Aberdeen Australia Equity Fund, Inc. Announces Performance Data and Portfolio Composition

NEW YORK, March 22  /PRNewswire-FirstCall/ -- Aberdeen Australia Equity Fund, Inc. (AMEX:IAF)(PSE:IAF), a closed-end equity fund, announced today its performance data and portfolio composition as of February 28, 2006.

The Fund's total returns for various periods through February 28, 2006 are provided below.  (All figures are based on distributions reinvested at the dividend reinvestment price and are stated net-of-fees):

  Period                NAV Total Return %       Market Price Total Return %
                     Cumulative     Annualized    Cumulative    Annualized
  Since inception       438.4           8.7         473.4           9.0
  (December 1985)
  10-years              161.2          10.1         227.8          12.6
  5-years               158.8          21.0         228.7          26.9
  3-years               127.0          31.4         177.7          40.6
  1-year                        14.9                        19.7




The Fund's returns, which are denominated in U.S. dollars, are affected by the performance of the U.S. dollar against the Australian dollar.

On February 28, 2006, 80.9% of the Fund's portfolio was held in industrial equities, which includes the financial sector, 14.5% was held in resource equities and 4.6% was held in cash.  The quality of the portfolio remains high, with 77.8% of the Fund's stocks being included in the Australian Stock Exchange's Fifty Leaders Index.  As of February 28, 2006, the Fund's net assets amounted to US$212.6 million and the Fund's NAV per share was $12.63 per share.

The Fund's ten largest equity holdings as of February 28, 2006, representing 58.7% of total assets, were:

  Stock                                         Percent of
                                               Total Assets
  BHP Billiton Limited                              7.5
  QBE Insurance Group Limited                       7.5
  Rio Tinto Limited                                 7.0
  Australia & New Zealand Banking Group Limited     6.9
  Westpac Banking Corporation                       6.4
  Woolworths Limited                                5.6
  Westfield Group                                   5.2
  TABCORP Holdings Limited                          4.4
  Woodside Petroleum Limited                        4.2
  Commonwealth Bank of Australia                    4.0




Aberdeen Australia Equity Fund, Inc. is managed by Aberdeen Asset Management Asia Limited ("Investment Manager") and advised by Aberdeen Asset Management Limited ("Investment Adviser").  Aberdeen Asset Management Inc. ("Administrator") has prepared this report based on information sources believed to be accurate and reliable.  However, the figures are unaudited and neither the Fund, the Investment Manager, the Investment Adviser, the Administrator, nor any other person, guarantees their accuracy.  Investors should seek their own professional advice before acting on this information.

Past performance does not guarantee future results.

If you wish to receive this information electronically, please contact:  

DATASOURCE: Aberdeen Australia Equity Fund, Inc.



CONTACT:  Aberdeen Asset Management Inc., Investor Relations,

[phone], 



Web site:  http://www.aberdeen-asset.com/ 

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