<Page>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-7167
Prudential Europe Growth Fund, Inc.
_______________________________________________________________________________
(Exact name of registrant as specified in charter)
Gateway Centre 3,
100 Mulberry Street,
Newark, New Jersey 07102
________________________________________________________________________________
(Address of principal executive offices) (Zip code)
Jonathan Shain
Gateway Centre 3
100 Mulberry Street
Newark, New Jersey 07102
________________________________________________________________________________
(Name and address of agent for service)
Registrant's telephone number, including area code: 973-802-6469
Date of fiscal year end: 4/30/03
Date of reporting period: 4/30/03
<Page>
Item 1. Reports to Stockholders
<Page>
ANNUAL REPORT
APRIL 30, 2003
PRUDENTIAL
EUROPE GROWTH FUND, INC.
FUND TYPE
Global/International stock
OBJECTIVE
Long-term growth of capital
This report is not authorized for distribution
to prospective investors unless preceded or
accompanied by a current prospectus.
The views expressed in this report and information
about the Fund's portfolio holdings are for the
period covered by this report and are subject to
change thereafter.
Prudential Financial is a service mark of
The Prudential Insurance Company of America,
Newark, NJ, and its affiliates. PRUDENTIAL FINANCIAL (LOGO)
<Page>
Prudential Europe Growth Fund, Inc.
Performance at a Glance
FUND OBJECTIVE
The investment objective of the Prudential Europe
Growth Fund (the Fund) is long-term growth of
capital. There can be no assurance that the Fund will
achieve its investment objective.
Cumulative Total Returns1 As of 4/30/03
One Year Five Years Since Inception2
Class A -18.65% -33.03% 36.61%
Class B -19.26 -35.59 27.18
Class C -19.22 -35.57 27.39
Class Z -18.35 -32.21 18.03
MSCI Europe Index3 -15.17 -25.05 ***
Lipper European Region Funds Avg.4 -15.93 -20.24 ****
Average Annual Total Returns1 As of 3/31/03
One Year Five Years Since Inception2
Class A -33.39% -10.53% 1.45%
Class B -33.91 -10.44 1.24
Class C -31.85 -10.49 1.13
Class Z -29.71 -9.38 0.44
MSCI Europe Index3 -25.82 -7.61 ***
Lipper European Region Funds Avg.4 -25.41 -6.88 ****
Past performance is not indicative of future results.
Principal value and investment return will fluctuate
so that an investor's shares, when redeemed, may be
worth more or less than their original cost. 1Source:
Prudential Investments LLC and Lipper Inc. The
cumulative total returns do not take into account
applicable sales charges. The average annual total
returns do take into account applicable sales
charges. Without the distribution and service (12b-1)
fee waiver of 0.05% for Class A shares, the returns
would have been lower. The Fund charges a maximum
front-end sales charge of 5% for Class A shares in
most circumstances, and a 12b-1 fee of up to 0.30%
annually. In some circumstances, Class A shares may
not be subject to a front-end sales charge, but may
be subject to a 1% contingent deferred sales charge
(CDSC) for the first year. Class B shares are subject
to a declining CDSC of 5%, 4%, 3%, 2%, 1%, and 1% for
the first six years respectively after purchase, and
a 12b-1 fee of 1.00% annually. Approximately seven
years after purchase, Class B shares will
automatically convert to Class A shares on a
quarterly basis. Class C shares are subject to a
front-end sales charge of 1%, a CDSC of 1% for shares
redeemed within 18 months of purchase, and a 12b-1
fee of 1.00% annually. Class Z shares are not subject
to a sales charge or 12b-1 fee. The returns in the
tables do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or
following the redemption of fund shares. 2Inception
dates: Class A, B, and C, 7/13/94; Class Z, 4/15/96.
3The Morgan Stanley Capital International (MSCI)
Europe IndexSM is a free float-adjusted market
capitalization index that is designed to measure
developed market equity performance in Europe. As of
September 2002, the MSCI Europe Index consisted of
the following 16 developed market country indexes:
Austria, Belgium, Denmark, Finland, France, Germany,
Greece, Ireland, Italy, the Netherlands, Norway,
Portugal, Spain, Sweden, Switzerland, and the United
Kingdom. 4The Lipper European Region Funds Average
(Lipper Average) represents returns based on an
average
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www.prudential.com (800) 225-1852
Annual Report April 30, 2002
return of all funds in the Lipper European Region
Funds category for the periods noted. Funds in the
Lipper Average concentrate their investment in equity
securities whose primary trading markets or
operations are concentrated in the European region or
in a single country within this region. Investors
cannot invest directly in an index. The returns for
the MSCI Europe Index and Lipper Average would be
lower if they included the effects of sales charges,
operating expenses of a mutual fund, or taxes.
Returns for the Lipper Average reflect the deduction
of operating expenses, but not sales charges or
taxes. ***MSCI Europe Index Since Inception
cumulative total returns as of 4/30/03 are 76.37% for
Class A, B, and C, and 31.91% for Class Z. MSCI
Europe Index Since Inception average annual total
returns as of 3/31/03 are 5.17% for Class A, B, and
C, and 2.20% for Class Z. ****Lipper Average Since
Inception cumulative total returns as of 4/30/03 are
62.36% for Class A, B, and C, and 26.13% for Class Z.
Lipper Average Since Inception average annual total
returns as of 3/31/03 are 3.85% for Class A, B, and
C, and 1.03% for Class Z.
Top 10 Industries
Expressed as a percentage of net assets
as of 4/30/03.
13.6% Telecommunication Service &
Equipment
12.9 Financial Services
12.8 Oil & Natural Gas Production
11.3 Pharmaceuticals
9.4 Banking
5.1 Foods
4.1 Retail
3.1 Automobiles & Auto Parts
3.0 Building & Construction
2.9 Diversified Operations
Top 10 industries are subject to change.
Geographic Concentration
Expressed as a percentage of net assets
as of 4/30/03.
34.2% United Kingdom
14.2 France
10.0 The Netherlands
9.1 Switzerland
8.9 Germany
5.7 Italy
5.0 Spain
3.7 Finland
3.4 Sweden
2.3 Ireland
2.2 Belgium
1.3 Cash & Equivalents
Geographic concentration is subject to change.
1
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PRUDENTIAL FINANCIAL (LOGO) June 16, 2003
DEAR SHAREHOLDER,
After fighting in Iraq ended in April 2003, U.S.
consumer confidence rose significantly and a more
optimistic tone pervaded the financial markets.
Major stock market indexes have continued to
improve, even as the long-standing bond
market rally persisted. While we welcome these
developments, it is important to remember that a wise
investor plans for tomorrow's needs today regardless
of the direction of financial markets.
Whether you are investing for your retirement, your
children's education, or for a new home for your
family, Prudential mutual funds offer advantages that
may help you reach your financial goals. Experienced
asset managers, working closely with research
analysts, employ time-tested investment processes
that were honed under a variety of market conditions.
We recommend that you consult a financial professional
who can help you strike the right balance between
your desire to obtain a particular return from an
investment and your tolerance for risk.
I was named president of the Prudential Europe Growth
Fund, Inc. in March 2003. On behalf of the Prudential
Financial family, I would like to thank you for your
continued confidence in Prudential mutual funds. We
look forward to serving your future investment needs.
Sincerely,
Judy A. Rice, President
Prudential Europe Growth Fund, Inc.
2
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Prudential Europe Growth Fund, Inc.
Annual Report April 30, 2003
INVESTMENT ADVISER'S REPORT
OVERVIEW OF THE MARKET AND FUND PERFORMANCE
European stock markets fell far more than U.S. stocks
in the steep slide that dominated the Fund's fiscal
year. However, U.S. investors in European securities
benefited from a substantial gain of European
currencies against the U.S. dollar. This increased
the dollar value of European assets. As a result, the
15.17% decline of the U.S. dollar-denominated MSCI
Europe Index--the Fund's benchmark--was only a few
percentage points below the Standard & Poor's 500
Composite Stock Price Index (S&P 500 Index). European
markets did not participate in the rebound of
oversold growth stocks. The Fund trailed its
benchmark and the Lipper European Region Funds
Average.
The Fund's substantial decline was in part due to the
poor performance of its financial stocks and its
exposure to large oil companies whose performance was
affected by the war in Iraq. In addition, small
positions in Ahold (the Netherlands) and Imperial
Chemical Industries (ICI, United Kingdom) faced
unexpected accounting controversies. Their share
prices plummeted and we sold both positions. The
Fund's performance was also hurt by holdings in the
semiconductor industry, where demand continued to be
poor. (Demand for semiconductors has picked up
recently.) On the positive side, the volatile markets
during this reporting period created opportunities to
purchase growth companies at what we considered
bargain prices. (Some of these positions have already
contributed to the Fund's return during this
reporting period.) Gains came primarily on
telecommunications-related holdings, a varied group
of financial companies, and some consumer products
and retail firms.
FALLING SHARE PRICES HURT FINANCIAL COMPANIES
Financial firms are required by regulators to
maintain certain levels of capital to support the
risks inherent in lending and insuring. The steep
decline in share prices eroded the value of these firms'
capital during this
3
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Prudential Europe Growth Fund, Inc.
Annual Report April 30, 2003
period. Insurance companies were particularly hurt
because European insurance companies had, on average,
a much larger part of their investment portfolios in
equities than U.S. companies, and also faced
substantial underwriting losses. We had focused on
Munich Reinsurance (Germany) and Swiss Reinsurance
(Switzerland) in part because we thought their
balance sheets were stronger than the industry
average, but even they had to raise capital as the
markets continued to fall. Despite their negative
impact on this period's return, we continue to have
confidence in their prospects because both demand and
premiums for reinsurance are rising rapidly. When
Zurich Financial Services (Switzerland) issued shares
to bolster its capital, we bought at an attractive
price and have already had a significant gain on
the position.
Among bank stocks, capital adequacy concerns hurt
several of the Fund's positions in commercial bank
stocks--including Lloyds TSB Group (United Kingdom),
Credit Suisse Group (Switzerland), and Barclays
(United Kingdom)--but we benefited from opportunistic
purchases when we thought other investors overreacted
to some banks' risk exposures. Several positions made
positive contributions to the Fund's return,
including holdings in Deutsche Pfandbrief (DePfa)
Bank (Germany), which specializes in public
financing; Skand Enskilda (Sweden), a savings and
investment bank that was more exposed to economic
slowdown than some other Nordic banks; BBV (Spain),
which was hurt by its exposure to Latin America; and
Bank of Ireland (Ireland), whose position as one of
only two major banks in the rapidly growing Irish
economy has been undervalued. These banks' share
prices rose as investors reassessed their risks and
weighed them against European banks' strong growth
potential.
OUR OIL AND GAS EXPOSURE HURT
The giant integrated oil companies BP (United
Kingdom), Royal Dutch Petroleum (the Netherlands, see
Comments on Largest Holdings for both),
4
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www.prudential.com (800) 225-1852
and TotalFinaElf were among the larger detractors
from the Fund's return. Royal Dutch fell when many
professional asset managers sold the stock after the
S&P 500 Index excluded nondomestic companies,
including Royal Dutch. We believe the decline was not
due to the company's fundamentals, and we took
advantage of the price decline to add to our
position. In general, oil stocks did not share in the
April 2003 market rise. We think many investors
expected war-related oil shortages and looked to
other industries for short-term gains when these did
not materialize.
TELECOMMUNICATIONS-RELATED STOCKS REBOUNDED
Telecommunications-related stocks were depressed for
several years because heavy investment in
infrastructure and licenses caused almost universally
weak balance sheets in the telecommunication services
industry. Delays in introducing new technologies
exacerbated the financial stress and also hurt
wireless handset companies. We added to our position
in Vodafone (United Kingdom, see Comments on Largest
Holdings) at favorable prices because we believed it
had a relatively strong financial structure and it is
the world leader in wireless services. By the end of
the Fund's reporting period, its share price had
risen substantially. The Fund had a smaller gain on
its position in Nokia (Finland), which maintained its
leading market share during this difficult period.
The introduction of color screens in wireless
handsets is boosting its sales. The Fund also had
gains on smaller telecommunication positions,
including Telefonica (Spain) and Telecom Italia
(Italy).
CONSUMER SPENDING DROVE SOME GAINS
Consumer spending remained the strong point of the
global economy, and the Fund benefited from a varied
group of positions in clothing, food, tobacco, and
media companies. We purchased a position in the
fashionable shoe and apparel company PUMA (Germany)
at an attractively low valuation. Its share price
spiked upward as analysts upgraded their earnings
forecasts for the firm. Unilever (United Kingdom)
also contributed to the Fund's return as
5
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Prudential Europe Growth Fund, Inc.
Annual Report April 30, 2003
investors were attracted to its dependable earnings.
An attempt to take over the U.K. department store
chain Selfridges raised its share price. Other
contributors included the publisher Reed Elsevier
(the Netherlands) and Imperial Tobacco (United
Kingdom).
Prudential Europe Growth Fund Management Team
- -----------------------------------------------------
The Portfolio of Investments following this report
shows the size of the Fund's positions at period-end.
6
<Page>
Prudential Europe Growth Fund, Inc.
Holdings expressed as a percentage of the Fund's net assets
Comments on Largest Holdings As of 4/30/03
- ------------------------------------------------------------
4.0% Royal Dutch Petroleum Co. (the Netherlands)/Oil & Gas
Royal Dutch owns 60% of the Royal Dutch/Shell Group,
one of the world's largest integrated oil and gas
companies. We expect stronger oil and natural gas
prices and improved refining margins to drive
positive earnings surprises. First quarter 2003
profits were nearly double those of first quarter
2002, while the firm's market valuation has been
below the Europe oil and gas sector average. Royal
Dutch continues to buy back its shares, has not cut
its dividend since 1945, and yielded a 4.5% dividend
at period-end.
3.8% Vodafone Group PLC (United Kingdom)/Telecommunications
Vodafone is the world's largest mobile phone network
operator. We expect new applications, such as
photomessaging, e-mail, videophones, mobile Internet,
games, betting, and online shopping, to drive
increased spending on mobile phones. We believe that
Vodafone's global franchise and market-leading
positions in several countries put it in the
strongest position to profit from these developments.
3.5% BP PLC (formerly BP Amoco) (United Kingdom)/Oil & Gas
BP, like Royal Dutch, is among the world's largest
integrated oil and gas companies and should benefit
from rising prices and improved refining margins.
First quarter 2003 earnings were 136% above first
quarter 2002. BP continues to buy back its shares.
(We are underweight in BP relative to the MSCI Europe
Index, preferring Royal Dutch because
of its lower valuation and greater exposure to
refining margins.)
3.2% GlaxoSmithKline PLC (United Kingdom)/Pharmaceuticals
GlaxoSmithKline is a major pharmaceutical and health-
related consumer product company. We think its shares
are inexpensive primarily because its pipeline is
perceived to be weak; however, it has at least 177 projects
in development. It has partnered with a generic drug firm to
minimize the impact of generic competition to Paxil (its
biggest seller by revenue). Productivity improvements
are raising its earnings. Share buy-backs also
support its share price, which currently is
attractive compared with similar firms.
2.9% HSBC Holdings PLC (United Kingdom)/Banks
HSBC is a banking and financial services group
offering a full range of personal, business,
corporate, and institutional services. Its
acquisition of U.S. lending giant Household
International adds geographic and business-line
diversity. We expect it to drive strong growth and
produce positive earnings surprises.
Holdings are subject to change.
7
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Prudential Europe Growth Fund, Inc.
Portfolio of Investments as of April 30, 2003
<Table>
<Caption>
Shares Description Value (Note 1)
- ----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS 98.7%
Common Stocks 98.2%
- -------------------------------------------------------------------------------------
Belgium 2.2%
41,292 Dexia $ 473,261
54,365 Fortis 912,497
20,153 UCB SA 557,771
--------------
1,943,529
- -------------------------------------------------------------------------------------
Finland 3.7%
55,801 Fortum Oyj 400,422
123,470 Nokia Oyj 2,088,935
28,605 TietoEnator Oyj 474,059
25,542 UPM-Kymmene Oyj 373,414
--------------
3,336,830
- -------------------------------------------------------------------------------------
France 14.2%
56,045 Arcelor(a) 634,219
22,727 Aventis SA 1,154,286
26,310 BNP Paribas SA 1,234,964
23,827 Carrefour SA 1,036,249
11,399 France Telecom SA 263,331
10,811 France Telecom SA(a) 248,661
4,800 Groupe Danone 679,242
10,947 L'Oreal SA 782,490
14,349 Lafarge SA 964,012
39,575 Orange SA(a) 317,110
15,376 PSA Peugeot Citroen 719,675
8,542 Sanofi-Synthelabo SA 509,532
11,505 Societe Generale 703,609
32,359 Thomson(a) 474,159
18,007 TotalFinaElf SA 2,361,259
8,797 Vinci SA 572,849
--------------
12,655,647
- -------------------------------------------------------------------------------------
Republic of Germany 8.4%
25,147 Bayer AG 458,847
16,267 Bayerische Motoren Werke AG 542,259
</Table>
8 See Notes to Financial Statements
<Page>
Prudential Europe Growth Fund, Inc.
Portfolio of Investments as of April 30, 2003 Cont'd.
<Table>
<Caption>
Shares Description Value (Note 1)
- ----------------------------------------------------------------------------------------
33,549 Continental AG(a) $ 600,174
14,330 Deutsche Bank AG 741,083
65,095 Deutsche Telekom AG 870,300
25,559 E.ON AG 1,223,388
12,888 Puma AG Rudolf Dassler Sport 1,237,515
3,034 SAP AG 310,830
19,754 Siemens AG 984,771
26,991 Singulus Technologies AG(a) 466,891
--------------
7,436,058
- -------------------------------------------------------------------------------------
Ireland 2.3%
64,115 Bank of Ireland 790,654
12,075 Depfa Bank PLC 660,309
47,975 Irish Life & Permanent PLC 556,817
--------------
2,007,780
- -------------------------------------------------------------------------------------
Italy 5.7%
69,462 ENI SpA 989,926
49,608 Merloni Elettrodomestici SpA 603,452
60,660 Permasteelisa SpA 1,103,454
60,568 Telecom Italia Mobile SpA 285,246
58,600 Telecom Italia SpA 288,404
168,785 Telecom Italia SpA 1,378,825
99,199 UniCredito Italiano SpA 433,968
--------------
5,083,275
- -------------------------------------------------------------------------------------
Netherlands 10.0%
33,410 ABN AMRO Holdings N.V. 564,504
32,279 Aegon N.V. 328,173
18,909 Akzo Nobel N.V. 420,361
33,238 ASML Holdings N.V.(a) 287,105
10,429 DSM N.V. 456,240
10,996 Heineken N.V. 408,274
67,274 ING Groep N.V. 1,092,382
68,115 Koninklijke (Royal) KPN N.V.(a) 453,057
23,835 Koninklijke (Royal) Philips Electronics N.V. 443,420
</Table>
See Notes to Financial Statements 9
<Page>
Prudential Europe Growth Fund, Inc.
Portfolio of Investments as of April 30, 2003 Cont'd.
<Table>
<Caption>
Shares Description Value (Note 1)
- ----------------------------------------------------------------------------------------
31,962 Koninklijke Vendex KBB N.V. $ 313,892
50,223 Reed Elsevier N.V. 571,699
87,376 Royal Dutch Petroleum Co. 3,573,802
--------------
8,912,909
- -------------------------------------------------------------------------------------
Spain 5.0%
70,389 Banco Bilbao Vizcaya Argentaria SA 708,558
67,587 Banco Santander Central Hispano SA 531,007
41,964 Endesa SA 595,233
159,324 Iberia Lineas Aereas de Espana SA 279,155
18,320 Industria de Diseno Textil SA 365,150
24,156 Repsol YPF SA 351,803
112,288 Telefonica SA(a) 1,241,859
2,245 Telefonica SA(a) 24,829
31,181 Vallehermoso SA 322,230
--------------
4,419,824
- -------------------------------------------------------------------------------------
Sweden 3.4%
30,951 AB SKF (Class 'B' Shares) 896,779
45,499 Assa Abloy AB (Class 'B' Shares) 433,869
19,566 Getinge AB (Class 'B' Shares) 442,524
50,627 Skandinaviska Enskilda Banken AB (Class 'A' Shares) 526,095
12,639 Tele2 AB (Class 'B' Shares)(a) 421,831
337,037 Telefonaktiebolaget LM Ericsson (Class 'B'
Shares)(a) 306,970
--------------
3,028,068
- -------------------------------------------------------------------------------------
Switzerland 9.1%
35,488 Credit Suisse Group(a) 847,756
8,906 Nestle SA 1,815,608
64,972 Novartis AG 2,562,856
16,053 Roche Holdings AG 1,021,436
7,522 Swiss Reinsurance 491,373
27,946 UBS AG 1,325,905
--------------
8,064,934
- -------------------------------------------------------------------------------------
United Kingdom 34.2%
86,481 Allied Domecq PLC 485,146
26,104 Anglo American PLC 373,818
</Table>
10 See Notes to Financial Statements
<Page>
Prudential Europe Growth Fund, Inc.
Portfolio of Investments as of April 30, 2003 Cont'd.
<Table>
<Caption>
Shares Description Value (Note 1)
- ----------------------------------------------------------------------------------------
36,852 AstraZeneca PLC $ 1,445,964
67,938 Aviva PLC 477,761
112,871 Barclays PLC 779,762
485,871 BP PLC 3,078,996
66,475 British Sky Broadcasting Group PLC(a) 688,991
186,506 BT Group PLC 534,314
239,998 Centrica PLC 637,697
94,311 Compass Group PLC 434,110
75,831 Debenhams PLC 393,890
67,618 Diageo PLC 750,009
145,530 GKN PLC 479,143
141,470 GlaxoSmithKline PLC 2,835,351
74,130 HBOS PLC 868,446
238,620 HSBC Holdings PLC 2,614,323
29,059 Imperial Tobacco Group PLC 486,264
239,074 Lloyds TSB Group PLC 1,572,342
181,799 Matalan PLC 547,706
171,095 MFI Furniture Group PLC 360,958
117,871 Premier Farnell PLC 382,182
31,707 Reckitt Benckiser PLC 559,207
72,539 Royal Bank of Scotland Group PLC 1,902,502
32,037 Severn Trent PLC 366,103
313,630 Tesco PLC 992,494
160,757 Tomkins PLC 544,692
163,528 Unilever PLC 1,607,356
1,705,924 Vodafone Group PLC 3,367,221
38,974 Whitbread PLC 385,888
67,163 WPP Group PLC 477,946
--------------
30,430,582
--------------
Total common stocks (cost $87,194,383) 87,319,436
--------------
</Table>
See Notes to Financial Statements 11
<Page>
Prudential Europe Growth Fund, Inc.
Portfolio of Investments as of April 30, 2003 Cont'd.
<Table>
<Caption>
Shares Description Value (Note 1)
- ----------------------------------------------------------------------------------------
Preferred Stocks 0.5%
- -------------------------------------------------------------------------------------
Republic of Germany
1,189 Porsche AG (cost $421,945) $ 437,885
--------------
Total Investments 98.7%
(cost $87,616,328; Note 5) 87,757,321
Other assets in excess of liabilities 1.3% 1,192,024
--------------
Net Assets 100% $ 88,949,345
--------------
--------------
</Table>
- ------------------------------
(a) Non-income producing security.
The following abbreviations are used in portfolio descriptions:
AB--Aktiebolag (Swedish Stock Company).
AG--Aktiengesellschaft (German Stock Company).
N.V.--Naamloze Vennootschap (Dutch Corporation).
Oyj--Osakehio (Finnish Corporation).
PLC--Public Limited Company (British Corporation).
SA--Sociedad Anomia (Spanish Corporation) or Societe Anonyme (French
Corporation).
SpA--Societa per Azioni (Italian Corporation).
12 See Notes to Financial Statements
<Page>
Prudential Europe Growth Fund, Inc.
Portfolio of Investments as of April 30, 2003 Cont'd.
The industry classification of portfolio holdings and other assets in excess of
liabilities shown as a percentage of net assets as of April 30, 2003 was as
follows:
<Table>
Telecommunication Service & Equipment.................................. 13.6%
Financial Services..................................................... 12.9
Oil & Natural Gas Production........................................... 12.8
Pharmaceuticals........................................................ 11.3
Banking................................................................ 9.4
Foods.................................................................. 5.1
Retail................................................................. 4.1
Automobiles & Auto Parts............................................... 3.1
Building & Construction................................................ 3.0
Diversified Operations................................................. 2.9
Electrical Power....................................................... 2.0
Electronic Components.................................................. 2.0
Beverages.............................................................. 1.9
Household Products..................................................... 1.7
Chemicals.............................................................. 1.5
Insurance.............................................................. 1.5
Apparel................................................................ 1.4
Media.................................................................. 1.2
Metals................................................................. 1.0
Computer Products & Services........................................... 0.9
Cosmetics & Toiletries................................................. 0.9
Television............................................................. 0.8
Steel.................................................................. 0.7
Tobacco................................................................ 0.6
Healthcare Equipment & Supplies........................................ 0.5
Public Works Construction.............................................. 0.5
Minerals............................................................... 0.4
Paper.................................................................. 0.4
Semiconductor Equipment & Devices...................................... 0.3
Transport Services..................................................... 0.3
-----
98.7%
Other assets in excess of liabilities.................................. 1.3
-----
100.0%
-----
-----
</Table>
See Notes to Financial Statements 13
<Page>
Prudential Europe Growth Fund, Inc.
Statement of Assets and Liabilities
<Table>
<Caption>
April 30, 2003
- ----------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $87,616,328) $ 87,757,321
Foreign currency, at value (cost $107,340) 108,410
Receivable for investments sold 1,341,809
Dividends and interest receivable 501,667
Receivable for Fund shares sold 357,260
Foreign tax reclaim receivable 259,240
Prepaid expenses 648
--------------
Total assets 90,326,355
--------------
LIABILITIES
Payable for investments purchased 437,277
Payable for Fund shares reacquired 389,904
Payable to custodian 240,902
Accrued expenses 209,513
Management fee payable 52,155
Distribution fee payable 34,672
Deferred directors' fees 12,587
--------------
Total liabilities 1,377,010
--------------
$ 88,949,345
--------------
--------------
NET ASSETS
Net assets were comprised of:
Common stock, at par $ 8,699
Paid-in capital in excess of par 127,459,395
--------------
127,468,094
Undistributed net investment income 518,436
Accumulated net realized loss on investments and foreign
currency transactions (39,214,628)
Net unrealized appreciation on investments and foreign
currencies 177,443
--------------
Net assets, April 30, 2003 $ 88,949,345
--------------
--------------
</Table>
14 See Notes to Financial Statements
<Page>
Prudential Europe Growth Fund, Inc.
Statement of Assets and Liabilities Cont'd.
<Table>
<Caption>
April 30, 2003
- ----------------------------------------------------------------------------------------
Class A:
Net asset value and redemption price per share ($53,019,192 /
5,062,813 shares of common stock issued and outstanding) $10.47
Maximum sales charge (5% of offering price) .55
Maximum offering price to public $11.02
--------------
--------------
Class B:
Net asset value, offering price and redemption price per share
($26,346,564 / 2,695,390 shares of common stock issued and
outstanding) $9.77
--------------
--------------
Class C:
Net asset value and redemption price per share ($4,677,207 /
477,705 shares of common stock issued and outstanding) $9.79
Sales charge (1% of offering price) .10
Offering price to public $9.89
--------------
--------------
Class Z:
Net asset value, offering price and redemption price per share
($4,906,382 / 463,520 shares of common stock issued and
outstanding) $10.59
--------------
--------------
</Table>
See Notes to Financial Statements 15
<Page>
Prudential Europe Growth Fund, Inc.
Statement of Operations
<Table>
<Caption>
Year
Ended
April 30, 2003
- ----------------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Dividends (net of foreign withholding taxes of $375,843) $ 2,763,988
Interest 5,961
--------------
Total income 2,769,949
--------------
Expenses
Management fee 766,403
Distribution fee--Class A 142,226
Distribution fee--Class B 339,887
Distribution fee--Class C 55,665
Transfer agent's fees and expenses 435,000
Custodian's fees and expenses 243,000
Reports to shareholders 65,000
Registration fees 65,000
Audit fee 39,000
Legal fees and expenses 30,000
Directors' fees 7,000
Miscellaneous 7,418
--------------
Total operating expenses 2,195,599
--------------
Loan interest expense (Note 7) 789
--------------
Total expenses 2,196,388
--------------
Net investment income 573,561
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investment transactions (27,462,306)
Foreign currency transactions 16,187
--------------
(27,446,119)
--------------
Net change in unrealized appreciation on:
Investments 1,632,795
Foreign currencies 23,375
--------------
1,656,170
--------------
Net loss on investments and foreign currencies (25,789,949)
--------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (25,216,388)
--------------
--------------
</Table>
16 See Notes to Financial Statements
<Page>
Prudential Europe Growth Fund, Inc.
Statement of Changes in Net Assets
<Table>
<Caption>
Year Ended April 30,
-------------------------------
2003 2002
- ----------------------------------------------------------------------------------
DECREASE IN NET ASSETS
Operations
Net investment gain (loss) $ 573,561 $ (260,975)
Net realized loss on investment and foreign
currency transactions (27,446,119) (6,065,433)
Net change in unrealized appreciation
(depreciation) on investments and foreign
currencies 1,656,170 (22,728,484)
-------------- -------------
Net decrease in net assets resulting from
operations (25,216,388) (29,054,892)
-------------- -------------
Fund share transactions (net of share
conversions)
(Note 6)
Net proceeds from shares sold 66,479,862 85,853,844
Cost of shares reacquired (90,336,475) (124,070,829)
-------------- -------------
Net decrease in net assets from Fund share
transactions (23,856,613) (38,216,985)
-------------- -------------
Total decrease (49,073,001) (67,271,877)
NET ASSETS
Beginning of year 138,022,346 205,294,223
-------------- -------------
End of year(a) $ 88,949,345 $ 138,022,346
-------------- -------------
-------------- -------------
- ------------------------------
(a) Includes undistributed net investment
income of: $ 518,436 --
-------------- -------------
</Table>
See Notes to Financial Statements 17
<Page>
Prudential Europe Growth Fund, Inc.
Notes to Financial Statements
Prudential Europe Growth Fund, Inc. (the 'Fund') is registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company. The investment objective of the Fund is to seek long-term capital
growth by investing primarily in equity securities of companies domiciled in
Europe. The Fund was incorporated in Maryland on March 18, 1994 and commenced
investment operations on July 13, 1994.
Note 1. Accounting Policies
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements.
Securities Valuation: Securities listed on a securities exchange or
Nasdaq (whether domestic or foreign) are valued at the last sale price on such
exchange or system on the day of valuation or, if there was no sale on such day,
at the mean between the last reported bid and asked price or at the last bid
price on such day in the absence of an asked price. Securities that are actively
traded in the over-the-counter market, including securities listed on exchanges
whose primary market is believed to be over-the-counter, are valued at market
value using prices provided by an independent pricing agent or principal market
maker. Securities for which reliable market quotations are not readily available
or for which the pricing agent or principal market maker does not provide a
valuation or methodology, or provides a valuation or methodology that, in the
judgment of the manager or subadviser, does not represent fair value, are valued
at fair value by a Valuation Committee appointed by the Board of Directors in
consultation with the manager and subadviser.
Short-term securities which mature in more than 60 days are valued at
current market quotations. Short-term securities which mature in 60 days or less
are valued at amortized cost, which approximates market value.
Repurchase Agreements: In connection with transactions in repurchase
agreements, it is the Fund's policy that its custodian or designated
subcustodians under triparty repurchase agreements, as the case may be, take
possession of the underlying collateral securities, the value of which exceeds
the principal amount of the repurchase transaction, including accrued interest.
To the extent that any repurchase transaction exceeds one business day, the
value of the collateral is marked-to-market on a daily basis to maintain the
adequacy of the collateral. If the seller defaults and the value of the
collateral declines or if bankruptcy proceedings are commenced with respect to
the seller of the security, realization of the collateral by the Fund may be
delayed or limited.
18
<Page>
Prudential Europe Growth Fund, Inc.
Notes to Financial Statements Cont'd.
Foreign Currency Translation: 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, other assets and
liabilities--at the closing daily rates of exchange;
(ii) purchases and sales of investment securities, income and expenses--at
the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Fund are presented at the foreign exchange
rates and market values at the close of the fiscal year, the Fund does not
isolate that portion of the results of operations arising as a result of changes
in the foreign exchange rates from the fluctuations arising from changes in the
market prices of securities held at the end of the fiscal year. Similarly, the
Fund does not isolate the effect of changes in foreign exchange rates from the
fluctuations arising from changes in the market prices of portfolio securities
sold during the year. Accordingly, such realized foreign currency gains and
losses are included in the reported net realized gain (loss) on investment
transactions.
Net realized gains (losses) on foreign currency transactions represent net
foreign exchange gains or losses from foreign currency contracts, disposition of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on security transactions, and the difference between the
amounts of interest, dividends and foreign taxes recorded on the Fund's books
and the U.S. dollar equivalent amounts actually received or paid. Net currency
gains and losses from valuing foreign currency denominated assets and
liabilities at year end exchange rates are reflected as a component of net
unrealized appreciation (depreciation) on investments and foreign currencies.
Foreign security and currency transactions may involve certain
considerations and risks not typically associated with those of domestic origin
as a result of, among other factors, the possibility of political and economic
instability and the level of governmental supervision and regulation of foreign
securities markets.
Securities Transactions and Net Investment Income: Securities
transactions are recorded on the trade date. Realized and unrealized gains and
losses from security and currency transactions are calculated on the identified
cost basis. Dividend income is recorded on the ex-dividend date, and interest
income, including amortization of premium and accretion of discount on debt
securities, as required is recorded on the accrual basis. Expenses are recorded
on the accrual basis which may require the use of certain estimates by
management.
19
<Page>
Prudential Europe Growth Fund, Inc.
Notes to Financial Statements Cont'd.
Net investment income or loss (other than distribution fees, which are
charged directly to the respective class) and unrealized and realized gains and
losses are allocated daily to each class of shares based upon the relative
proportion of net assets of each class at the beginning of the day.
Dividends and Distributions: The Fund expects to pay dividends of net
investment income and distributions of net realized capital and currency gains,
if any, annually. Dividends and distributions to shareholders, which are
determined in accordance with federal income tax regulations and which may
differ from generally accepted accounting principles, are recorded on the
ex-dividend date. Permanent book/tax differences relating to income and gains
are reclassified to paid in capital when they arise.
Taxes: For federal income tax purposes, it is the Fund's policy to
continue to meet the requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute all of its taxable net income
and capital gains, if any, to shareholders. Therefore, no federal income tax
provision is required.
Withholding taxes on foreign dividends are recorded, net of reclaimable
amounts, at the time the related income is earned.
Note 2. Agreements
The Fund has a management agreement with Prudential Investments LLC ('PI').
Pursuant to a subadvisory agreement between PI and Gartmore Global Partners
('Gartmore'), Gartmore furnishes investment advisory services in connection with
the management of the Fund. Under the subadvisory agreement, Gartmore, subject
to the supervision of PI, is responsible for managing the assets of the Fund in
accordance with its objectives and policies. PI pays for the services of
Gartmore, the compensation of officers of the Fund, occupancy and certain
clerical and bookkeeping costs of the Fund. The Fund bears all other costs and
expenses.
The management fee paid to PI is computed daily and payable monthly, at an
annual rate of .75 of 1% of the Fund's average daily net assets.
The Fund has a distribution agreement with Prudential Investments
Management Services LLC ('PIMS'), which acts as the distributor of the Class A,
Class B, Class C and Class Z shares. The Fund compensates PIMS for distributing
and servicing the Fund's Class A, Class B and Class C shares, pursuant to plans
of distribution (the 'Class A, B and C Plans'), regardless of expenses actually
incurred by PIMS. The distribution fees are accrued daily and payable monthly.
No distribution or service fees are paid to PIMS as distributor of the Class Z
shares of the Fund.
Pursuant to the Class A, B and C Plans, the Fund compensates PIMS for
distribution-related activities at an annual rate of up to .30 of 1%, 1% and
1%,of the
20
<Page>
Prudential Europe Growth Fund, Inc.
Notes to Financial Statements Cont'd.
average daily net assets of the Class A, B and C shares, respectively. PIMS has
contractually agreed to limit such fees to .25% on the average daily net assets
of the Class A shares.
PIMS has advised the Fund that it has received approximately $11,600 and
$3,500 in front-end sales charges resulting from sales of Class A shares and
Class C shares, respectively, during the year ended April 30, 2003. From these
fees, PIMS paid such sales charges to affiliated broker-dealers, which in turn
paid commissions to salespersons and incurred other distribution costs.
PIMS has also advised the Fund that for the year ended April 30, 2003, it
has received approximately $73,300 and $5,000 in contingent deferred sales
charges imposed upon certain redemptions by Class B and Class C shareholders,
respectively.
PI and PIMS are indirect, wholly-owned subsidiaries of Prudential
Financial, Inc. ('Prudential').
Note 3. Other Transactions With Affiliates
Prudential Mutual Fund Services LLC ('PMFS'), an affiliate of PI and an
indirect, wholly-owned subsidiary of Prudential, serves as the Fund's transfer
agent. During the year ended April 30, 2003, the Fund incurred fees of
approximately $284,000 for the services of PMFS. As of April 30, 2003
approximately $21,000 of such fees were due to PMFS. Transfer agent's fees and
expenses in the Statement of Operations include certain out-of-pocket expenses
paid to nonaffiliates.
The Fund pays networking fees to affiliated and unaffiliated
broker/dealers. These networking fees are payments made to broker/dealers that
clear mutual fund transactions through a national clearing system. The Fund
incurred approximately $46,100 in total networking fees, of which the amount
relating to the services of Prudential Securities, Inc. ('PSI'), an affiliate of
PI and an indirect, wholly-owned subsidiary of Prudential was approximately
$34,300 for the year ended April 30, 2003. As of April 30, 2003, approximately
$2,500 of such fees were due to PSI. These amounts are included in transfer
agent's fees and expenses in the Statement of Operations.
Note 4. Portfolio Securities
Purchases and sales of investment securities, other than short-term investments,
for the year ended April 30, 2003 were $109,212,795 and $132,453,527,
respectively.
Note 5. Tax Information
In order to present undistributed net investment income (loss) and accumulated
net realized gains (losses) on the Statement of Assets and Liabilities that more
closely
21
<Page>
Prudential Europe Growth Fund, Inc.
Notes to Financial Statements Cont'd.
represent their tax character, certain adjustments have been made to
paid-in-capital in excess of par, undistributed net investment income (loss) and
accumulated net realized gain (loss) on investments. For the year ended April
30, 2003, the adjustments were to increase net investment income and increase
accumulated net realized loss on investments by $16,187 due to reclassification
of net foreign currency gain. Net investment income, net realized losses and net
assets were not affected by this change.
As of April 30, 2003, the Fund had distributable earnings of $518,436 on a
tax basis. In addition, the approximate capital loss carryforward was
$21,367,000 which expires in 2011. Accordingly, no capital gain distribution is
expected to be paid to shareholders until net gains have been realized in excess
of such carryforward. The tax basis differs from the amount shown on the
Statement of Assets and Liabilities primarily due to the deferral for federal
tax purposes of post-October capital losses of approximately $11,445,000 and
other cumulative timing differences.
The United States federal income tax basis of the Fund's investments and
the net unrealized appreciation as of April 30, 2003 were as follows:
<Table>
<Caption>
Other Cost
Tax Basis Basis Net Unrealized
of Investments Appreciation Depreciation Adjustments Depreciation
- -------------- ------------ ------------ ----------- --------------
$ 94,019,169 $ 3,987,821 $(10,249,669) $36,450 $ (6,225,398)
</Table>
The differences between book and tax basis are primarily attributable to
deferred losses on wash sales.
Note 6. Capital
The Fund offers Class A, Class B, Class C and Class Z shares. Class A shares are
sold with a front-end sales charge of up to 5%. Class B shares are sold with a
contingent deferred sales charge which declines from 5% to zero depending on the
period of time the shares are held. Class C shares are sold with a front-end
sales charge of 1% and a contingent deferred sales charge of 1% during the first
18 months. Class B shares will automatically convert to Class A shares on a
quarterly basis approximately seven years after purchase. A special exchange
privilege is also available for shareholders who qualify to purchase Class A
shares at net asset value. Class Z shares are not subject to any sales or
redemption charge and are offered exclusively for sale to a limited group of
investors.
22
<Page>
Prudential Europe Growth Fund, Inc.
Notes to Financial Statements Cont'd.
There are 2 billion shares of $.001 par value common stock authorized and
divided into four classes, designated Class A, Class B, Class C and Class Z
Shares, each consisting of 500,000,000 authorized shares.
Transactions in shares of beneficial interest were as follows:
<Table>
<Caption>
Class A Shares Amount
- ---------------------------------------------------------- ----------- -------------
Year ended April 30, 2003:
Shares sold 4,038,386 $ 41,634,586
Shares reacquired (5,186,116) (54,080,349)
----------- -------------
Net decrease in shares outstanding before conversion (1,147,730) (12,445,763)
Shares issued upon conversion from Class B 586,256 6,129,468
----------- -------------
Net decrease in shares outstanding (561,474) $ (6,316,295)
----------- -------------
----------- -------------
Year ended April 30, 2002:
Shares sold 4,714,359 $ 61,890,072
Shares reacquired (6,223,329) (81,908,680)
----------- -------------
Net decrease in shares outstanding before conversion (1,508,970) (20,018,608)
Shares issued upon conversion from Class B 2,564,679 31,344,411
----------- -------------
Net increase in shares outstanding 1,055,709 $ 11,325,803
----------- -------------
----------- -------------
<Caption>
Class B
- ----------------------------------------------------------
Year ended April 30, 2003:
Shares sold 721,357 $ 7,089,117
Shares reacquired (1,530,900) (15,174,516)
----------- -------------
Net decrease in shares outstanding before conversion (809,543) (8,085,399)
Shares reacquired upon conversion into Class A (625,705) (6,129,468)
----------- -------------
Net decrease in shares outstanding (1,435,248) $ (14,214,867)
----------- -------------
----------- -------------
Year ended April 30, 2002:
Shares sold 575,785 $ 7,052,165
Shares reacquired (1,810,833) (22,212,729)
----------- -------------
Net decrease in shares outstanding before conversion (1,235,048) (15,160,564)
Shares reacquired upon conversion into Class A (2,715,664) (31,344,411)
----------- -------------
Net decrease in shares outstanding (3,950,712) $ (46,504,975)
----------- -------------
----------- -------------
<Caption>
Class C
- ----------------------------------------------------------
Year ended April 30, 2003:
Shares sold 824,684 $ 7,969,331
Shares reacquired (968,242) (9,417,156)
----------- -------------
Net decrease in shares outstanding (143,558) $ (1,447,825)
----------- -------------
----------- -------------
Year ended April 30, 2002:
Shares sold 569,403 $ 6,971,944
Shares reacquired (720,046) (8,872,616)
----------- -------------
Net decrease in shares outstanding (150,643) $ (1,900,672)
----------- -------------
----------- -------------
</Table>
23
<Page>
Prudential Europe Growth Fund, Inc.
Notes to Financial Statements Cont'd.
<Table>
<Caption>
Class Z Shares Amount
- ---------------------------------------------------------- ----------- -------------
Year ended April 30, 2003:
Shares sold 929,494 $ 9,786,828
Shares reacquired (1,093,443) (11,664,454)
----------- -------------
Net decrease in shares outstanding (163,949) $ (1,877,626)
----------- -------------
----------- -------------
Year ended April 30, 2002:
Shares sold 774,843 $ 9,939,663
Shares reacquired (853,995) (11,076,804)
----------- -------------
Net decrease in shares outstanding (79,152) $ (1,137,141)
----------- -------------
----------- -------------
</Table>
Note 7. Borrowings
The Fund, along with other affiliated registered investment companies ('the
Funds'), is a party to a syndicated credit agreement ('SCA') with a group of
banks. For the year ended April 30, 2003, the amount of the commitment was $500
million from May 1, 2002 through May 2, 2002. On May 3, 2002, the Funds renewed
and amended the SCA, which effectively increased the banks' commitment to $800
million and allows the Funds to increase the commitment to $1 billion, if
necessary. Interest on any borrowings under the SCA will be incurred at market
rates. The Funds pay a commitment fee of .08 of 1% of the unused portion of the
SCA. The commitment fee is accrued and paid quarterly and is allocated to the
Funds pro rata, based on net assets. The purpose of the SCA is to serve as an
alternative source of funds to facilitate capital share redemptions. The
expiration date of the SCA is May 2, 2003. On May 2, 2003, the SCA was renewed
under the same terms and conditions ('May 2003 renewal'). The expiration date of
the May 2003 renewal is April 30, 2004.
The Fund utilized the line of credit during the year ended April 30, 2003.
The average daily balances for the 4 days the Fund had debt outstanding during
the year ended was approximately $4,047,500 at a weighted average interest rate
of approximately 1.75%.
Note 8. Plan of Reorganization
On May 29, 2003, the Directors of the Fund approved an Agreement and Plan of
Reorganization and Liquidation (the 'Plan'), under which Europe Growth Fund will
transfer all of its assets to, and all of its liabilities will be assumed by
Prudential Global Growth Fund (which is a series of Prudential World Fund,
Inc.). Prudential Global Growth Fund will be the surviving fund, and each whole
and fractional share of each class of Europe Growth Fund will be exchanged for
whole and fractional shares of equal net asset value of the same class of Global
Growth Fund.
The Plan is subject to approval by the shareholders of Prudential Europe
Growth Fund at a shareholder meeting scheduled for September 17, 2003. If the
Plan is approved, it is expected that the reorganization will occur in September
2003. Europe Growth Fund will bear its proportional share of the costs of the
reorganization, including the cost of proxy solicitation.
24
<Page>
ANNUAL REPORT
APRIL 30, 2003
PRUDENTIAL
EUROPE GROWTH FUND, INC.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<Page>
Prudential Europe Growth Fund, Inc.
Financial Highlights
<Table>
<Caption>
Class A
--------------
Year Ended
April 30, 2003
- ----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:(a)
Net asset value, beginning of year $ 12.87
--------------
Income from investment operations
Net investment income (loss) .09
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (2.49)
--------------
Total from investment operations (2.40)
--------------
Less distributions
Distributions in excess of net investment income --
Distributions from net realized gains on investments and
foreign currency transactions --
--------------
Total distributions --
--------------
Net asset value, end of year $ 10.47
--------------
--------------
TOTAL RETURN(b) (18.65)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000) $ 53,019
Average net assets (000) $ 56,891
Ratios to average net assets:
Expenses, including distribution and service (12b-1) fees(c) 1.87%
Expenses, excluding distribution and service (12b-1) fees 1.62%
Net investment income (loss) .84%
For Class A, B, C and Z shares:
Portfolio turnover rate 107%
</Table>
- ------------------------------
(a) Based on weighted average shares outstanding, by class.
(b) Total return does not consider the effects of sales loads. Total return is
calculated assuming a purchase of shares on the first day and a sale on the
last day of each year reported and includes reinvestment of dividends and
distributions.
(c) For the year ended April 30, 2003, the distributor of the Fund contractually
agreed to limit its distribution and service (12b-1) fees to .25 of 1% of
the average net assets of Class A shares.
26 See Notes to Financial Statements
<Page>
Prudential Europe Growth Fund, Inc.
Financial Highlights Cont'd.
<Table>
<Caption>
Class A
- -------------------------------------------------------------------------------------
Year Ended April 30,
- -------------------------------------------------------------------------------------
2002 2001 2000 1999
- -------------------------------------------------------------------------------------
$ 15.03 $ 21.63 $ 18.80 $ 19.91
-------- -------- ---------------- --------
.02 (.05) (.04) .03
(2.18) (4.61) 3.83 .28
-------- -------- ---------------- --------
(2.16) (4.66) 3.79 .31
-------- -------- ---------------- --------
-- -- -- (.24)
-- (1.94) (.96) (1.18)
-------- -------- ---------------- --------
-- (1.94) (.96) (1.42)
-------- -------- ---------------- --------
$ 12.87 $ 15.03 $ 21.63 $ 18.80
-------- -------- ---------------- --------
-------- -------- ---------------- --------
(14.37)% (21.66)% 20.27% 2.03%
$ 72,367 $ 68,664 $104,031 $ 78,074
$ 66,709 $ 85,358 $ 85,317 $ 67,286
1.63% 1.43% 1.37% 1.43%
1.38% 1.18% 1.12% 1.18%
.17% (.27)% (.18)% .15%
212% 39% 79% 62%
</Table>
See Notes to Financial Statements 27
<Page>
Prudential Europe Growth Fund, Inc.
Financial Highlights Cont'd.
<Table>
<Caption>
Class B
--------------
Year Ended
April 30, 2003
- ----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:(a)
Net asset value, beginning of year $ 12.10
--------------
Income from investment operations
Net investment income (loss) .01
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (2.34)
--------------
Total from investment operations (2.33)
--------------
Less distributions
Distributions in excess of net investment income --
Distributions from net realized gains on investments and
foreign currency transactions --
--------------
Total distributions --
--------------
Net asset value, end of year $ 9.77
--------------
--------------
TOTAL RETURN(b) (19.26)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000) $ 26,347
Average net assets (000) $ 33,989
Ratios to average net assets:
Expenses, including distribution and service (12b-1) fees 2.62%
Expenses, excluding distribution and service (12b-1) fees 1.62%
Net investment income (loss) .08%
</Table>
- ------------------------------
(a) Based on weighted average shares outstanding, by class.
(b) Total return does not consider the effects of sales loads. Total return is
calculated assuming a purchase of shares on the first day and a sale on the
last day of each year reported and includes reinvestment of dividends and
distributions.
28 See Notes to Financial Statements
<Page>
Prudential Europe Growth Fund, Inc.
Financial Highlights Cont'd.
<Table>
<Caption>
Class B
- -------------------------------------------------------------------------------------
Year Ended April 30,
- -------------------------------------------------------------------------------------
2002 2001 2000 1999
- -------------------------------------------------------------------------------------
$ 14.23 $ 20.82 $ 18.26 $ 19.35
-------- ---------------- ---------------- ----------------
(.06) (.17) (.18) (.11)
(2.07) (4.48) 3.70 .30
-------- ---------------- ---------------- ----------------
(2.13) (4.65) 3.52 .19
-------- ---------------- ---------------- ----------------
-- -- -- (.10)
-- (1.94) (.96) (1.18)
-------- ---------------- ---------------- ----------------
-- (1.94) (.96) (1.28)
-------- ---------------- ---------------- ----------------
$ 12.10 $ 14.23 $ 20.82 $ 18.26
-------- ---------------- ---------------- ----------------
-------- ---------------- ---------------- ----------------
(14.97)% (22.50)% 19.38% 1.39%
$ 49,985 $114,966 $198,260 $196,247
$ 74,536 $153,025 $193,811 $191,220
2.38% 2.18% 2.12% 2.18%
1.38% 1.18% 1.12% 1.18%
(.49)% (1.00)% (.92)% (.57)%
</Table>
See Notes to Financial Statements 29
<Page>
Prudential Europe Growth Fund, Inc.
Financial Highlights Cont'd.
<Table>
<Caption>
Class C
--------------
Year Ended
April 30, 2003
- ----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:(a)
Net asset value, beginning of year $12.12
-------
Income from investment operations
Net investment income (loss) .01
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (2.34)
-------
Total from investment operations (2.33)
-------
Less distributions
Distributions in excess of net investment income --
Distributions from net realized gains on investments and
foreign currency transactions --
-------
Total distributions --
-------
Net asset value, end of year $ 9.79
-------
-------
TOTAL RETURN(b) (19.22)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000) $4,677
Average net assets (000) $5,567
Ratios to average net assets:
Expenses, including distribution and service (12b-1) fees 2.62%
Expenses, excluding distribution and service (12b-1) fees 1.62%
Net investment income (loss) .10%
</Table>
- ------------------------------
(a) Based on weighted average shares outstanding, by class.
(b) Total return does not consider the effects of sales loads. Total return is
calculated assuming a purchase of shares on the first day and a sale on the
last day of each year reported and includes reinvestment of dividends and
distributions.
30 See Notes to Financial Statements
<Page>
Prudential Europe Growth Fund, Inc.
Financial Highlights Cont'd.
<Table>
<Caption>
Class C
- -------------------------------------------------------------------------------------
Year Ended April 30,
- -------------------------------------------------------------------------------------
2002 2001 2000 1999
- -------------------------------------------------------------------------------------
$14.25 $ 20.83 $ 18.25 $ 19.38
------- -------- -------- --------
(.07) (.18) (.18) (.11)
(2.06) (4.46) 3.72 .26
------- -------- -------- --------
(2.13) (4.64) 3.54 .15
------- -------- -------- --------
-- -- -- (.10)
-- (1.94) (.96) (1.18)
------- -------- -------- --------
-- (1.94) (.96) (1.28)
------- -------- -------- --------
$12.12 $ 14.25 $ 20.83 $ 18.25
------- -------- -------- --------
------- -------- -------- --------
(14.95)% (22.40)% 19.45% 1.18%
$7,531 $ 10,996 $ 17,501 $ 15,073
$8,573 $ 14,393 $ 15,974 $ 13,465
2.38% 2.18% 2.12% 2.18%
1.38% 1.18% 1.12% 1.18%
(.54)% (1.02)% (.93)% (.61)%
</Table>
See Notes to Financial Statements 31
<Page>
Prudential Europe Growth Fund, Inc.
Financial Highlights Cont'd.
<Table>
<Caption>
Class Z
--------------
Year Ended
April 30, 2003
- ----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:(a)
Net asset value, beginning of year $12.97
-------
Income from investment operations
Net investment income (loss) .11
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (2.49)
-------
Total from investment operations (2.38)
-------
Less distributions
Distributions in excess of net investment income --
Distributions from net realized gains on investments and
foreign currency transactions --
-------
Total distributions --
-------
Net asset value, end of year $10.59
-------
-------
TOTAL RETURN(b) (18.35)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000) $4,906
Average net assets (000) $5,741
Ratios to average net assets:
Expenses, including distribution and service (12b-1) fees 1.62%
Expenses, excluding distribution and service (12b-1) fees 1.62%
Net investment income (loss) 1.05%
</Table>
- ------------------------------
(a) Based on weighted average shares outstanding, by class.
(b) Total return is calculated assuming a purchase of shares on the first day
and a sale on the last day of each year reported and includes reinvestment
of dividends and distributions.
32 See Notes to Financial Statements
<Page>
Prudential Europe Growth Fund, Inc.
Financial Highlights Cont'd.
<Table>
<Caption>
Class Z
- -------------------------------------------------------------------------------------
Year Ended April 30,
- -------------------------------------------------------------------------------------
2002 2001 2000 1999
- -------------------------------------------------------------------------------------
$15.10 $ 21.74 $ 18.83 $ 19.93
------- -------- -------- --------
.06 (.01) .01 .05
(2.19) (4.69) 3.86 .31
------- -------- -------- --------
(2.13) (4.70) 3.87 .36
------- -------- -------- --------
-- -- -- (.28)
-- (1.94) (.96) (1.18)
------- -------- -------- --------
-- (1.94) (.96) (1.46)
------- -------- -------- --------
$12.97 $ 15.10 $ 21.74 $ 18.83
------- -------- -------- --------
------- -------- -------- --------
(14.11)% (21.74)% 20.67% 2.35%
$8,140 $ 10,668 $ 15,516 $ 10,972
$8,486 $ 13,144 $ 12,455 $ 8,572
1.38% 1.18% 1.12% 1.18%
1.38% 1.18% 1.12% 1.18%
.46% (.03)% .08% .25%
</Table>
See Notes to Financial Statements 33
<Page>
Prudential Europe Growth Fund, Inc.
Report of Independent Auditors
To the Shareholders and Board of Directors of
Prudential Europe Growth Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio 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 Prudential Europe Growth Fund, Inc.
(the 'Fund') at April 30, 2003, 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 five years in the period
then ended, in conformity with accounting principles generally accepted in the
United States of America. 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 of America, 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 April 30, 2003 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
New York, New York
June 23, 2003
34
<Page>
Prudential Europe Growth Fund, Inc.
Federal Income Tax Information (Unaudited)
The Fund has elected to give the benefit of foreign tax credits to its
shareholders. Accordingly, shareholders who must report their gross income
dividends and distributions in a federal income tax return will be entitled to a
foreign tax credit, or an itemized deduction in computing their U.S. income tax
liability. It is generally more advantageous to claim rather than take a
deduction. For the fiscal year ended April 30, 2003 the Fund intends on passing
through $.04 per share of ordinary income distributions as a foreign tax credit.
For the purpose of preparing your annual federal income tax return,
however, you should report the amounts as reflected on the appropriate Form
1099-DIV or substitute 1099-DIV.
35
<Page>
Prudential Europe Growth Fund, Inc.
www.prudential.com (800) 225-1852
Management of the Fund (Unaudited)
Information pertaining to the Directors of the Fund is set forth below.
Directors who are not deemed to be 'interested persons' of the Fund as
defined in the Investment Company Act of 1940, as amended (the 1940 Act)
are referred to as 'Independent Directors.' Directors who are deemed to be
'interested persons' of the Fund are referred to as 'Interested
Directors.' 'Fund Complex' consists of the Fund and any other investment
companies managed by Prudential Investments LLC (PI).
Independent Directors1
<Table>
<Caption>
Number of
Term of Portfolios in
Office*** Fund ComplexD Other
Position and Length of Principal Occupations Overseen by Directorships Held
Name, Address** and Age With Fund Time Served During Past Five Years Director by the Director****
- ------------------------------------------------------------------------------------------------------------------------------------
Delayne Dedrick Gold (64) Director since 1996 Marketing Consultant 129 --
(1982-present); formerly
Senior Vice President and
Member of the Board of
Directors, Prudential Bache
Securities, Inc.
Robert E. La Blanc (69) Director since 1996 President (since 1981) of 108 Director of Storage
Robert E. La Blanc Associates, Technology Corporation
Inc. (telecommunications); (technology) (since
formerly General Partner at 1979), Chartered
Salomon Brothers and Semiconductor
Vice-Chairman of Continental Manufacturing, Ltd.
Telecom; Trustee of Manhattan (Singapore) (since
College. 1998), Titan
Corporation
(electronics) (since
1995), Computer
Associates
International, Inc.
(since 2002) (software
company); Director
(since 1999) of First
Financial Fund, Inc.
and Director (since
April 1999) of The High
Yield Plus Fund, Inc.
Robin B. Smith (63) Director since 1994 Chairman of the Board (since 100 Director of BellSouth
January 2003) of Publishers Corporation (since
Clearing House (direct 1992).
marketing), formerly Chairman
and Chief Executive Officer
(August 1996-December 2002) of
Publishers Clearing House.
Stephen Stoneburn (59) Director since 1996 President and Chief Executive 106 --
Officer (since June 1996) of
Quadrant Media Corp. (a
publishing company); formerly
President (June 1995 - June
1996) of Argus Integrated
Media, Inc.; Senior Vice
President and Managing
Director (January 1993 - 1995)
of Cowles Business Media and
Senior Vice President of
Fairchild Publications, Inc.
(1975 - 1989).
</Table>
36 37
<Page>
Prudential Europe Growth Fund, Inc.
www.prudential.com (800) 225-1852
Management of the Fund (Unaudited) Cont'd.
<Table>
<Caption>
Number of
Term of Portfolios in
Office*** Fund ComplexD Other
Position and Length of Principal Occupations Overseen by Directorships Held
Name, Address** and Age With Fund Time Served During Past Five Years Director by the Director****
- ------------------------------------------------------------------------------------------------------------------------------------
Clay T. Whitehead (64) Director since 1999 President (since 1983) of 125 Director (since 2000)
National Exchange Inc. (new of First Financial
business development firm). Fund, Inc., and
Director (since 2000)
of The High Yield Plus
Fund, Inc.
</Table>
Interested Directors
--------------------
<Table>
<Caption>
Number of
Term of Portfolios in
Office*** Fund ComplexD Other
Position and Length of Principal Occupations Overseen by Directorships Held
Name, Address** and Age With Fund Time Served During Past Five Years Director by the Director****
- ------------------------------------------------------------------------------------------------------------------------------------
*Robert F. Gunia (56) Director and since 1996 Executive Vice President and 188 Vice President and
Vice Chief Administrative Officer Director (since May
President (since June 1999) of PI; 1989) and Treasurer
Executive Vice President and (since 1999) of The
Treasurer (since January 1996) Asia Pacific Fund, Inc.
of PI; President (since April
1999) of Prudential Investment
Management Services LLC
(PIMS); Corporate Vice
President (since September
1997) of The Prudential
Insurance Company of America;
Director, Executive Vice
President and Chief
Administrative Officer (since
May 2003) of American Skandia
Investment Services, Inc.;
Director, Executive Vice
President and Chief
Administrative Officer (since
May 2003) of American Skandia
Advisory Services, Inc.;
Director and Executive Vice
President (since May 2003) of
American Skandia Fund
Services, Inc.; formerly
Senior Vice President (March
1987-May 1999) of Prudential
Securities Incorporated (PSI).
*Judy A. Rice (55) Director since 2000 President, Chief Executive 129 --
and Officer, Chief Operating
President since 2003 Officer and Officer-in-Charge
(since 2003) of PI; Director,
Officer-in-Charge, President,
Chief Executive Officer and
Chief Operating Officer (since
May 2003) of American Skandia
Advisory Services, Inc.;
Director, Officer-in-Charge,
</Table>
38 39
<Page>
Prudential Europe Growth Fund, Inc.
www.prudential.com (800) 225-1852
Management of the Fund (Unaudited) Cont'd.
<Table>
<Caption>
Number of
Term of Portfolios in
Office*** Fund ComplexD Other
Position and Length of Principal Occupations Overseen by Directorships Held
Name, Address** and Age With Fund Time Served During Past Five Years Director by the Director****
- ------------------------------------------------------------------------------------------------------------------------------------
President, Chief Executive
Officer and Chief Operating
Officer (since May 2003) of
American Skandia Investment
Services, Inc.; Director,
Officer-in-Charge, President,
Chief Executive Officer (since
May 2003) of American Skandia
Fund Services, Inc.; formerly
various positions to Senior
Vice President (1992-1999) of
PSI; and various positions to
Managing Director (1975-1992)
of Salomon Smith Barney;
Member of Board of Governors
of the Money Management
Institute.
</Table>
Information pertaining to the Officers of the Fund who are not also
Directors is set forth below.
Officers
--------
<Table>
<Caption>
Term of
Office***
Position and Length of Principal Occupations
Name, Address** and Age With Fund Time Served During Past Five Years
- --------------------------------------------------------------------------------------------
Marguerite E.H. Morrison (47) Chief Legal since 2003 Vice President and Chief Legal
Officer Officer - Mutual Funds and
and Unit Investment Trusts (since
Assistant since 2002 August 2000) of Prudential;
Secretary Senior Vice President and
Secretary (since April 2003)
of PI; Senior Vice President
and Secretary (since May 2003)
of American Skandia Investment
Services, Inc.; Senior Vice
President and Secretary (since
May 2003) of American Skandia
Advisory Services, Inc.;
Senior Vice President and
Secretary (since May 2003) of
American Skandia Fund
Services, Inc.; Vice President
and Assistant Secretary of
PIMS (since October 2001),
previously Senior Vice
President and Assistant
Secretary (February 2001-April
2003) of PI; Vice President
and Associate General Counsel
(December 1996-February 2001)
of PI and Vice President and
Associate General Counsel
(September 1987-September
1996) of PSI.
</Table>
40 41
<Page>
Prudential Europe Growth Fund, Inc.
www.prudential.com (800) 225-1852
Management of the Fund (Unaudited) Cont'd.
<Table>
<Caption>
Term of
Office***
Position and Length of Principal Occupations
Name, Address** and Age With Fund Time Served During Past Five Years
- --------------------------------------------------------------------------------------------
Grace C. Torres (44) Treasurer since 1995 Senior Vice President (since
and January 2000) of PI; Senior
Principal Vice President and Assistant
Financial Treasurer (since May 2003) of
and American Skandia Investment
Accounting Services, Inc. and American
Officer Skandia Advisory Services,
Inc.; formerly First Vice
President (December
1996-January 2000) of PI and
First Vice President (March
1993-1999) of PSI.
Jonathan D. Shain (44) Secretary since 2001 Vice President and Corporate
Counsel (since August 1998) of
Prudential; Vice President and
Assistant Secretary (since May
2003) of American Skandia
Investment Services, Inc.;
Vice President and Assistant
Secretary (since May 2003) of
American Skandia Fund
Services, Inc.; formerly
Attorney with Fleet Bank, N.A.
(January 1997 - July 1998) and
Associate Counsel (August 1994
-January 1997) of New York
Life Insurance Company.
Maryanne Ryan (38) Anti-Money Since 2002 Vice President, Prudential
Laundering (since November 1998); First
Compliance Vice President, PSI (March
Officer 1997-May 1998); Anti-Money
Laundering Officer of American
Skandia Investment Services,
Inc., American Skandia
Advisory Services, Inc. and
American Skandia Marketing,
Inc.
</Table>
42 43
<Page>
Prudential Europe Growth Fund, Inc.
www.prudential.com (800) 225-1852
Management of the Fund (Unaudited) Cont'd.
<Table>
1 Effective April 23, 2003, Nancy H. Teeters assumed the position of Trustee
Emeritus and David R. Odenath, Jr. resigned as Trustee of the Fund.
* 'Interested' Director, as defined in the 1940 Act, by reason of employment with
the Manager (Prudential Investments LLC or PI), the Subadviser (Gartmore Global
Partners or GGP) or the Distributor (Prudential Investment Management Services
LLC or PIMS).
** Unless otherwise noted, the address of the Directors and Officers is c/o:
Prudential Investments LLC, Gateway Center Three, 100 Mulberry Street, Newark, NJ
07102.
*** There is no set term of office for Directors and Officers. The Independent
Directors have adopted a retirement policy, which calls for the retirement of
Directors on December 31 of the year in which they reach the age of 75. The table
shows the individual's length of service as Director and/or Officer.
D The Fund Complex consists of all investment companies managed by PI. Effective
May 1, 2003, the Funds for which PI serves as manager include The Prudential
Mutual Funds, Strategic Partners Funds, American Skandia Advisor Funds, Inc., The
Prudential Variable Contract Accounts 2, 10, 11, The Target Portfolio Trust. The
Prudential Series Fund, Inc., American Skandia Trust, and Prudential's Gibraltar
Fund.
**** This column includes only directorships of companies required to register, or
file reports with the Commission under the Securities and Exchange Act of 1934
(i.e., 'public companies') or other investment companies registered under the
1940 Act.
</Table>
Additional information about the Fund's Directors is included in the Fund's
Statement of Additional Information which is available without charge, upon
request, by calling (800) 521-7466 or (732) 482-7555 (Calling from outside the
U.S.)
44 45
<Page>
Prudential Europe Growth Fund, Inc.
Growth of a $10,000 Investment
(CHART)
Average Annual Total Returns (With Sales Charge) As of 4/30/03
One Year Five Years Since Inception
Class A -22.72% -8.65% 3.01%
Class B -23.29% -8.57% 2.77%
Class C -20.83% -8.60% 2.67%
Class Z -18.35% -7.48% 2.38%
Average Annual Total Returns (Without Sales Charge) As of 4/30/03
One Year Five Years Since Inception
Class A -18.65% -7.71% 3.61%
Class B -19.26% -8.42% 2.77%
Class C -19.22% -8.42% 2.79%
Class Z -18.35% -7.48% 2.38%
Past performance is not indicative of future results.
Principal value and investment return will fluctuate
so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Source:
Prudential Investments LLC and Lipper Inc. Inception
dates: Class A, B, and C, 7/13/94; Class Z, 4/15/96.
The graph compares a $10,000 investment in the
Prudential Europe Growth Fund, Inc. (Class A shares)
with a similar investment in the Morgan Stanley
Capital International Europe IndexSM (MSCI Europe
Index) by portraying the initial account values at
the commencement of operations of Class A shares
(July 13, 1994) and the account values at the end of
the current fiscal year (April 30, 2003), as measured
on a quarterly basis. For purposes of the graph, and
unless otherwise indicated, it has been assumed that
(a) the maximum applicable front-end sales charge was
deducted from the initial $10,000 investment in Class
A shares; (b) all recurring fees (including
management fees) were deducted; and (c) all dividends
and distributions were reinvested. The line graph
provides information for Class A shares only. As
indicated in the tables, performance for Class B,
Class C, and Class Z shares will vary due
<Page>
www.prudential.com (800) 225-1852
to the differing charges and expenses applicable to
each class (as indicated below). Without the
distribution and service (12b-1) fee waiver of 0.05%
for Class A shares, the returns on investment in the
graph and returns for Class A shares in the tables
would have been lower.
The MSCI Europe Index is a free float-adjusted market
capitalization index that is designed to measure
developed market equity performance in Europe. As of
September 2002, the MSCI Europe Index consisted of
the following 16 developed market country indexes:
Austria, Belgium, Denmark, Finland, France, Germany,
Greece, Ireland, Italy, the Netherlands, Norway,
Portugal, Spain, Sweden, Switzerland, and the United
Kingdom. The MSCI Europe Index's total returns
include the reinvestment of all dividends, but do not
include the effects of sales charges, operating
expenses of a mutual fund, or taxes. These returns
would be lower if they included the effects of sales
charges, operating expenses, or taxes. The securities
that comprise the MSCI Europe Index may differ
substantially from the securities in the Fund. The
MSCI Europe Index is not the only index that may be
used to characterize performance of
global/international stock funds. Other indexes may
portray different comparative performance. Investors
cannot invest directly in an index. This graph is
furnished to you in accordance with Securities and
Exchange Commission regulations.
The Fund charges a maximum front-end sales charge of
5% for Class A shares in most circumstances, and a
12b-1 fee of up to 0.30% annually. In some
circumstances, Class A shares may not be subject to a
front-end sales charge, but may be subject to a 1%
contingent deferred sales charge (CDSC) for the first
year. Class B shares are subject to a declining CDSC
of 5%, 4%, 3%, 2%, 1%, and 1% for the first six years
respectively after purchase, and a 12b-1 fee of 1.00%
annually. Approximately seven years after purchase,
Class B shares will automatically convert to Class A
shares on a quarterly basis. Class C shares are
subject to a front-end sales charge of 1%, a CDSC of
1% for shares redeemed within 18 months of purchase,
and a 12b-1 fee of 1.00% annually. Class Z shares are
not subject to a sales charge or 12b-1 fee. The
returns in the graph and the tables do not reflect
the deduction of taxes that a shareholder would pay
on fund distributions or following the redemption of
fund shares.
<Page>
FOR MORE INFORMATION
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852
Visit Prudential's website at:
www.prudential.com
Directors
Delayne Dedrick Gold
Robert F. Gunia
Robert E. La Blanc
Judy A. Rice
Robin B. Smith
Stephen Stoneburn
Clay T. Whitehead
Officers
Judy A. Rice, President
Robert F. Gunia, Vice President
Grace C. Torres, Treasurer
Marguerite E.H. Morrison, Chief Legal Officer
and Assistant Secretary
Jonathan D. Shain, Secretary
Maryanne Ryan, Anti-Money Laundering
Compliance Officer
Manager
Prudential Investments LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
Investment Adviser
Gartmore Global Partners
1200 River Road
Conshohocken, PA 19428
Distributor
Prudential Investment
Management Services LLC
Gateway Center Three, 14th Floor
Newark, NJ 07102-4077
Custodian
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
Transfer Agent
Prudential Mutual Fund Services LLC
PO Box 8098
Philadelphia, PA 19101
Independent Auditors
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
Legal Counsel
Sullivan & Cromwell LLP
125 Broad Street
New York, NY 10004-2498
Mutual funds are not insured by the FDIC or any
federal government agency, are not a deposit of or
guaranteed by any bank or any bank affiliate, and may
lose value.
Fund Symbols Nasdaq CUSIP
Class A PRAEX 74431N103
Class B PRBEX 74431N202
Class C PEUCX 74431N301
Class Z PIEUX 74431N400
MF160E IFS-A080886
<Page>
Item 2. Code of Ethics -- Not required in this filing
Item 3. Audit Committee Financial Expert -- Not required in this filing
Item 4. Principal Accountant Fees and Services -- Not required in this filing
Item 5. Reserved
Item 6. Reserved
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies -- Not required in this filing
Item 8. Reserved
Item 9. Controls and Procedures
(a) It is the conclusion of the registrant's principal executive
officer and principal financial officer that the effectiveness of
the registrant's current disclosure controls and procedures (such
disclosure controls and procedures having been evaluated within 90
days of the date of this filing) provide reasonable assurance that
the information required to be disclosed by the registrant has been
recorded, processed, summarized and reported within the time period
specified in the Commission's rules and forms and that the
information required to be disclosed by the registrant has
been accumulated and communicated to the registrant's
principal executive officer and principal financial officer
in order to allow timely decisions regarding required disclosure.
(b) There have been no significant changes in the registrant's
internal controls or in other factors that could significantly
affect these controls subsequent to the date of their evaluation,
including any corrective actions with regard to significant
deficiencies and material weaknesses.
Item 10. Exhibits
(a) Code of Ethics. -- Not required in this filing
(b) Certifications pursuant to Section 302 of the
Sarbanes-Oxley Act -- Attached hereto
<Page>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
Prudential Europe Growth Fund, Inc.
/s/ Jonathan Shain
- --------------------------------
Jonathan Shain
Secretary of the Fund
Prudential Europe Growth Fund
Date: June 30, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
/s/ Judy A. Rice
- --------------------------------
Judy A. Rice
President of
Prudential Europe Growth Fund, Inc.
Date: June 30, 2003
/s/ Grace C. Torres
- --------------------------------
Grace C. Torres
Treasurer of
Prudential Europe Growth Fund, Inc.
Date: June 30, 2003
Attached hereto as an exhibit are the certifications pursuant to
Section 906 of the Sarbanes-Oxley Act.