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

PHILADELPHIA, Sept. 3  /PRNewswire-FirstCall/ -- Aberdeen Australia Equity Fund, Inc. (the "Fund") (NYSE AMEX: IAF), a closed-end equity fund, announced today its performance data and portfolio composition as of July 31, 2009.

The Fund's total returns for various periods through July 31, 2009 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       535.8           8.2         564.5              8.4
  (December 1985)       -----           ---         -----              ---
  --------------
  10-years              171.0          10.5         238.4             13.0
  --------              -----          ----         -----             ----
  5-years                82.0          12.7         111.0             16.1
  -------                ----          ----         -----             ----
  3-years                14.5           4.6          14.0              4.5
  -------                ----           ---          ----              ---
  1-year                       -16.7                          -15.5
  ------                       -----                          -----



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 July 31, 2009, the Fund's net assets amounted to US$187.5 million and the Fund's NAV per share was $9.75.

  As of July 31, 2009, the portfolio was invested as follows:


  Portfolio Composition                                 Percent of
                                                        Net Assets
                                                     -------------
  Consumer Discretionary                                       6.4
  ----------------------                                       ---
  Consumer Staples                                            14.4
  ----------------                                            ----
  Energy                                                       4.1
  ------                                                       ---
  Finance                                                     26.1
  -------                                                     ----
  HealthCare                                                   2.9
  ----------                                                   ---
  Industrials                                                  3.4
  -----------                                                  ---
  Information Technology                                       1.8
  ----------------------                                       ---
  Materials                                                   24.8
  ---------                                                   ----
  Other                                                        3.8
  -----                                                        ---
  Property                                                     3.8
  --------                                                     ---
  Telecommunications                                           3.0
  ------------------                                           ---
  Utilities                                                    5.5
  ---------                                                    ---



The Fund's ten largest equity holdings as of July 31, 2009, representing 61.7% of net assets, were:

  Stock                                               Percent of
                                                      Net Assets
                                                      ----------
  BHP Billiton Limited                                      14.2
  --------------------                                      ----
  Rio Tinto Limited                                          7.9
  -----------------                                          ---
  QBE Insurance Group Limited                                6.3
  ---------------------------                                ---
  Westpac Banking Corporation Limited                        6.1
  -----------------------------------                        ---
  Woolworths Limited                                         5.1
  ------------------                                         ---
  Commonwealth Bank of Australia Limited                     4.7
  --------------------------------------                     ---
  Lion Nathan Limited                                        4.6
  -------------------                                        ---
  Australia & New Zealand Banking Group
   Limited                                                   4.5
  -------------------------------------                      ---
  Woodside Petroleum Limited                                 4.2
  --------------------------                                 ---
  AGL Energy Limited                                         4.1
  ------------------                                         ---

  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. Aberdeen is a U.S. registered service mark of Aberdeen Asset Management PLC.

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:  Investor Relations, Aberdeen Asset Management Inc.,

[phone], 

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