The Japan Equity Fund Announces Approval of a Discount Management Program

JERSEY CITY, NJ--(Marketwire - May 23, 2012) - The Japan Equity Fund, Inc. (NYSE: JEQ), a closed-end management investment company seeking long-term capital appreciation through investment primarily in equity securities issued by companies located in, or deriving revenue from, Japan, announced today that the Fund's Board of Directors has voted to approve a Discount Management Program. Under the Discount Management Program, commencing in June 2012, the Fund will repurchase shares of its common stock in the open market on any day that the closing price of the Fund's shares on the New York Stock Exchange on the prior day represented a discount from the Fund's net asset value of 9% or more and the daily average discount from the Fund's net asset value over the five-day period ending the prior day is 9% or more. On each day that shares are repurchased, the Fund will repurchase shares to the maximum extent permitted by law unless the Fund's management determines that such a repurchase would be detrimental to the Fund and its stockholders. On each day that shares are repurchased, in addition to the limits set forth above, the Fund will repurchase shares only at such times that the market price represents a discount of 9% or more from the Fund's closing NAV on the prior day. Under the program, the Fund is authorized to repurchase during each twelve month period ended October 31 up to 10% of its shares of common stock outstanding as of October 31 the prior year. For example, for the year November 1, 2012 to October 31, 2013, the Fund may repurchase up to 10% of its shares of common stock outstanding as of October 31, 2012. For the first period of operation of the program through October 31, 2012, the Fund is authorized to purchase a portion of up to 10% of its outstanding shares of common stock as of October 31, 2011, pro-rated based on the number of months in that period.

The Discount Management Program is intended to enhance stockholder value, as repurchases made at a discount have the effect of increasing the net asset value per share of the Fund's remaining shares.

There is no assurance that the market price of the Fund's shares, either absolutely or relative to the Fund's net asset value, will increase as a result of any share repurchases pursuant to the Discount Management Program. These repurchases may be suspended at any time or from time to time without prior notice. The Fund's repurchase activity will be disclosed in its stockholder reports for the relevant fiscal periods.