The Chile Fund, Inc. Announces Approval of Managed Distribution Policy and Tender...

The Chile Fund, Inc. Announces Approval of Managed Distribution Policy and
Tender Offer

NEW YORK, June 26 /PRNewswire-FirstCall/ -- The Chile Fund, Inc. (NYSE AMEX:
CH) (the "Fund"), a closed-end management investment company, announced today
that its Board of Directors (the "Board") has approved a managed distribution
policy. The Board has determined that the Fund will pay quarterly
distributions at an annual rate, set once a year, that is a percentage of the
average of the Fund's prior four calendar quarter-end net asset values. The
Board has determined that the initial percentage shall be 10%. This policy
will be subject to regular review by the Board. Previously the Fund's policy
was to pay a single annual distribution.

In addition, in the event the Fund's discount to net asset value exceeds 2% on
a volume weighted average basis for the three month period ending December 31,
2009 the Fund will conduct a tender offer for 25% of the outstanding shares of
the Fund. Such offer, if implemented, would be made at a price equal to 99%
of net asset value per share. The tender offer will commence in the first
quarter of 2010, although the exact date and the form (in cash or in-specie)
remains to be determined.

Managed Distribution
The first distribution under the managed distribution policy will be US 36
cents per share and is payable on July 24, 2009, to all shareholders of record
on July 14, 2009 (ex-dividend date July 10, 2009). The Fund's previous annual
distribution, which was paid in January 2009, was US 72 cents per share,
consisting of a special long-term capital gains distribution of US 56 cents
per share, and a special income distribution of US 16 cents per share.

Among other factors, in approving the managed distribution policy the Board of
Directors considered the ability of the Fund to sustain the policy and
recognized the significant amount of unrealized capital gains estimated at
$81.5 million ($8.01 per share) as of June 24, 2009, represented in the Fund's
net assets. It also considered that making periodic distributions could
increase liquidity for common shareholders and may assist in narrowing the
discount to NAV at which common shares have tended to trade. Of course, there
can be no guarantee that these benefits will occur or that any improvement
would continue.

The distributions will be made from net investment income, net realized
capital gains and, to any extent necessary, paid-in capital. As net assets of
the Fund may vary from quarter to quarter, the quarterly distribution may
represent more or less than one-quarter of 10% of the Fund's net assets at the
time of distribution.

The Fund will apply for an exemption from the SEC allowing distribution of
long-term capital gains more than once per year. While this exemption will
not affect the implementation of the managed distribution policy, it is likely
to affect the composition of the distributions. Until exemptive relief is
obtained, distributions (except for the fourth quarter distribution) are
expected to have a significant component of return of capital. For example,
the initial distribution of US 36 cents per share is expected to consist of
approximately 21 cents of net investment income and 15 cents of return of
capital.

The Fund is subject to U.S. corporate, tax and securities laws. Under U.S. tax
accounting rules, the amount of distributable income for each fiscal year
depends on the actual exchange rates during the entire year between the U.S.
dollar and the currencies in which Fund assets are denominated, and on the
aggregate gains and losses realized by the Fund during the entire year.
Therefore, the exact amount of distributable income for each fiscal year can
only be determined as of the end of the Fund's fiscal year, December 31.
However, under the U.S. Investment Company Act of 1940, the Fund is required
to estimate the source of each distribution to shareholders. This estimated
distribution composition may vary from quarter to quarter because it may be
materially impacted by future realized gains and losses on securities and
fluctuations in the value of the currencies in which Fund assets are
denominated.

Tender Offer
In approving the tender offer, the Board considered that the tender offer
could enable shareholders to tender a portion of their shares at a price that
is greater than what they could realize in the secondary market at that time.
Additionally, the Board considered that the tender offer could provide an
opportunity for additional liquidity for common shareholders, may have a
marginally accretive impact to NAV for common shareholders who remain invested
and may assist in narrowing the discount to NAV at which common shares have
tended to trade.

Also, the Board took into account the anticipated benefits in securing the
services of the new adviser and the uncertainty created by the failure of two
very large shareholders to support the proposal unless a tender offer was
agreed to. The Board considered the tender offer in light of the potential
benefits to the Fund as a whole and all shareholders.

There can be no assurance that the managed distribution policy or tender offer
will cause the discount at which the Fund's common shares have tended to trade
to narrow or that the common shares will trade at a price equal to their NAV.
The Board also considered the potential negative effects a managed
distribution plan and tender offer (or either alone) might have on the Fund's
expense ratio and on the management of the Fund's portfolio.

Finally, if its advisory agreement with the Fund is approved by shareholders,
Aberdeen Asset Management Investment Services Limited (AAMISL) has agreed to
voluntarily waive a portion of its fee so that it will be paid the lesser of
1.00% of (1) average weekly net assets or (2) average weekly market value.
This waiver will remain in place for one year and continue thereafter subject
to agreement of the parties. AAMISL and the Board believe that the voluntary
expense waiver could provide an additional benefit to common shareholders who
remain invested in the Fund by keeping expenses lower than they otherwise
would have been and by mitigating some increases in expenses that may result
from a decrease in the Fund's size due to its tender offer. Also, if its
sub-advisory agreement with the Fund is approved by shareholders, Celfin
Capital Servicios Financieros S.A. has agreed to voluntarily waive a portion
of its fee, which is payable by AAMISL, so that it will be paid the lesser of
0.17% of (1) average weekly net assets or (2) average weekly market value.

This announcement is not a recommendation, an offer to purchase or a
solicitation of an offer to sell shares of the Fund. The Fund has not
commenced the tender offer described in this release. Any tender offer will
be made only by an offer to purchase, a related letter of transmittal and
other documents which will be filed with the Securities and Exchange
Commission as exhibits to a tender offer statement on Schedule TO.
Shareholders of the Fund should read the relevant offer to purchase and tender
offer statement on Schedule TO and related exhibits when those documents are
filed and become available, as they will contain important information about
the tender offer.

Cautionary statement regarding forward-looking information. Statements made in
this release that look forward in time involve risks and uncertainties and are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such risks and uncertainties include, without
limitation, the adverse effect from a decline in the securities markets or a
decline in a Fund's performance, a general downturn in the economy,
competition from other closed-end investment companies, changes in government
policy or regulation, inability of a Fund's investment adviser to attract or
retain key employees, inability of a Fund to implement its investment
strategy, inability of a Fund to manage rapid expansion and unforeseen costs
and other effects related to legal proceedings or investigations of government
and self-regulatory organizations.

SOURCE The Chile Fund, Inc.

Investor Relations, +1-800-293-1232