The Fund has a policy of paying quarterly distributions on its Common Stock. Distributions are being made at the annual rate of 9% of the rolling average of the prior four calendar quarter-end NAVs, with the fourth quarter distribution being the greater of 2.25% of the rolling average or the minimum distribution required by IRS regulations.

The Fund expects to report a portion of the distribution as long-term capital gains for tax purposes. Long-term capital gains will be allocated pro-rata to all distributions for the year. The final determination of the source of all distributions in 2008, including potentially a return of capital, will be made at the end of the year.

Royce Micro-Cap Trust, Inc. is a closed-end diversified management investment company whose shares of Common Stock and Preferred Stock (NYSE: RMT.pra) are listed and traded on the New York Stock Exchange. The Fund's investment goal is long-term capital growth, which it seeks by normally investing at least 80% of its assets in equity securities of companies that, at the time of investment, have market capitalizations of $500 million or less