THE ITALY FUND INC. ANNOUNCES RESULTS OF TENDER OFFER

July _24_, 2001

FOR IMMEDIATE RELEASE

NEW YORK - PR Newswire - July 24, 2001 The Italy Fund Inc. (NYSE: ITA) announced
today that, in accordance with its tender offer for up to 1,691,573 shares of
its common stock which expired on July 19, 2001, the Fund has accepted that
number of shares for payment today at a price of $7.92 per share. These shares
represent 25% of the Fund's outstanding shares. A total of 4,381,047.047 shares
were properly tendered; therefore, on a pro-rated basis, 38.61% (full precision:
38.6112%) of the shares so tendered by each tendering stockholder have been
accepted for payment.

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."

Contact:  Brenda Grandell
          Director, Closed-End Funds
          Citigroup Asset Management
          212-783-3471