EMERGING MARKETS TELECOMMUNICATIONS FUND INC, N-30D, 2000-08-02

EMERGING MARKETS TELECOMMUNICATIONS FUND INC
N-30D, 2000-08-02

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<PAGE>

THE EMERGING MARKETS
TELECOMMUNICATIONS
FUND, INC.
....................
ANNUAL REPORT
MAY 31, 2000

[PHOTO]

<PAGE>

--------------------------------------------------------------------------------
CONTENTS
--------------------------------------------------------------------------------

Letter to Shareholders ....................................................... 1

Portfolio Summary ............................................................ 6

Schedule of Investments ...................................................... 8

Statement of Assets and Liabilities ..........................................12

Statement of Operations ......................................................13

Statement of Changes in Net Assets ...........................................14

Financial Highlights .........................................................15

Notes to Financial Statements ................................................16

Report of Independent Accountants ............................................23

Results of Annual Meeting of Shareholders ....................................24

Description of InvestLink-SM- Program ........................................25

<PAGE>

--------------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
--------------------------------------------------------------------------------

June 28, 2000

DEAR SHAREHOLDER:

I am writing to report on the activities of The Emerging Markets
Telecommunications Fund, Inc. (the "Fund") for the fiscal year ended May 31,
2000.

At May 31, 2000, the Fund's net asset value ("NAV") was $18.35 per share as
compared to $12.12 on May 31, 1999. At May 31, 2000, total net assets were
$130,300,455.

PERFORMANCE: STRONG RESULTS IN ASIA, THE U.S. AND LATIN AMERICA

For the fiscal year ended May 31, 2000, the Fund's total return, based on NAV
was 51.4%.

This was considerably better than the performances during the same period of
equities in emerging markets generally and emerging telecommunications stocks
more specifically. As represented by the Morgan Stanley Capital International
Emerging Markets Free Index ("EMF")*, for example, the broad universe of
emerging markets equities returned 17.8%, while aggregate emerging telecoms (in
the form of EMF's telecommunications services subsector) rose 29.0%.

The Fund meaningfully outperformed due to effective stock selection in Asia, the
U.S. and Latin America.

- By far, strength in South Korea and China accounted for the Fund's buoyant
Asian returns. South Korean exposure mainly consisted of large blue-chip
telecom providers and equipment manufacturers that benefited both from the
global trend toward outsourcing of telecom services and electronics equipment
and the revival of the Korean market as a whole.

Our lone Chinese holding--and the Fund's biggest position at May 31--was
China Telecom (Hong Kong) Ltd. ("China Telecom"), China's largest provider of
cellular telephony. I liked China Telecom (as I still do) based on my belief
that it is well-positioned to take advantage of the continuing growth of
telecom and Internet applications on the Chinese mainland. Fortunately, the
market shared my optimism.

- In the U.S., the Fund owned shares in a number of private investment vehicles
that focused on telecom-oriented companies in the emerging world. The
collective impact of these vehicles on performance was especially positive.
As I've stated many times, the ability to make such investments is one of the
top advantages of the Fund's closed-end status.

- Our best Latin American results came from a private fund that enjoyed
substantial gains from the sale of several of its individual equity stakes.
Latin stock selection also proved notably favorable in Mexico, where we held
the shares both of the nation's biggest telecom operator and its dominant
provider of media content; and Peru.

1
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LETTER TO SHAREHOLDERS
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THE MARKET: DOWN AND UP AND DOWN AGAIN, BUT NOT OUT

Around the beginning of the Fund's fiscal year, telecommunications stocks in
emerging markets were battling a bad case of the blues, as investors scorned
them in favor of their counterparts in the developed world. This persisted
through the third quarter of 1999, until a few things began to help the picture
turn brighter.

For one, emerging nations began to break the shackles of their 1997-98 financial
crisis. South Korea helped lead the way with a recovery that was nothing less
than miraculous, both in terms of depth and speed. Latin America did its part as
well, with Mexico revving up an increasingly smooth economic engine and even
Brazil taking measures few thought possible to put its economy back on track
(E.G., further privatizing its telecom sector). Elsewhere, notably in India,
governments took office that were amenable to the notion of increased
competition in their telecom markets.

Naturally, developments such as these and others began to attract the attention
of investors who had been sated by the big profits they had generated in the
developed world and were hungry for new opportunities elsewhere. Thus, in the
fourth quarter of 1999 and into the first quarter of 2000, a veritable flood of
capital flowed into emerging markets, a great deal of which was directed to the
telecommunications sector.

The party didn't last long, however. By the end of the first quarter, fears that
potentially higher U.S. inflation might prompt the Federal Reserve to become
more aggressive in raising U.S. interest rates crushed the shares of telecoms
and other technology-based "New Economy" companies worldwide. It didn't help,
either, that technology investors were nervous, market pundits were questioning
the valuations of tech companies generally, and sentiment about Microsoft's
antitrust litigation started to sour. The result was that higher risk premiums
were assigned to almost all securities, and those with high
valuations--including many emerging telecoms--suffered the most.

As I write, emerging telecom stocks are down, but not out. Although the worst
may not yet be over, there are selected telecom plays whose attractiveness
stands out. Several of these still look very good from any reasonable valuation
standpoint, and I am pursuing them accordingly.

2
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LETTER TO SHAREHOLDERS
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PORTFOLIO STRUCTURE: PICKING AND CHOOSING

TOP 10 HOLDINGS, BY ISSUER*

<TABLE>
<CAPTION>
% OF
HOLDING COUNTRY/REGION NET ASSETS
------- -------------- ----------
<S> <C> <C>
1. China Telecom Hong Kong 7.5
2. Samsung Electronics South Korea 6.3
3. SK Telecom South Korea 4.5
4. VSNL India 3.8
5. CEI Citicorp Hldgs. Argentina 2.7
6. Check Point Software Israel 2.3
7. Hutchison Whampoa Hong Kong 2.3
8. CTC Chile 2.2
9. Emg. Mkts. Ventures I Global 2.2
10. Embratel Brazil 2.2
----
Total 36.0
====
</TABLE>

---------------------
* Company names are abbreviations of those found in the chart on page 7.

COUNTRY BREAKDOWN
(% of net assets)

[PIE CHART]

<TABLE>
<S> <C>
Other* 25.97
Cash & Other Assets 8.45
Taiwan 8.54
South Korea 13.73
Mexico 6.37
Israel 6.95
India 5.93
Hong Kong 10.96
Global 4.66
Brazil 8.44
</TABLE>

--------------------
* Other includes Argentina, Asia, Chile, Central Europe, Greece, Indonesia,
Latin America, Malaysia, Middle East/Africa, Peru, Philippines, Russia,
Singapore, Spain, Thailand, Turkey, U.S. and Venezuela.

My investment strategy in recent months can generally be characterized as
opportunistic. This past April, for example, I elected to raise quite a bit of
cash to take advantage of a few opportunities in what I believed to be the
beginning of a major shakeout in the emerging telecommunications sector. I thus
reduced the Fund's exposure to a number of markets (notably Brazil and South
Korea) that I felt were more vulnerable than others to rapidly changing and
largely negative global and domestic market conditions.

When pullbacks eventually occurred, I reinvested a good deal of this money into
selected areas. One was the Brazilian cellular business, which had suffered from
the contagion effect of the global downdraft in telecom shares, as well as the
potential impact of rising global interest rates on Brazil's macroeconomic
environment. I also returned to South Korea, a market that was hit both by the
international factors already mentioned and new questions about the stability of
its banking sector.

A third major area of interest of mine (then and now) was certain technology
stocks in Israel and Taiwan. These, I feel, will benefit from what I anticipate
to be an elongation of the upward cycle in sales of personal computers. Such an
elongation should prove lucrative for manufacturers of integrated semiconductor
chips, producers of memory devices, and even companies that make PC cabinets.

Elsewhere, I see substantial promise in other parts of the telecom universe such
as mobile telephony, which has continued to benefit from strong demand for
handsets. Companies involved in making chips for smarter handsets, those
specializing in miniaturization and more, should do particularly well in
response to such demand. A number of these

3
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LETTER TO SHAREHOLDERS
--------------------------------------------------------------------------------

companies, both manufacturers and technology suppliers, are located in Taiwan,
South Korea and Israel, all focal points of my current strategy.

OUTLOOK: IF THE U.S. LANDS SOFTLY, EMERGING TELECOMS SHOULD RISE

Much of one's outlook for emerging equity markets these days depends on whether
you are a bull or a bear with respect to the Federal Reserve's efforts to manage
U.S. economic growth.

If you are a bear and think that the Fed is likely to raise interest rates a
great deal further and risk an abrupt "hard landing" for the robust U.S.
economy, emerging markets will hold little allure. Most, after all, are highly
dependent on the fortunes of the U.S. economy, a point that should be repeatedly
emphasized.

Indeed, a variety of elements bodes ill for emerging markets in the short term:
continuing volatility in the NASDAQ, worsening debt valuation measures, investor
apprehension about what the Fed might do in coming weeks and months, etc. In
particular, highly valued, highly leveraged technology and Internet-related
stocks will likely continue to be at least as volatile as their developed-world
counterparts, if not more so.

For my part, I don't think we will see a hard landing for the U.S. economy; I
view a less painful "soft" landing as most probable. Given the Fed's clear
preference for soft landings--as well as its virtually unblemished track record
over the past 10 years or so in managing the U.S. economy--I think it realistic
that the Fed will achieve this goal.

If so, the outlook for emerging telecommunications stocks should be quite good
in the medium term. Several are poised to profit, regardless of the U.S.
economic climate. I have invested in those I feel have the best prospects of
weathering the current storm and becoming the leaders in the next global telecom
cycle. Even after their recent dive, I still believe many Internet-related
concerns to be overvalued, incidentally, and therefore have virtually no
exposure to the dot-coms of the world.

Respectfully,

/s/ Richard W. Watt

Richard W. Watt
President and Chief Investment Officer**

4
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LETTER TO SHAREHOLDERS
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FROM CREDIT SUISSE ASSET MANAGEMENT, LLC:

We wish to remind shareholders whose shares are registered in their own name
that they automatically participate in the Fund's dividend reinvestment program
known as the InvestLinkSM Program (the "Program"). The Program can be of value
to shareholders in maintaining their proportional ownership interest in the Fund
in an easy and convenient way. A shareholder whose shares are held in the name
of a broker/dealer or nominee should contact the Fund's Transfer Agent for
details about participating in the Program. The Program is described on pages 25
through 27 of this report.

--------------------------------------------------------------------------------
* The Morgan Stanley Capital International Emerging Markets Free Index is an
unmanaged index (with no defined investment objective) of emerging-market
equities that includes reinvestment of dividends, and is the exclusive property
of Morgan Stanley Capital International Inc.

** Richard W. Watt, who is a Managing Director of Credit Suisse Asset
Management, LLC ("CSAM"), is primarily responsible for management of the Fund's
assets. He joined CSAM on August 2, 1995. Mr. Watt formerly was associated with
Gartmore Investment Limited in London, where he was head of emerging markets
investments and research. In this capacity, he led a team of four portfolio
managers and was manager of a closed-end fund focusing on smaller Latin American
companies. Before joining Gartmore Investment Limited in 1992, Mr. Watt was a
Director of Kleinwort Benson International Investments in London, where he was
responsible for research, analysis and trading of equities in Latin America and
other regions. Mr. Watt is President, Chief Investment Officer and a Director of
the Fund. He is also President, Chief Investment Officer and a Director of The
Chile Fund, Inc., The Emerging Markets Infrastructure Fund, Inc. and The First
Israel Fund, Inc. He is President and a Director of The Brazilian Equity Fund,
Inc., The Latin America Equity Fund, Inc. and The Latin America Investment Fund,
Inc. and is Chief Investment Officer of The Portugal Fund, Inc.

5
<PAGE>

--------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.
PORTFOLIO SUMMARY - AS OF MAY 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SECTOR ALLOCATION
--------------------------------------------------------------------------------

[CHART]

<TABLE>
<CAPTION>
AS A PERCENT OF NET ASSETS
May 31, 2000 May 31, 1999
------------ ------------
<S> <C> <C>
Cellular Communications 15.29% 13.81%
Electric-Integrated 1.21% 3.90%
Electronics 14.70% 10.04%
Investment & Holding Companies 8.96% 6.28%
Local and/or Long Distance Telephone Service 17.27% 22.52%
Oil & Gas 0.00% 3.25%
Radio/Television 2.70% 2.23%
Telecommunications 22.77% 28.45%
Other 8.65% 3.58%
Cash & Cash Equivalents 8.45% 5.94%
</TABLE>

--------------------------------------------------------------------------------
GEOGRAPHIC ASSET BREAKDOWN
--------------------------------------------------------------------------------

[CHART]

<TABLE>
<CAPTION>
AS A PERCENT OF NET ASSETS
May 31, 2000 May 31, 1999
------------ ------------
<S> <C> <C>
Asia 47.74% 35.04%
Eastern Europe 7.11% 9.53%
Europe 2.76% 13.13%
Latin America 21.17% 22.61%
Middle East/Africa 7.73% 7.35%
North America 0.38% 0.00%
Global 4.66% 7.02%
Cash & Cash Equivalents 8.45% 5.32%
</TABLE>

6
<PAGE>

--------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.
PORTFOLIO SUMMARY - AS OF MAY 31, 2000 (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
SUMMARY OF SECURITIES BY COUNTRY/REGION
--------------------------------------------------------------------------------

[CHART]

<TABLE>
<CAPTION>
AS A PERCENT OF NET ASSETS
May 31, 2000 May 31, 1999
------------ ------------
<S> <C> <C>
Argentina 2.67% 6.69%
Brazil 8.44% 6.94%
Chile 2.35% 4.12%
Greece 0.74% 7.86%
Hong Kong 10.95% 5.77%
Hungary 0.00% 2.90%
India 5.93% 4.75%
Israel 6.95% 7.35%
Mexico 6.37% 0.00%
Peru 0.01% 3.61%
Philippines 0.55% 2.62%
Russia 3.51% 1.06%
Singapore 1.30% 4.20%
South Korea 13.74% 12.07%
Taiwan 8.54% 1.74%
Thailand 3.12% 0.00%
Turkey 3.60% 0.00%
Global 4.66% 7.02%
Other 8.12% 15.98%
</TABLE>

--------------------------------------------------------------------------------
TOP 10 HOLDINGS, BY ISSUER
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Percent of
Holding Sector Country/Region Net Assets
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. China Telecom (Hong Kong) Ltd. Cellular Communications Hong Kong 7.5
-----------------------------------------------------------------------------------------------------------------------------
2. Samsung Electronics Co., Ltd. Electronics South Korea 6.3
-----------------------------------------------------------------------------------------------------------------------------
3. SK Telecom Co., Ltd. Telecommunications South Korea 4.5
-----------------------------------------------------------------------------------------------------------------------------
4. Videsh Sanchar Nigam Ltd. Telecommunications India 3.8
-----------------------------------------------------------------------------------------------------------------------------
5. CEI Citicorp Holdings S.A. Investment & Holding Companies Argentina 2.7
-----------------------------------------------------------------------------------------------------------------------------
6. Check Point Software Technologies Ltd. Computer Data Security Israel 2.3
-----------------------------------------------------------------------------------------------------------------------------
7. Hutchison Whampoa Ltd. Investment & Holding Companies Hong Kong 2.3
-----------------------------------------------------------------------------------------------------------------------------
8. Compania de Telecomunicaciones de Chile S.A. Local and/or Long Distance Telephone Service Chile 2.2
-----------------------------------------------------------------------------------------------------------------------------
9. Emerging Markets Ventures I, L.P. Investment & Holding Companies Global 2.2
-----------------------------------------------------------------------------------------------------------------------------
10. Embratel Participacoes S.A. Local and/or Long Distance Telephone Service Brazil 2.2
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

7
<PAGE>

--------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.
SCHEDULE OF INVESTMENTS - MAY 31, 2000
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
No. of Value
Description Shares (Note A)
----------------------------------------------------------
<S> <C> <C>
EQUITY OR EQUITY-LINKED SECURITIES-91.55%
EQUITY OR EQUITY-LINKED SECURITIES OF
TELECOMMUNICATION COMPANIES IN EMERGING
COUNTRIES-74.57%
----------------------------------------------------------
ARGENTINA-2.67%
----------------------------------------------------------
CEI Citicorp Holdings S.A.,
Class B+ (Cost $3,738,676) ... 949,309 $ 3,484,417
------------
----------------------------------------------------------
ASIA-0.92%
----------------------------------------------------------
INVESCO AsiaNET Fund plc*+ ..... 97,560 902,430
Nirvana Capital Limited*+ #..... 30,000 300,000
------------
TOTAL ASIA (Cost $1,299,990) .............. 1,202,430
------------
----------------------------------------------------------
BRAZIL-8.44%
----------------------------------------------------------
Brasil Telecom Participacoes
S.A. ADR## ................... 12,900 774,000
Celular CRT Participacoes S.A.
PNA+ ......................... 1,664,000 496,784
Companhia Riograndense de
Telecomunicacoes PNA+ ........ 1,087,758 333,686
Embratel Participacoes
S.A. ADR## ................... 135,700 2,841,219
Tele Nordeste Celular
Participacoes S.A. ADR## ..... 7,400 392,200
Tele Norte Leste Participacoes
S.A. ADR## ................... 132,702 2,604,277
Telemig Celular Participacoes
S.A. ADR## ................... 23,500 1,364,469
Telesp Celular Participacoes
S.A. ADR ..................... 57,800 2,189,175
------------
TOTAL BRAZIL (Cost $11,299,278) ........... 10,995,810
------------
----------------------------------------------------------
CHILE-2.35%
----------------------------------------------------------
Compania de Telecomunicaciones de
Chile S.A. ADR## ............. 147,800 2,919,050
Telefonos de Coyhaique S.A ..... 6,500 148,827
------------
TOTAL CHILE (Cost $3,464,897) ............. 3,067,877
------------
----------------------------------------------------------
GREECE-0.75%
----------------------------------------------------------
STET Hellas
Telecommunications S.A.+
(Cost $993,943) .............. 46,400 974,400
------------
</TABLE>

<TABLE>
<CAPTION>
No. of Value
Description Shares/Units (Note A)
----------------------------------------------------------
<S> <C> <C>
----------------------------------------------------------
HONG KONG-8.57%
----------------------------------------------------------
Cable and Wireless HKT Ltd. .... 410,800 $ 938,399
China Telecom (Hong Kong) Ltd.,
Class H+ ..................... 1,309,415 9,788,370
Pacific Century CyberWorks Ltd.+ 224,000 438,384
------------

TOTAL HONG KONG (Cost $4,396,456) ......... 11,165,153
------------
----------------------------------------------------------
INDIA-5.86%
----------------------------------------------------------
Mahanagar Telephone Nigam Ltd.
GDR++ ........................ 233,500 2,410,887
The India Media, Internet and
Communications Fund Ltd.=# ... 50,000 250,000
Videsh Sanchar Nigam Ltd.
GDR++ ........................ 318,500 4,976,562
------------
TOTAL INDIA (Cost $6,974,360) ............. 7,637,449
------------
----------------------------------------------------------
INDONESIA-1.38%
----------------------------------------------------------
PT Indosat (Persero) Tbk ADR ... 85,660 915,491
PT Telekomunikasi Indonesia .... 2,683,800 879,042
------------
TOTAL INDONESIA (Cost $2,562,724) ......... 1,794,533
------------
----------------------------------------------------------
ISRAEL-5.38%
----------------------------------------------------------
Aptel Warrants
(expiring 01/06/03)*+ ........ 16,800 189,000
Bezeq Israeli Telecommunication
Corporation Ltd. ............. 121,527 684,815
Check Point Software
Technologies Ltd.+ ........... 16,000 3,006,000
Geotek Communications, Inc.,
Convertible Preferred Series M,
8.50%*+ ...................... 100 0
Gilat Satellite Networks Ltd.+## 23,200 1,869,050
Global Wireless Holdings Inc.
C.V. PNB*+ ................... 48,122 6,978
Nexus Telocation Systems Ltd.+ . 170,784 384,264
Nexus Telocation Systems Ltd.= . 481,600 866,880

------------
TOTAL ISRAEL (Cost $8,089,672) ............ 7,006,987
------------
----------------------------------------------------------
LATIN AMERICA-0.23%
----------------------------------------------------------
J.P. Morgan Latin America Capital
Partners, L.P.+*#
(Cost $321,085) .............. 297,445 297,445
------------
</TABLE>

8
<PAGE>

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THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
No. of Value
Description Shares (Note A)
----------------------------------------------------------
<S> <C> <C>
----------------------------------------------------------
MALAYSIA-1.31%
----------------------------------------------------------
Digi.com Berhad+
(Cost $1,503,250) ............ 842,000 $ 1,706,180
------------
----------------------------------------------------------
MEXICO-6.37%
----------------------------------------------------------
Carso Global Telecom, Class A-1+ 848,000 1,921,396
Grupo Iusacell S.A. de C.V.,
V Shares ADR+ ................ 85,288 1,130,066
Grupo Televisa S.A. GDR+ ....... 50,400 2,806,650
Telefonos de Mexico, S.A. de CV
ADR, Class L ................. 50,200 2,444,113
------------
TOTAL MEXICO (Cost $7,004,785) ............ 8,302,225
------------
----------------------------------------------------------
MIDDLE EAST/AFRICA-0.78%
----------------------------------------------------------
EFG-Hermes Telecom Fund*+
(Cost $1,020,000) ............. 100,000 1,012,500
------------
----------------------------------------------------------
PERU-0.01%
----------------------------------------------------------
Tecsur S.A.+
(Cost $20,757) ................ 102,450 6,727
------------
----------------------------------------------------------
PHILIPPINES-0.55%
----------------------------------------------------------
Philippine Long Distance
Telephone Co. ADR##
(Cost $1,008,284) ............. 41,000 722,625
------------
----------------------------------------------------------
RUSSIA-3.51%
----------------------------------------------------------
Golden Telecom, Inc.+ .......... 30,000 896,250
Independent Network Television,
Series II*+ ................... 1,000,000 500,000
Rostelecom ADR ................. 127,800 1,940,963
Vimpel-Communications ADR+ ..... 47,500 1,232,031
------------
TOTAL RUSSIA (Cost $6,470,187) ............ 4,569,244
------------
----------------------------------------------------------
SINGAPORE-1.06%
----------------------------------------------------------
Venture Manufacturing
(Singapore) Ltd. (Cost $543,812) 156,000 1,377,146
------------
----------------------------------------------------------
SOUTH KOREA-12.52%
----------------------------------------------------------
Hanaro Telecom Inc.+ ........... 52,000 342,523
Korea Telecom Corp. ADR ........ 53,100 1,964,700
Samsung Electronics Co., Ltd. .. 30,004 8,181,702
</TABLE>

No. of Value
Description Shares/Units (Note A)
----------------------------------------------------------
<S> <C> <C>
----------------------------------------------------------
SOUTH KOREA (CONTINUED)
----------------------------------------------------------
SK Telecom Co., Ltd. ........... 7,840 $ 2,672,333
SK Telecom Co., Ltd. ADR## ..... 78,800 3,156,925
------------
TOTAL SOUTH KOREA (Cost $11,120,574) ...... 16,318,183
------------
----------------------------------------------------------
TAIWAN-2.89%
----------------------------------------------------------
Siliconware Precision Industries
Co.+ ......................... 173,000 359,364
Siliconware Precision
Industries Co. GDR+ .......... 63,200 654,120
Taiwan Semiconductor
Manufacturing Co., Ltd. ADR+## 77,850 2,749,078
------------
TOTAL TAIWAN (Cost $2,489,527) ............ 3,762,562
------------
----------------------------------------------------------
THAILAND-1.88%
----------------------------------------------------------
TelecomAsia Corporation Public
Co., Ltd., Foreign Registered+(a)
(Cost $3,895,748) ............ 2,460,300 2,447,435
------------
----------------------------------------------------------
TURKEY-3.60%
----------------------------------------------------------
Dogan Yayin Holding A.S.+ ......126,903,046 2,318,946
Vestel Elektronik Sanayi ve
Ticaret A.S.+ ................ 7,575,000 2,368,533
------------
TOTAL TURKEY (Cost $5,505,242) ............ 4,687,479
------------
----------------------------------------------------------
VENEZUELA-1.10%
----------------------------------------------------------
Venworld Telecommunications=
(Cost $2,531,383) ............ 125,947 1,430,971
------------
----------------------------------------------------------
GLOBAL-2.44%
----------------------------------------------------------
International Wireless
Communications Holdings Corp.* 7,546 0
TeleSoft Co-Investments, L.P. Sub
Fund A-3*+ ................... 375,394 375,394
TeleSoft Partners L.P.=# ....... 1,187,500 2,812,563
------------
TOTAL GLOBAL (Cost $1,607,219) ............ 3,187,957
------------
TOTAL EMERGING COUNTRIES
(Cost $87,861,849) ...................... 97,157,735
------------
</TABLE>

9
<PAGE>

<TABLE>
<CAPTION>
No. of Value
Description Shares/Units (Note A)
----------------------------------------------------------
<S> <C> <C>
----------------------------------------------------------
EQUITY SECURITIES OF TELECOMMUNICATION COMPANIES IN
DEVELOPED COUNTRIES-2.39%
----------------------------------------------------------
----------------------------------------------------------
CENTRAL EUROPE-0.17%
----------------------------------------------------------
Central European Media
Enterprises Ltd.+
(Cost $4,578,326) ............ 22,875 $ 217,313
------------
----------------------------------------------------------
SPAIN-1.84%
----------------------------------------------------------
Telefonica S.A. ADR+
(Cost $2,711,829) ............ 39,500 2,404,563
------------
----------------------------------------------------------
UNITED STATES-0.38%
----------------------------------------------------------
Technology Crossover Ventures
IV, L.P.=# (Cost $520,000) ... 520,000 491,491
------------
TOTAL DEVELOPED COUNTRIES
(Cost $7,810,155) ....................... 3,113,367
------------
----------------------------------------------------------
EQUITY SECURITES OF COMPANIES PROVIDING OTHER ESSENTIAL
SERVICES IN THE DEVELOPMENT OF AN EMERGING COUNTRY'S
INFRASTRUCTURE-14.59%
----------------------------------------------------------
----------------------------------------------------------
HONG KONG-2.39%
----------------------------------------------------------
Hutchison Whampoa Ltd. ......... 258,860 2,981,512
Li & Fung Ltd. ................. 30,000 128,589
------------
TOTAL HONG KONG (Cost $2,394,334) ......... 3,110,101
------------
----------------------------------------------------------
INDIA-0.07%
----------------------------------------------------------
SSI Ltd. GDR+,++
(Cost $185,760) .............. 12,900 90,300
------------
----------------------------------------------------------
ISRAEL-1.57%
----------------------------------------------------------
Concord Ventures
Fund II, L.P.+=# ............. 240,000 240,000
Formula Ventures L.P.+=# ....... 423,738 402,474
Giza GE Venture Fund III, L.P.+=# 250,000 240,970
K.T. Concord Venture
Fund L.P.+=# ................. 850,000 1,165,906
------------
TOTAL ISRAEL (Cost $1,732,121) ............ 2,049,350
------------
</TABLE>

<TABLE>
<CAPTION>
No. of Value
Description Shares/Units (Note A)
----------------------------------------------------------
<S> <C> <C>
----------------------------------------------------------
SINGAPORE-0.24%
----------------------------------------------------------
ST Assembly Test Services Ltd.+
(Cost $222,510) .............. 107,000 $ 317,947
------------
----------------------------------------------------------
SOUTH KOREA-1.21%
----------------------------------------------------------
Korea Electric Power (KEP)
Corporation (Cost $1,626,367) 58,900 1,580,053
------------
----------------------------------------------------------
TAIWAN-5.65%
----------------------------------------------------------
D-Link Corp. ................... 312,000 1,032,911
Hon Hai Precision Industry Co.,
Ltd. GDR+,++ ................. 74,300 1,690,325
Macronix International Co.,
Ltd.+ ........................ 366,000 1,134,469
Nan Ya Plastic Corp. ........... 370,000 810,613
Via Technologies Inc.+ ......... 76,000 1,312,301
Winbond Electronics Corp.+ ..... 457,320 1,380,421
------------
TOTAL TAIWAN (Cost $6,054,519) ............ 7,361,040
------------
----------------------------------------------------------
THAILAND-1.24%
----------------------------------------------------------
Advanced Info Service
Public Co., Ltd., Foreign
Registered+
(Cost $1,015,849) ............ 140,919 1,617,486
------------
----------------------------------------------------------
GLOBAL-2.22%
----------------------------------------------------------
Emerging Markets
Ventures I, L.P.+=#
(Cost $2,702,244) ............ 2,602,830 2,888,699
------------
TOTAL OTHER ESSENTIAL SERVICES
(Cost $15,933,704) ...................... 19,014,976
------------
</TABLE>

10
<PAGE>

<TABLE>
<CAPTION>
Value
Description (Note A)
----------------------------------------------------------
<S> <C>
TOTAL INVESTMENTS-91.55%
(Cost $111,605,708) (Notes A,D) $119,286,078
CASH AND OTHER ASSETS IN EXCESS
OF LIABILITIES-8.45% ..................... 11,014,377
------------
NET ASSETS-100.00% ......................... $130,300,455
============
</TABLE>

----------------------------------------------------------
* Not readily marketable security.
+ Security is non-income producing.
++ SEC Rule 144A security. Such securities are traded only among "qualified
institutional buyers".
= Restricted security, not readily marketable (See Note F).
# As of May 31, 2000 the Fund committed to investing an additional
$1,364,949, $150,000, $326,262, $62,500, $1,000,000, $2,478,915,
$1,760,000, $1,480,000, $700,000 and $250,000 of capital in Emerging
Markets Ventures I, L.P., K.T. Concord Venture Fund L.P., Formula Ventures
L.P., Telesoft Partners L.P., Giza GE Venture Fund III, L.P., J.P. Morgan
Latin America Capital Partners, L.P., Concord Ventures Fund II, L.P.,
Technology Crossover Ventures IV, L.P., Nirvana Capital Limited and The
India Media, Internet and Communications Fund, Ltd., respectively.
## Security or a portion thereof is out on loan.
(a) With an additional 776,936 warrants attached, expiring 12/31/49, with no
market value.
ADR American Depositary Receipts.
GDR Global Depositary Receipts.
PNA Preferred Shares, Class A.
PNB Preferred Shares, Class B.

See accompanying notes to financial statements.

11
<PAGE>

--------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES - MAY 31, 2000
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------------
<S> <C>
Investments, at value (Cost $111,605,708) (Note A) ............................. $119,286,078
Cash (including $110,334 of foreign currencies with a cost of $111,349) (Note A) 16,683,132
Collateral received for securities loaned (Note A) ............................. 11,639,279
Receivables:
Dividends and interest ...................................................... 326,223
Investments sold ............................................................ 294,290
Prepaid expenses and other assets .............................................. 9,920
------------
Total Assets ................................................................... 148,238,922
------------
--------------------------------------------------------------------------------
LIABILITIES
--------------------------------------------------------------------------------
Payables:
Payable upon return of securities loaned (Note A) ........................... 11,639,279
Investments purchased ....................................................... 5,849,601
Investment advisory fee (Note B) ............................................ 285,213
Administration fees (Note B) ................................................ 29,516
Other accrued expenses ...................................................... 134,858
------------
Total Liabilities .............................................................. 17,938,467
------------
NET ASSETS (applicable to 7,100,819 shares of common stock outstanding) (Note C) $130,300,455
============
NET ASSET VALUE PER SHARE ($130,300,455 DIVIDED BY 7,100,819) .................. $18.35
============
--------------------------------------------------------------------------------
NET ASSETS CONSIST OF
--------------------------------------------------------------------------------
Capital stock, $0.001 par value; 7,100,819 shares issued and outstanding
(100,000,000 shares authorized) ............................................. $ 7,101
Paid-in capital ................................................................ 101,403,838
Accumulated net realized gain on investments and foreign currency related
transactions ................................................................ 21,211,808
Net unrealized appreciation in value of investments and translation of other
assets and liabilities denominated in foreign currencies .................... 7,677,708
------------
Net assets applicable to shares outstanding .................................... $130,300,455
============
</TABLE>

See accompanying notes to financial statements.
12
<PAGE>

--------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.
STATEMENT OF OPERATIONS - FOR THE FISCAL YEAR ENDED MAY 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
INVESTMENT INCOME
--------------------------------------------------------------------------------
<S> <C>
Income (Note A):
Dividends ................................................................... $ 1,208,286
Interest .................................................................... 275,305
Less: Foreign taxes withheld ................................................ (115,163)
------------
Total Investment Income ..................................................... 1,368,428
------------
Expenses:
Investment advisory fees (Note B) ........................................... 1,542,224
Administration fees (Note B) ................................................ 219,867
Consulting fees (Note H) .................................................... 162,675
Audit and legal fees ........................................................ 157,551
Custodian fees .............................................................. 157,305
Accounting fees ............................................................. 101,073
Printing .................................................................... 96,223
Transfer agent fees ......................................................... 43,940
Directors' fees ............................................................. 38,548
NYSE listing fees ........................................................... 16,532
Insurance ................................................................... 9,384
Other ....................................................................... 19,859
Brazilian taxes (Note A) .................................................... 24,336
Chilean repatriation taxes (Note A) ......................................... 228,767
------------
Total Expenses .............................................................. 2,818,284
------------
Net Investment Loss ......................................................... (1,449,856)
------------
--------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN CURRENCY
RELATED TRANSACTIONS
--------------------------------------------------------------------------------
Net realized gain/(loss) from:
Investments ................................................................. 38,908,462
Foreign currency related transactions ....................................... (345,547)
Net change in unrealized appreciation in value of investments and translation
of other assets and liabilities denominated in foreign currencies ........... 7,411,859
------------
Net realized and unrealized gain on investments and foreign currency related
transactions ................................................................ 45,974,774
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ........................... $ 44,524,918
============
</TABLE>

See accompanying notes to financial statements.
13
<PAGE>

--------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Fiscal Years
Ended May 31,
--------------------------------
2000 1999
--------------------------------
<S> <C> <C>
--------------------------------------------------------------------------------
INCREASE/(DECREASE) IN NET ASSETS
--------------------------------------------------------------------------------
Operations:
Net investment loss ......................................................... $ (1,449,856) $ (349,880)
Net realized gain/(loss) on investments and foreign currency
related transactions ....................................................... 38,562,915 (13,838,114)
Net change in unrealized appreciation in value of investments and
translation of other assets and liabilities denominated in foreign currencies 7,411,859 (6,875,847)
------------- -------------
Net increase/(decrease) in net assets resulting from operations ........... 44,524,918 (21,063,841)
------------- -------------
Distributions to shareholders:
Net realized gain on investments and foreign currency related transactions .. -- (16,442,826)
------------- -------------
Capital share transactions:
Cost of 657,000 and 677,100 shares repurchased, respectively (Note G) ....... (8,250,794) (6,489,527)
------------- -------------
Total increase/(decrease) in net assets ................................... 36,274,124 (43,996,194)
------------- -------------
--------------------------------------------------------------------------------
NET ASSETS
--------------------------------------------------------------------------------
Beginning of year .............................................................. 94,026,331 138,022,525
------------- -------------
End of year .................................................................... $ 130,300,455 $ 94,026,331
============= =============
</TABLE>

See accompanying notes to financial statements.
14
<PAGE>

--------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
Contained below is per share operating performance data for a share of common
stock outstanding, total investment return, ratios to average net assets and
other supplemental data for each period indicated. This information has been
derived from information provided in the financial statements and market price
data for the Fund's shares.
--------------------------------------------------------------------------------

For the Period
June 25,
For the Fiscal Years Ended May 31, 1992*
------------------------------------------------------------- through
2000 1999 1998 1997 1996 1995 1994 May 31, 1993
------- ------- ------- ------- ------- ------- ------- ------------
------------------------------------------
PER SHARE OPERATING
PERFORMANCE
------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $12.12 $16.36 $21.53 $20.94 $19.20 $20.90 $14.95 $13.84**
------- ------- ------- ------- ------- ------- ------- -------
Net investment income/(loss) ............. (0.20)# (0.04)# (0.06) 0.10 0.27 0.11 0.13 0.16
Net realized and unrealized gain/(loss) on
investments and foreign currency
related transactions ................... 6.14 (2.41) (1.40) 2.86 1.91 0.01 7.03+ 1.20
------- ------- ------- ------- ------- ------- ------- -------
Net increase/(decrease) in net assets
resulting from operations .............. 5.94 (2.45) (1.46) 2.96 2.18 0.12 7.16 1.36
------- ------- ------- ------- ------- ------- ------- -------
Dividends and distributions to shareholders:
Net investment income .................. -- -- (0.09) (0.27) (0.04) (0.04) (0.15) (0.14)
Net realized gain on investments and
foreign currency related transactions. -- (1.96) (3.62) (2.10) (0.40) (1.78) (1.06) (0.11)
------- ------- ------- ------- ------- ------- ------- -------
Total dividends and distributions
to shareholders ....................... -- (1.96) (3.71) (2.37) (0.44) (1.82) (1.21) (0.25)
------- ------- ------- ------- ------- ------- ------- -------
Anti-dilutive impact due to shares of
beneficial interest repurchased ....... 0.29 0.17 -- -- -- -- -- --
------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of period .......... $18.35 $12.12 $16.36 $21.53 $20.94 $19.20 $20.90 $14.95
======= ======= ======= ======= ======= ======= ======= =======
Market value, end of period ............. $13.500 $9.813 $13.000 $17.375 $17.375 $17.750 $22.750 $14.500
======= ======= ======= ======= ======= ======= ======= =======
Total investment return (a) ............. 37.58% (9.99)% (4.57)% 14.31% 0.21% (13.94)% 64.74% 5.85%
======= ======= ======= ======= ======= ======= ======= =======
------------------------------------------
RATIOS/SUPPLEMENTAL DATA
------------------------------------------
Net assets, end of period (000 omitted) .. $130,300 $94,026 $138,023 $181,627 $176,628 $161,925 $176,253 $125,338
Ratio of expenses to average net assets (b) 2.24% 2.09% 2.32% 1.90% 1.77% 1.89% 1.81% 1.99%(c)
Ratio of expenses to average net assets,
excluding taxes ........................ 2.04% 2.01% 1.82% 1.82% -- -- -- --
Ratio of net investment income/(loss)
to average net assets .................. (1.15)% (0.33)% (0.29)% 0.52% 1.40% 0.53% 0.63% 2.02%(c)
Portfolio turnover rate .................. 113.75% 179.66% 162.58% 42.14% 27.71% 14.29% 43.98% 22.55%
</TABLE>

--------------------------------------------------------------------------------
* Commencement of investment operations.
** Initial public offering price of $15.00 per share less underwriting
discount of $1.05 per share and offering expenses of $0.11 per share.
+ Includes a $0.03 per share increase to the Fund's net asset value per share
resulting from the anti-dilutive impact of shares issued pursuant to the
Fund's automatic Dividend Reinvestment Plan in January 1994.
# Based on average shares outstanding.
(a) Total investment return at market value is based on the changes in market
price of a share during the period and assumes reinvestment of dividends
and distributions, if any, at actual prices pursuant to the Fund's dividend
reinvestment program. Total investment return does not reflect brokerage
commissions or initial underwriting discounts and has not been annualized.
(b) Ratios shown are inclusive of Brazilian transaction and Chilean
repatriation taxes, if any.
(c) Annualized.

See accompanying notes to financial statements.
15
<PAGE>

MANAGEMENT ESTIMATES: The preparation of financial statements in accordance with
accounting principles generally accepted in the United States requires
management to make certain estimates and assumptions that may affect the
reported amounts and disclosures in the financial statements. Actual results
could differ from those estimates.

PORTFOLIO VALUATION: Investments are stated at value in the accompanying
financial statements. All securities for which market quotations are readily
available are valued at the closing price quoted for the securities prior to the
time of determination (but if bid and asked quotations are available, at the
mean between the last current bid and asked prices). Securities that are traded
over-the-counter are valued at the mean between the current bid and the asked
prices, if available. All other securities and assets are valued at the fair
value as determined in good faith by the Board of Directors. Short-term
investments having a maturity of 60 days or less are valued on the basis of
amortized cost. The Board of Directors has established general guidelines for
calculating fair value of non-publicly traded securities. At May 31, 2000, the
Fund held 11.03% of its net assets in securities valued in good faith by the
Board of Directors with an aggregate cost of $15,396,542 and fair value of
$14,373,701. The net asset value per share of the Fund is calculated each
business day, with the exception of those days on which the New York Stock
Exchange is closed.

CASH: Deposits held at Brown Brothers Harriman & Co., the Fund's custodian, in a
variable rate account are classified as cash. At May 31, 2000, the account's
interest rate was 5.80%, which resets on a daily basis. Amounts on deposit are
generally available on the same business day.

INVESTMENT TRANSACTIONS AND INVESTMENT INCOME: Investment transactions are
accounted for on the trade date. The cost of investments sold is determined by
use of the specific identification method for both financial reporting and
income tax purposes. Interest income is recorded on an accrual basis; dividend
income is recorded on the ex-dividend date.

TAXES: No provision is made for U.S. federal income or excise taxes as it is the
Fund's intention to continue to qualify as a regulated investment company and to
make the requisite distributions to its shareholders which will be sufficient to
relieve it from all or substantially all U.S. federal income and excise taxes.

Income received by the Fund from sources within emerging countries and other
foreign countries may be subject to withholding and other taxes imposed by such
countries.

Under certain circumstances the Fund may be subject to a maximum of 36% Israeli
capital gains tax on gains derived from the sale of certain Israeli investments.
For the fiscal year ended May 31, 2000, the Fund did not incur such expense.

The Fund is subject to a 10% Chilean repatriation tax with respect to all
remittances from Chile in excess of original invested capital. For the fiscal
year ended May 31, 2000, the Fund incurred $228,767 of such expense.

From January 23, 1997 through January 22, 1999, Brazil imposed a 0.20%
CONTRIBUCAO PROVISORIA SOBRE

16
<PAGE>

FOREIGN CURRENCY TRANSACTIONS: The books and records of the Fund are maintained
in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on
the following basis:

(I) market value of investment securities, assets and liabilities at the
current rate of exchange; and

(II) purchases and sales of investment securities, income and expenses at
the relevant rates of exchange prevailing on the respective dates of
such transactions.

The Fund does not isolate that portion of gains and losses on investments in
equity securities which is due to changes in the foreign exchange rates from
that which is due to change in market prices of equity securities. Accordingly,
realized and unrealized foreign currency gains and losses with respect to such
securities are included in the reported net realized and unrealized gains and
losses on investment transactions balances. However, the Fund does isolate the
effect of fluctuations in foreign exchange rates when determining the gain or
loss upon the sale or maturity of foreign currency denominated debt obligations
pursuant to U.S. federal income tax regulations, with such amount categorized as
foreign exchange gain or loss for both financial reporting and income tax
reporting purposes.

Net currency gains or losses from valuing foreign currency denominated assets
and liabilities at period end exchange rates are reflected as a component of net
unrealized appreciation/depreciation in value of investments, and translation of
other assets and liabilities denominated in foreign currencies.

Net realized foreign exchange losses represent foreign exchange gains and losses
from sales and maturities of debt securities, transactions in foreign currencies
and forward foreign currency contracts, exchange gains or losses realized
between the trade date and settlement dates on security transactions, and the
difference between the amounts of interest and dividends recorded on the Fund's
books and the U.S. dollar equivalent of the amounts actually received.

The Fund reports certain foreign currency related transactions and foreign taxes
withheld on security transactions as components of realized gains for financial
reporting purposes, whereas such components are treated as ordinary income for
U.S. federal income tax purposes.

SECURITIES LENDING: The market value of securities out on loan to brokers at May
31, 2000, was $11,275,782, for which the Fund has received cash as collateral of
$11,639,279. Such cash collateral was reinvested into an overnight repurchase
agreement with Bear, Stearns & Co. Inc., which was in turn collateralized by
U.S. Government agency securities with a value of $11,878,399. Security loans
are required at all times to have collateral at least equal to 102% of the
market value of the securities on loan; however, in the event of default or
bankruptcy by the other party to the agreement, realization and/or retention of
the collateral may be subject to legal proceedings.

During the fiscal year ended May 31, 2000, the Fund earned $8,363 in securities
lending income which is

17
<PAGE>

DISTRIBUTIONS OF INCOME AND GAINS: The Fund distributes at least annually to
shareholders substantially all of its net investment income and net realized
short-term capital gains, if any. The Fund determines annually whether to
distribute any net realized long-term capital gains in excess of net realized
short-term capital losses, including capital loss carryovers, if any. An
additional distribution may be made to the extent necessary to avoid the payment
of a 4% U.S. federal excise tax. Dividends and distributions to shareholders are
recorded by the Fund on the ex-dividend date.

The character of distributions made during the year from net investment income
or net realized gains may differ from their ultimate characterization for U.S.
federal income tax purposes due to U.S. generally accepted accounting
principles/tax differences in the character of income and expense recognition.

At May 31, 2000, the Fund reclassified within the composition of net assets
permanent book/tax differences from accumulated net realized gain on investments
and foreign currency related transactions related to gains from the sale of
Passive Foreign Investment Companies of $840,876 to accumulated net investment
loss. In addition, the Fund reclassified net investment loss of $1,106,056 to
accumulated net realized gain on investments and foreign currency related
transactions.

OTHER: Some countries require governmental approval for the repatriation of
investment income, capital or the proceeds of sales of securities by foreign
investors. In addition, if there is a deterioration in a country's balance of
payments or for other reasons, a country may impose temporary restrictions on
foreign capital remittances abroad. Amounts repatriated prior to the end of
specified periods may be subject to taxes as imposed by a foreign country.

The emerging countries' securities markets are substantially smaller, less
liquid and more volatile than the major securities markets in the United States.
A high proportion of the securities of many companies in emerging countries may
be held by a limited number of persons, which may limit the number of securities
available for investment by the Fund. The limited liquidity of emerging country
securities markets may also affect the Fund's ability to acquire or dispose of
securities at the price and time it wishes to do so.

The Fund, subject to local investment limitations, may invest up to 25% of its
assets in non-publicly traded equity securities which may involve a high degree
of business and financial risk and may result in substantial losses. Because of
the current absence of any liquid trading market for these investments, the Fund
may take longer to liquidate these positions than would be the case for publicly
traded securities. Although these securities may be resold in privately
negotiated transactions, the proceeds realized on such sales could be less than
those originally paid by the Fund. Further, companies whose securities are not
publicly traded may not be subject to the disclosure and other investor
protection requirements applicable to companies whose securities are publicly
traded.

The Fund may enter into repurchase agreements ("repos") on U.S. Government
securities with primary government securities dealers recognized by the Federal
Reserve Bank of New York and member banks of the Federal Reserve System and on
securities issued by the governments of foreign countries, their
instrumentalities and with creditworthy parties in accordance with established
procedures. Repos are contracts under which the buyer of a security
simultaneously buys and commits to resell the security to the seller at an
agreed upon price and date. Repos are

18
<PAGE>

--------------------------------------------------------------------------------
NOTE B. AGREEMENTS
--------------------------------------------------------------------------------
Credit Suisse Asset Management, LLC ("CSAM") serves as the Fund's investment
adviser with respect to all investments. As compensation for its advisory
services, CSAM receives from the Fund an annual fee, calculated weekly and paid
quarterly, equal to 1.25% of the first $100 million of the Fund's average weekly
net assets, 1.125% of the next $100 million and 1.00% of amounts in excess of
$200 million. For the fiscal year ended May 31, 2000, CSAM earned $1,542,224 for
advisory services. CSAM also provides certain administrative services to the
Fund and is reimbursed by the Fund for costs incurred on behalf of the Fund (up
to $20,000 per annum). For the fiscal year ended May 31, 2000, CSAM was
reimbursed $14,040 for administrative services rendered to the Fund.

Bear Stearns Funds Management Inc. ("BSFM") serves as the Fund's U.S.
administrator. The Fund pays BSFM a monthly fee that is computed weekly at an
annual rate of 0.12% of the Fund's average weekly net assets. For the fiscal
year ended May 31, 2000, BSFM earned $151,157 for administrative services.

BankBoston, N.A., Sao Paulo ("BBNA") and CELFIN Administradora de Fondos de
Inversion de Capital Extranjero S.A. ("Chilean administrator") serve as the
Fund's administrators with respect to Brazilian and Chilean investments,
respectively. BBNA is paid for its services out of the custody fee payable to
Brown Brothers Harriman & Co., the Fund's accounting agent and custodian, a
quarterly fee based on an annual rate of 0.10% of average month end Brazilian
net assets of the Fund. In return for services rendered, the Chilean
administrator receives a fee computed monthly and paid quarterly at an annual
rate of 0.10% of the Fund's average weekly net assets in Chile, subject to
certain minimum annual fees and reimbursements for a predefined limit of their
expenses.

--------------------------------------------------------------------------------
NOTE C. CAPITAL STOCK
--------------------------------------------------------------------------------
The authorized capital stock of the Fund is 100,000,000 shares of common stock,
$0.001 par value. Of the 7,100,819 shares outstanding at May 31, 2000, CSAM
owned 7,169 shares.

--------------------------------------------------------------------------------
NOTE D. INVESTMENT IN SECURITIES
--------------------------------------------------------------------------------
For U.S. federal income tax purposes, the cost of securities owned at May 31,
2000 was $112,304,701. Accordingly, the net unrealized appreciation of
investments (including investments denominated in foreign currencies) of
$6,981,377, was composed of gross appreciation of $25,013,633 for those
investments having an excess of value over cost and gross depreciation of
$18,032,256 for those investments having an excess of cost over value.

For the fiscal year ended May 31, 2000, total purchases and sales of securities,
other than short-term investments, were $132,363,917 and $147,639,238,
respectively.

19
<PAGE>

--------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
NOTE E. CREDIT AGREEMENTS
--------------------------------------------------------------------------------
Effective December 15, 1999, the Fund, together with other funds advised by CSAM
established a $250 million committed, unsecured, line of credit facility
("Credit Facility") with Deutsche Bank AG as administrative agent, State Street
Bank and Trust Company as operations agent, Bank of Nova Scotia as syndication
agent as well as certain other lenders, for temporary or emergency purposes.
Under the terms of the Credit Facility, the funds with access to the Credit
Facility pay an aggregate commitment fee at a rate of 0.075% per annum on the
average daily balance of the Credit Facility that is undisbursed and uncanceled
during the preceding quarter allocated among the participating funds in such
manner as is determined by the governing Boards of the various funds. In
addition, the participating funds will pay interest on borrowing at the Federal
Funds rate plus 0.50%.

Previously, the Fund along with 10 other U.S. regulated management investment
companies for which CSAM serves as investment adviser, had a credit agreement
with BankBoston, N.A. The agreement provided that each fund was permitted to
borrow an amount equal to the lesser of $25,000,000 or 25% of the net assets of
the fund. However, at no time did the aggregate outstanding principal amount of
all loans to any of the 11 funds exceed $25,000,000. The line of credit bore
interest at (i) the greater of the bank's prime rate or the Federal Funds
Effective Rate plus 0.50% or (ii) the Adjusted Eurodollar Rate plus 1.50%. The
above credit agreement was terminated as of June 30, 1999.

At May 31, 2000 and during the fiscal year ended May 31, 2000, the Fund had no
borrowings under either the Credit Facility or the credit agreement.

20
<PAGE>

<TABLE>
<CAPTION>
NUMBER FAIR VALUE PERCENT
OF VALUE AT PER OF NET
SECURITY UNITS/SHARES ACQUISITION DATES COST MAY 31, 2000 UNIT/SHARE ASSETS
-------- ------------ ----------------- ----------- ------------ ---------- ------
<S> <C> <C> <C> <C> <C> <C>
Concord Ventures Fund II, L.P. ...... 240,000 03/29/00 $ 244,076 $ 240,000 $ 1.00 0.18
Emerging Markets Ventures I, L.P. ... 1,690,332 01/22/98 - 04/19/99 1,759,693 1,875,981 1.11 1.44
39,575 08/24/99 39,886 43,922 1.11 0.04
296,812 10/01/99 326,554 329,411 1.11 0.25
279,299 12/21/99 279,299 309,974 1.11 0.24
296,812 03/24/00 296,812 329,411 1.11 0.25
Formula Ventures L.P. ............... 262,500 08/06/99 272,685 249,327 0.95 0.19
52,500 03/22/00 52,500 49,866 0.95 0.04
108,738 04/18/00 108,738 103,281 0.95 0.08
Giza GE Venture Fund III, L.P. ...... 50,000 01/31/00 50,000 48,194 0.96 0.04
75,000 02/24/00 75,000 72,291 0.96 0.05
125,000 03/22/00 125,000 120,485 0.96 0.09
The India Media, Internet and
Communications Fund Ltd. ........ 50,000 04/05/00 262,500 250,000 5.00 0.19
K.T. Concord Venture Fund L.P. ...... 500,000 12/8/97 - 3/12/99 472,941 685,827 1.37 0.52
100,000 08/03/99 94,131 137,165 1.37 0.11
50,000 08/25/99 47,065 68,583 1.37 0.05
150,000 10/12/99 141,196 205,748 1.37 0.16
50,000 02/28/00 48,789 68,583 1.37 0.05
Nexus Telocation Systems Ltd. ....... 288,960 01/10/00 722,400 520,128 1.80 0.40
192,640 02/28/00 481,600 346,752 1.80 0.27
Technology Crossover
Ventures IV, L.P. ............... 268,000 03/08/00 268,000 253,307 0.95 0.20
92,000 03/22/00 92,000 86,956 0.95 0.07
32,000 04/24/00 32,000 30,246 0.95 0.02
128,000 05/09/00 128,000 120,982 0.95 0.09
TeleSoft Partners L.P. .............. 500,000 7/22/97 - 5/17/99 379,713 1,184,237 2.37 0.91
250,000 10/20/99 207,912 592,119 2.37 0.46
250,000 01/21/00 250,000 592,118 2.37 0.45
187,500 05/31/00 187,500 444,089 2.37 0.34
Venworld Telecommunications ......... 125,947 05/18/95 2,531,383 1,430,971 11.36 1.10
</TABLE>

The Fund may incur certain costs in connection with the disposition of the above
securities.

21
<PAGE>

--------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
NOTE G. SHARE REPURCHASE PROGRAM
--------------------------------------------------------------------------------
On October 21, 1998, the Board of Directors authorized the repurchase by the
Fund of up to 15% of the Fund's outstanding common stock, for the purposes of
enhancing shareholder value. The Fund's Board has authorized management of the
Fund to repurchase such shares in open market transactions at prevailing market
prices from time to time and in a manner consistent with the Fund continuing to
seek to achieve its investment objectives. The Board's actions were taken in
light of the significant discounts at which the Fund's shares were trading. It
is intended both to provide additional liquidity to those shareholders that
elect to sell their shares and to enhance the net asset value of the shares held
by those shareholders that maintain their investment. The repurchase program is
subject to review by the Directors of the Fund. From October 21, 1998 to May 31,
1999, the Fund repurchased 677,100 of its shares for a total cost of $6,489,527
at a weighted average discount of 18.36% from net asset value. Through May 31,
1999, the discount of individual repurchases ranged from 13.26% - 20.77%. For
the fiscal year ended, May 31, 2000, the Fund repurchased 657,000 of its shares
for a total cost of $8,250,794 at a weighted average discount of 20.90% from net
asset value. The discount of individual repurchases ranged from 16.01% - 23.44%.

--------------------------------------------------------------------------------
NOTE H. SUBSEQUENT EVENTS
--------------------------------------------------------------------------------
The Fund engaged an Investment Banking Firm during the year to look at various
strategic options for the Fund. As a result of such engagement, on July 24,
2000, the Fund's Board of Directors approved the merger (the "Merger") of the
Fund with and into The Emerging Markets Infrastructure Fund, Inc. ("EMG"). As a
result of the Merger, the Fund will cease to exist, EMG will be the surviving
legal corporation and each share of common stock of the Fund will be converted
into an equivalent dollar amount of full shares of common stock of EMG, based on
the net asset value of each of the Fund and EMG. The Fund will not issue any
fractional shares to the Fund's shareholders. EMG's transfer agent will
aggregate all fractional shares, sell the resulting full shares on the New York
Stock Exchange at the current market price for the shares and remit the cash
proceeds to the Fund's shareholders in proportion to their fractional shares.

Consummation of the Merger is subject to a number of conditions, including
shareholder approval and certain regulatory approvals. Upon consummation of the
Merger, EMG will change its name to "The Emerging Markets Telecommunications
Fund, Inc." and will adopt the Fund's investment objective and policies.

In addition, on June 27, 2000 the Board of Directors of the Fund approved the
overall terms of a self-tender program that the Fund intends to launch in the
calendar year 2001, which terms include the following: (i) the Fund will make a
tender offer to acquire at least 15% of its outstanding shares during each
calendar year of the program, and (ii) the per share purchase price will be at
least 95% of the Fund's net asset value per share. Implementation of the
self-tender program is conditioned on consummation of the Merger. The
self-tender program is subject to change based on economic or market conditions
or other factors. For example, a sustained reduction in the market discount at
which the Fund's shares trade, a risk of material adverse tax consequences, or a
risk of the Fund becoming subject to delisting may lead the Board of Directors
to conclude that it is appropriate to suspend the self-tender program.

22
<PAGE>

--------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
--------------------------------------------------------------------------------

To the Board of Directors and Shareholders
of The Emerging Markets Telecommunications Fund, Inc.:

In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of The Emerging Markets
Telecommunications Fund, Inc. (the "Fund") at May 31,2000, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended and the financial highlights for each of
the periods presented, in conformity with accounting principles generally
accepted in the United States. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States, which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits, which included confirmation of securities at May 31,
2000 by correspondence with the custodian, brokers and issuers, provide a
reasonable basis for the opinion expressed above.

PricewaterhouseCoopers LLP

Two Commerce Square
Philadelphia, Pennsylvania
July 18, 2000

23
<PAGE>

--------------------------------------------------------------------------------
RESULTS OF ANNUAL MEETING OF SHAREHOLDERS (UNAUDITED)
--------------------------------------------------------------------------------

On October 7, 1999, the annual meeting of shareholders of The Emerging Markets
Telecommunications Fund, Inc. (the "Fund") was held and the following matters
were voted upon:

(1) To re-elect two directors to the Board of Directors of the Fund.

<TABLE>
<CAPTION>
NAME OF DIRECTOR FOR WITHHELD NON-VOTES
---------------- --------- -------- ---------
<S> <C> <C> <C>
George W. Landau 5,344,686 276,063 1,820,170
Richard W. Watt 5,361,330 259,419 1,820,170
</TABLE>

In addition to the directors re-elected at the meeting, Dr. Enrique R. Arzac,
James J. Cattano, Peter A Gordon*, William W. Priest, Jr. and Martin M. Torino
continue to serve as directors of the Fund.

* Mr. Gordon subsequently resigned from the Board and the size of the board
was reduced by one.

(2) To ratify the selection of PricewaterhouseCoopers LLP as independent public
accountants for the fiscal year ending May 31, 2000.

<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN NON-VOTES
--------- ------- ------- ---------
<S> <C> <C> <C> <C>
5,520,394 49,313 51,042 1,820,170
</TABLE>

(3) To consider a shareholder proposal to terminate the investment advisory
agreement with Credit Suisse Asset Management, LLC within sixty days, with a
recommendation that the Board give heavy weight to a commitment to realize net
asset value for shareholders when selecting a new advisor.

<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN NON-VOTES
--------- ------- ------- ---------
<S> <C> <C> <C> <C>
1,117,709 4,378,203 124,837 1,820,170
</TABLE>

24
<PAGE>

--------------------------------------------------------------------------------
DESCRIPTION OF INVESTLINK-SM-* PROGRAM (UNAUDITED)
--------------------------------------------------------------------------------

The InvestLink-SM- Program is sponsored and administered by EquiServe, L.P.,
not by The Emerging Markets Telecommunications Fund, Inc. (the "Fund").
BankBoston, N.A. will act as program administrator (the "Program Administrator")
of the InvestLink-SM- Program (the "Program"). The purpose of the Program is to
provide interested investors with a simple and convenient way to invest funds
and reinvest dividends in shares of the Fund's common stock ("Shares") at
prevailing prices, with reduced brokerage commissions and fees.

An interested investor may join the Program at any time. Purchases of Shares
with funds from a participant's cash payment or automatic account deduction will
begin on the next day on which funds are invested. If a participant selects the
dividend reinvestment option, automatic investment of dividends generally will
begin with the next dividend payable after the Program Administrator receives
his enrollment form. Once in the Program, a person will remain a participant
until he terminates his participation or sells all Shares held in his Program
account, or his account is terminated by the Program Administrator. A
participant may change his investment options at any time by requesting a new
enrollment form and returning it to the Program Administrator.

A participant will be assessed certain charges in connection with his
participation in the Program. First-time investors will be subject to an initial
service charge which will be deducted from their initial cash deposit. All
optional cash deposit investments will be subject to a service charge. Sales
processed through the Program will have a service fee deducted from the net
proceeds, after brokerage commissions. In addition to the transaction charges
outlined above, participants will be assessed per share processing fees (which
include brokerage commissions.) Participants will not be charged any fee for
reinvesting dividends.

The number of Shares to be purchased for a participant depends on the amount of
his dividends, cash payments or bank account or payroll deductions, less
applicable fees and commissions, and the purchase price of the Shares. The
Program Administrator uses dividends and funds of participants to purchase
Shares of Company Common Stock in the open market. Such purchases will be made
by participating brokers as agent for the participants using normal cash
settlement practices. All Shares purchased through the Program will be allocated
to participants as of the settlement date, which is usually three business days
from the purchase date. In all cases, transaction processing will occur within
30 days of the receipt of funds, except where temporary curtailment or
suspension of purchases is necessary to comply with applicable provisions of the
Federal Securities laws or when unusual market conditions make prudent
investment impracticable. In the event the Program Administrator is unable to
purchase Shares within 30 days of the receipt of funds, such funds will be
returned to the participants.

The average price of all Shares purchased by the Program Administrator with all
funds received during the time period from two business days preceding any
investment date up to the second business day preceding the next investment date
shall be the price per share allocable to a participant in connection with the
Shares purchased for his account with his funds or dividends received by the
Program Administrator during such time period. The average price of all Shares
sold by the Program Administrator pursuant to sell orders received during such
time period shall be the price per share allocable to a participant in
connection with the Shares sold for his account pursuant to his sell orders
received by the Program Administrator during such time period.

EquiServe L.P., as Program Administrator, administers the Program for
participants, keeps records, sends statements of account to participants and
performs other duties relating to the Program. Each participant

25
<PAGE>

--------------------------------------------------------------------------------
DESCRIPTION OF INVESTLINK-SM-* PROGRAM (UNAUDITED)(CONTINUED)
--------------------------------------------------------------------------------

in the Program will receive a statement of his account following each purchase
of Shares. The statements will also show the amount of dividends credited to
such participant's account (if applicable), as well as the fees paid by the
participant. In addition, each participant will receive copies of the Fund's
annual and semi-annual reports to shareholders, proxy statements and, if
applicable, dividend income information for tax reporting purposes.

If the Fund is paying dividends on the Shares, a participant will receive
dividends through the Program for all Shares held on the dividend record date on
the basis of full and fractional Shares held in his account, and for all other
Shares of the Fund registered in his name. The Program Administrator will send
checks to the participants for the amounts of their dividends that are not to be
automatically reinvested at no cost to the participants.

Shares of the Fund purchased under the Program will be registered in the name of
the accounts of the respective participants. Unless requested, the Fund will not
issue to participants certificates for Shares of the Fund purchased under the
Program. The Program Administrator will hold the Shares in book-entry form until
a Program participant chooses to withdraw his Shares or terminate his
participation in the Program. The number of Shares purchased for a participant's
account under the Program will be shown on his statement of account. This
feature protects against loss, theft or destruction of stock certificates.

A participant may withdraw all or a portion of the Shares from his Program
account by notifying the Program Administrator. After receipt of a participant's
request, the Program Administrator will issue to such participant certificates
for the whole Shares of the Fund so withdrawn or, if requested by the
participant, sell the Shares for him and send him the proceeds, less applicable
brokerage commissions, fees, and transfer taxes, if any. If a participant
withdraws all full and fractional Shares in his Program account, his
participation in the Program will be terminated by the Program Administrator. In
no case will certificates for fractional Shares be issued. The Program
Administrator will convert any fractional Shares held by a participant at the
time of his withdrawal to cash.

Participation in any rights offering, dividend distribution or stock split will
be based upon both the Shares of the Fund registered in participants' names and
the Shares (including fractional Shares) credited to participants' Program
accounts. Any stock dividend or Shares resulting from stock splits with respect
to Shares of the Fund, both full and fractional, which participants hold in
their Program accounts and with respect to all Shares registered in their names
will be automatically credited to their accounts.

All Shares of the Fund (including any fractional share) credited to his account
under the Program will be voted as the participant directs. The participants
will be sent the proxy materials for the annual meetings of shareholders. When a
participant returns an executed proxy, all of such Shares will be voted as
indicated. A participant may also elect to vote his Shares in person at the
Shareholders' meeting.

A participant will receive tax information annually for his personal records and
to help him prepare his U.S. federal income tax return. The automatic
reinvestment of dividends does not relieve him of any income tax which may be
payable on dividends. For further information as to tax consequences of
participation in the Program, participants should consult with their own tax
advisors.

The Program Administrator in administering the Program will not be liable for
any act done in good faith or for any good faith omission to act. However, the
Program Administrator will be liable for loss or damage due to error caused by
its negligence, bad faith or willful misconduct. Shares held in custody by the
Program

26
<PAGE>

Administrator are not subject to protection under the Securities Investors
Protection Act of 1970.

The participant should recognize that neither the Fund nor the Program
Administrator can provide any assurance of a profit or protection against loss
on any Shares purchased under the Program. A participant's investment in Shares
held in his Program account is no different than his investment in directly held
Shares in this regard. The participant bears the risk of loss and the benefits
of gain from market price changes with respect to all of his Shares. Neither the
Fund nor the Program Administrator can guarantee that Shares purchased under the
Program will, at any particular time, be worth more or less than their purchase
price. Each participant must make an independent investment decision based on
his own judgment and research.

While the Program Administrator hopes to continue the Program indefinitely, the
Program Administrator reserves the right to suspend or terminate the Program at
any time. It also reserves the right to make modifications to the Program.
Participants will be notified of any such suspension, termination or
modification in accordance with the terms and conditions of the Program. The
Program Administrator also reserves the right to terminate any participant's
participation in the Program at any time. Any question of interpretation arising
under the Program will be determined in good faith by the Program Administrator
and any such good faith determination will be final.

Any interested investor may participate in the Program. To participate in the
Program, an investor who is not already a registered owner of the Shares must
make an initial investment of at least $250.00. All other cash payments or bank
account deductions must be at least $100.00, up to a maximum of $100,000.00
annually. An interested investor may join the Program by reading the Program
description, completing and signing the enrollment form and returning it to the
Program Administrator. The enrollment form and information relating to the
Program (including the terms and conditions) may be obtained by calling the
Program Administrator at one of the following telephone numbers: First Time
Investors--(800) 969-3364; Current Shareholders--(800) 730-6001. All
correspondence regarding the Program should be directed to: EquiServe, L.P.,
InvestLink-SM- Program, P.O. Box 8040, Boston, MA 02266-8040.

--------------------------
* InvestLink is a service mark of Boston EquiServe Limited Partnership.

<PAGE>
--------------------------------------------------------------------------------
SUMMARY OF GENERAL INFORMATION
--------------------------------------------------------------------------------

The Fund--The Emerging Markets Telecommunications Fund, Inc.--is a closed-end,
non-diversified management investment company whose shares trade on the New York
Stock Exchange. Its investment objective is long-term capital appreciation
through investments primarily in equity securities of telecommunications
companies in emerging countries. The Fund is managed and advised by Credit
Suisse Asset Management, LLC ("CSAM"). CSAM is a diversified asset manager,
handling equity, balanced, fixed income, international and derivative based
accounts. Portfolios include international and emerging market investments,
common stocks, taxable and non-taxable bonds, options, futures and venture
capital. CSAM manages money for corporate pension and profit-sharing funds,
public pension funds, union funds, endowments and other charitable institutions
and private individuals. As of June 30, 2000, CSAM-Americas managed
approximately $70 billion in assets.

--------------------------------------------------------------------------------
SHAREHOLDER INFORMATION
--------------------------------------------------------------------------------

The market price is published in: THE NEW YORK TIMES (daily) under the
designation "EMTel" and THE WALL STREET JOURNAL (daily), and BARRON'S (each
Monday) under the designation "EmergMktTele". The Fund's New York Stock Exchange
trading symbol is ETF. Weekly comparative net asset value (NAV) and market price
information about The Emerging Markets Telecommunications Fund, Inc.'s shares
are published each Sunday in THE NEW YORK TIMES and each Monday in THE WALL
STREET JOURNAL and BARRON'S, as well as other newspapers, in a table called
"Closed-End Funds."

--------------------------------------------------------------------------------
THE CSAM GROUP OF FUNDS
--------------------------------------------------------------------------------

LITERATURE REQUEST--Call today for free descriptive information on the
closed-end funds listed below at 1-800-293-1232 or visit our website on the
Internet: http://www.cefsource.com.

CLOSED-END FUNDS

SINGLE COUNTRY
The Brazilian Equity Fund, Inc. (BZL)
The Chile Fund, Inc. (CH)
The First Israel Fund, Inc. (ISL)
The Indonesia Fund, Inc. (IF)
The Portugal Fund, Inc. (PGF)

MULTIPLE COUNTRY
The Emerging Markets Infrastructure Fund, Inc. (EMG)
The Latin America Equity Fund, Inc. (LAQ)
The Latin America Investment Fund, Inc. (LAM)

FIXED INCOME
Credit Suisse Asset Management Income Fund, Inc. (CIK)
Credit Suisse Asset Management Strategic Global Income Fund, Inc. (CGF)

--------------------------------------------------------------------------------
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that The Emerging Markets Telecommunications
Fund, Inc. may from time to time purchase shares of its capital stock in the
open market.
--------------------------------------------------------------------------------

<PAGE>

--------------------------------------------------------------------------------
DIRECTORS AND CORPORATE OFFICERS
--------------------------------------------------------------------------------

Dr. Enrique R. Arzac Director

James J. Cattano Director

George W. Landau Director

Martin M. Torino Director

William W. Priest, Jr. Chairman of the Board of
Directors

Richard W. Watt Director, President and Chief Investment Officer

Emily Alejos Investment Officer

Yarek Aranowicz Investment Officer

Robert B. Hrabchak Investment Officer

Hal Liebes Senior Vice President

Michael A. Pignataro Chief Financial Officer and
Secretary

Rocco A. Del Guercio Vice President

Robert M. Rizza Treasurer

--------------------------------------------------------------------------------
INVESTMENT ADVISER
--------------------------------------------------------------------------------

Credit Suisse Asset Management, LLC
466 Lexington Avenue
New York, NY 10017

--------------------------------------------------------------------------------
ADMINISTRATOR
--------------------------------------------------------------------------------

Bear Stearns Funds Management Inc.
575 Lexington Avenue
New York, NY 10022

--------------------------------------------------------------------------------
CUSTODIAN
--------------------------------------------------------------------------------

Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109

--------------------------------------------------------------------------------
SHAREHOLDER SERVICING AGENT
--------------------------------------------------------------------------------

EquiServe, L.P.
P.O. Box 1865
Mail Stop 45-02-62
Boston, MA 02105

--------------------------------------------------------------------------------
INDEPENDENT ACCOUNTANTS
--------------------------------------------------------------------------------

PricewaterhouseCoopers LLP
Two Commerce Square, Suite 1700
2001 Market Street
Philadelphia, PA 19103

--------------------------------------------------------------------------------
LEGAL COUNSEL
--------------------------------------------------------------------------------

Willkie Farr & Gallagher
787 Seventh Avenue
New York, NY 10019-6099

This report, including the financial statements herein, is sent to the
shareholders of the Fund for their information. It is not a prospectus, circular
or representation intended for use in the purchase or sale of shares of the Fund
or of any securities mentioned in this report.

ETF
[LOGO]
3916-AR-05/00