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

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


NEW YORK, Aug. 27  /PRNewswire-FirstCall/ -- Aberdeen Australia Equity Fund,
Inc. (AMEX:IAF)(PSE:IAF), a closed-end equity fund, announced today its
performance and portfolio composition data as of July 30, 2004.

The Fund's total returns for various periods through July 30, 2004 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%
                      Awaiting returns
                           Await

                   Cumulative   Annualized    Cumulative   Annualized
  Since inception
  (December 1985)     249.3          7.0        215.0          6.4
  10-years             86.4          6.4         86.2          6.4
  5-years              48.9          8.3         60.4          9.9
  3-years              74.3         20.3         75.6         20.7
  1-year                     25.1                      28.1




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 30, 2004, 87.4% of the Fund's portfolio was held in industrial
equities, which includes the financial sector, 8.9% was held in resource
equities and 3.7% was held in cash.  The quality of the portfolio remains high,
with 75.4% of the Fund's stocks by value being included in the Australian Stock
Exchange's Fifty Leaders Index.  As of July 30, 2004, the Fund's net assets
amounted to US$160.1 million and the Fund's NAV per share was $9.54 per share.

The Fund's ten largest equity holdings as of July 30, 2004, representing 56.2%
of total assets, were:

  Stock                                            Percent of
                                                  Total Assets
  Australia & New Zealand Banking Group Limited        7.8
  QBE Insurance Group Limited                          7.7
  Westpac Banking Corporation Limited                  6.4
  Telecom Corporation of New Zealand Limited           6.3
  Foster's Group Limited                               5.4
  TABCORP Holdings Limited                             5.4
  Rio Tinto Limited                                    4.7
  BHP Billiton Limited                                 4.2
  Telstra Corporation Limited                          4.2
  Woolworths Limited                                   4.1



Aberdeen Australia Equity Fund, Inc. is managed by Aberdeen Asset Management
Asia Limited ("Investment Manager") and advised by Aberdeen Asset Management
Limited ("Investment Adviser").  The Investment Manager 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, 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,

1-800-522-5465,  



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

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