Company Press Release

San Francisco, CA, Aug. 5, 2008—Matthews International Capital Management, LLC today announced plans to re-open the Matthews Asian Growth and Income Fund and Matthews Pacific Tiger Fund to new investors on September 2, 2008.

The Funds, both launched in 1994, have been closed to most new investors since November 28, 2003 and June 7, 2006, respectively. The Funds’ closure had been prompted by rapid increases in inflows combined with market constraints.

“With the subsequent deepening of Asia’s capital markets, we are now presented with new opportunities for investment, particularly as valuations have declined, despite an environment of ongoing growth,” said Andrew Foster, Matthews’ acting Chief Investment Officer and lead Portfolio Manager of the Matthews Asian Growth and Income Fund.

Re-opening the Funds will enable Matthews to pursue new investment opportunities while maintaining existing positions that remain attractive. In addition, the firm believes that restoring the balance between purchases and redemptions is in the best interest of shareholders.

The Matthews Asian Growth and Income Fund (MACSX) aims to offer investors a relatively stable means to participate in Asia’s growth, while providing some downside protection.

The Matthews Pacific Tiger Fund (MAPTX) is a diversified, all-cap strategy that seeks long-term capital appreciation by investing in companies capable of sustained, long-term growth.

Both Funds have long-term track records of investing in Asia. The Matthews Asian Growth and Income Fund and the Matthews Pacific Tiger Fund were ranked 1st and 2nd, respectively, based on total return, out of 11 funds in the Lipper Pacific ex-Japan Funds category for the period September 30, 1994 (the Funds’ inception) through June 30, 2008. “With the re-opening of the Funds, we are pleased to offer investors access to our full range of investment strategies,” said William J. Guilfoyle, Co-Chief Executive Officer of Matthews. “At Matthews, we believe regionally diversified Asia funds, such as these, are ideal as a core component of any global portfolio.”

About Matthews Asia

At Matthews, we believe in the long-term growth of Asia. Since 1991, we have focused our efforts and expertise exclusively within the region, investing through a variety of market environments. As an independent, privately owned firm, Matthews is the largest dedicated Asia-only investment specialist in the United States. Our investment offerings provide a broad range of choices for building a global portfolio that includes exposure to one of the world’s fastest-growing regions. With nearly $9 billion in assets under management as of June 30, 2008, Matthews employs a bottom-up, fundamental investment philosophy, with a focus on long-term investment performance. For more information please visit www.matthewsfunds.com.

Disclosures

You should consider the investment objectives, risks, charges and expenses of the Matthews Asian Funds carefully before making an investment decision. A prospectus with this information and other information about the Funds may be obtained by calling 1-800-789-ASIA or by visiting matthewsfunds.com. Please read the prospectus carefully before investing as it explains the risks associated with investing in international markets.

Investing in foreign securities may involve certain additional risks, including exchange-rate fluctuations, less liquidity, greater volatility and less regulation.

Lipper, Inc. reports performance and calculates rankings for mutual funds. Each fund is ranked within a universe of funds with similar investment objectives. Ranking is based on total returns, including reinvestment of dividends and capital gains, for the stated periods. Past performance does not guarantee future results.

The Matthews Asian Growth and Income Fund ranked 6th for the one-year period; 31st for the five-year period; and 4th for the 10-year period, as of 6/30/08 in the Lipper Pacific ex-Japan Funds category.

The Matthews Pacific Tiger Fund ranked 27th for the one-year period; 16th for the five-year period; and 2nd for the 10-year period, as of 6/30/08, in the Lipper Pacific ex-Japan Funds category.

As of 6/30/08, the Lipper Pacific ex-Japan Funds Category Average consisted of 44 funds for the one-year period; 36 funds for the five-year period; 27 funds for the 10-year period; and 11 funds since 9/30/94.