSAL AND RELEASE</U></B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
4. The parties to the Action intend that the Court's approval of the proposed
Settlement shall extinguish for all time all rights, claims and causes of action
that are or relate to the Released Claims against any of the Released
Persons.</FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
5. If the Court approves the Settlement, it will become effective when the Order
and Final Judgment is not subject to further appeal or review. If the Court does
not approve the Settlement or it does not become effective, then the Settlement
shall be of no further force and effect and each party shall be restored to his,
her or its prior position, except that all costs incurred in connection with
notifying the Class of the Settlement shall be the obligation of the
Fund.</FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
6. If the Court approves the Settlement, the Action will be dismissed on the
merits with respect to all defendants and with prejudice against plaintiffs and
all members of the Class. The Settlement is intended to be a full compromise,
settlement and release of all claims, known or unknown, which have been or which
might have been asserted by plaintiffs or any other member of the Class against
any of the Released Persons arising now or hereafter from or relating to matters
alleged in the Action. Such release and dismissal will bar the institution or
prosecution by plaintiffs or any member of the Class of any other action
asserting any Released Claim against any of the Released Persons.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><B><U>ATTORNEYS' FEES</U></B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
7. At or before the Settlement Hearing, plaintiffs' counsel intend to apply for
an award of attorneys' fees and expenses in an amount not to exceed $290,000.
The Fund has agreed to pay the amount the Court awards up to $290,000.
Defendants have agreed they will not object to such an application by
plaintiffs' counsel, and plaintiffs' counsel have agreed not to make any other
application for fees or disbursements. Defendants retain the right to oppose any
other application for fees or disbursements by any other person. The Court may
consider the fairness, reasonableness and adequacy of the Settlement
independently of any application for an award of attorneys' fees and
reimbursement of expenses.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><B><U>CLASS CERTIFICATION</U></B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
8. On March 27, 2003, the Court entered an order (the "Scheduling Order")
determining preliminarily and solely for purposes of the Settlement, that the
Action may be maintained as a class action, with no opt out rights, by
plaintiffs as representatives of the Class, and naming the law firm of
Rosenthal, Monhait, Gross &amp; Goddess, P.A. as Delaware Liaison Counsel and
naming the law firms of Harnes Keller LLP and Wechsler Harwood LLP as counsel
for the Class (together, "Class Counsel"), pursuant to Court of Chancery Rules
23(a), (b)(1) and (b)(2), on behalf of the Class. The Court will consider these
issues further at the Settlement Hearing to determine whether the Action should
be finally certified as a class action.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><B><U>RIGHT TO APPEAR AT THE SETTLEMENT
HEARING</U></B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
9. Any Class member who objects to the Settlement, the class action
determination, the Order and Final Judgment to be entered, and/or the
application for attorneys' fees and expenses, or who otherwise wishes to be
heard, may appear in person or by his, her or its attorney at the Settlement
Hearing and present any evidence or argument that may be proper and relevant. If
you want to do so, however, you must file the following with the Register in
Chancery, New Castle County Courthouse, 500 King Street, Wilmington, Delaware
19801 no later than ten days prior to the Settlement Hearing (unless the Court
otherwise directs, for good cause shown): (i) a written notice of your intention
to appear; (ii) proof of your membership in the Class; (iii) a detailed
statement of your objections to any matter before the Court; (iv) the grounds
therefor or the reasons why you want to appear and to be heard; and (v) all
documents and writings you want the Court to consider. Also, on or before such
filing, you must serve the same documents by hand or overnight mail on the
following counsel of record:</FONT></P>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%></TD>
<TD WIDTH=90%>Norman M. Monhait<BR>
Rosenthal, Monhait, Gross &amp; Goddess, P.A.<BR>
Suite 1401, 919 Market Street<BR>
P.O. Box 1070<BR>
Wilmington, Delaware 19899<BR>
&nbsp;&nbsp;Attorneys for Plaintiffs<BR>
<BR>
Anne C. Foster<BR>
Richards, Layton &amp; Finger<BR>
One Rodney Square<BR>
P.O. Box 551<BR>
Wilmington, Delaware  19899<BR>
&nbsp;&nbsp;Attorneys for certain Defendants<BR>
<BR>
C. Barr Flinn<BR>
Young, Conaway, Stargatt &amp;<BR>
&nbsp;&nbsp;Taylor LLP<BR>
1000 West Street, 17th Floor<BR>
P.O. Box 391<BR>
Wilmington, DE 19899<BR>
(302) 571-6600v
&nbsp;&nbsp;Attorneys for certain Defendants</TD>
</TR>
</TABLE>
<BR>


<P><FONT SIZE=3>Any person who fails to object in the manner prescribed above
shall be deemed to have waived such objection and shall be forever barred from
raising such objection in this or any other action or proceeding. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><B><U>INTERIM INJUNCTION</U></B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
10. Pending final determination of whether the Stipulation should be approved,
the plaintiffs and all members of the Class, and each of them, and any of their
respective representatives, trustees, successors, heirs and assigns are barred
and enjoined from commencing or prosecuting any action either directly or in any
other capacity which asserts Released Claims against any of the Released
Persons.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><B><U>SCOPE OF THIS NOTICE AND FURTHER INFORMATION</U></B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
11. This Notice does not purport to be a comprehensive description of the
Action, the allegations or transactions related thereto, the terms of the
Settlement or the Settlement Hearing. For a more detailed statement of the
matters involved in this litigation, you may inspect the pleadings, the
Settlement Agreement, the Orders entered by the Court and other papers filed in
the Action, unless sealed, at the Office of the Register in Chancery, the
address of which is above, during regular business hours of each business day.
DO NOT WRITE OR TELEPHONE THE COURT. Questions may be directed to: Gregory E.
Keller, Esquire, Harnes Keller LLP, 964 Third Avenue, Seventh Floor, New York,
NY 10022.</FONT></P>


<P ALIGN=CENTER><FONT SIZE=3><B>NOTICE TO PERSONS OR ENTITIES HOLDING<BR>
<U>FUND STOCK OF RECORD ON BEHALF OF OTHERS</U></B></FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
12. Brokerage firms, banks and other persons or entities who are members of the
Class in their capacities as record owners, but not as beneficial owners, are
requested to send this Notice promptly to beneficial owners. Additional copies
of this notice for transmittal to beneficial owners are available on request
directed to:</FONT></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%></TD>
<TD WIDTH=90%>Mr. Edward J. Veilleux<BR>
EJV Financial Services LLC<BR>
5 Brook Farm Court<BR>
Hunt Valley, MD 21030</TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=50% ALIGN=LEFT>
<BR>
<BR>
Dated: March 27, 2003</TD>
<TD WIDTH=50%><B>BY ORDER OF THE COURT:</B><BR>
<U>/s/ Dianne M. Kempski</U><BR>
Register in Chancery</TD>
</TR>
</TABLE>
<BR>


<PAGE>


<P ALIGN=CENTER><FONT SIZE=3>PLEASE DETACH AT PERFORATION BEFORE MAILING</FONT></P>
<HR SIZE=1 NOSHADE>

<P ALIGN=CENTER><FONT SIZE=3><B>THE SWISS HELVETIA FUND, INC.<BR>
1270 Avenue of the Americas<BR>
New York, New York 10020</B></FONT></P>

<P><FONT SIZE=3><B>THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS OF
THE SWISS HELVETIA FUND, INC. PURSUANT TO A SEPARATE NOTICE OF ANNUAL MEETING OF
STOCKHOLDERS AND PROXY STATEMENT, DATED APRIL 15, 2003, RECEIPT OF WHICH IS
HEREBY ACKNOWLEDGED</B></FONT></P>



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<TR VALIGN=TOP>
<TD WIDTH=15% ALIGN=CENTER><FONT SIZE=4><B>P<BR>
R<BR>
O<BR>
X<BR>
Y</B></FONT></TD>
<TD WIDTH=85%>The undersigned hereby appoints Rudolf Millisits and Edward J.
Veilleux, and each of them, the true and lawful attorneys and proxies, each with
the power of substitution, for and in the name, place and stead of the
undersigned and hereby authorizes each of them to represent and to vote, as
designated below, all the shares of Common Stock of The Swiss Helvetia Fund,
Inc. held of record by the undersigned on April 8, 2003 at the Annual Meeting of
Stockholders to be held at 11:30 a.m. on May 22, 2003 at The Drake Swissotel,
440 Park Avenue, Manhattan East and West Suites, New York, New York 10022 or any
adjournment or adjournments or postponement thereof.<BR>
<BR>
This proxy, when properly executed and returned in the enclosed envelope, will
be voted in the manner directed herein by the undersigned stockholder. <B>If no
direction is given, this proxy will be voted FOR the election of the
three Nominees as Class III Directors. This proxy also will be voted in the
discretion of the proxies upon such other matters as may properly come before
the Meeting and at any adjournment or postponement thereof.</B></TD>
</TR>
</TABLE>
<BR>


<P><FONT SIZE=3>The undersigned hereby revokes any proxy or proxies heretofore
given and ratifies and confirms all that the proxies appointed hereby, or either
one of them, or their substitutes, may lawfully do or cause to be done by virtue
hereof. Both of said proxies or their substitutes who shall be present and act
at the Meeting, or if only one is present and acts, then that one, shall have
and may exercise all of the powers hereby granted to such proxies. </FONT></P>

<P><FONT SIZE=3>In their discretion, the persons named as proxies on the front
of this card are authorized to vote upon such other matters as may properly come
before the Annual Meeting and at any adjournment or postponement thereof, and
for the election of a person to serve as a director if any of the above nominees
is unable to serve. </FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY IN THE ENCLOSED ENVELOPE.</B></FONT></P>

<PAGE>

<P ALIGN=CENTER><FONT SIZE=3>PLEASE DETACH AT PERFORATION BEFORE MAILING</FONT></P>

<P><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PROPOSAL 1</FONT></P>

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<TD WIDTH=50% ALIGN=LEFT>THE BOARD OF DIRECTORS UNANIMOUSLY<BR>
RECOMMENDS A VOTE "FOR" THE NOMINEES</TD>
<TD WIDTH=50% ALIGN=LEFT></TD>
</TR>
</TABLE>
<HR SIZE=1 WIDTH=50% ALIGN=LEFT>

<P ALIGN=LEFT><FONT SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Election of Directors</B></FONT></P>


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<TR VALIGN=TOP>
<TD WIDTH=50% ALIGN=LEFT>Nominees for Class III Directors: Paul Hottinguer,
Claude Mosseri-Marlio and Stephen K. West, Esq.</TD>
<TD WIDTH=50%>
</TD>
</TR>
</TABLE>
<BR>


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<TR VALIGN=TOP>
<TD WIDTH=30% ALIGN=CENTER>
<B>For all nominees listed<BR>
(except as marked to<BR>
the contrary)</B>
<BR>
<BR>
<BR>
____</TD>
<TD WIDTH=30%>WITHHOLD<BR>
AUTHORITY<BR>
(to vote for all<BR>
 nominees listed)<BR>
<BR>
____</TD>
<TD WIDTH=40%></TD>
</TR>
</TABLE>
<BR>


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<TR VALIGN=TOP>
<TD WIDTH=50% ALIGN=CENTER>(INSTRUCTION: To withhold authority for<BR>
any individual nominee strike a line<BR>
through the nominee's name on the list<BR>
above).</TD>
<TD WIDTH=50%>&nbsp;</TD>
</TR>
</TABLE>
<BR>


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<TR VALIGN=TOP>
<TD WIDTH=50% ALIGN=LEFT></TD>
<TD WIDTH=50%>________________________________<BR>
Signature Date<BR>
<BR>
________________________________<BR>
Signature Date<BR>
<BR>
<B>Your signature should appear the same as your name appears hereon. When signing
as attorney, executor, administrator, trustee, guardian or other similar
capacity, please give full title as such.<BR>
<BR>
When signing as joint tenants, all
parties in the joint tenancy must sign. If a corporation, please provide the full
name of the corporation and the signature of the authorized officer signing on
its behalf and the corporate seal affixed. If the signature is by a partnership,
a partner should sign the full partnership name.</B>
</TD>
</TR>
</TABLE>
<BR>

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