NEW YORK, Dec. 13 /PRNewswire-FirstCall/ -- The Board of Directors of The Taiwan Fund, Inc. (NYSE:TWN) (the "Fund") is pleased to announce that it has declared capital gain and net investment income distributions in the estimated aggregate amount of $3.19 per share. The capital gain portion of the distributions is comprised of long-term capital gains estimated at $2.07 per share and short-term capital gains estimated at $0.69 per share. The net investment income portion of the distributions is estimated to be $0.43 per share. The precise amount of the distributions will be determined on the ex- dividend date of the distributions, at which time the Fund will make a further announcement. The distributions will be payable on January 25, 2008 to shareholders of record on December 24, 2007 with an ex-dividend date of December 20, 2007. The distributions will be paid in the Fund's common stock. Stockholders may, however, request that their distributions be paid in cash in lieu of common stock. Such requests must be for the entire distribution payable to the stockholder. The aggregate amount of cash distributions to all stockholders will be limited to 30% of the aggregate dollar amount of the total distributions. If cash distribution requests exceed this limit, the Fund will pro rate the cash distribution among all stockholders who have made such requests, based on the amounts requested. Requesting stockholders who do not receive 100% of their distributions in cash, will receive the balance in common stock. Stockholder requests to receive cash in lieu of stock must be received by January 17, 2008. The per share value of shares of the Fund's common stock to be issued in the distribution will be determined on January 18, 2008. The per share value will be the closing price on the New York Stock Exchange of the Fund's common stock on that date, unless the net asset value per share of common stock on that date is less than the closing price, in which case the per share price will be the net asset value per share of the common stock (but not less than 95% of the closing price) on January 18, 2008. A written notice of the planned distributions will be sent to stockholders. The written notice will include instructions on how stockholders can request to receive cash in lieu of stock. Stockholders who have questions regarding the distribution may contact Georgeson Inc., at 1-800-636-9242. In addition, the Fund has posted on its website, http://www.thetaiwanfund.com/, information regarding the distribution, including frequently asked questions. The Fund is a closed-end management investment company seeking long-term capital appreciation primarily through investment in the equity securities listed in Taiwan. The Taiwan Fund, Inc. is listed on the New York Stock Exchange under the ticker symbol "TWN". The Fund's investment manager is HSBC Investment (Taiwan) Limited. DATASOURCE: The Taiwan Fund Inc. CONTACT: Tony Fernandes of State Street Bank & Trust Co. for The Taiwan Fund, Inc., +1-617-662-2965 Web site: http://www.thetaiwanfund.com/

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