<Page>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(A) of the
Securities Exchange Act of 1934
Filed by the Registrant [ X ]
Filed by a Party other than the Registrant [ ]
Check the appropriate box:
[ ] Preliminary Proxy Statement
[ ] Confidential, for Use of the Commission Only
(as permitted by Rule 14a-(e)(2))
[X] Definitive Proxy Statement
[ ] Definitive Additional Materials
[ ] Soliciting Material Pursuant to ss.240.14a-11(c) or ss.240.14a-12
THE FIRST ISRAEL FUND, INC.
---------------------------------------------
(Name of Registrant as Specified in Its Charter)
---------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[X] No fee required.
[ ] Fee computed on the table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
(1) Title of each class of securities to which transaction applies: N/A
(2) Aggregate number of securities to which transaction applies: N/A
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the filing fee
is calculated and state how it was determined): N/A
(4) Proposed maximum aggregate value of transaction: N/A
(5) Total fee paid: N/A
<Page>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
THE FIRST ISRAEL FUND, INC.
466 LEXINGTON AVENUE
16TH FLOOR
NEW YORK, NEW YORK 10017
-------------------
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD ON TUESDAY, JANUARY 13, 2004
-----------------
TO THE SHAREHOLDERS OF
THE FIRST ISRAEL FUND, INC.:
NOTICE IS HEREBY GIVEN that the annual meeting of shareholders of The First
Israel Fund, Inc. (the "Fund") will be held at the offices of Credit Suisse
Asset Management, LLC, 466 Lexington Avenue (between 45th and 46th Streets),
16th Floor, New York, New York 10017, on Tuesday, January 13, 2004 commencing at
2:00 p.m., New York time, for the following purposes:
(1) To elect one (1) director of the Fund.
(2) To consider and act upon such other matters as may properly come
before the meeting or any adjournments thereof.
The close of business on November 28, 2003 has been fixed as the record date
for the determination of the shareholders entitled to notice of, and to vote at,
the meeting.
This notice and related proxy materials are first being mailed on or about
December 1, 2003.
By order of the Board of Directors,
/s/ Michael A. Pignataro
MICHAEL A. PIGNATARO
SECRETARY
Dated: December 1, 2003
New York, New York
WHETHER OR NOT YOU PLAN TO ATTEND THE MEETING IN PERSON, IT IS IMPORTANT THAT
YOUR SHARES BE REPRESENTED AND VOTED AT THE MEETING. ACCORDINGLY, PLEASE DATE,
SIGN AND RETURN THE ENCLOSED PROXY CARD PROMPTLY. NO POSTAGE IS REQUIRED IF
MAILED IN THE UNITED STATES. IT IS IMPORTANT THAT YOUR PROXY CARD BE RETURNED
PROMPTLY IN ORDER TO AVOID THE ADDITIONAL EXPENSE OF FURTHER SOLICITATION.
<Page>
THE FIRST ISRAEL FUND, INC.
466 LEXINGTON AVENUE
16TH FLOOR
NEW YORK, NEW YORK 10017
-------------------
PROXY STATEMENT FOR THE
ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD ON TUESDAY, JANUARY 13, 2004
-----------------
This Proxy Statement is furnished in connection with a solicitation of
proxies by the Board of Directors (the "Board") of The First Israel Fund, Inc.
(the "Fund") for use at the annual meeting of shareholders to be held at the
offices of Credit Suisse Asset Management, LLC, 466 Lexington Avenue (between
45th and 46th Streets), 16th Floor, New York, New York 10017, on Tuesday,
January 13, 2004 commencing at 2:00 p.m., New York time, and at any adjournments
thereof (collectively, the "Meeting"). A Notice of Annual Meeting of
Shareholders and a proxy card (the "Proxy") accompany this Proxy Statement.
Proxy solicitations will be made primarily by mail, but solicitations may also
be made by telephone, telegraph or personal interviews conducted by officers or
employees of the Fund, Credit Suisse Asset Management, LLC ("CSAM"), the
investment adviser to the Fund, Bear Stearns Funds Management Inc., the
administrator of the Fund (the "Administrator") or Georgeson Shareholder
Communications Inc. ("Georgeson"), a proxy solicitation firm that has been
retained by the Fund and which will receive a fee not to exceed $5,000 and will
be reimbursed for its reasonable out-of-pocket expenses. All costs of
solicitation, including (a) printing and mailing of this Proxy Statement and
accompanying material, (b) the reimbursement of brokerage firms and others for
their expenses in forwarding solicitation material to the beneficial owners of
the Fund's shares, (c) payment of Georgeson for its services in soliciting
Proxies and (d) supplementary solicitations to submit Proxies, will be borne by
the Fund. This Proxy Statement is expected to be mailed to shareholders on or
about December 1, 2003.
The principal executive office of CSAM is 466 Lexington Avenue, 16th Floor,
New York, New York 10017. The principal executive office of the Administrator is
383 Madison Avenue, 23rd Floor, New York, New York 10179. Credit Suisse Asset
Management Limited ("CSAM Limited"), located at Beaufort House, 15 St. Botolph
Street, London EC3A 7JJ, England, serves as investment sub-adviser to the Fund.
The Fund's Annual Report containing audited financial statements for the
fiscal year ended September 30, 2003 accompanies this Proxy Statement. It is not
to be regarded as proxy-soliciting material.
If the enclosed Proxy is properly executed and returned in time to be voted
at the Meeting, the shares represented thereby will be voted in accordance with
the instructions marked on the Proxy. If no instructions are marked on the
Proxy, the Proxy will be voted FOR the election of the nominee for director,
and, in accordance with the judgment of the persons named in the Proxy on any
other matters that may properly come before the Meeting and that are deemed
appropriate. Any shareholder giving a Proxy has the right to attend the Meeting
to vote his or her shares in person (thereby revoking any prior Proxy) and also
the right to revoke the Proxy at any time by written notice received by the Fund
prior to the time such Proxy is voted.
A quorum of shareholders is constituted by the presence in person or by
proxy of the holders of a majority of the outstanding shares of the Fund
entitled to vote at the Meeting. In the event that a quorum is not present at
the Meeting, the holders of a majority of the shares present in person or by
proxy will have
1
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the power to adjourn the Meeting, without notice other than an announcement at
the Meeting, until the requisite number of shares entitled to vote at the
Meeting is present. In the event that a quorum is present at the Meeting but
sufficient votes to approve any of the proposals are not received, the persons
named as proxies may propose one or more adjournments of the Meeting to permit
further solicitation of Proxies. Any such adjournment will require the
affirmative vote of a majority of the Fund's shares represented at the Meeting
in person or by proxy and the persons named as proxies will vote those Proxies
that they are entitled to vote "FOR" or "AGAINST" any such proposal in their
discretion. Absent the establishment of a subsequent record date and the giving
of notice to the holders of record thereon, the adjourned Meeting must take
place not more than 120 days after the record date. At such adjourned Meeting,
any business may be transacted which might have been transacted at the original
Meeting. If a quorum is present, a shareholder vote may be taken on one or more
of the proposals in the Proxy Statement prior to any adjournment if sufficient
votes have been received and it is otherwise appropriate. For purposes of
determining the presence of a quorum for transacting business at the Meeting,
abstentions and broker "non-votes" (which are proxies from brokers or nominees
indicating that such persons have not received instructions from the beneficial
owner or other persons entitled to vote shares on a particular matter with
respect to which the brokers or nominees do not have discretionary power) will
be treated as shares that are present but which have not been voted.
Approval of Proposal 1 will require the affirmative vote of a plurality of
votes cast at the Meeting in person or by proxy. Because abstentions and broker
non-votes are not treated as shares voted, any abstentions and broker non-votes
would have no impact on Proposal 1.
The Fund has one class of shares of capital stock, par value $0.001 per
share (the "Shares"). On the record date, November 28, 2003, there were
4,259,295 Shares issued and outstanding. Each Share is entitled to one vote at
the Meeting, and fractional Shares are entitled to proportionate shares of one
vote.
In order for your Shares to be represented at the Meeting, you are requested
to:
-- indicate your instructions on the Proxy;
-- date and sign the Proxy;
-- mail the Proxy promptly in the enclosed envelope;
-- allow sufficient time for the Proxy to be received on or before
2:00 p.m. on January 13, 2004.
PROPOSAL 1: ELECTION OF DIRECTOR
The only proposal to be submitted at the Meeting will be the election of one
(1) director of the Fund to hold office for the term set forth below and until
his successor is elected and qualified.
The Board is divided into three classes, each class having a term of no more
than three years. Each year the term of office of one class expires and the
successor or successors elected to such class will serve for a three-year term.
George W. Landau, a director whose current term expires on the date of this
Meeting, has been nominated for a three-year term to expire at the 2007 Annual
Meeting of Shareholders. Mr. Landau currently serves as a director of the Fund.
Mr. Landau has indicated an intention to continue to serve if elected
provided that the Nominating Committee continues to waive the normal retirement
age on an annual basis. Mr. Landau has consented to being named in this Proxy
Statement.
2
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The following tables set forth certain information regarding the nominee for
election to the Board, directors whose terms of office continue beyond the
Meeting, and the officers of the Fund. The current terms of office of the Fund's
officers will end at the Board of Directors' meeting next following the Meeting.
<Table>
<Caption>
NUMBER OF
PORTFOLIOS IN
FUND
POSITION(S) TERM OF OFFICE PRINCIPAL COMPLEX
HELD WITH AND LENGTH OF OCCUPATION(S) DURING OVERSEEN BY
NAME, ADDRESS AND AGE FUND TIME SERVED PAST FIVE YEARS DIRECTOR
- ----------------------------------- ------------ -------------------------------- -------------------- -----------------
NOMINEE FOR INDEPENDENT DIRECTOR:
George W. Landau .................. Director; Since 1995; current term ends at Senior Advisor, 5
c/o Credit Suisse Asset Nominating the 2004 annual meeting Latin America, The
Management, LLC and Audit Coca-Cola Company
466 Lexington Avenue Committee since 1988
New York, New York Member
10017-3140
Age: 83
INDEPENDENT DIRECTORS:
Enrique R. Arzac .................. Director; Since 1996; current term ends at Professor of Finance 8
c/o Credit Suisse Asset Nominating the 2006 annual meeting and Economics,
Management, LLC and Audit Graduate School of
466 Lexington Avenue Committee Business, Columbia
New York, New York 10017-3140 Member University since
Age: 62 1971
Jonathan W. Lubell ................ Director; Since 1992; current term ends at Partner, Van Lierop 1
Van Lierop & Burns Nominating the 2005 annual meeting & Burns since 2003;
320 Convent Avenue and Audit Partner, Morrison
New York, New York 10031 Committee Cohen Singer &
Age: 74 Member Weinstein from 1989
to 2003
Steven N. Rappaport ............... Director; Since 1992; current term ends at Partner of Lehigh 45
Lehigh Court, LLC Nominating the 2005 annual meeting Court, LLC and RZ
40 East 52nd Street and Audit Capital (private
New York, New York 10022 Committee investment firms)
Age: 55 Member since July 2002;
Consultant to
SunGard Securities
Finance, Inc. from
February 2002 to
July 2002; President
of SunGard
Securities Finance,
Inc. from 2001 to
February 2002;
President of Loanet,
Inc. (on-line
accounting service)
from 1997 to 2001
<Caption>
OTHER
DIRECTORSHIPS
HELD BY
NAME, ADDRESS AND AGE DIRECTOR
- ----------------------------------- -----------------
NOMINEE FOR INDEPENDENT DIRECTOR:
George W. Landau .................. Director of GAM
c/o Credit Suisse Asset Funds, Inc.
Management, LLC
466 Lexington Avenue
New York, New York
10017-3140
Age: 83
INDEPENDENT DIRECTORS:
Enrique R. Arzac .................. Director of The
c/o Credit Suisse Asset Adams Express
Management, LLC Company (a
466 Lexington Avenue closed-end
New York, New York 10017-3140 investment
Age: 62 company);
Director of
Petroleum and
Resources
Corporation (a
closed-end
investment
company)
Jonathan W. Lubell ................ None
Van Lierop & Burns
320 Convent Avenue
New York, New York 10031
Age: 74
Steven N. Rappaport ............... None
Lehigh Court, LLC
40 East 52nd Street
New York, New York 10022
Age: 55
</Table>
3
<Page>
<Table>
<Caption>
NUMBER OF
PORTFOLIOS IN
FUND
POSITION(S) TERM OF OFFICE PRINCIPAL COMPLEX
HELD WITH AND LENGTH OF OCCUPATION(S) DURING OVERSEEN BY
NAME, ADDRESS AND AGE FUND TIME SERVED PAST FIVE YEARS DIRECTOR
- ----------------------------------- ------------ -------------------------------- -------------------- -----------------
INTERESTED DIRECTOR:
William W. Priest, Jr.* ........... Director Since 1997; current term ends at Co-Managing Partner, 50
Steinberg Priest & Sloane Capital the 2006 annual meeting Steinberg Priest &
Management, LLC Sloane Capital
12 East 49th Street Management, LLC
12th Floor since March 2001;
New York, New York 10017 Chairman and
Age: 62 Managing Director of
CSAM from 2000 to
February 2001, Chief
Executive Officer
and Managing
Director of CSAM
from 1990 to 2000
<Caption>
OTHER
DIRECTORSHIPS
HELD BY
NAME, ADDRESS AND AGE DIRECTOR
- ----------------------------------- -----------------
INTERESTED DIRECTOR:
William W. Priest, Jr.* ........... Director of Globe
Steinberg Priest & Sloane Capital Wireless, L.L.C.
Management, LLC (a maritime
12 East 49th Street communications
12th Floor company);
New York, New York 10017 Director of
Age: 62 InfraRedX (a
medical device
company)
</Table>
<Table>
<Caption>
PRINCIPAL
OCCUPATION(S) DURING
NAME, ADDRESS AND AGE POSITION(S) HELD WITH FUND LENGTH OF TIME SERVED PAST FIVE YEARS
- ----------------------------------- -------------------------- -------------------------------- --------------------------------
OFFICERS:
Joseph D. Gallagher ............... Chairman of the Fund, Since 2003 Managing Director and Chief
Credit Suisse Asset Chief Executive Officer Executive Officer of CSAM since
Management, LLC and President 2003; Global Chief Financial
466 Lexington Avenue Officer, Credit Suisse Asset
New York, New York 10017-3140 Management since 1999; Chief
Age: 40 Executive Officer and Director
of Credit Suisse Asset
Management Limited, London,
England, from June 2000 to 2003;
Director of Credit Suisse Asset
Management Funds (UK) Limited,
London, England, from June 2000
to 2003; Managing Director,
Head -- Asian Corporate Finance
and M&A, Credit Suisse First
Boston, Hong Kong, China, from
January 1998 to May 1999;
Officer of other Credit Suisse
Funds
Yaroslaw Aranowicz ................ Chief Investment Officer Since 2003 Vice President of CSAM;
Credit Suisse Asset Associated with CSAM since 1998;
Management, LLC Officer of other Credit Suisse
466 Lexington Avenue Funds
New York, New York 10017-3140
Age: 40
Hal Liebes ........................ Senior Vice President Since 1997 Managing Director and Global
Credit Suisse Asset General Counsel of CSAM;
Management, LLC Associated with CSAM since 1997;
466 Lexington Avenue Officer of other Credit Suisse
New York, New York 10017-3140 Funds
Age: 39
</Table>
4
<Page>
<Table>
<Caption>
PRINCIPAL
OCCUPATION(S) DURING
NAME, ADDRESS AND AGE POSITION(S) HELD WITH FUND LENGTH OF TIME SERVED PAST FIVE YEARS
- ----------------------------------- -------------------------- -------------------------------- --------------------------------
Michael A. Pignataro .............. Chief Financial Officer Since 1993 Director and Director of Fund
Credit Suisse Asset and Secretary Administration of CSAM;
Management, LLC Associated with CSAM since 1984;
466 Lexington Avenue Officer of other Credit Suisse
New York, New York 10017-3140 Funds
Age: 44
Rocco A. Del Guercio .............. Vice President Since 1997 Vice President and
Credit Suisse Asset Administrative Officer of CSAM;
Management, LLC Associated with CSAM since 1996;
466 Lexington Avenue Officer of other Credit Suisse
New York, New York 10017-3140 Funds
Age: 40
Robert M. Rizza ................... Treasurer Since 1999 Assistant Vice President of CSAM
Credit Suisse Asset since January 2001; Associated
Management, LLC with CSAM since 1998; Officer of
466 Lexington Avenue other Credit Suisse Funds
New York, New York 10017-3140
Age: 37
</Table>
- ----------------
* Mr. Priest is an interested person of the Fund, as defined in the Investment
Company Act of 1940, as amended (the "1940 Act"), because he provided
consulting services to CSAM within the last two years.
Set forth in the table below is the dollar range of equity securities in the
Fund and the aggregate dollar range of equity securities in the CSAM Family of
Closed-End Investment Companies (as defined below) beneficially owned by each
director.
<Table>
<Caption>
AGGREGATE DOLLAR RANGE OF EQUITY
SECURITIES IN ALL FUNDS OVERSEEN BY
DIRECTOR IN CSAM FAMILY OF
DOLLAR RANGE OF EQUITY SECURITIES CLOSED-END INVESTMENT
NAME OF DIRECTOR OR NOMINEE IN THE FUND*(1)(2) COMPANIES*(1)(3)
- --------------------------- ------------------ ----------------
Nominee for Director:
George W. Landau ............. C D
Independent Directors:
Enrique R. Arzac ............. C E
Jonathan W. Lubell ........... B B
Steven N. Rappaport .......... C C
Interested Director:
William W. Priest, Jr. ....... B B
</Table>
- --------------
* Key to Dollar Ranges:
A. None
B. $1 -- $10,000
C. $10,001 -- $50,000
D. $50,001 -- $100,000
E. over $100,000
(1) This information has been furnished by each director as of September 30,
2003. "Beneficial Ownership" is determined in accordance with Rule
16a-1(a)(2) promulgated under the Securities Exchange Act of 1934, as
amended (the "1934 Act").
5
<Page>
(2) The Fund's directors and officers, in the aggregate, own less than 1% of
the Fund's outstanding equity securities.
(3) "CSAM Family of Closed-End Investment Companies" means those registered
closed-end investment companies that share CSAM as the investment adviser
and that hold themselves out to investors as related companies for purposes
of investment and investor services.
As of September 30, 2003, neither the independent nominee for election to
the Board of the Fund, nor the other independent directors nor their immediate
family members owned beneficially or of record any class of securities in CSAM
or in a person (other than a registered investment company) directly or
indirectly controlling, controlled by or under common control with CSAM.
During the fiscal year ended September 30, 2003, each director who was not a
director, officer, partner, co-partner or employee of CSAM, the Administrator,
or any affiliate thereof, received an annual fee of $5,000 and $500 for each
meeting of the Board attended by him and was reimbursed for expenses incurred in
connection with his attendance at the Board meetings. The total remuneration
paid or accrued by the Fund during the fiscal year ended September 30, 2003 to
all such unaffiliated directors was $36,500. Each director entitled to a fee
from the Fund receives fifty percent of his annual fee in the form of Fund
shares purchased by the Fund's transfer agent in the open market on his behalf.
During the fiscal year ended September 30, 2003, the Board convened six
times. Each director, with the exception of Mr. Priest, attended at least
seventy-five percent of the aggregate number of meetings of the Board and any
committee on which he served held during the period for which he was a director.
Messrs. Arzac, Rappaport, Landau and Lubell constitute the Fund's Audit
Committee, which is composed of directors who are not interested persons of the
Fund and who are independent (as such term is defined by the New York Stock
Exchange, Inc.'s listing standards). The Audit Committee convened once during
the fiscal year ended September 30, 2003. The Audit Committee advises the full
Board with respect to accounting, auditing and financial matters affecting the
Fund. The directors constituting the Fund's Audit Committee also constitute the
Fund's Nominating Committee, which is composed of directors who are not
interested persons of the Fund. The Nominating Committee did not meet during the
fiscal year ended September 30, 2003. The Nominating Committee selects and
nominates new independent directors. At a meeting of the Nominating Committee
held on November 21, 2003, the Nominating Committee nominated Mr. Landau for a 3
year term and decided to waive the normal retirement age of 72 for Messrs.
Landau and Lubell. The Nominating Committee will consider nominees recommended
by shareholders should a vacancy arise. Recommendations should be submitted to
the Nominating Committee in care of the Secretary of the Fund. The Fund does not
have a compensation committee. On December 13, 2002, the Board constituted a
special committee composed of Mr. Rappaport and Mr. Arzac to consider matters it
considers relevant to the future of the Fund in light of current market
considerations and various other matters. The committee monitors these matters
on an ongoing basis and will report to the full Board from time to time,
including making recommendations, if any, as it deems appropriate.
AUDIT COMMITTEE REPORT
Pursuant to the Audit Committee Charter adopted by the Fund's Board, the
Audit Committee is responsible for conferring with the Fund's independent
auditors, reviewing annual financial statements, recommending the selection of
the Fund's independent auditors and overseeing the Fund's internal controls. The
Fund's Audit Committee Charter also contains provisions relating to the
pre-approval by the Audit Committee of certain non-audit services to be provided
by PricewaterhouseCoopers LLP ("PwC") to the Fund and to CSAM and certain of its
affiliates. The Audit Committee advises the full Board with respect to
accounting, auditing and financial matters affecting the Fund. The independent
auditors are
6
<Page>
responsible for planning and carrying out the proper audits and reviews of the
Fund's financial statements and expressing an opinion as to their conformity
with accounting principles generally accepted in the United States of America.
The Audit Committee has met with Fund management to discuss, among other
things, the Fund's audited financial statements for the fiscal year ended
September 30, 2003. The Audit Committee has also met with the Fund's independent
auditors, PwC, and discussed with them certain matters required by Statement of
Auditing Standards No. 61, COMMUNICATIONS WITH AUDIT COMMITTEES, as currently
modified or supplemented, including, but not limited to, the scope of the Fund's
audit, the Fund's financial statements and the Fund's accounting controls. The
Audit Committee has received the written disclosures and the letter from PwC
required by the Securities and Exchange Commission's (the "SEC") independence
rules delineating relationships between the independent auditors and the Fund
and the impact that any such relationships may have on the objectivity and
independence of the independent auditors. The Audit Committee has discussed with
PwC their independence and has considered whether the provision of services by
PwC to the Fund and to CSAM was compatible with maintaining PwC's independence.
The members of the Audit Committee are not professionally engaged in the
practice of auditing or accounting and are not employed by the Fund for
accounting, financial management or internal control. Moreover, the Audit
Committee relies on and makes no independent verification of the facts presented
to it or representations made by management or the independent auditors.
Accordingly, the Audit Committee's oversight does not provide an independent
basis to determine that management has maintained appropriate accounting and
financial reporting principles and policies, or internal controls and
procedures, designed to assure compliance with accounting standards and
applicable laws and regulations. Furthermore, the Audit Committee's
considerations and discussions referred to above do not provide assurance that
the audit of the Fund's financial statements has been carried out in accordance
with generally accepted auditing standards or that the financial statements are
presented in accordance with generally accepted accounting principles.
Based upon these reviews and discussions, the Audit Committee recommended to
the Board that the Fund's audited financial statements be included in the Fund's
2003 Annual Report to Shareholders for the fiscal year ended September 30, 2003
and be mailed to shareholders and filed with the SEC.
SUBMITTED BY THE AUDIT COMMITTEE OF THE FUND'S BOARD OF DIRECTORS
Enrique R. Arzac
George W. Landau
Jonathan W. Lubell
Steven N. Rappaport
INDEPENDENT AUDITORS
At a meeting held on November 21, 2003, the Board, including the independent
directors, approved the selection of PwC for the fiscal year ending
September 30, 2004. PwC has been the Fund's independent auditors since the Fund
commenced operations and has informed the Fund that it has no material direct or
indirect financial interest in the Fund. A representative of PwC will be
available by telephone at the Meeting and will have the opportunity to make a
statement if the representative so desires and will be available to respond to
appropriate questions.
7
<Page>
The following table shows the aggregate fees PwC billed to the Fund, to CSAM
and to any entity controlling, controlled by or under common control with CSAM
that provides services to the Fund for their professional services rendered for
the fiscal year ended September 30, 2003.
<Table>
<Caption>
CSAM AND
FUND CERTAIN AFFILIATES
----------- ------------------
Audit Fees $51,000 $ 0
Financial Information Systems
Design and Implementation Fees 0 0
All Other Fees $34,000* $738,000**
</Table>
- ----------------
* Fees are comprised of: (1) $20,500 in tax services in connection with review
of excise tax calculations and review and signing of applicable tax returns
in the U.S. and in Israel; (2) $8,500 related to an attest exam performed in
connection with compliance with the Fund's tax covenants with the
Commissioner of Income Tax & Property Tax in Israel; and (3) $5,000 related
to agreed upon procedures in connection with the Fund's semiannual
reporting.
** Fees are comprised of: (1) $312,000 in connection with expatriate tax
consulting services, (2) $176,000 in connection with other tax related
services and (3) $250,000 in connection with financial statement audits.
COMPENSATION
The following table shows certain compensation information for the directors
for the fiscal year ended September 30, 2003. All officers of the Fund are
employees of and are compensated by CSAM. None of the Fund's executive officers
or directors who are also officers or directors of CSAM received any
compensation from the Fund for such period. The Fund has no bonus, profit
sharing, pension or retirement plans.
<Table>
<Caption>
TOTAL
COMPENSATION FROM
FUND AND
AGGREGATE FUND COMPLEX
COMPENSATION PAID TO
NAME OF DIRECTOR FROM FUND DIRECTORS*
- ---------------- ------------ -----------------
Independent Directors:
Enrique R. Arzac ............. $8,500 $81,000
George W. Landau ............. 8,500 41,000
Jonathan W. Lubell ........... 7,500 7,500
Steven N. Rappaport .......... 8,500 78,142
Interested Director:
William W. Priest, Jr. ....... 3,500 53,938
</Table>
- ----------------
* 51 funds comprise the Fund Complex. See the "Directors" table for the number
of funds each director serves.
THE BOARD OF DIRECTORS, INCLUDING THE INDEPENDENT DIRECTORS, RECOMMENDS THAT
THE SHAREHOLDERS VOTE "FOR" THE FUND'S NOMINEE FOR DIRECTOR.
8
<Page>
ADDITIONAL INFORMATION
BENEFICIAL OWNERS
The following table shows certain information concerning persons who may be
deemed beneficial owners of 5% or more of the Shares of the Fund because they
possessed or shared voting or investment power with respect to the Shares:
<Table>
<Caption>
NUMBER OF SHARES PERCENT
NAME AND ADDRESS BENEFICIALLY OWNED OF SHARES
- ---------------- ------------------ ------------
President and Fellows of Harvard College* .................. 759,601 17.80%
c/o Harvard Management Company, Inc.
600 Atlantic Avenue
Boston, MA 02210
City of London Investment Group PLC** ...................... 450,708 10.58%
10 Eastcheap
London EC3M 1LX
England
</Table>
- --------------
* As stated in Schedule 13G filed with the SEC on February 12, 2003.
** As stated in Schedule 13G filed with the SEC on July 2, 2003.
SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section 16(a) of the 1934 Act and Section 30(h) of the 1940 Act require the
Fund's officers and directors, certain officers and directors of the investment
adviser, affiliated persons of the investment adviser, and persons who
beneficially own more than 10% of the Fund's Shares to file reports of ownership
with the SEC and the Fund.
Based solely upon its review of the copies of such forms received by it and
written representations from such persons, the Fund believes that, for the
fiscal year ended September 30, 2003, all filing requirements applicable to such
persons were complied with except for the following:
Jonathan W. Lubell: Form 4s were not timely filed to report the disposition
of shares on December 31, 2002, May 7, 2003, and August 1, 2003. A Form 4A was
filed on November 26, 2003 to report these transactions.
Laurence R. Smith: A Form 3 was not timely filed to report his appointment
as Chairman of the Fund, President and Interim Chief Investment Officer on
May 13, 2002. A Form 3 and Form 3A were filed on June 10, 2003 to report this
event.
SHAREHOLDER PROPOSALS
Pursuant to Rule 14a-8 under the 1934 Act, for a shareholder proposal to be
considered for inclusion in the Fund's proxy material relating to its 2005
annual meeting of shareholders, the shareholder proposal must be received by the
Fund a reasonable time before the Fund begins to print and mail its proxy
materials for the 2005 annual meeting which is expected to be on or about
January 21, 2005. The shareholder proposal, including any accompanying
supporting statement, may not exceed 500 words. A shareholder desiring to submit
a proposal must be a record or beneficial owner of Shares with a market value of
at least $2,000 and must have held such Shares for at least one year. Further,
the shareholder must
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continue to hold such Shares through the date on which the meeting is held.
Documentary support regarding the foregoing must be provided along with the
proposal. There are additional requirements regarding proposals of shareholders,
and a shareholder contemplating submission of a proposal is referred to
Rule 14a-8 promulgated under the 1934 Act. The timely submission of a proposal
does not guarantee its inclusion in the Fund's proxy materials.
Pursuant to the By-laws of the Fund, at any annual meeting of the
shareholders, only such business will be conducted as has been properly brought
before the annual meeting. To be properly brought before the annual meeting, the
business must be (i) specified in the notice of meeting (or any supplement
thereto) given by or at the direction of the Board, (ii) otherwise properly
brought before the meeting by or at the direction of the Board, or
(iii) otherwise properly brought before the meeting by a shareholder.
For business to be properly brought before the annual meeting by a
shareholder, the shareholder must have given timely notice thereof in writing to
the Secretary of the Fund. To be timely, any such notice must be delivered to or
mailed and received at The First Israel Fund, Inc. c/o Credit Suisse Asset
Management, LLC, 466 Lexington Avenue, 16th Floor, New York, NY 10017 not later
than 45 days before the date in the then current year corresponding to the date
on which the Fund first mailed its notice and proxy materials for the annual
meeting held in the prior year; provided, however, that in the event that the
date of the annual meeting is advanced or delayed by more than 30 days from the
first anniversary of the preceding year's annual meeting, notice by such
shareholder to be timely must be so received not later than the close of
business on the 10th day following the day on which notice or public
announcement of the date of such meeting was given or made. In no event shall
the public announcement of an adjournment of an annual meeting commence a new
time period for the giving of a shareholder's notice as described above.
Any such notice by a shareholder shall set forth as to each matter the
shareholder proposes to bring before the annual meeting: (i) a brief description
of the business desired to be brought before the annual meeting and the reasons
for conducting such business at the annual meeting, (ii) the name and address,
as they appear on the Fund's books, of the shareholder proposing such business,
(iii) the class and number of shares of the capital stock of the Fund which are
beneficially owned by the shareholder, (iv) a representation that the
shareholder is a holder of record of shares of the Fund entitled to vote at such
meeting and intends to appear in person or by proxy at the meeting to present
such business, (v) whether the shareholder intends or is part of a group which
intends to solicit proxies from other shareholders in support of such business
and (vi) any material interest of the shareholder in such business.
The Fund may exercise discretionary voting authority with respect to any
shareholder proposals for the 2005 annual meeting of shareholders not included
in the proxy statement and form of proxy which are not submitted to the Fund
within the time-frame indicated above. Even if timely notice is received, the
Fund may exercise discretionary voting authority in certain other circumstances.
Discretionary voting authority is the ability to vote proxies that shareholders
have executed and returned to the Fund on matters not specifically reflected on
the form of proxy.
SHAREHOLDERS WHO DO NOT EXPECT TO BE PRESENT AT THE ANNUAL MEETING AND WHO
WISH TO HAVE THEIR SHARES VOTED ARE REQUESTED TO DATE AND SIGN THE ENCLOSED
PROXY CARD AND RETURN IT IN THE ENCLOSED ENVELOPE. NO POSTAGE IS REQUIRED IF
MAILED IN THE UNITED STATES.
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OTHER BUSINESS
Management knows of no business to be presented at the Meeting, other than
the matters set forth in this Proxy Statement, but should any other matter
requiring the vote of shareholders arise, the proxies will vote thereon
according to their best judgment in the interests of the Fund.
THE FUND WILL FURNISH, WITHOUT CHARGE, A COPY OF ITS MOST RECENT ANNUAL
REPORT AND ANY MORE RECENT SEMI-ANNUAL REPORT TO A SHAREHOLDER UPON REQUEST. ANY
SUCH REQUEST SHOULD BE DIRECTED TO THE FUND BY CALLING 1-800-293-1232, BY
WRITING TO THE FIRST ISRAEL FUND, INC. C/O CREDIT SUISSE ASSET MANAGEMENT, LLC
AT 466 LEXINGTON AVENUE, 16TH FLOOR, NEW YORK, NEW YORK 10017, OR AT THE WEBSITE
OF CREDIT SUISSE ASSET MANAGEMENT, LLC AT WWW.CSAM-AMERICAS.COM. THESE REQUESTS
WILL BE HONORED WITHIN THREE BUSINESS DAYS OF RECEIPT.
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THE FIRST ISRAEL FUND, INC.
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JANUARY 13, 2004
3917-PS-04
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THE FIRST ISRAEL FUND, INC.
466 LEXINGTON AVENUE
16TH FLOOR
NEW YORK, NY 10017
PROXY
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
The undersigned hereby appoints Messrs. Hal Liebes and Michael A.
Pignataro, and each of them separately, as Proxies, each with the power to
appoint his substitute, and hereby authorizes them to represent and to vote, as
designated on the reverse side and in accordance with their judgment on such
other matters as may properly come before the meeting or any adjournments
thereof, all shares of The First Israel Fund, Inc. (the "Fund") that the
undersigned is entitled to vote at the annual meeting of shareholders to be held
on Tuesday, January 13, 2004, and at any adjournments thereof.
SEE REVERSE SEE REVERSE
SIDE CONTINUED AND TO BE SIGNED ON REVERSE SIDE SIDE
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PLEASE MARK
/X/ VOTES AS IN
THIS EXAMPLE.
THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" THE NOMINEE IN PROPOSAL 1.
1. ELECTION OF THE FOLLOWING NOMINEE AS DIRECTORS:
NOMINEES: (01) George W. Landau
/ / FOR nominee listed above
MARK HERE FOR ADDRESS CHANGE AND NOTE AT LEFT
/ / WITHHOLD AUTHORITY to vote for nominee listed above
(INSTRUCTION: TO WITHHOLD AUTHORITY FOR ANY INDIVIDUAL
NOMINEE, STRIKE A LINE THROUGH SUCH INDIVIDUAL'S NAME ABOVE.)
THIS PROXY WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER
DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER. IF NO
DIRECTION IS MADE, THIS PROXY WILL BE VOTED "FOR" PROPOSAL 1.
PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY
USING THE ENCLOSED ENVELOPE.
Please sign exactly as name appears at left. When shares are
held by joint tenants, both should sign. When signing as
attorney, executor, administrator, trustee or guardian,
please give full title as such. If a corporation, please
sign in full corporate name by president or other authorized
officer. If a partnership, please sign in partnership name
by authorized person.
Signature:_____________________________ Date: _______________________ Signature:_____________________________ Date:________________
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