The Italy Fund Inc. Announces Expiration of Tender Offer and Preliminary Results

NEW YORK, July 20/PRNewswire/ -- The Italy Fund Inc. (NYSE: ITA) announced today
that its tender offer for up to 1,691,573 shares, which represents 25% of its
issued and outstanding shares of common stock, expired yesterday at 12:00
Midnight Eastern Time.

Based upon current information, approximately 4,401,680.047 shares were
tendered, of which approximately 58,058 were tendred pursuant to notices of
guaranteed delivery. Based on this preliminary information, the proration for
each tendering stockholder is estimated to be 38.94% of the shares properly
tendered. These figures are preliminary and subject to adjustment, and should
not be regarded as final. The actual proration of shares to be purchased will be
announced at a later date. The purchase price of properly tendered shares is 95%
of the net asset value per share determined as of the close of the regular
trading session of the New York Stock Exchange today.

The Italy Fund Inc., a non-diversified investment company, is managed by Smith
Barney Fund Management LLC, a wholly-owned subsidiary of Salomon Smith Barney
Holdings Inc., and is listed on the New York Stock Exchange under the symbol
"ITA." As of July 19, 2001, the Fund's net asset value per share was $8.36 and
its market price was $7.78 per share.