NOTICE OF GUARANTEED DELIVERY Regarding the Offer by THE ITALY FUND INC. To Purchase for Cash 2,012,879 of Its Issued and Outstanding Shares at 98% of the Net Asset Value Per Share This form must be used to accept the Offer (as defined below) if a shareholder's certificates for Shares are not immediately available or if time will not permit the Letter of Transmittal and other required documents to reach the Depositary on or before the Expiration Date. Each term used in this form that is not otherwise defined herein shall have the meaning specified in the Offer to Purchase dated August 7, 2000. This form may be delivered by hand, overnight courier or mail to the Depositary at the appropriate address set forth below and must bear original signatures (not photocopies or facsimiles). Tenders using this form may be made only by or through an Eligible Institution as defined in Section 4(b) of the Offer to Purchase. The Depositary: PFPC, Inc. Depositary Addresses: By First Class Mail: By Registered, By Hand: Certified or Express Mail or Overnight Courier: PFPC, Inc. PFPC, Inc. Securities Transfer & c/o EquiServe Trust c/o Equiserve Trust Reporting Company, N.A. Company, N.A. Services, Inc. Attn: Corporate Actions Attn: Corporate Actions c/o Equiserve Trust P.O. Box 9573 40 Campanelli Drive Company, N.A. Boston, MA 02205-9573 Braintree, MA 02184 100 William Street New York, NY 10038 Depositary Telephone Number to Confirm Receipt of Notices: (800) 331-1710 DELIVERY OF THIS INSTRUMENT TO AN ADDRESS OTHER THAN AS SET FORTH ABOVE DOES NOT CONSTITUTE VALID DELIVERY. Ladies and Gentlemen: The undersigned hereby tenders to The Italy Fund Inc. (the "Fund"), upon the terms and subject to the conditions set forth in its Offer to Purchase dated August 7, 2000 and the related Letter of Transmittal (which together with any amendments or supplements thereto collectively constitute the "Offer"), receipt of which are hereby acknowledged, (i) the number of Shares specified below pursuant to the guaranteed delivery procedures set forth in Section 4(c) of the Offer to Purchase and (ii) all Shares held in the name(s) of the registered holder(s) by the Fund's transfer agent pursuant to the Fund's Dividend Reinvestment Plan. (Please Print Except for Signature(s)) Number of Shares Tendered: __________ Name(s) of Record Holder(s): ________ Certificate Nos. (if available): ____ _____________________________________ _____________________________________ _____________________________________ _____________________________________ DTC Participant Number: _____________ If Shares will be tendered by book- Telephone Number, including Area entry transfer to The Depository Code: _______________________________ Trust Company, please check box: [_] _____________________________________ Dated: _________ , 2000 Signature(s) ________________________ Individual(s): _____________________________________ _____________________________________ Entity: _____________________________________ _____________________________________ _____________________________________ Name of Firm: _______________________ Authorized Signature: _______________ Name: _______________________________ Title: ______________________________ 2 GUARANTEE The undersigned, an Eligible Institution as defined in Section 4(b) of the Offer to Purchase, hereby, with respect to the Shares tendered hereby pursuant to the guaranteed delivery procedures set forth in Section 4(c) of the Offer to Purchase: (a) represents that the person(s) named on the previous page "own(s)" such Shares within the meaning of Rule 14e-4 under the Securities Exchange Act of 1934, as amended; (b) represents that the tender of such Shares complies with Rule 14e-4; and (c) guarantees to deliver to the Depositary certificates representing such Shares, in proper form for transfer (or to tender Shares pursuant to the procedure for book-entry transfer into the Depositary's account at The Depository Trust Company if so specified on the foregoing page), together with a properly completed and duly executed Letter of Transmittal with any required signature guarantees and any other required documents prior to 5:00 P.M. Eastern Time on the second New York Stock Exchange trading day after the date of execution of this Guarantee. (Please Print Except for Signature) Name of Firm: __________________________________________________________ Authorized Signature: __________________________________________________ Name: __________________________________________________________________ Title: _________________________________________________________________ Address: _______________________________________________________________ (Include Zip Code) ________________________________________________________________________ Telephone Number, including Area Code: Dated: _________ , 2000 3