NOTES TO FINANCIAL STATEMENTS FEBRUARY 29, 2000 (UNAUDITED)
2. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Advisor, a registered investment advisor, provides the Funds with investment management services. As
compensation for these services, the Advisor charges the Funds a monthly fee of 1/12 of 1% on each Fund's
respective average daily net assets. The Funds reimburse the Advisor any service fees paid by it to the extent that
shareholder service related expenses are incurred by the Advisor. Certain officers and Trustees of the Funds are
also officers and directors of the Advisor. All officers serve without direct compensation from the Funds.
Investment advisory fees and other transactions with affiliates, for the period ended February 29, 2000, are as
* For Funds offering Class A shares, the contractual expense limitation would include an additional 0.25% for
Class A Distributor fees.
The investment advisory agreements provide that any reductions made by the Advisor in its fees are subject to
reimbursement by the Funds within the following three years provided that Funds are able to effect such
reimbursement and remain in compliance with applicable expense limitations. During the period ended February
29, 2000, the Matthews Asian Growth and Income Fund, Matthews Dragon Century China Fund, Matthews
Japan Fund and Matthews Pacific Tiger Fund reimbursed expenses to the Advisor totaling $8,466, $6,483,
$48,641 and $144,744, respectively. As of February 29, 2000, the total expenses waived and reimbursed by
the Advisor that are subject to reimbursement by the Matthews Asian Growth and Income Fund, Matthews
Asian Technology Fund, Matthews Dragon Century China Fund, Matthews Japan Fund, Matthews Korea Fund
and Matthews Pacific Tiger Fund totaled $186,915, $18,045, $88,975, $12,273, $0 and $612, respectively.
3. DISTRIBUTOR FEES AND CLASS SPECIFIC EXPENSES
Effective December 1, 1999, Provident Distributors, Inc. (the "Distributor") serves as the Funds' Distri