PHILADELPHIA, Oct. 27 /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 September 30, 2008. The Fund's total returns for various periods through September 30, 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 (December 1985) 524.1 8.4 506.1 8.2 10-years 256.8 13.6 341.7 16.0 5-years 107.7 15.7 131.2 18.2 3-years 23.3 7.2 9.7 3.1 1-year -28.3 -31.1 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 September 30, 2008, the Fund's net assets amounted to US$206.0 million and the Fund's NAV per share was $10.71. As of September 30, 2008, the portfolio was invested as follows: Portfolio Composition Percent of Net Assets Consumer Discretionary 9.3 Consumer Staples 16.8 Energy 4.3 Finance 28.5 HealthCare 1.2 Industrials 5.4 Information Technology 1.3 Materials 20.6 Other 1.9 Property 4.0 Telecommunications 1.7 Utilities 5.0 The Fund's ten largest equity holdings as of September 30, 2008, representing 58.8% of net assets, were: Stock Percent of Net Assets BHP Billiton Limited 11.1 QBE Insurance Group Limited 8.1 Rio Tinto Limited 6.6 Westpac Banking Corporation Limited 5.7 Australia & New Zealand Banking Group Limited 5.4 Woolworths Limited 5.3 Commonwealth Bank of Australia 4.5 Woodside Petroleum Limited 4.3 Westfield Group Limited 4.0 Wesfarmers Limited 3.8 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, +866-839-5205,

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