GF New Germany Fund Inc

The New Germany Fund, Inc. (NYSE: GF) today announced continued strong performance for the first quarter of 2006, with an NAV return of 26.26% and market price return of 27.38% as of March 31, 2006 (in each case, not annualized). The Fund again outperformed its benchmark, the Midcap Market Performance Index, which returned 22.13 % for the same period. Standardized performance returns can be found in the chart below. Separately, the Fund announced today that its annual meeting of stockholders will be held at 11:00 am (New York time) on June 20, 2006 at the offices of Deutsche Bank AG, 345 Park Avenue, New York, New York 10154. Only holders of record of the Fund's Common Stock at the close of business on April 21, 2006 will be entitled to notice of, and to vote at, the annual meeting of stockholders of the Fund. The Fund is managed and advised by members of the Deutsche Bank Group. The New Germany Fund, Inc. is a non-diversified; closed-end investment company seeking capital appreciation primarily through investment in middle market German equities. The Fund may invest up to 35% of its assets in large cap German companies, and up to 20% in other Western European companies (with no more than 10% in any single country). Its shares are listed on the New York Stock Exchange under the symbol "GF". -0- *T ---------------------------------------------------------------------- 3 Year 5 Year 5 Year Avg. Avg. Avg. YTD 1 Year Annual Annual Annual Returns as of March 31, 2006 Return Return Return Return Return (%)* (%) (%) (%) (%) ---------------------------------------------------------------------- The New Germany Fund, Inc. (Net Asset Return) 26.26 39.80 50.23 12.00 7.62 ---------------------------------------------------------------------- The New Germany Fund, Inc. (Market Price Return) 27.38 50.02 58.92 14.43 9.49 ---------------------------------------------------------------------- * Total returns shown for the three month period are not annualized. *T Past Performance is no guarantee of future results. Performance is historical, assumes reinvestment of all dividend and capital gain distributions, and does not guarantee future results. Investment returns and principal value fluctuate with changing market conditions so that, when sold, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Please visit www.newgermanyfund.com for the Fund's most recent performance. Total return based on market price reflects changes in market value. Total return based on net asset value reflects changes in the fund's net asset value during each period. Each figure assumes that dividends and capital gains, if any, were reinvested. These figures will differ depending on the level of any discount from or premium to NAV at which the fund's shares traded during the period. Returns less than one-year are cumulative. This Fund is not diversified and primarily focuses its investments in Germany, thereby increasing its vulnerability to developments in that country. Investing in foreign securities presents certain unique risks not associated with domestic investments, such as currency fluctuation and political and economic changes and market risks. This may result in greater share price volatility. Closed-end funds, unlike open-end funds, are not continuously offered. There is a one time public offering and once issued, shares of closed-end funds are sold in the open market through a stock exchange. Shares of closed-end funds frequently trade at a discount to net asset value. The price of the fund's shares is determined by a number of factors, several of which are beyond the control of the fund. Therefore, the fund cannot predict whether its shares will trade at, below or above net asset value. The Midcap Market Performance Index is a total return index that is composed of various MDAX and TecDax issues, reflecting the performance of the mid-caps across all sectors of the Prime Segment. Index returns assume reinvestment of any and all distributions and, unlike fund returns, do not reflect fees or expenses. It is not possible to invest directly in an index. MDAX is a total rate of return index of 50 mid-cap issues that rank below the DAX. DAX is the total rate of return index of 30 selected German blue chips stocks traded on the Frankfurt stock exchange. TecDax is a total return index that tracks the 30 largest and most liquid issues from the various technology sectors of the Prime Segment beneath the DAX. Fund specific data and performance are provided for informational purposes only and are not intended for trading purposes. This announcement is not an offer to purchase or the solicitation of an offer to sell shares of the Fund or a prospectus, circular or representation intended for use in the purchase or sale of Fund shares. (4/06 44185) -0- *T NOT FDIC/NCUA INSURED MAY LOSE VALUE NO BANK GUARANTEE NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY *T