The Mexico Fund, Inc. Announces Change in Distribution Rate of Its Managed Distribution Plan and Reaffirms Its Open Market Share Repurchase Program

WASHINGTON, DC--(Marketwired - Sep 21, 2015) - The Mexico Fund, Inc. (NYSE: MXF) announced today that the Board of Directors (Board) approved a change in the quarterly distribution payable under the Fund´s Managed Distribution Plan (MDP), effective with the distribution to be paid in October 2015. The Board is focused on reducing the discount between the net asset value (NAV) of the Fund's shares and the price at which the Fund's shares are traded, a situation that is endemic among closed-end funds. To that end, the Board implemented the MDP in September 2008, which the Board believes has served the Fund and its stockholders well; since then, the Fund has made quarterly cash distributions during 29 consecutive quarters for a total of $20.25 per share and the average discount during the 4 year period ended August 31, 2015 was 2.9%.

Recent events, however, make it clear that adjustments to the plan are needed. In particular, weakening equity markets and currencies in Mexico and emerging markets generally, uncertainty about the performance of the Chinese economy, the significant decline in the price of oil and other commodities, concerns around the monetary policy in the U.S. that may result in an interest rate increase and weaker than expected growth of the Mexican economy, have combined to result in lower than expected returns by the Fund. Furthermore, the significant unrealized capital gains in the Fund at the time of the adoption of the MDP have now reversed to an unrealized loss.

Accordingly, the Board has decided to adjust the rate of the MDP from 10% to 6% of the Fund's NAV per share at the end of the previous calendar year, effective with the distribution to be paid in October 2015. This rate is better aligned with the past 5 and 10 year annual rates of return in the Fund's NAV of 5.7% and 8.2%, respectively, as of August 31, 2015. The Board believes that a rate of 6% is significant for Fund stockholders and an effective tool for reducing the discount. Despite the current environment, the Board maintains a positive view on the long-term perspectives of the Mexican economy and the Fund; as such, it intends to maintain the Fund's track record of quarterly distributions, in order to optimize the Fund's long-term performance while providing periodic cash to its stockholders.

Another key element in maintaining a low discount is superior investment performance. Under the guidance of Impulsora del Fondo México, S.C., the Fund's Investment Adviser since inception in 1981, the annual return of the Fund's NAV has outperformed the MSCI Mexico Index, the Fund's benchmark, over the past 1, 3, 5 and 10 year periods ended August 31, 2015. Over a longer term, despite all of the volatility that Mexico has endured, the Fund's NAV-based annual rate of return is 10.4% since inception.

Finally, the Board has reaffirmed the Fund's policy of repurchasing stock in the market whenever the Fund's discount exceeds 10%. This policy is accretive to the Fund's NAV per share, and can also be an effective tool in seeking to maintain a relatively low discount. The share repurchase policy allows the Fund to acquire its own shares in the open market at a discount to NAV. It could also have the benefit of providing additional liquidity in the trading of shares.

The Fund's repurchase activity will be disclosed in the monthly summary reports posted on the Fund's website and in its shareholder report for the relevant fiscal period. There is no assurance that the market price of the Fund's shares, either absolutely or relative to NAV, will increase as a result of any share repurchases, or that the share repurchase program will reduce the discount.

For further information, contact the Fund's Investor Relations office at 011-52-55-9138-3350, or by email at investor-relations@themexicofund.com.

www.themexicofund.com

The Mexico Fund, Inc. is a non-diversified closed-end management investment company with the investment objective of long-term capital appreciation through investments in securities, primarily equity, listed on the Mexican Stock Exchange. The Fund provides a vehicle to investors who wish to invest in Mexican companies through a managed non-diversified portfolio as part of their overall investment program.

This press release may contain certain forward-looking statements regarding future circumstances. These forward-looking statements are based upon the Fund's current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements including, in particular, the risks and uncertainties described in the Fund's filings with the Securities and Exchange Commission. Actual results, events, and performance may differ. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Fund undertakes no obligation to release publicly any revisions to these forward looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by The Mexico Fund or any other person that the events or circumstances described in such statement are material.