FGF Sunamerica Alpha Growth Fund Common Stock

SunAmerica Focused Alpha Growth Fund, Inc. (NYSE:FGF), a closed-end fund (the “Fund”), today announced the estimated amounts of the sources of the Fund’s fourth quarterly dividend distribution of $0.05 per share of common stock declared on December 7, 2010 and payable on December 30, 2010 and the cumulative dividend distributions paid year-to-date.

The following table sets forth the estimated amounts of the sources of the dividend distribution for purposes of Section 19 of the Investment Company Act of 1940, as amended (the “1940 Act”) and the Rules adopted thereunder. The table includes estimated amounts for the fourth quarterly dividend distribution and the cumulative dividend distributions paid year-to-date from the following sources: net investment income; short-term capital gains; long-term capital gains; and return of capital. The estimated amounts reflect the Fund’s year-to-date cumulative experience through December 20, 2010 and the estimated percentages of net income, short-term and long term capital gains and/or return of capital are applied proportionately for both the quarterly and year-to-date dividend distributions. The estimated composition of the dividend distributions may vary from quarter to quarter because they may be impacted by future income, expenses and portfolio realized gains and losses on securities.

   

Estimated Amounts of Current Quarterly Dividend Distribution per share ($)

 

Estimated Amounts of Current Quarterly Dividend Distribution per share (%)

  Estimated Amounts of Year to Date Cumulative Dividend Distributions per share ($)*  

Estimated Amounts of Year to Date Cumulative Dividend Distributions per share (%)*

Net Investment Income   $0.0016   3.20%   $0.0064   3.20% Short-Term Capital Gains   $0.0484†   96.80%   $0.1936†   96.80% Long-Term Capital Gains   $0.0000   0%   $0.0000   0% Return of Capital   $0.0000   0%   $0.0000   0% Total (per common share)   $0.0500†   100%   $0.2000†   100%        

* Includes the Fund’s first quarterly dividend distribution of $0.05 per share paid on March 30, 2010, the Fund’s second quarterly distribution of $0.05 per share paid on June 24, 2010, the Fund’s third quarterly distribution of $0.05 per share paid on September 23, 2010 and the Fund’s fourth quarterly distribution of $0.05 per share paid on December 30, 2010.

† It is currently estimated that this distribution may not exceed the Fund’s current and accumulated earnings and profits for tax purposes and, therefore, may be taxable as ordinary income. In addition, it is also currently estimated that this distribution is in excess of the amount required to be distributed under the Internal Revenue Code of 1986, as amended (the “Code”). The final determination of the source of all dividend distributions in 2010 will be made after year-end.

Shareholders should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of the Fund’s dividend distribution policy (the “Distribution Policy”), which is to make a level dividend distribution each quarter to shareholders of its common stock at a rate that is based on a fixed amount per share as determined by the Fund’s Board of Directors, subject to an increase in the fourth quarter, as necessary, so that the Fund satisfies the minimum distribution requirements of the Code.

The amounts and sources of distributions reported in this press release are only estimates and are not being provided for tax reporting purposes. The final determination of the source of all dividend distributions in 2010 will be made after year-end. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during the remainder of the fiscal year and may be subject to change based on tax regulations. The Fund will send shareholders a Form 1099-DIV for the calendar year that will tell shareholders how to report these distributions for federal income tax purposes.

The following table provides information regarding the Fund’s total return performance based on net asset value (NAV) over various time periods as well as the Fund’s annualized and cumulative distribution rates.

Average Annual Total Return on NAV Since Inception (7/29/2005 to 11/30/2010)   5.96 % Current Annualized Distribution Rate on NAV1   1.09 %       Year-to Date (1/1/2010 to 11/30/2010)     Cumulative Total Return on NAV   23.48 % Cumulative Distribution Rate on NAV2   1.09 %

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1 Based on the Fund’s NAV as of November 30, 2010 and the most recent quarterly distribution of $0.05 declared on December 7, 2010.

2 Based on the Fund’s NAV as of November 30, 2010; includes the Fund’s first quarterly dividend distribution of $0.05 paid on March 30, 2010, the Fund’s second quarterly dividend distribution of $0.05 paid on June 24, 2010, the Fund’s third quarterly distribution of $0.05 paid on September 23, 2010 and the Fund’s fourth quarterly distribution of $0.05 declared on December 7, 2010.

While NAV performance may be indicative of the Fund’s investment performance, it does not measure the value of a shareholder’s investment in the Fund. The value of a shareholder’s investment in the Fund is determined by the Fund’s market price, which is based on the supply and demand for the Fund’s shares in the open market.

Pursuant to an exemptive order (the “Order”) granted to the Fund by the Securities and Exchange Commission (“SEC”) on February 3, 2009, the Fund may distribute any long-term capital gains more frequently than the limits provided in Section 19(b) under the 1940 Act and Rule 19b-1 thereunder. Therefore, dividend distributions paid by the Fund during the year may include net income, short-term capital gains, long-term capital gains and/or return of capital. Net income dividends and short-term capital gain dividends, while generally taxable at ordinary income rates, may be eligible, to the extent of qualified dividend income earned by the Fund, to be taxed at lower long-term capital gain rates. If the total distributions made in any calendar year exceed investment company taxable income and net capital gain, such excess distributed amount would be treated as ordinary dividend income to the extent of the Fund’s current and accumulated earnings and profits. Distributions in excess of the earnings and profits would first be a tax-free return of capital to the extent of the adjusted tax basis in the shares. After such adjusted tax basis is reduced to zero, the distribution would constitute capital gain (assuming the shares are held as capital assets). Shareholders will receive a notice (the “Notice”) with each dividend distribution, if required by Section 19(a) under the 1940 Act, estimating the sources of such dividend distribution and providing other information required by the Order. The Notice will also be made available on the Fund’s website: www.sunamericafunds.com.

The Fund is a non-diversified, closed-end management investment company. The Fund’s investment objective is to provide growth of capital. The Fund seeks to pursue this objective by employing a concentrated stock picking strategy in which the Fund, through subadvisers selected by SunAmerica Asset Management Corp., actively invests primarily in a small number of equity securities (i.e., common stocks) and to a lesser extent equity-related securities (i.e., preferred stocks, convertible securities, warrants and rights) primarily in the U.S. markets. Marsico Capital Management, LLC is the large-cap stock subadviser and BAMCO, Inc. is the small- and mid-cap stock subadviser.

For more information about the SunAmerica Focused Alpha Growth Fund, please visit www.sunamericafunds.com

As of November 30, 2010, SunAmerica Asset Management Corp. managed and/or administered approximately $41.5 billion of assets.

Marsico Capital Management, LLC and BAMCO, Inc. are not affiliated with SunAmerica Asset Management Corp.

Investors should carefully consider the SunAmerica Focused Alpha Growth Fund’s investment objective, strategies, risks, charges, expenses and Distribution Policy before investing.

THE SUNAMERICA FOCUSED ALPHA GROWTH FUND SHOULD BE CONSIDERED AS ONLY ONE ELEMENT OF A COMPLETE INVESTMENT PROGRAM. THE FUND’S EQUITY EXPOSURE AND DERIVATIVE INVESTMENTS INVOLVE SPECIAL RISKS. AN INVESTMENT IN THIS FUND SHOULD BE CONSIDERED SPECULATIVE.

There is no assurance that the SunAmerica Focused Alpha Growth Fund will achieve its investment objective. The Fund is actively managed and its portfolio composition will vary. Investing in the Fund is subject to several risks, including: Non-Diversified Status Risk, Growth and Value Stock Risk, Key Adviser Personnel Risk, Investment and Market Risk, Issuer Risk, Foreign Securities Risk, Emerging Markets Risk, Income Risk, Hedging Strategy Risk, Derivatives Risk, Preferred Securities Risk, Debt Securities Risk, Small and Medium Capitalization Company Risk, Leverage Risk, Liquidity Risk, Market Price of Shares Risk, Management Risk, Anti-Takeover Provisions Risk, Portfolio Turnover Risk and Non-Investment Grade Securities Risk. The price of shares of the Fund traded on the New York Stock Exchange will fluctuate with market conditions and may be worth more or less than their original offering price. Shares of closed-end funds often trade at a discount to their net asset value, but may also trade at a premium.

The payment of dividend distributions in accordance with the Distribution Policy may result in a decrease in the Fund’s net assets. A decrease in the Fund’s net assets may cause an increase in the Fund’s annual operating expenses and a decrease in the Fund’s market price per share to the extent the market price correlates closely to the Fund’s net asset value per share. The Distribution Policy may also negatively affect the Fund’s investment activities to the extent that the Fund is required to hold larger cash positions than it typically would hold or to the extent that the Fund must liquidate securities that it would not have sold, for the purpose of paying the dividend distribution. The Distribution Policy, may under certain circumstances, result in the amounts of taxable distributions to exceed the levels required to be distributed under the Internal Revenue Code of 1986, as amended (i.e., to the extent the Fund has capital losses in any taxable year, such losses may be carried forward to reduce the amount of capital gains required to be distributed in future years; if distributions in a year exceed the amount minimally required to be distributed under the tax rules, such excess will be taxable as ordinary income to the extent loss carryforwards reduce the required amount of capital gains in that year). The Fund’s Board of Directors has the right to amend, suspend or terminate the Distribution Policy at any time without notice to shareholders. The amendment, suspension or termination of the Distribution Policy could have a negative effect on the Fund’s market price per share which, in turn, could create or widen a trading discount. Shareholders of shares of the Fund held in taxable accounts who receive a dividend distribution (including shareholders who reinvest in shares of the Fund pursuant to the Fund’s dividend reinvestment policy) must adjust the cost basis to the extent that a dividend distribution contains a nontaxable return of capital. Investors should consult their tax adviser regarding federal, state and local tax considerations that may be applicable in their particular circumstances.