FEE WAIVER AGREEMENT

                                  EX-99. (h)(4)
                               Exhibit 99 (h) (4)


                    FLAG INVESTORS COMMUNICATIONS FUND, INC.


                              FEE WAIVER AGREEMENT


         THIS FEE WAIVER AGREEMENT is made as of the 31ST day of aUGUST , 2000
by and between FLAG INVESTORS COMMUNICATIONS FUND, INC., a Maryland corporation
(the " Fund") and INVESTMENT COMPANY CAPITAL CORP., a Maryland corporation
("ICCC"), with respect to the following:

         WHEREAS, ICCC serves as the Fund's investment advisor pursuant to an
Investment Advisory Agreement dated September 1, 2000; and

         WHEREAS, ICCC serves as the Fund's administrator pursuant to an
Administrative Services Agreement dated September 1, 2000; and

         WHEREAS, ICCC, in its capacity as the Fund's advisor and administrator,
has voluntarily agreed to an aggregate fee waiver equal to 0.15% of the Fund's
average daily net assets; and

         WHEREAS, the Fund and ICCC desire to formalize this voluntary fee
waiver arrangement for the period beginning on August 31, 2000 and ending on
September 1, 2002.

         NOW THERETOFORE, in consideration of the mutual covenants herein
contained and other good and valuable consideration, the receipt whereof is
hereby acknowledged, the parties hereto agree as follows:

         1.  ICCC, in its capacity as the Fund's advisor and administrator, has
             voluntarily agreed to an aggregate fee waiver equal to 0.15% of the
             Fund's average daily net assets for the period beginning on August
             31, 2000 and ending on September 1, 2002.

         2.  Upon the termination of the Investment Advisory Agreement or the
             Administrative Services Agreement, this Agreement shall
             automatically terminate.

         3.  Any question of interpretation of any term or provision of this
             Agreement having a counterpart in or otherwise derived from a term
             or provision of the Investment Company Act of 1940 as amended (the
             "1940 Act") shall be resolved by reference to such term or
             provision of the 1940 Act and to interpretations thereof, if any,
             by the United States Courts or in the absence of any controlling
             decision of any such court, by rules, regulations or orders of the
             SEC issued pursuant to said Act. In addition, where the effect of a
             requirement of the 1940 Act reflected in any provision of this
             Agreement is revised by rule, regulation or order of the SEC, such
             provision shall be deemed to incorporate the effect of such rule,
             regulation or order. Otherwise the provisions of this Agreement
             shall be interpreted in accordance with the laws of Maryland.






         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in duplicate by their respective officers as of the day and year first
above written.


[SEAL]


                                FLAG INVESTORS COMMUNICATIONS FUND, INC.


Attest: /s/ Xxxxxxx Xxxxxxxx                    /s/ Xxx X. Xxxxxx
        --------------------                    -------------------------------
Name:    Xxxxxxx Xxxxxxxx                By:    Xxx X. Xxxxxx
                                         Title: Secretary



                                INVESTMENT COMPANY CAPITAL CORP.


Attest: /s/ Xxxxxxx Xxxxxxxx                    /s/ Xxxxxxx X. Xxxx
        --------------------                    -------------------------------
Name:    Xxxxxxx Xxxxxxxx                By:    Xxxxxxx X. Xxxx
                                                Title: President