Form of Letter to Brokers, Dealers,
             Commercial Banks, Trust Companies and Other Nominees
                            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

To Brokers, Dealers, Commercial Banks,
Trust Companies and Other Nominees:

  Pursuant to your request, we are enclosing the material listed below
relating to the offer by The Italy Fund Inc. (the "Fund") to purchase
2,012,879 of its issued and outstanding shares of common stock, par value
$0.01 per share (the "Shares"), for cash at a price equal to 98% of their net
asset value ("NAV") determined as of the close of the regular trading session
of the New York Stock Exchange ("NYSE") on September 6, 2000 upon the terms
and subject to the conditions set forth in the 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"). THE
OFFER EXPIRES AT 12:00 MIDNIGHT EASTERN TIME ON SEPTEMBER 5, 2000, UNLESS
EXTENDED (THE "EXPIRATION DATE"). If the Offer is extended beyond September 5,
2000, the purchase price for Shares will be 98% of their NAV determined as of
the close of the regular trading session of the NYSE on the date after the new
Expiration Date.

  The following documents are enclosed:

    (1) Offer to Purchase dated August 7, 2000;

    (2) Letter of Transmittal to be used to tender all Shares;

    (3) Notice of Guaranteed Delivery; and

    (4) Form of Letter to Clients, which may be sent upon request for
  information by your clients for whose account you hold shares registered in
  your name (or in the name of your nominee).

  No fees or commissions will be payable to brokers, dealers or other persons
for soliciting tenders of Shares pursuant to the Offer. The Fund will pay all
transfer taxes on its purchase of Shares, subject to Instruction 6 of the
Letter of Transmittal. Backup withholding tax at a 31% rate may be required
unless an exemption is proved or unless the required taxpayer identification
information is or has previously been provided to the Fund or the Depositary.
Certain withholdings may also apply with respect to payments to non-U.S.
shareholders. See Instruction 11 of the Letter of Transmittal.

  The Offer is not being made to (nor will tenders be accepted from or on
behalf of) shareholders in any jurisdiction in which the making of the Offer
or the acceptance thereof would not be in compliance with the laws of such
jurisdiction. In any jurisdiction where the securities, blue sky or other laws
require the Offer to be made by a licensed broker or dealer, the Offer shall
be deemed to be made on behalf of the Fund by one or more registered brokers
or dealers licensed under the laws of that jurisdiction.

  Additional copies of the enclosed material may be obtained from Georgeson
Shareholder Communications Inc., the Information Agent, in the manner
indicated in the Offer to Purchase. Any questions you have with respect to the
Offer should be directed to the Information Agent at (800) 223-2064.

                                          Very truly yours,

                                          The Italy Fund Inc.



 NOTHING CONTAINED HEREIN OR IN THE ENCLOSED DOCUMENTS SHALL CONSTITUTE YOU
 OR ANY OTHER PERSON AS THE AGENT OF EITHER THE FUND OR THE DEPOSITARY OR
 AUTHORIZE YOU OR ANY OTHER PERSON TO MAKE ANY STATEMENTS WITH RESPECT TO THE
 OFFER, OTHER THAN THE STATEMENTS SPECIFICALLY SET FORTH IN THE OFFER TO
 PURCHASE AND THE LETTER OF TRANSMITTAL, OR TO DISTRIBUTE ANY MATERIAL WITH
 RESPECT TO THE OFFER OTHER THAN AS SPECIFICALLY AUTHORIZED HEREIN.