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

PHILADELPHIA, Dec. 5  /PRNewswire-FirstCall/ -- Aberdeen Australia Equity Fund, Inc. (the "Fund") (NYSE:IAF), a closed-end equity fund, announced today its performance data and portfolio composition as of October 31, 2008.

The Fund's total returns for various periods through October 31, 2008 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     387.8         7.2            401.2           7.3
  (December 1985)
  10-years            155.8         9.9            230.5          12.7
  5-years              50.7         8.6             72.9          11.6
  3-years               0.9         0.3             -6.2          -2.1
  1-year                     -47.8                         -45.6



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 October 31, 2008, the Fund's net assets amounted to US$160.9 million and the Fund's NAV per share was $8.37.

  As of October 31, 2008, the portfolio was invested as follows:


  Portfolio Composition                        Percent of Net Assets
  Consumer Discretionary                                8.8
  Consumer Staples                                     17.3
  Energy                                                3.9
  Finance                                              28.0
  HealthCare                                            1.3
  Industrials                                           4.1
  Information Technology                                1.3
  Materials                                            20.4
  Other                                                 3.8
  Property                                              4.3
  Telecommunications                                    1.6
  Utilities                                             5.2



The Fund's ten largest equity holdings as of October 31, 2008, representing 57.9% of net assets, were:

  Stock                                        Percent of Net Assets
  BHP Billiton Limited                                11.1
  QBE Insurance Group Limited                          7.7
  Rio Tinto Limited                                    6.5
  Westpac Banking Corporation Limited                  5.7
  Woolworths Limited                                   5.6
  Australia & New Zealand Banking Group Limited        4.9
  Commonwealth Bank of Australia                       4.6
  Westfield Group Limited                              4.3
  Woodside Petroleum Limited                           3.9
  Lion Nathan Limited                                  3.6

  Important Information


Aberdeen Asset Management Inc., the Fund's 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 Administrator, Aberdeen Asset Management Asia Limited (the Investment Manager), Aberdeen Asset Management Limited (the Investment Adviser), nor any other person guarantees their accuracy.  Investors should seek their own professional advice and should consider the investment objectives, risks, charges and expenses before acting on this information.

Total return figures with distributions reinvested at the dividend reinvestment price are stated net-of-fees and represents past performance.  Past performance is not indicative of future results, current performance may be higher or lower.  Inception date December 12, 1985.

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

DATASOURCE: Aberdeen Australia Equity Fund, Inc.



CONTACT:  Aberdeen Asset Management Inc., Investor Relations,

[phone], 

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