ADJOURNMENT NOTICE



                    Japan Smaller Capitalization Fund, Inc.
                    c/o Nomura Asset Management U.S.A. Inc.
              Two World Financial Center, Building B, 22ND. Floor
                            New York, NY 10281-1712

Dear Stockholder,

You have likely already received a letter from us in regard to the Annual
Meeting of Stockholders of your Fund, which was scheduled for Friday, November
17, 2006. Due to insufficient participation by stockholders for passage of
Proposal 2, we have had to adjourn the Annual Meeting to Wednesday, December
13, 2006. This adjournment was scheduled to allow stockholders who have not
yet voted to have an opportunity to cast their important vote. We are mailing
this letter only to those stockholders who, according to our records, still
have not voted at the time of this mailing.

Please help your Fund to hold the vote on Proposal 2 by taking a moment now to
cast your vote.

Proposal 2 is noted on the enclosed proxy card. The details of Proposal 2 can
be found in the proxy statement, which was originally mailed to you on or
about October 19, 2006. Should you need any additional information on Proposal
2 or to vote over the phone, please do not hesitate to call us toll-free at
1-800-441-2738. Representatives are available Monday through Saturday from
9:00 a.m. to 10:00 p.m. Eastern Time. The voting options listed below have
been set up for your convenience.

Help us to hold the vote on Proposal 2 by taking a moment to cast your vote
today. Thank you for your assistance with this important matter.

Respectfully,

---------------------
The Board of Directors of Japan Smaller Capitalization Fund, Inc.

[GRAPHIC OMITTED]    1.    Vote by Telephone. You may cast your vote by
Telephone                  telephone by calling toll-free 1-800-441-2738
                           Monday through Saturday from 9:00 a.m. to 10:00
                           p.m. Eastern Time.

[GRAPHIC OMITTED]     2.   Vote by Internet. You may cast your vote by logging
Computer                   on to the internet site found on your proxy ballot.

[GRAPHIC OMITTED]    3.    Vote by Mail. You may cast your vote by mail by
Envelope                   signing, dating and mailing the enclosed proxy card
                           in the postage-prepaid return envelope provided.

                           (If convenient for you, please utilize the above
                           phone or internet options to insure that your
                           response is received in time for the adjourned
                           Meeting on December 13, 2006.)