  We discuss a string model where a conformal four-dimensional N=2 gauge theory
receives corrections to its gauge kinetic functions from "stringy" instantons.
These contributions are explicitly evaluated by exploiting the localization
properties of the integral over the stringy instanton moduli space. The model
we consider corresponds to a setup with D7/D3-branes in type I' theory
compactified on T4/Z2 x T2, and possesses a perturbatively computable heterotic
dual. In the heteoric side the corrections to the quadratic gauge couplings are
provided by a 1-loop threshold computation and, under the duality map, match
precisely the first few stringy instanton effects in the type I' setup. This
agreement represents a very non-trivial test of our approach to the exotic
instanton calculus.
