<PAGE>
- --------------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
- --------------------------------------------------------------------------------
Dear Shareholder:
We are pleased to present to you the First Quarter Report of The Europe Fund,
Inc. On March 31, 1998, the end of the period under review, the Fund's net
assets totaled $228.4 million. This represents a net asset value per share of
$22.70, a rise of 15.08% per annum from its initial value on May 3, 1990, after
taking into account underwriting discounts, commissions, offering expenses and
assuming reinvestment of dividends and distributions. This compares with a
12.53% per annum increase in the MSCI Europe Index over the same time period. At
the end of the period under review, The Europe Fund, Inc. was quoted at $20.50
per share on the New York Stock Exchange, which represents a 9.69% discount to
the Fund's net asset value per share and a rise of 154.50% from its initial
value, assuming reinvestment of dividends and distributions.
We also enclose an investment review and European market outlook together with
a summary of the major portfolio investments.
Yours sincerely,
/s/ Anthony M. Solomon /s/ J. Loughlin Callahan
Anthony M. Solomon J. Loughlin Callahan
Chairman of the Board President and Treasurer
<PAGE>
INVESTMENT REVIEW
During the first quarter of 1998, your Fund experienced an increase in net
asset value of 19.41%, which compared with an increase of 20.30% in the value of
the MSCI Europe Index. These results are recorded in total return and U.S.
dollar based terms, with net dividends and distributions reinvested.
European markets had a very strong first quarter and exceeded the targets
predicted by most commentators for the full year. The main reason for the strong
performance of the equity markets was the high level of liquidity. This was
particularly evident in southern European markets where the impact on liquidity
of converging European interest rates has been most pronounced. In addition,
corporate activity and restructuring continued to support the markets.
The peripheral markets significantly outperformed over the quarter with the
strongest rises seen in Spain and Italy. The Norwegian market was the one
exception to this trend. Norway, the worst performing market, was held back by
the weaker oil price. Spain and Italy were supported by falling interest rates
and increasing confidence (since justified) that they would join EMU at
inception.
The best performing sector was the auto sector, followed by telecommunications
and technology. The auto sector saw a dramatic reversal of the underperformance
in the second half of last year and was further underpinned by strong car sales
figures in France. The telecommunications sector rose on anticipation that the
corporate activity seen in the U.S. would feed through to Europe and on buoyant
mobile subscription numbers. Financials continued to outperform, with
particularly strong performances by the banking sectors in Spain and Italy.
Investors were less focused on the impact of the Asian crisis on European
earnings and some sectors with little or no Asian exposure, such as utilities
and broadcasting, gave up the outperformance seen in the second half of last
year. The oil sector was the weakest performer, with oil prices falling in the
wake of a stand-off between Saddam Hussein and the UN.
European economic growth continued to shift away from exports. The last
quarter of 1997 saw German export orders slowing and a recovery of consumer
confidence. French consumer confidence indicators have continued to pick up
since mid-1997. Economic growth in southern Europe remains buoyant. Consumer
confidence in Italy is now at the highest level seen over the last six years.
The exception to this trend is in the U.K., which has seen a lull in consumer
spending after last year's windfall share issues by banks and life insurance
companies who were changing from mutual societies to corporations.
Corporate activity continued to support the markets, albeit at a less frenetic
level than in the fourth quarter of 1997. Regulatory considerations or
management disagreement resulted in two of the largest deals (Glaxo with
SmithKline Beecham and Reed Elsevier with Wolters Kluwer) falling apart.
However, while M&A activity may have slowed, the level of share buy-backs
continued to increase, and inflows into equity mutual funds were, in some cases,
spectacular. Italian mutual funds flows into equity during the first two months
of 1998 amounted to $7.5 billion, increasing the value of holdings by 20%.
Spanish mutual equity fund assets, meanwhile, have now reached $21 billion
versus $5 billion twelve months ago.
2
<PAGE>
ECONOMIC AND MARKET OUTLOOK
After a strong performance over the quarter, market valuation is now widely
believed to be high. This said, the outlook for liquidity remains good, interest
rates are expected to stay at current levels, corporate activity should continue
and the European restructuring story remains intact. Two important risks would
appear to be 1) some form of EMU disruption ahead of full implementation and 2)
earnings disappointments in the wake of the Asian crisis. In the absence of
either of these risks materializing, Europe remains attractive on a relative
basis.
PORTFOLIO SUMMARY
The Fund's and the MSCI Europe Index's country weightings expressed as a
percentage of total market value at March 31, 1998 are outlined below:
<TABLE>
<CAPTION>
MSCI EUROPE
FUND INDEX
--------- ---------------
<S> <C> <C>
Austria........................... -- 0.6%
Belgium........................... -- 2.1
Czech Republic.................... 0.6% --
Denmark........................... 1.3 1.5
Finland........................... 2.1 1.2
France............................ 16.1 12.2
Germany........................... 7.6 14.1
Ireland........................... 1.1 0.7
Italy............................. 10.1 6.9
<CAPTION>
MSCI EUROPE
FUND INDEX
--------- ---------------
<S> <C> <C>
Netherlands....................... 14.1% 8.0%
Norway............................ 2.3 0.9
Portugal.......................... -- 1.0
Spain............................. 4.4 4.5
Sweden............................ 3.8 4.4
Switzerland....................... 11.4 11.1
United Kingdom.................... 25.1 30.8
--------- -----
100.0% 100.0%
--------- -----
--------- -----
</TABLE>
Portfolio activity reflected our view that concentration will continue in the
financial sector. We purchased Banca Populare di Bergamo in Italy and Banco
Bilbao Vizcaya in Spain. We took profits selectively in some of our growth
stocks holdings where valuations were becoming full. We increased the Fund's
exposure to smaller companies as we identified some undervalued shares.
The Fund's ten largest equity holdings at March 31, 1998 were:
ROCHE HOLDINGS
Roche is Switzerland's second largest pharmaceuticals group and is
attractively valued, especially in relation to its U.S. peers. It has a very
strong financial position, which should allow it to take part in the continuing
consolidation of the pharmaceutical sector. There are a number of promising
drugs in development (particularly in the cardiovascular, virology and obesity
areas) which should allow for sustainable high single-digit sales growth as new
products take over from current drugs. In addition, diagnostics sales are
expected to grow strongly over the next few years, with new opportunities in
disease management. Roche has also acquired Tastemaster (a U.S. based
manufacturer of flavors), which strengthens its fragrances and flavors division.
3
<PAGE>
ING GROEP
ING Groep is one of the highest quality financial groups in Europe. It
benefits from a strong position in Dutch banking and insurance and has a
fast-growing emerging country life insurance business, which is expected to
drive future growth.
ROYAL DUTCH PETROLEUM
The Royal Dutch/Shell Group is the largest oil company in the world and among
the world's ten biggest chemical companies. Because of its diversity, the
Group's earnings are less sensitive to oil prices than is the case with other
oil companies. We believe that the restructuring now being implemented by
management should yield positive results in the medium term. Merger discussions
with Texaco are ongoing in relation to the U.S. downstream operations of Shell.
News on the rationalization of the European refining and marketing business is
expected in the near future, while the chemicals business is also being
reorganized. Management is strongly committed to improving the Group's return on
capital, while the Group's financial flexibility (cash and cash equivalents in
excess of $12 billion) is expected to be used in a manner more rewarding to
shareholders.
PINAULT PRINTEMPS REDOUTE
Pinault Printemps Redoute is France's leading diversifed retail group. Its
highly regarded management oversees the superior growth of Rexel (the world
leader in electrical products retailing), Conforama (household equipment),
Printemps (department stores), La Redoute (mail order), FNAC (books and music
retailer) and Guilbert (office supplies). We expect this company to benefit from
any improvement in consumer spending in France.
TOTAL
Total is one of the leading French oil companies. It has the highest reserve
replacement ratio among its European peer group at over 200% and the second
lowest finding cost ratio. Total has a strong balance sheet and we expect its
production profile to increase by 70% by the year 2000 as a result of
discoveries made in the Far East and Latin America. In view of its earnings
outlook, we believe that the stock is attractively valued relative to its
European peer group.
BANCO BILBAO VIZCAYA
BBV has demonstrated over the past couple of years impressive financial
strength and management skills. This leading Spanish bank has now built a very
well established Latin American network, thanks to some opportunistic
acquisitions. We expect profit growth from this area, as well as from the BBV
2000 cost cutting plan for the Spanish banking activities. The current boom in
the Spanish mutual fund industry should also boost profitability this year.
MARSCHOLLEK, LAUTENSCHLAEGER UND PARTNER
MLP is Germany's leading independent insurance broker and provides a broad
range of insurance and financial services to university graduates in Germany,
where it holds high market shares among doctors and dentists. Expanding its
client base to graduates of other disciplines as well as broadening the product
range is expected to provide further strong earnings growth over the coming
years.
AMVESCAP
Amvescap is one of the world's largest independent investment managers,
operating under the AIM and Invesco brand names. The recent acquisition of LGT
Asset Management is likely to provide significant synergies, which should lead
to substantial earnings enhancement through 1999.
4
<PAGE>
GKN
GKN operates in the automotive components and defense engineering markets.
Recent European car sales were well above expectations. We believe that the
company is financially sound and is one of the leading organizations in its
sector. It offers good earnings visibility in its non-cyclical business (CHEP
and Westland) and has scope for acquisitions.
HAYS
The Hays Group operates in the business services and distribution market. It
has a strong position in its U.K. domestic market as well as expansion
opportunities abroad. A string of successful acquisitions has trebled the
company's market value over the last seven years. We believe recent results
indicate that above-average growth may be expected in the medium term.
5
<PAGE>
- -----------------------------------------------
THE EUROPE FUND, INC.
SCHEDULE OF INVESTMENTS
AS OF MARCH 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
MARKET
SHARES DESCRIPTION VALUE
- ----------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS & WARRANTS--94.4%
CZECH REPUBLIC--0.7%
50,000 +Central European Media Enterprises (Series
A)....................................... $ 1,456,250
--Consumer Goods
-------------
1,456,250
-------------
DENMARK--1.3%
37,516 Unidanmark (Series A)...................... 2,984,778
--Banking
-------------
2,984,778
-------------
FINLAND--2.1%
55,000 Hackman Oy (Series A)...................... 2,355,145
--Consumer Goods
96,194 Metra (Series B)........................... 2,351,323
--Machinery & Engineering
-------------
4,706,468
-------------
FRANCE--15.9%
12,000 Accor...................................... 3,083,636
--Leisure & Tourism
28,600 But........................................ 1,470,329
--Services
45,000 Cipe France................................ 1,534,545
--Business & Public Services
30,000 Compagnie Generale des Eaux................ 4,877,576
--Business & Public Services
32,808 +Compagnie Generale des Eaux Warrants
(a)...................................... 36,851
--Business & Public Services
25,000 Elf Aquitaine.............................. 3,280,808
--Energy Sources
10,000 Filipacchi Medias.......................... 2,545,455
--Consumer Goods
58,013 Guilbert................................... 876,737
--Merchandising
58,013 +Naf Naf................................... 893,517
--Consumer Goods
15,000 Peugeot.................................... 2,589,091
--Automobiles
8,000 Pinault Printemps Redoute.................. 6,193,131
--Merchandising
6,784 Seita...................................... 266,426
--Consumer Goods
<CAPTION>
- ----------------------------------------------------------------------------
MARKET
SHARES DESCRIPTION VALUE
- ----------------------------------------------------------------------------
<C> <S> <C>
50,000 Total (Class B)............................ $ 6,012,121
--Energy Sources
30,000 Valeo...................................... 2,642,424
--Consumer Goods
-------------
36,302,647
-------------
GERMANY--3.3%
112,000 Bayer...................................... 5,131,438
--Chemicals
35,000 Veba....................................... 2,486,867
--Utilities
-------------
7,618,305
-------------
IRELAND--1.1%
130,000 Bank of Ireland............................ 2,572,818
--Banking
-------------
2,572,818
-------------
ITALY--9.9%
420,000 Banca Intesa............................... 2,629,830
--Banking
282,880 +Banca Intesa Warrants (b)................. 417,954
--Banking
65,143 Banca Popolare di Bergamo.................. 1,492,029
--Banking
250,000 Banca Popolare di Brescia.................. 4,085,080
--Banking
840,000 Credito Italiano (Ordinary)................ 4,154,670
--Banking
137,933 Industrie Natuzzi (ADR).................... 3,810,399
--Appliances & Household Durables
300,000 La Rinascente.............................. 3,213,138
--Merchandising
30,000 Luxottica Group (ADR)...................... 2,810,625
--Health & Personal Care
-------------
22,613,725
-------------
NETHERLANDS--13.9%
150,000 Elsevier................................... 2,471,241
--Broadcasting & Publishing
27,650 Gucci Group (NY Registered)................ 1,313,375
--Consumer Goods
30,000 Hagemeyer.................................. 2,587,156
--Consumer Goods
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
MARKET
SHARES DESCRIPTION VALUE
- ----------------------------------------------------------------------------
<C> <S> <C>
110,000 ING Groep.................................. $ 6,250,390
--Financial Services
128,977 N.V. Koninklijke KNP....................... 3,394,865
--Consumer Goods
75,335 Numico..................................... 2,710,244
--Food & Household Products
110,000 Royal Dutch Petroleum...................... 6,234,540
--Oil Refining & Marketing
50,000 Unilever................................... 3,376,642
--Consumer Goods
100,000 Ver Ned Uitgevers Bezit.................... 3,424,674
--Broadcasting & Publishing
-------------
31,763,127
-------------
NORWAY--2.3%
810,000 Christiania Bank Kreditkasse............... 3,436,802
--Banking
100,000 Schibsted.................................. 1,773,376
--Broadcasting & Publishing
-------------
5,210,178
-------------
SPAIN--4.3%
17 +A.B. Capital Fund*........................ 402,162
--Business & Public Services
7,100 Acerinox................................... 1,166,993
--Materials
125,000 Banco Bilbao Vizcaya....................... 5,875,881
--Banking
100,000 Endesa..................................... 2,407,756
--Utilities
-------------
9,852,792
-------------
SWEDEN--3.7%
200,000 ABB (Series B)............................. 2,780,561
--Electrical & Electronics
75,000 Hoganas (Series B)......................... 2,677,229
--Machinery & Engineering
37,169 +Pricer (Series B)......................... 344,930
--Electrical & Electronics
37,169 Securitas (Series B)....................... 1,266,279
--Health & Personal Care
80,000 Svenska Stal (Series B).................... 1,472,946
--Metals-Non-Ferrous
-------------
8,541,945
-------------
SWITZERLAND--11.2%
3,376 Adecco..................................... 1,195,574
--Services
1,200 +Baloise Holding Ltd. (Registered)......... 2,455,979
--Insurance
<CAPTION>
- ----------------------------------------------------------------------------
MARKET
SHARES DESCRIPTION VALUE
- ----------------------------------------------------------------------------
<C> <S> <C>
5,000 Hero (Bearer).............................. $ 3,170,171
--Food & Household Products
600 Kuoni Reisen Holdings...................... 3,015,769
--Leisure & Tourism
2,688 Novartis (Registered)...................... 4,764,930
--Health & Personal Care
600 Roche Holdings (Bearer).................... 6,504,599
--Health & Personal Care
7,000 SMH (Bearer)............................... 4,502,628
--Consumer Goods
-------------
25,609,650
-------------
UNITED KINGDOM--24.7%
512,000 Amvescap (Ordinary)........................ 5,547,373
--Financial Services
265,000 Bemrose (Ordinary)......................... 2,048,951
--Forest Products & Paper Materials
175,000 Boots (Ordinary)........................... 2,808,891
--Consumer Goods & Services
250,000 British Airport Authority (Ordinary)....... 2,446,616
--Business & Public Services
154,917 Diageo (Ordinary).......................... 1,826,582
--Food & Household Products
55,000 Forth Ports (Ordinary)..................... 626,350
--Food & Household Products
200,000 GKN (Ordinary)............................. 5,410,647
--Machinery & Engineering
70,000 Glaxo Wellcome (Ordinary).................. 1,877,290
--Consumer Goods
250,000 Great Universal Store (Ordinary)........... 3,109,110
--Merchandising
1,551,910 Halma (Ordinary)........................... 3,253,579
--Machinery & Engineering
300,000 Hays (Ordinary)............................ 5,398,907
--Business & Public Services
380,000 Marks & Spencer (Ordinary)................. 3,766,656
--Merchandising
86,666 Reuters Group (Ordinary)................... 936,094
--Business & Public Services
65,843 Schroders (Ordinary)....................... 2,628,279
--Finance
195,000 Serco Group (Ordinary)..................... 4,235,349
--Business & Public Services
200,000 Smithkline Beecham (Ordinary).............. 2,532,572
--Consumer Goods
200,000 United News & Media (Ordinary)............. 2,737,190
--Broadcasting & Publishing
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
MARKET
SHARES DESCRIPTION VALUE
- ----------------------------------------------------------------------------
<C> <S> <C>
559,405 Verity Group (Ordinary).................... $ 900,705
--Leisure & Tourism
220,000 Wolseley (Ordinary)........................ 1,693,637
--Building Materials & Components
60,000 Zeneca Group (Ordinary).................... 2,590,268
--Building Materials & Components
-------------
56,375,046
-------------
Total Common Stocks & Warrants
(cost--$140,507,753)..................... $ 215,607,729
-------------
PREFERRED STOCKS--4.1%
GERMANY--4.1%
17,363 Marschollek, Lautenschlaeger Und Partner
(Non-Voting)............................. 5,726,546
--Financial Services
<CAPTION>
- ----------------------------------------------------------------------------
MARKET
SHARES DESCRIPTION VALUE
- ----------------------------------------------------------------------------
<C> <S> <C>
35,412 Rhoen Klinikum (Non-Voting)................ $ 3,682,158
--Health & Personal Care
-------------
9,408,704
-------------
Total Preferred Stocks
(cost--$3,335,797)....................... 9,408,704
-------------
Total Investments--98.5%
(cost--$143,843,550) (c)................. 225,016,433
Unrealized Appreciation on Foreign Currency
Exchange Contracts--0.0% (d)............. 9,185
Other Assets in Excess of
Liabilities--1.5%........................ 3,465,596
-------------
Net Assets--100.0%......................... $ 228,491,214
-------------
-------------
</TABLE>
- ------------------------------
+ Non-income producing security.
ADR American Depositary Receipt
* Investment in restricted security with an aggregate value of $402,162,
representing 0.18% of net assets at March 31, 1998. The investment was
acquired on October 22, 1990 and September 5, 1991 for $759,153.
(a) The warrants enable the holder to subscribe to one ordinary share for
every 40 warrants held at FF 900 per share until May 2, 2001.
(b) The warrants enable the holder to subscribe to one ordinary share for
every 3 warrants held at ITL 3500 per share every May from 1998 until 2002.
(c) The United States Federal income tax basis of the Fund's investments
at March 31, 1998 was $143,843,550 and, accordingly, net unrealized
appreciation for United States Federal income tax purposes was $81,172,883
(gross unrealized appreciation--$82,478,126; gross unrealized
depreciation--$1,305,243).
(d) Foreign currency exchange contracts incurred to hedge purchase and
sale commitments as of March 31, 1998 were as follows:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
Net
In Unrealized
Contracts to Exchange Settlement Appreciation
Sales Deliver For Date Value (Depreciation)
- ------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FRF 7,375,860 $1,202,651 4/1/98 $1,192,058 $ 10,593
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
Net
In Unrealized
Contracts to Exchange Settlement Appreciation
Purchases Receive For Date Value (Depreciation)
- ------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SEK 684,800 $ 87,180 4/1/98 $ 85,772 ($ 1,408)
-------------
Total $ 9,185
-------------
-------------
- ------------------------------------------------------------------------
</TABLE>
FRF French Franc
SEK Swedish Krona
8
<PAGE>
- -------------------------------------------------------------
DIRECTORS AND OFFICERS
ANTHONY M. SOLOMON, Chairman of the Board and Director
GEORGE F. BENNETT, Director
* SIR ARTHUR BRYAN, Director
PETER STORMONTH DARLING, Director
LEON N. LEVY, Director
* J. MURRAY LOGAN, Director
* JAMES S. MARTIN, Director
FRANCOIS-XAVIER ORTOLI, Director
J. LOUGHLIN CALLAHAN, President and Treasurer
STEVEN W. GOLANN, Vice President
RITA J. KLEINMAN, Secretary
THADDEA M. FELDMAN, Assistant Secretary
AMANDA J. MARSH, Assistant Secretary
* Member of the Audit Committee
- ------------------------------------------------------
EXECUTIVE OFFICES--
780 Third Avenue
New York, New York 10017
(For latest net asset value and requests for Fund Reports, please call 1 (800)
543-6217 or (609) 282-4600.)
INVESTMENT MANAGER--
Mercury Asset Management International Channel Islands Ltd.
Forum House
Grenville Street
St. Helier, Jersey
Channel Islands
INVESTMENT ADVISER--
Mercury Asset Management International Ltd.
33 King William Street
London EC4R 9AS
England
ADMINISTRATOR--
Princeton Administrators, L.P.
P.O. Box 9095
Princeton, New Jersey 08543-9095
CUSTODIAN--
The Bank of New York
Avenue des Arts 35
1040 Brussels
Belgium
TRANSFER AGENT AND REGISTRAR--
The Bank of New York
101 Barclay Street
New York, New York 10286
LEGAL COUNSEL--
Davis Polk & Wardwell
450 Lexington Avenue
New York, New York 10017
INDEPENDENT AUDITORS--
Ernst & Young LLP
787 Seventh Avenue
New York, New York 10019
<PAGE>
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Fund may purchase at market prices from time to
time shares of its Common Stock in the open market.
This report is for shareholder information. This is not a prospectus intended
for use in the purchase or sale of Fund shares or any securities mentioned in
this report.
Comparisons between changes in the Fund's net asset value per share and changes
in the MSCI Europe Index should be considered in light of the Fund's investment
policy and objectives, the characteristics and quality of the Fund's investments
and the size of the Fund.
<PAGE>
------------------------------------------------
SUMMARY OF GENERAL INFORMATION
-------------------------------------------
THE FUND
The Europe Fund, Inc. (the "Fund") is a closed-end investment company whose
shares trade on the New York Stock Exchange. The Fund seeks long-term capital
appreciation through investment primarily in European equity securities. The
Fund is managed by Mercury Asset Management International Channel Islands Ltd.,
relying on investment advice from Mercury Asset Management International Ltd.
(Regulated by IMRO.)
SHAREHOLDER INFORMATION
Daily market prices for the Fund's shares are published in the New York Stock
Exchange Composite Transactions section of newspapers under the designation
"Europe Fd." The Fund's New York Stock Exchange trading symbol is EF. Weekly
comparative net asset value (NAV) and market price information about the Fund's
shares are published each Monday in THE WALL STREET JOURNAL and THE NEW YORK
TIMES and other newspapers in a table called "Closed End Funds," and are also
available on Reuters under "MAMINDEX."
Shareholders interested in receiving the quarterly newsletter entitled "Closed
End Fund Focus" should call 1-800-543-6217 or 1-212-888-6941 and request to be
placed on the mailing list or send a request by mail to the Fund's address.
DISTRIBUTION REINVESTMENT AND CASH PURCHASE PLAN--SUMMARY
A Distribution Reinvestment and Cash Purchase Plan (the "Plan") is available
to provide shareholders with automatic reinvestment of their dividend income and
capital gains distributions in additional shares of the Fund's common stock. A
brochure describing the Plan is available from the Plan Agent, The Bank of New
York, by calling (800) 524-4458.
All shareholders are automatically enrolled in the Plan unless they have
elected to receive distributions in cash. Therefore, if you wish to participate
and your shares are held in your own name, no action is required on your part.
If you have previously elected to receive distributions in cash and now wish to
participate in the Plan, please call the Plan Agent at the number above. If your
shares are held in the name of a brokerage firm, bank or other nominee, your
nominee may have elected to receive distributions in cash on your behalf, and if
you wish to participate, you should instruct your nominee to participate in the
Plan on your behalf. If your nominee is unable to participate on your behalf,
you should request it to register your shares in your own name, which will
enable you to participate in the Plan.
TRANSFER AGENT:
The Bank of New York
Telephone Inquiries: 1-800-432-8224
Address Shareholder Inquiries To:
Shareholder Relations Department - 11 E
P.O. Box 11258
Church Street Station
New York, NY 10286
Send Certificates for Transfer and Address Changes to:
Receive and Deliver Department - 11 W
P.O. Box 11002
Church Street Station
New York, NY 10286
[LOGO]
THE EUROPE FUND, INC.
QUARTERLY REPORT
MARCH 31, 1998
